20000212

A. Ali Sundrani

APPEAL

CBR

JEOPARDIZING SIALKOT EXPORTS

Honourable Chief Executive of Pakistan,

General Pervez Musharraf

Mr. Shaukat Aziz, Minister for Finance

Mr. Abdul Razak Dawood, Minister for Commerce,

Industry & Foods

Mr. Tariq Ikram, Chairman, Export Promotion Bureau

Sialkot is an export-oriented city earning vital and precious foreign exchange amounting to US$ 600 (M) annually thus contributing about 10% of total exports from pakistan. About 5000 exporters are in financial quagmire with decline and fading exports due to following vexing problems created by CBR authorities.

REFUND PROBLEMS RELATING TO COLLECTORATE OF CUSTOMS, SAMBRIAL.

1. Outstanding Duty Draw Back Claims amounting to Rs. 500 (M) since October, 1999 and accumulating rapidly.

2. Heavy backlog due to paucity of funds.

3. Tying up of Duty Draw Back with import revenue collected at Sialkot is highly irrational and illogical as Sialkot is an export oriented city and major chunk of imports is routed through Karachi.

PROBLEMS RELATING TO COLLECTORATE OF SALES TAX, GUJRANWALA.

1. Refusal to accept legitimate claims for refund of sales tax on yarn which is woven into cloth for use in exportable footballs, whereas the other Collectorates at Lahore and Faisalabad are already refunding Sales Tax in similar cases.

2. Lengthy and complex procedure of verification of purchase invoices regarding Input Tax and cumbersome documentations are required for filling of claims.

HUMBLE REQUEST

Immediate intervention is solicited to protect the exports of value-added goods from Sialkot, failing which unprecedented un-employment will be created in Sialkot, in addition to destroying of well knitted and established cottage industrial set up of Sialkot. Therefore, immediate release of funds (Rs. 500 Millions) to Collectorate of Customs, Dryport Sambrial is imperative to dispose of pending Duty Draw Back cases.

Sialkot Chamber of Commerce & Industry