100 percent containers examination: export of huge consignments of Kinnow stopped at port

The export of huge consignments of Kinnow (perishable item) to Russia, UK, Germany, Indonesia, Malaysia, Saudi Arabia and UAE has been stopped during peak season following blockage of export consignments at Karachi port for 100 percent examination of cargo by Customs.
Exporters told Business Recorder here on Monday that customs intended to carry out the 100 percent container's examination during peak season of the perishable item, which has created panic like situation among exporters community. When contacted, FBR official said that the exports under the Duty and Tax Remission for Export (DTRE) scheme require 100 percent examination as per law and system automatically referrer the consignments for 100 percent examination in cases of DTRE export consignments under the applicable rules and regulations.
However, exporters contested that the FBR has specifically allowed the Kinnow exporters 5 percent examination of export consignments through a letter. However, the WEBOC customs clearance system's module has not made modification as per FBR's letter of 5 percent examination. The consignments have been blocked by customs collectorates at Karachi due to non-compatibility of the Weboc customs clearance system with the perishable nature of the cargo. Despite repeated requests of exporters, the system has not been made compatible with the exact specification of the perishable export item.
All Pakistan Fruit & Vegetable Exporters, Importers and Merchants Association has requested FBR Chairman Tariq Bajwa to convene a meeting to resolve the issue, as export of Kinnow is badly suffering during the current season. The blockage of export consignments during peak season would cause huge losses to exporters and adversely affects the foreign exchange remittances despite Prime Minister's strong desire to double its export.
The sudden action has been taken by the customs to hold more than 200 containers and even off loaded the cargo from Vessel at port of major Kinnow exporters. Customs need to understand that Kinnow is a perishable in nature, the exporters are bound to carry the refrigerator cargo container for transportation of its consignments fright from the packing to final delivery to customers, so it requires constant cooling system. The opening of the refrigerated containerised perishable cargo for 100% physical inspection caused serious damage and subsequently led to cancellation of the export orders which resulted in payment of heavy losses to the buyers. It also made it almost impossible to ensure strict compliance to the International Phyto-sanitary protocols imposed by the importing countries like holding export consignments of Kinnow at 2/degree Celsius and cold treatment against the fruit fly infestations. In some countries, the cold treatment for exporting Kino is carried out during transit and they have to strictly follow the temperature regime to maintain and increase the shelf life of the Kinnow.
In order to maintain the specific temperature and for smooth functioning of export matters, All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association approached FBR repeatedly to resolve the matter of 100% examination of refrigerated cargo under DTRE Scheme, consequently the FBR issued letters C.No 5(25)/EP/01.Pt.II.Misc.201609 dated 29.12.2008 and C.No 5(25)/EP/2001-Misc-1643 dated 03.01.2013 specified 5% examination of refrigerated container of Kinnow being a Perishable item, but unfortunately the Computer Program/Weboc System was not changed according to examination of 5%, hence the situation of non-feeding of exports under DTRE into the WeBOC system existed due to non-compatible. Thus, the situation arose due to non-compatibility of the system with the perishable nature of the cargo.
Kinnow is the top export earner of all other fruits, both fresh and dried and it remained top contributor to fruits and vegetables approximately more than 38% to the overall exports of fruits, while its share in the fresh fruit exports was much bigger more than 50%, they maintained.
Exporter said that the main issue is that the FBR has not changed the Weboc system according to perishable item of Kinnow, despite various meetings with the Customs at FBR since 2008. FBR just issued the letter which is practically non-compatible with the Weboc System, and accordingly the MCC's Exports, Karachi denied to accept that letter issued by their Regulatory Authority ie FBR. The exporters in every season before start of the season send many letters to change the systems and recently in start of December 2014 again, the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association sent two letters to change the system and informed that we can't bear the 100% examination after the container is sealed at Port, but no action has been taken by the FBR, while in the full swing of the Kinnow Season they hold the cargo at Karachi Port even off load the container. The Exporters are also worried and that is why FBR didn't resolve this issue permanently. We approached FBR many times before the season, why action has been taken the in the mid of the season. The Kinnow exporters are worried as Kinnow Season is in full swing, while they are required to enhance confidence level and extend facilities to be availed in simple & easy ways to boost the exports to earn foreign exchange.
Exporters have requested Finance Minister; Chairman, FBR and Member-Customs to permanently resolve the issue of exports expeditiously keeping in view the past performance of Exports of Kinnow and direct the MCC's Exports, Karachi to clear the perishable cargo according to the letter issued by the FBR for 5% Examination so that the on-going export activity does not suffer. The exporters of fruit and vegetables are confident that Minister of Finance; Chairman, FBR and Member-Customs will intervene to resolve the issue once for all.