The Senate Standing Committee on Commerce Thursday recommended the imposition of a unified duty of 35 percent on the import of apples and tightening of quarantine certificate to discourage influx of Iranian apples. The committee meeting partially presided over by Senator Hasil Khan Bizenjo and Chairman Senator Syed Shibli Faraz also recommended that the Interior Ministry and its attached departments should take steps to curb smuggling from Iran.
These recommendations were finalised on a motion of Senator Mir Kabir Ahmed Muhammad Shahi in the Senate after hearing the woes of representatives of Zamindar Association of Balochistan. Senators from Balochistan and the representatives of farmers maintained that local farmers are facing "life and death" situation due to drought and unchecked import and smuggling of apples, grapes, tomatoes, potatoes and onions.
The committee was informed that Pakistan has imposed 35 percent duty (20 percent customs duty and 15 percent regulatory duty) on import of apples from Iran. When faced with the probability of Pakistan revising the duty upward, Iran sent 30 trailers of apples into Pakistan. The representatives of Balochistan growers argued that presently there in no available space in cold storages in Islamabad and Lahore due to massive import of Iranian apples. They revealed that import of apples has increased by 200 percent through Taftan and Torkham (Afghanistan). It was also disclosed that apples from Turkmenistan are also reaching Pakistan via Iran.
The committee was informed that the government increased the minimum evaluation price of apples to Rs 46 per kg from Rs 22 per kg. Iranian apples are now being imported through Afghanistan where duty is only 10 percent. Secretary Commerce, Shahzad Abab informed the committee that the Commerce Minister held meetings with the Minister for National Food Security and Research and Iranian ambassador to Pakistan during the last two days wherein this issue was discussed in detail; and added that the Iranian ambassador suggested that Pakistan should tighten enforcement to curb smuggling.
Replying to different questions, Customs Chief (Tariff) Iftikhar said that the FBR cannot control smuggling due to socio economic situation of Balochistan. He said Iran has built roads along the 900 kms border but Pakistan has not built any infrastructure so far.
Some of the committee members argued that similar tariff should be applied on import of apples from Afghanistan as is being charged on Iranian apples as the importers are now using Afghanistan to import apples.
Secretary Commerce replied that Pakistan has different tariffs for Iran and Afghanistan as the latter is a member of SAFTA. Senator Salim Mandviwalla said that everything from Iran is being smuggled since the imposition of sanctions, adding that Pakistan has been very liberal so far with respect to smuggling of Iranian products. He added that the issue of smuggling will not be resolved by revising duty structure.
One of the members revealed that the government itself was involved in smuggling from Iran including bitumen used in Balochistan for roads. Senator Usman Khan Kakar demanded that powers of Customs officials should be withdrawn from the Frontier Constabulary. The committee also constituted a committee under the chairmanship of Secretary Commerce to look into higher duty on paper due to which price of books in Pakistan is very high. The committee was informed that import of books is exempted from customs duty whereas duty on paper is more than 50 per cent due to which local industry is suffering.
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