20000201

FPCCI proposals for trade policy Industry be allowed to import from KEPZ

against l/c sans duties

RECORDER REPORT

KARACHI: Iftikhar Ali Malik, former Vice-President and Zonal Chairman, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that in order to give a boost to the working of industry, it is imperative that trade policy for 2000 is fashoined in a way that industry is allowed to import from the Karachi Export Processing Zone (KEPZ) against the L/C without any restriction of duties.

Similarly, alongside traditional items, non-traditional items which have big export potential of engineering sector, autoparts and electronics be developed.

In detailed proposals for the trade policy prepared by him for inclusion in the FPCCI's proposals which will shortly be forwarded to the government, he regretted that though industry could import raw materials within its entitlement under form "S" from abroad, it could not import from KEPZ.

Under the present rules import from KEPZ could be effected only on payment of full duties and taxes. Further exemption certificate of Regional Commissioner of Income Tax is not accepted at the Karachi port or the KEPZ while under form "S" port of clearance is specified. It makes imports from KEPZ difficult for industries located in the interior while from abroad it is open.

Similarly the import of steel of all sizes of SPCD specifications was allowed after detailed discussions and consensus in various meetings held at the Engineering Development Board, but surprisingly the Customs Department at the Lahore dry port, in particular, always creates obstacles by mis-interpreting the CGOs ruling the local products.

There is need to encourage the industry and help it out, not to pressurise it or harm it through detaining its raw materials. Steel allowed within the entitlement should be importable without any restriction, he said.

The engineering & autopart industry had been adversely hit by smuggling, under-invoicing and mis-declaration. The finished engineering products being manufactured in the country must be protected by taking appropriate measures to check smuggling. Moveover, under-invoicing under the new system of valuation data base, has become easier than before because in this system declared value is accepted.

On the export front, Iftikhar Ali Malik said that so far our exports had been confined to primary products and those of agro-based industry. Little attention has been paid to promote export of industrial products. There was need to promote the industry and make it capable of producing export quality products.

All restrictions on import of raw materials, machinery and spare-parts should be removed and customs tariff be kept at the minimum level so that the existing industry could modernise itself according to today' requirements and quality. However, customs tariff on finished consumer items should be higher leaving a cushion of atleast 30 percent to the local industry, he said.

Special attention should be focused on the development of chemical industry, electronic and engineering industry including automobile and auto-parts. The development of these industries will automatically support the development of agro-based industry to produce non-traditional agro-based exportable items.

To contain the cost of production, Pak rupee should not be devalued because in the past massive devaluation had made the public lose its confidence in local currency and had started investment in the dollar instead of industry and trade.

Quality and designing in textile, leather and engineering products need improvement. The private sector should be guided & assisted in this regard. In the agricultural sector packed rice, processed fruits, vegetables & stand good chance of export.

In the end, he said that the un-organised sector should also be given due attention. At present, it is harming the organised sector by producing fake products or imitation of the popular brands. This sector, if looked after, could be persuaded to produce genuine goods with their own brands. These units also could be helped to export their products because they have less fixed expenses as compared to big industry. These units can also be linked with large industry within the country for producing some parts of their requirements.