Member Customs, FBR visits LCCI: Factors hampering regional trade growth highlighted

LAHORE: Member Customs, FBR Mukarram Jah Ansari has said that lack of banking channels with Iran, non-acknowledgement of Afghan government and closure of China border due to tough weather conditions are some of the factors that are hampering the growth of regional trade.

He was speaking at the Lahore Chamber of Commerce and Industry. LCCI President Kashif Anwar and Senior Vice President Zafar Mahmood Chaudhry also spoke on the occasion.

Member Customs said that the newly introduced Business to Business (B2B) Barter Trade mechanism will be monitored for a couple of months and amendments can be brought for improvement in the system, making it more feasible in accordance with needs of business community.

He said that FBR authorities have directed concerned officials to remain in touch with trading community for a couple of months and record feedback of them on this new system of trade and commerce in the region

He said the recently introduced Business to Business (B2B) Barter Trade mechanism for doing trade with Afghanistan, Iran and Russia through exchange of goods has been introduced for facilitation and provision of ease to traders doing business in bordering areas of the country. Facilitation of the business community will be the top priority in the barter trade system and if need is felt for bringing changes in any sections of the mechanism that will be made, he reiterated.

He expressed the hope that the new system of trade will benefit the business community and help in increasing trade in the country and region as well. The business community should get itself registered to avail benefits from barter trade.

LCCI President Kashif Anwar said that the Customs Department and the business community have to work together to promote business activities in the country. He said that in the Federal Budget 2023-24, the penalty for non-receipt of documents inside the consignment has been abolished. This is an encouraging move and will surely bring relief to all importers.

He said that the frequent issuance of customs valuation rulings by the Directorate General of Customs Valuation has become a cause of concern among the business community. This process is disrupting their operations. Therefore, we recommend that rolling be issued only when there is a strong need to review certain items.

The LCCI President said that Customs Department should play a positive role in curbing the misuse of tax exemption for import of goods by FATA/PATA industries. Raw materials and finished products are being imported and sold in various cities of Punjab including Lahore, resulting in tax evasion. This Exemption is adversely affecting industries outside FATA/PATA, particularly steel, Banaspati ghee (edible oil) and foam industry.

He said that for Customs Computerized System (WeBoc/PSW) it should not take more than 48 hours to complete the goods declaration at Dry Ports whereas this work is completed after four to seven days and in the goods declaration of used machinery and

used auto parts. It takes at least a fortnight. Apart

from this, Dry Port Lahore is also short of Assessing Officers.

Kashif Anwar said that the reason for the delay in Examination is Manual Appointment/Marking by the Principal Appraiser because without his permission and manual marking the goods cannot be examined or the goods can be de-sealed.

He said that a Complaint Cell should be established at Lahore Dry Port for redressal of complaints. Also, in case of undue delay of at least 3 or 4 days of a consignment, the Customs Department should be obliged to issue a Delay and Detention Certificate.

He said that Pakistan Carpet Manufacturers and Exporters Association has highlighted an issue that under SRO 492, the re-export period of carpets, temporarily imported for repair/rewash/refinish, has been reduced from 18 months to 6 months.

It is a time taking process as the entire process is done by hand without the use of any machinery. Due to certain reasons like unfavourable climatic conditions, the given period of 6 months proves to be too short. They want the 18-month period to be restored.

The LCCI President added that the Federal Budget 2023-24 has proposed to rephrase the definition of smuggling to enable Customs to conduct anti-smuggling operations within the territorial boundaries of the country. Lahore Chamber has always emphasized that the only way to control smuggling is through better border management.

Therefore, the change in the definition of smuggling in the budget will increase the discretionary powers of customs and create an environment of harassment instead of controlling smuggling, so it should be reviewed.

Copyright Business Recorder, 2023