KARACHI: The smuggling of live animals and export of basic raw material for leather industry, on mis-declaration, is preventing Pakistani exporters from meeting their export orders on time.
According to the Pakistan Tanners Association (PTA) exporters are unable to meet their export orders because of the severe scarcity of raw materials in Pakistan and the current price hike.
PTA members appealed to the Additional Collector of Model Customs Collectorate (MCC) to put an end to the ongoing process of export of wet blue hides/skins through self assessment automated web based system and to document the export procedure manually to eradicate the illegal export of basic raw material that the industry requires.
Agha Saiddain, executive of PTA was of the opinion that Model Customs Collectorate should collaborate with the Ministry of Commerce and Federal Board of Revenue at different posts to arrest exporters allegedly involved in the multi-million, fraudulent practice of exporting wet blue hides to Taiwan and other countries. He explained that hides were being exported through mis-declaration and the regulatory duties, worth millions of rupees were not being paid by the fraudulent exporters either.
According to Agha Saiddain, Wet Blue Split Leather of Pakistan Customs Tariff (PCT) code was being exported under the mis-declared label of ‘Buffalo Side Split Leather of Cow double Butt Leather’.
He said that according to the Statutory Regulatory Order (SRO) notification an export duty at the rate of 20 percent was levied on the export of Wet Blue Split Leather.
Agha alleged that exporters were mis-declaring the label to avoid the export duties.
Agha Saiddain added that the PTA was also actively taking up the matter of smuggling of live animals from Pakistan to Afghanistan and Iran. He said that live animal smuggling was also causing scarcity of raw materials and skins for the industry and also increasing meat prices in Pakistan gradually.
Agha expressed that he was confident that necessary positive and preventive measures will be taken by the government soon to ensure the smooth and adequate supply of raw materials to the tannery industry. PTA also requested the clearing and forwarding agents in Pakistan put an end to the mal-business practice of mis-declaring exports of wet blue and wet blue split leather.
Agha requested the Ministry of Commerce and FBR to seriously consider increasing the export duty levied on the export of wet blue hide to discourage the exports.
Agha stated that illegal export of leather from the country was causing severe damage to the leather industry of Pakistan and it was harmful to the national exchequer as well.
PTA members were of the view that a matter of such significant nature should be dealt on priority basis under the direct patronage and supervision of all government quarters concerned especially Customs Collectorates, Sea Ports and Dry Ports authorities in Karachi.
Published in Daily Times, June 15th 2018.