20000220

EPB detects textile

quota fraud by

3 Faisalabad firms

MUZAFFAR QURESHI

KARACHI: The Export Promotion Bureau has detected a textile quota fraud by three Faisalabad firms, accused of tampering with their legal quota entitlement and making overshipment of 103,020 kg worth millions of rupees in Category 20 (Bed Linen).

The Bureau has issued a show-cause notice to All Pakistan Cloth Exporters Association (Apcea) of Faislabad asking it to explain, in seven days, why its powers and functions of quota management should not be withdrawn in terms of Para-6(5) of the SRO 11(1)/99 dated 09-01-99 and SRO 1(1)/2000 dated 06-01-2000.

The firms, accused of forging export licences issued by the EPB, Faisalabad, for the quantity and value much higher than the quantity and value for which the original export licences were issued, are Shabbir Associates; Hitec International; and Saqib Fabrics.

The notice issued to Apcea says that on reconcilation of the EU arrival data in Cat-20 for the year 1999 till September it was found that in a number of cases the quantity charged by the EU officials exceeded the quantities for which the relevant export licences were issued by EPB. To ascertain the reasons for the difference in the quantify for which the export licences were actually issued by the bureau and the quantity charged by EU officials, the latter was requested by the Bureau, through the embassy in Brussels, to provide copies of export licences in Cat-20 against which the consignments were released and quantities of quota were charged to Pakistan's quota ceiling in Category 20 for the year 1999.

"According to EU officials, the show-cause continues, the EU authorities, through our Economic Minister in Brussels, furnished EPB the photocopies of export licences against which the consignments in Cat-20 were released at the EU ports. The record provided by the EU shows that about 10 export licences issued to the three firms were forged for making an overshipment of 103,020 kg in Cat-20". The number of export licences and their original quantity as well as the forged quantity against each licence are mentioned in the show-cause notice.

The notice alleged that the export licences were forged and prepared on new set of export licence forms containing different machine serial numbers as given by Pakistan Security Printing Corporation. To investigate the matter and unearth the persons behind this forgery, the EPB has asked the Apcea to intimate the names of exporters to whom the blank export licence forms were issued, which were subsequently used in forgery by the aforesaid members.

The show-cause notice further said that the association had informed the Bureau that the export licence forms containing machine serial numbers were issued to Al-Rehmat Traders (Machine No 410507); Be Be Jan. Pak. (Machine No 410501 and No 410505); and Zafar Fabrics (Machine No 418857). However, when contacted all the three firms categorically denied in writing to have obtained the relevant blank export licence forms from the Association. They maintained that neither the said export licence forms were lying with them nor were these ever utilised by them.

The EPB notice to Apcea pointed out that besides the flagrant forgery in case of export licences in Cat-20 it was also revealed that a number of Export Visas involving substantial quantities of consignments were submitted by the Association members through the Association to EPB, Fasialabad, for issuance in Cat-666(0) Ñ a non-quota category. These export visas were accordingly issued in the same category by the EPB but were cleared by the US customs at the US Port in Cat-666 (P) and Cat-666 (S) (as the same pertained to Cat-666 (P) and 666 (S) and the quantities accordingly charged to Pakistan's quota ceiling in the latter categories.

"Being a registered textile association and authorised to perform textile quota management function, you (chairman Apcea) were obliged under the relevant SROs to prepare the export visas properly on the basis of shipping documents and thereafter forward the same to EPB for necessary authentication. You have, however, failed to perform your obligation/functions to prepare the export visas in the appropriate categories i.e 666 (P) and 666 (S), on the basis of factual shipping documents", the show-cause notice added.

"A cursory look at the chronology of the events and the fraud and forgery being indulged in by your members clearly show that you (Apcea chairman) have badly failed to perform your functions and excercise powers of quota management specifically in bedlinen categories in accordance with the provisions of the Textile Quota Management policy contained in SRO 11 (!)/99 dated 09-01-99 and SRO 1 (!)/200 dated 06-01-2000", the notice said.

The EPB has also called for explanation of Zia Ahmed, Assistant Director, EPB, Faisalabad, whose signatures have been forged on ten export licence forms used to illegally utilise textile quota in Cat-20 worth millions of rupees.

The notice for explanation issued to the Assistant Director, EPB, says, "Since forgery is a cognizable offence and the concerned firms have illegally utilised textile quota in Cat-20 against the forged visas which have allegedly signed by you, the competent authority has directed to call for explaining your position in the matter within three days, failing which disciplinary action under the rules shall be taken against you".