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CBR, ghee-makers at loggerheads

JAVED MEHMOOD

ISLAMABAD: The Central Board of Revenue (CBR) and the ghee manufacturers have developed a rift on the new mechanism of customs duty evaluation that may cause shortage of ghee and cooking oil in the country, if it prolonged, it was learnt.

Sources in Pakistan Vanaspati Manufacturers Association (PVMA) said here on Wednesday that discarding the mutually agreed formula the CBR has enforced the new evaluation system from January 1 and is charging excess duty on the import of edible oil.

It was mutually agreed between the CBR and the ghee manufacturers a few months ago that the Customs authorities would charge duty according to the value of consignment declared on the invoice.

However, from January 2000, the CBR has implemented a new system and charging duty according to its own data base which is causing trouble to importers-turned-manufacturers.

Explaining it the sources said, "If we import edible oil at the rate of $370 per tonne it reaches here after a period of one month and by that time the prices in the international market fluctuate upward."

Instead of following the actual price, mentioned in the invoice, at which the consignment had been purchased a month back the Customs officials are fixing duty keeping in view the value of the consignment when it lands at Karachi, said sources.

These days before releasing a consignment the Customs officials are withholding 15 percent to 20 percent quantity of imported edible oil as a guarantee with the promise that it would be released as soon as the CBR does not give its final verdict.

"It is a matter of concern for the importers and can cause shortage of ghee and cooking in case the Customs authorities continued this practice further," said a PVMA official.

It was learnt that the PVMA, led by its acting Chairman Muhammad Saleem Malik, held a meeting with the Member Customs here on Wednesday and demanded the continuation of the previous agreement and release of the detained edible oil.

An important meeting is being held between the two parties on January 22, 2000, in Karachi, where the Member Customs would himself look into the grievances of the edible oil importers.

Last week the PVMA officials also held a meeting with Finance Minister Shaukat Aziz and requested him to resolve the problems being faced by the ghee industry.