20000301

Customs misusing CBR

directive for

fabrics clearance: Prgmea

RECORDER REPORT

KARACHI: The new directive of CBR about clearance of imported fabrics, under SRO 818 (1)/89, has jeopardised export orders worth millions of dollars, garment exporters said.

They said that on the pretext of the directive, which calls for taking extra care to allow duty-free clearance of imported fabrics, the Customs staff has totally stopped clearances without duty.

Javed Chinoy, Chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) in a letter to the CBR chairman has pointed out that readymade garment exporters had booked a large number of export orders based on imported fabrics, which are not manufactured locally, and subsequently opened L/Cs for the import of such fabrics.

He said that the CBR directive was actually meant to ask Customs to be cautious in identifying imported fabrics before allowing the benefit of duty-free clearance, because all types of fabrics are now manufactured locally. The directive is not aimed to stop duty free clearance of imported fabrics, he added.

Javed has pointed out that sophisticated garments, which fetch higher value in the export market, are manufactured from fabrics made of nylon, taslan and PU coated fabrics, which are not available locally.

He said that the Customs should send sample of the imported fabrics for laboratory test if there is any doubt about the source of origin.

He urged the CBR chairman to direct the Customs staff not to stop duty-free clearance of imported fabrics which are urgently needed by garment factories as raw material. The misinterpretation of the CBR directive by Customs staff was harmful to the growth of export which was lifeline for the country. The CBR directive would seriously mar the efforts of the garment exporters to double their exports, he concluded.