Anomalies in SRO: 'goods worth millions of dollars stuck at ports'

As many as 200 containers loaded with chemicals and raw skins worth million of dollars are presently stuck at different ports which could not be released mainly because of lacking understanding and comprehension of the SRO 231 (1) 201. Pakistan Tanners Association former chairman, Agha Saiddain talking to Business Recorder, here on Saturday, termed the SRO as an ambiguous one and apprehended that the authorities would have drafted it in a hurry.
The poor drafting of the SRO has created procedural anomalies and confusion at all levels especially at Karachi Port, dry ports, and airports. Even the officials of Collector level are confused over the real sense of the SRO and are awaiting clarification from Federal Board of Revenue so that they could release the imported goods, he said.
The SRO words "If these goods after import or domestic production are sold or purchased between persons registered as manufactures-cum-exporters or as exporters, for use or utilisation in goods meant for export". The word "between", "or" and "or as exporters" have created confusion among the Customs officials.
Saiddain said if a tannery, registered as manufactures-cum-exporters buys chemical from commercial importer or local producer who are not registered as manufactures-cum-exporters or exporters, where is the zero rating for an exporter in such case? Similarly, if leather garment manufactures buy leather from a tannery not registered as manufactures-cum-exporters or exporters, where is the zero-rating for garment exporter in such case? The present wording of SRO 231(1) 2011 can prove a big blow to our exports and disaster for our economy, he added.
He further said the authorities must understand that the exports are always free from duties and taxes in all over the world. For this reason there are Duty Free Shops at all International Airports. If anomalies of SRO 231(1) 2011 are not removed with immediate effect, it can inflict irreparable damage to our economy and Pakistan will become uncompetitive and lose market forever. The SRO would take this country to dark ages, he feared.
Former chairman PTA asserted that the issue is of extremely serious in nature and thus needs to be addressed on priority basis. He further said that the SRO could prove last nail in the coffin as cost of doing business in Pakistan has gone up and exporters feel difficult to sell their products in competition with India, China, and Bangladesh.
He also said the stuck up containers loaded with raw skins, being perishable item, could get spoiled at the ports. Local tanners import raw skins from all over the world including Saudi Arabia, Iran, Iraq, Australia, and other African countries and make hundred percent value additions to the product. As a result, the value addition generates job opportunities on one hand and fetch substantial amount of foreign exchange to the government on the other, he added.
Concluding, Saiddain said that there is apprehension among the leading exporters that if the anomalies of SRO 231(1) 2011 are not removed immediately, they may consider shifting their manufacturing facilities to other countries that offer prudent, encouraging, rational and practical policies to investors.