20000108

Trade policy clause

hampering engg

goods export

MUZAFFAR QURESHI

KARACHI: The export of engineering goods has been severely hampered due to a clause in trade policy which requires exporters to obtain a certificate from Pakistan Standards Institute (PSI) before shipment, says Pakistan Association of Automotive Parts and Accessories.

The association, in a letter, has requested the minister of commerce to delete the clause from the trade policy so that smooth flow of export of engineering goods is guaranteed.

It pointed out that all engineering goods meant for export were stopped by Customs demanding of the exporter to produce a certificate from PSI verifying the standard of the engineering goods. When exporters approached the PSI they are told that there was no standard determined for a number of engineering goods of common use. These goods include lathe machines, insulation motors, electric bulbs and sockets, electric ceiling roses, PVC insulated electric cables, shaping machines and pillar drills.

The association further said that the Customs authorities stopped the entire machinery shipment if it was fitted with a small motor. They ask for a separate standard certificate for that small motor even if the certificate for entire machine has been produced.

It urged the minister to immediately make amendment in the relevant clause and make the PSI certificate mandatory for only those engineering goods for which a standard had been devised by PSI.

The association further suggested that the period for exemption in customs duty on import of equipment and machinery used in manufacturing of engineering goods meant for export which would expire on June 30, 2000 should be extended for another ten years.

It said that Pakistan had made remarkable progress in producing quality engineering goods which had great demand in the Gulf and neighbouring countries like Bangladesh. If the anomaly in trade policy was removed and incentives were granted the export of engineering goods could touch new heights.