Export orders: MoC effort to reach exact number hits snag

Ministry of Commerce (MoC) is reportedly facing a difficult situation with respect to getting the exact number of confirmed export orders as exporters are hiding clients' information fearing that the data of their clients can be accessed by their competitors, well-informed sources told Business Recorder.

"Our exporters are hesitant to share the delayed, deferred or cancelled orders because they don't want to offend their buyers through government intervention. They also don't want to disclose information about their buyers fearing that it may reach their competitors who can throw them out by under cutting their price," the sources added.

Commerce Ministry recently advised exporters to approach appointed Trade and Investment Officers of concerned country and share their buyers' information so that they can be contacted and convinced not to cancel orders.

The sources said exporters are not sure how the government will intervene to save their orders, adding that they are afraid that if their data is shared with FBR, they will face new problems and cases of under-invoicing can be initiated against them.

On Friday, Commerce Advisor, Abdul Razak Dawood, said that DLTL refunds of Rs 20.5 billion for textile and Rs 0.828 billion for non-textile sector have been released by the Commerce Ministry.

"I hope that our businesspeople will now use this liquidity to look after their workers during these challenging times," he added. Commerce Ministry fears that Pakistan's exports can decline by about $ 4 billion if countries' economies are not opened due to current COVID-19 situation immediately.

Meanwhile, Commerce Ministry has written letters to the Chief Secretaries, seeking their views about opening of industrial units with confirmed export orders.

Secretary Commerce, Sardar Ahmad Nawaz Sukhera, in letters, has stated that a presentation was made by the Ministry of Commerce on April 9, 2020 to the National Command and Control Centre on the steps taken so far towards mitigation of COVID-19-related issues of industries and opening of industrial units with confirmed export orders.

It was decided by the Prime Minister, who was chairing the meeting, that MoC will hold consultations with all the provinces for finalizing the procedure for reopening the industrial units with confirmed export orders, and present its final proposal to the NCOC on April 11, 2002 (today).

MoC has proposed the following procedure for considering applications of industrial units with confirmed export orders for exemption from the lockdown: (i) any such industrialist may apply either to the Deputy Commissioner of the district in which the industry is situated or to the regional office of the Trade Development Authority of Pakistan (TDAP); (ii) the applicant shall include the following documents (a) L/C of confirmed order (b) proforma invoice of confirmed orders (c) confirmed purchase orders with specific details of seller& buyer and (d) undertaking on stamp paper of Rs 100 from the exporter that the product/ commodities will not be sold in the domestic market and that the mentioned order is bonafide.

In case of lack of capacity in the DC office for examining the proof of confirmed export orders, the focal persons of the DC office will furnish this to the designated focal person of TDAP office, either through email or WhatsApp. The contact list of all the focal persons of TDAP will be furnished to the provincial focal person of each province so that necessary coordination could be done.

The focal person of TDAP will examine and give his opinion to the focal person of the DC office concerned by the same means of communication, within 24 hours, whereby the districts administration may take a decision on the application.

For convenience of the provincial government/DC concerned, all applications referred to MoC/TDAP will be forwarded to the provincial focal person with the proposal that an undertaking shall be obtained from the applicant industrialists that they will operate the units subject to the following terms and conditions;(a) compliance with all federal/provincial SOPs that have been or shall be notified/issued for Health, Safety and Environment (HSE) protocols;(b) compliance with all the notified federal/provincial laws and regulations that have been or shall be notified in terms of labour, manufacturing and transportation of goods within cities/provinces and to the ports;(c) compliance with rules and laws relating to cross border trade of good for exports;(d) only bare minimum required labour would be allowed to work within the approved timeframe;(e) any other law/ regulation/ order that the respective provincial government may notify in future and ;(f) the industry owner will produce proof of the export order for provincial/ district authorities at the time of obtaining NOC.

Commerce Ministry requested the Provincial Chief Secretaries to examine its proposal and confirm it or furnish an alternate proposal.