Trade Development Authority of Pakistan (TDAP) has unexpectedly announced that it will increase the fee for Certificate of Origin by 3900 percent, shocking the already struggling exporters. Sources told Business Recorder on Wednesday that exporters of all categories are required to obtain a Certificate of Origin from the TDAP under various schemes such as Generalised System of Preference (GSP) and Free Trade Agreements (FTAs) for the export of goods.
Presently, the form for the Certificate of Origin is being issued by the TDAP at Rs 25 per shipment per exporter, however the authority set up for the promotion of the country''s exports, on Wednesday officially announced increase in the price of the certificate.
The price of form for the certificate to be issued by the TDAP will be Rs 1,000 with effect from January 1, 2011. "It is notified for the all exporters that in view of the cost being incurred by the TDAP on providing services for issuance of Certificate of Origin, it has become inevitable to increase the price of the form for the Certificates of Origin to be issued by the TDAP under various schemes such as GSP and FTAs," said a public notice issued by the authority.
Consequently, the price of Certificate of Origin is being enhanced to Rs 1000 with effect from January 1, 2011, it added. The applicant shall submit a pay order of Rs 1,000 along with the request for the form for the desired Certificate of Origin. The pay order shall be in favour of the accounts office TDAP, it concluded.
According to exporters, the TDAP has raised the price of certificate without any consultation with the stakeholders and it is very shocking for them. "The cost of doing business in Pakistan is already high because of rising power tariff, shortage of energy and other utilities and at this stage this step will further enhance the cost of export oriented goods," said Ijaz Khokhar, chairman Pakistan Readymade Garments Manufacturers and Exporters Association (Pregmea).
He confirmed that currently exporters are paying Rs 25 for the certificate, adding that big exporters can bear this hike but small exporters, who exports goods are in small lots, will suffer. "We will not accept current increase in the price of the form and soon call an emergency meeting of all stakeholders to develop a joint strategy," Ijaz said.
He said TDAP Chairman Tariq Iqbal Puri is a very sensible person with vast experience in this field and we were not expecting such decision from him. Even representatives of different associations are not taken into confidence. They were also informed through public notice issued by the TDAP through newspapers.
Meanwhile, Chairman Value-added Textile Forum Rana Mushtaq also condemned the increase in the fee for the form. He said this would be killing small exporters and is another addition to the hurdles by the government in the smooth running of businesses.