PESHAWAR: Local traders have opposed the recent amendment in the Custom Act to delete Section 25-A, restoring powers of Director General Karachi to determine valuation of fresh and dry fruits, importing from Afghanistan, saying that the decision was not their best interest and promotion of mutual trade between Pakistan and Afghanistan, which should be withdrawn immediately.

It was protested during a meeting, chaired by president Sarhad Chamber of Commerce and Industry Hasnain Khurshid Ahmad here at the chamber house. The meeting was attended by Sarhad Chamber SVP Imran Khan Mohmand, vice president Javed Akhtar, former SVP Engineer Manzoor Elahi, Pak-Afghan Joint Chambers of Commerce and Industry vice president Ziaul Haq Sarhadi, importers and exporters.

The forum informed that the traders in a large number were importing fresh and dry fruits from the landlocked Afghanistan; their valuation was done by a committee constituted by Custom authorities in Peshawar and Quetta. Before that, the participants said the valuation being carried out by Director General Karachi, which had withdrawn after inclusion in section 25-A, into the Customs Act through the last fiscal year.

The valuation of dry and fresh fruits from EU and US are higher because of their high standards and quality while fresh and dry fruits from Afghanistan are natural and low grade products bearing low value, the forum said. Thus, qualities from EU and US and Afghanistan differ greatly and therefore, have different values, it added.

The participants expressed fear that determination of the same valuation to both fruit imported from EU and US and Afghanistan will prove disastrous for Pak-Afghan bilateral and transit trade.

The traders said the resultant increased valuation by Pakistan for imported fruit from Afghanistan increases valuation of imports from Pakistan, rendering Pakistani products uncompetitive in Afghan Market, which will never be suited to them and against the Pak-Afghan mutual and transit trade.

The meeting informed that the Section 25-A was inserted in the last budget for facilitation of trade from Afghanistan wherein collectors were empowered to determine value of imported goods from land border stations after consultation process including relevant chambers of commerce and trade bodies.

However, it mentioned that the Custom Act has again amended by deleting Section 25-A, which has become cause of severe difficulties for the Afghan agri/exporters and Pakistani importers as well. The meeting again argued that trade at borders is totally different from trade at sea ports coming from developed countries that have high quality agri products.

Hasnain Khurshid protested the deletion of Section 25-A from Custom Act, urging the government to revise its decision in best interest of the business community and Pak-Afghan mutual and transit trade.

Copyright Business Recorder, 2021