The Karachi Chamber of Commuter and Industry (KCCI) has suggested that, instead of a positive list of items importable from India, a negative list of items that cannot be imported from India should be maintained.
KCCI Vice President, Saqib Naseem suggested this during the 58th meeting of the Advisory Council of the Ministry of Commerce headed by Federal Secretary for Commerce Asif Ali Shah, in Islamabad recently. Under the current Import Policy Procedure 2006-07, there is a positive list of 1076 items that are importable from India. This list is subject to amendments from time to time.
He gave a number of proposals which included that all sectors of export must be exempted from all taxes. Customs duty on imported textile-related machinery, spare parts, and generators for captive power plants, their spare parts, and other such equipment for textile industry should be zero-rated. Sales tax, if any, on any of these items should also be zero-rated. For sustainable economic activities, planning should be on long term basis and example of Dubai should be considered as model.
In the Trade Policy 2003-04, Export Facilitation Inter-Ministerial Committee was established which was supposed to meet at least once in a quarter to supervise the progress of export and also the implementation of trade policy. Since the forming of the Inter-Ministerial Committee not a single meeting has been convened so far. He proposed that the Inter-Ministerial Committee must be activated and frequent meetings be held as per terms and references announced in Trade Policy 2003-04.
He pleaded that the export refinance rate be immediately delinked from treasury bills and SBP must bring it down to 3 percent and capped for five years.
He proposed that concessions be given to the entire export-oriented industries. Electricity, gas charges and the utility rates should be reduced and capped for five years for all export-oriented industries.
In order to boost export new markets be explored abroad. Non-traditional markets, regions like North America, West Indies, Chile, etc be explored. He proposed that commercial attachés be given a target so that they gear up their performances to facilitate Pakistani exports to their designated countries.
Opportunity be given to new and medium sized exporters to participate in international fairs and exhibitions abroad. Priority be given to those firms that are recommended by trade bodies.
To control the malpractices, the vice president suggested one full set of original carrier B/L be issued for each respective export shipment and be directly delivered to the exporters on submission of authority letter from the authorised exchange dealer, as per chapter xii rule 11 of SBP.
-- Circular 23, dated 19-02-1992 be withdrawn.
-- Audit of all B/L for shipments from Pakistan be done by customs/DG Ports and shipping to check that the state bank's rule 11 is being implemented.
-- To safeguard the small exporters, carrier bill of lading be issued to the exporters as per chapter xii rule 11 of foreign exchange act of SBP and freight payment/charges be directly credited to the license agents of the carrier/shipping line.
-- Freight forwarders' role be defined in consultation with the exporters/stakeholders.
-- Horizon of R & D support be provided to all sectors. Exporters are made to contribute to approximately 36 heads, like social security, EOBI, worker's welfare fund, Education Cess/fund etc. The government must take remedial steps to give relief to exporters from these heads.
It was proposed that a five-year moratorium be implemented. As per clause 1 of para (9) ie 'Export-cum-Import of Export Policy 2006-07, importers have to first export the item to be replaced and then re-import the replacement. The clause be amended to allow the import of replacement item first then re-export the defective/damaged or faulty item.
Comments
Comments are closed.