Ministry of Commerce and local ghee and cooking oil industry on Monday discussed issues of imposition of duties and taxes on import of soyabean oil, duty and tax remission for export (DTRE) scheme and harmonization of standards under World Trade Organization (WTO) regime. A delegation from Pakistan Vanaspati Manufacturers Association called on the Prime Minister's Adviser on Commerce, Textile, Industries and Production and Investment Abdul Razak Dawood here on Monday.
Different issues regarding duty and taxes on import of soyabean oil compliance issues and DTRE facilities were discussed. The issue of harmonizing standards, licensing conformity assessment and traceability procedures adopted by federal and provincial authorities in the light of WTO's technical barriers to Trade agreements were discussed.
The delegation highlighted the different standards for the same product by provincial authorities is creating additional compliance and cost for the business community.
It was agreed that different initiatives would be adopted to divert oil seeds import to local farmers so that Pakistan can become self sufficient in oil seed crop and foreign exchange could be saved. Pakistan is having oil seed production far below its potential that allows massive import of oil seed.
Pakistan annually imports over 2.3 million M Tons of soyabean seed which is used to extract 418,700 M Tons of soyabean oil. The current government is focusing on import substitution in the oil seed sector. The delegation appreciated business reforms package of the current government and expected that it would be very helpful in uptick of exports.