A number of companies, with fictitious names, are involved in unlawful exports of wet blue and wet blue split leather, causing huge financial loss to the public exchequer, besides creating dearth of raw material for the local leather industry.
These companies, which are formed exclusively for the sake of unlawful exports/transactions, usually relinquish this activity in two-three months after having been involved in mis-declaration and under-invoicing in unlawful export of wet blue and wet blue split leather, and restart the same business with new names. This was stated by Pakistan Tanners Association (PTA) Chairman Khurshid Alam while talking to Business Recorder.
More cases are under investigation by the department which would be concluded shortly and made public with relevant details including the exporters' names. He further claimed that the Customs Department has already taken action and imposed penalties/demanded recovery of duty worth million of rupees from recently detained five delinquent exporters/companies including Leather Cotex, Kasur, Paradise Leather Co, Kasur, Tata Trading Company, Lahore, Schon Leather, Kasur, and Hussain Baig in Karachi, which were allegedly involved in a recent scam of 155 containers of wet blue and wet blue split leather export.
He said that such companies have so far caused loss of Rs 54 million to the public exchequer by mis-declaring their export consignments who exported wet blue and wet blue split leather, using H.S Code specified for the export of finished leather. It is pertinent to mention that wet blue and wet blue split leather export is subject to 20 percent regulatory duty, which these unscrupulous people had evaded, he claimed. Such companies also come into being for a short period to evade income tax and conceal purchases as well, he added.
He said that a PTA delegation comprising senior members of the association including founding chairman SM Muneer and M Afzal held a meeting with the Customs high-ups and discussed the gravity of the issue relating to smuggling of live animals and unlawful exports of wet blue and wet blue split leather unlawful who assured them to conduct probe in the matter.
Khurshid Alam appreciated the Customs department that seized four containers having wet blue split leather which were allegedly being fraudulently exported to Taiwan by mis-declaration/under-invoicing of actual price. He also hailed the efforts on the part of Customs officials who remained vigilant and check the consignments.
He said that the Customs officials also shared information regarding compilation of data based on unscrupulous elements involved in unlawful exports through ports/dry ports and exit points across the country. The efforts on the part of government agencies would help in making present mechanism more effective and vibrant to expose the culprits, he added.
The delegation was also briefed about detection of new cases regarding wet blue and wet blue split leather export detrimental for the industry. An intelligence team has been formed to monitor unscrupulous elements which would yield desire goal in making combined mechanism for checking of illegal and unlawful exports, he added.
"We have also discussed with the Customs officials a serious issue of smuggling of live animals. According to an estimate, around 200,000 live animals are being smuggled from Pakistan to Iran and Afghanistan on regular basis. He, however, hailed the Customs authorities for taking serious notice of the issue and assurance of taking concrete steps to check smuggling of live animals.
Khurshid said that the Association's executive committee has already unanimously resolved to request the Minister and Secretary of Commerce to impose a complete ban on export of wet-blue and wet blue split leather export, raw hides and skins and pickled leather. It would ensure availability of the raw material to the local industry for value-addition which in turn would fetch substantial amount of foreign exchange to the national exchequer. A representation is also being forwarded to the quarters concerned in support of ban in a way the neighbouring countries have imposed to save their local industry.
He said that Customs authorities have assured the delegation of taking strict action to check mis-declaration and under-invoicing in wet blue and wet blue split leather export for which a mechanism has already been developed between the Customs and the Association.
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