Textile exports to EU exempted from MEP

29 Jul, 2004

The Collectorate of Customs (Export) has exempted textile exports to Europe and North America from minimum export price (MEP). A circular, issued by the Collectorate, has said that the manufacturers-cum-exporters, sending their goods to high tariff countries, mainly the European Union (EU) and North America will be excluded from price parameters fixed in circulars of October 3 and December 29, 2003.
It is further provided that in cases of valuation disputes, the customs officers in-charge at the export stations would determine the export freight on board (FoB) prices under relevant provisions of the Customs Act 1969 without referring cases to Price Check Committee (PCC).
No export consignment would be detained on valuation account and shipments would be allowed unhindered, the circular added.
The circular said that in case of items where customs duty drawback rates were calculated on weight basis being exported by the manufacturers-cum-exporters to the high tariff countries, ie EU and North America, would also be excluded from the purview or fixed price parameters.
In cases where the mis-declaration is suspected would be sent to the Sales Tax Collectorate with discrepancy recorded on the CD, it said.
It is further directed that all pending cases of the manufacturer-cum-exporters, which were referred to the PCC before July 20, would be disposed of as per the price benchmarks and evidences through the PCC.
The Export Collectorate has taken the decision to facilitate the genuine exporters and to obviate harmful affects of the imposition of anti-dumping in the EU countries.
It may be pointed out that Pakistan Bedwear Exporters Association (PBEA) had strongly protested against the low MEP fixed for textile items to high tariff countries like Europe and North America.
PBEA founder Chairman Shabbir Ahmed boycotted the last meeting of the PCC and had demanded that the exports to the high tariff countries should be exempted from the MEP and their cases should not be referred to the PCC for determination of export price.

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