The Sukkur Chamber of Commerce and Industry has chalked out the following proposals/suggestions in connection with the formulation of trade policy 2004-2005:
Import registration certificate/export registration certificate to be restored
As per SRO No 490(1)/2002, dated 5th August 2002, the registration of import and export has been rescinded. The step is totally against the trade documentary requirement of international norms.
THE FOLLOWING PROBLEMS ARE BEING FACED BY THE EXPORTER AND IMPORTER:
1. One importer/exporter used to fax his IRC/ERC showing its validity, whereas a new importer and exporter is sending NTN copy through fax.
The importer registration certificate and export registration certificate hold worth, whereas NTN represents income tax only.
2. Foreign missions in Pakistan used to ask the status of the firm, who would assess the Export Promotion Bureau or income tax.
3. The list of export/importer was previously maintained by the Export Promotion Bureau, who, or which department will compile it and supply it?
4. In case of complaint from a foreign buyer, the subject of trade dispute, was previously with the EPB, to punish and force exporters to comply with a contracted obligation non-compliance lead. The EPB to take regulatory action against the firm, in the past. Now, whose responsibility is it to punish or black list or cancel a firm and how far will it be effective and forcibly applicable?
5. This freeness will lead to non-serious and bogus firms. Their quoted rates will earn Pakistan a bad name.
6. The old IRC/ERC holder, with valid registration, are now benefiting, whereas new-comers are facing difficulties in satisfying their customers, in the presence of IRC/ERC.
7. It would be difficult for the Chamber to disseminate important information in the absence of their proper address and bonafides.
8. Furthermore no guideline instruction to adopt an alternate have been indicated through the SRO, which is becoming troublesome for bankers and the business community as well. It is proposed that the necessary issuance of IRC/ERC may be continued, to assess this specified class of business, otherwise all NTN holders cannot be determined as importers and exporters.
The government may withdraw fee and documentation except for the identity card, bank and chambers membership certificates and request on the company's letterhead, for the issuance of IRC/ERC.
It is therefore strongly recommended, to please continue the issuance of IRC/ERC without any fee, which is the need of the business community and to recognise the firm as an importer and exporter.
2. IMPORT OF SLOW SPEED GREASE FROM IRAN THROUGH ROAD BE BANNED: At present slow speed grease is being imported from Iran via road.
This import has badly affected the domestic cottage industry of the country, as in the garb of the import of one truck of slow speed grease, against a bill of entry, smuggling is being done very clearly.
The domestic cottage industry for this item has either shut down or is near to closing, causing unrest amongst the labour. It is pertinent to note that the unemployment problem, in the country, is already at an acute stage, if smuggling is not stopped, it would create more unemployment.
The Government is sustaining heavy financial losses from smuggling, on the one hand, and on the other hand it is ruining the cottage industry of Pakistan.
THE ADVANTAGES OF BANNING ITS IMPORTS AND SMUGGLING SHALL BE AS UNDER:
1. Increase in tax revenue
2. Minimising unemployment problem
3. Prosperity in the lower class
4. Improvement in law and order
5. Promoting the cottage and indigenous industry in the country
The persons involved in the cottage industry demand that if a survey is conducted it would be noticed that 10% tax is being paid by importers, against the total imports in the country.
It is therefore suggested that the import of slow speed grease be totally banned from Iran, in order to save the domestic cottage industry of the country from total collapse.
3. CUSTOMS DUTY: The custom duty should be rationally revised in accordance with the cascading system.
4. CUSTOM DUTY ON RAW MATERIALS: We demand zero percent custom duty for all raw materials, five percent on sub-components, 20% on finished goods not manufactured locally and 25% custom duty on finished goods manufactured locally.
5. DISCRETIONARY POWERS OF THE CUSTOM OFFICIALS: Discretionary powers of the custom officials be curtailed, especially the powers of adjudication and confiscated goods, in case the declared value under estimated.
6. DOMESTIC ENGINEERING AND AUTO INDUSTRY: In order to encourage domestic engineering and the auto industry, vendor industries should be encouraged. The rate of duty should be lower on those industries where there is higher deletion so as to encourage the expansion of the domestic vendor industry and increase economy activity.
7. RAW MATERIALS FOR PAINT MANUFACTURING: This chamber suggests that customs duty on the import of 52 raw materials, used by the paint industry, may be reduced to 5%. This would make the indigenous paint industry competitive in the local, as well as in the international market.
(The writer is Secretary of the Sukkur Chamber of Commerce and Industry.)
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