Import of basic tanning chemicals: Government proposed to withdraw additional RD

The Pakistan Tanners Association (PTA) in its budget proposals for the year 2019-20 has demanded of the government to withdraw additional regulatory duty imposed on the import of various basic tanning chemicals vide SRO No 1035(I)/2017. PTA Chairman Agha Saiddain told Business Recorder that the proposals submitted to the Ministry of Finance also asked the government to issue revised SRO without further delay by notifying 24-Tanning Machines in pursuance of the SRO No 578(I)/2016 dated 01.07.2016 for the government subsidy.
The association said that detailed clarification/amendments in this regard had already been submitted to the Ministry of Commerce. He urged the government to remove the 11 percent Customs duty recently imposed in mini budget/reform package announced on 23.01.2019 on the import of "Stamping Foils - H.S. code No 3212.1000 which was earlier allowed zero rated in the Finance Bill 2017.
He said that the duty draw back rates on the export of finished leather were unilateral slashed by the Federal Board of Revenue vide its SRO 923(I)/2015 dated 08.09.2015 and demanded of the government to revise the decision and allow the actual duty drawback rates which were already approved/recommended by Input Output Coefficient Organization (IOCO) after having detailed survey and scrutiny conducted by the FBR's IOCO in association with the Pakistan Tanners Association. Agha Saiddain also urged the government to remove quarantine requirement/condition imposed through SRO 1067(I)/2017 on the import of basic raw materials (raw hides & skins) for the leather industry.
He said the association has also submitted its proposals demanded some incentives in the Strategic Trade Policy Framework 2019-23 which are imperative for meeting the Leather Working Group (LWG) mandatory requirement. He said the government should allow 75 percent matching grant for setting-up of effluent treatment plants in individual tanneries which is a fundamental requirement for enrolling our member exporters in the LWG.
He said that over a dozen of individual members of the association are interested in setting up of effluent treatment plants which needs approximately budget of Rs 400-500 million. The PTA chairman demanded of the government to allow 75 percent government subsidy on international lab testing for leather which is a pre-requisite of foreign buyers/brands for selling finished leather to them. This incentive has already been approved/ announced by Engr Khurram Dastgir Khan, former federal commerce minister, during inauguration of third Pakistan Mega Leather Show in January 2017.
He was of the view that the government should include all kinds of leather at zero rate in the FTAs being signed with different countries including South Korea, Turkey and Thailand.