Importers of betel nuts have hammered out a couple of measures to resume the import of the commodity, including certification from the supplier and fumigation from Plant Protection Department.
Raees Ashraf Tar Mohammad, chairman, Pakistan Commodity Traders Association (PCTA), in a telephonic interview from Islamabad, said that the delegation of betel nuts importers would meet Central Board of Revenue (CBR) Chairman Abdullah Yousuf on Thursday to resolve the issues for allowing shipment of the commodity.
He said that the government had banned import of betel nuts because the commodity was not fit for end-consumers. But since the ban on imports, the commodity is coming through illegal channels or through misdeclaration and there is no check on whether the stuff is fit for human consumption.
Tar Mohammad said that the flow of betel nuts through illegal channels is eroding government's revenue because before the ban nearly 35,000 tons of the commodity used to enter the country through official channels.
"Our importers have agreed to provide supplier's fitness certificate to Customs officials, and Plant Protection Department can fumigate the betel nuts following its arrival at Karachi port," he said. Moreover, if officials have any doubt they can test the betel nuts in local laboratories, he added.
According to an importer, around 35,000 tons betel nuts used to enter the country through official channels and an estimated quantity of 15,000 tons was smuggled to meet the demand of 50,000 tons. However, since the imports have stopped, entire quantity of 50,000 tons has been making its way through illegal channels. Hence, the government is losing immense revenue per annum.
He said that before the budget, because of the ban, the prices of betel nuts in the commodity market had reached up to Rs 250 per kg, from Rs 40 per kg. But following the government's announcement in Federal Budget 2004-05 that import duty on betel nuts has been reduced to 5 percent from 25 percent and withholding tax from 6 percent to 2 percent, which is expected to cut the prices in the local market, the smugglers would be in an uncomfortable position to smuggle betel nuts.
He said that the government should put conditions of fumigation, quarantine, and lab test (certification) from exporting countries as well to protect public interest.