Regrettable, indeed, is the reported refusal of the Customs authorities to allow registered fruit exporters duty-free import of cartons under the Duty and Tax Remission Rules for Exports (DTRE), which have been in force in order to help boost the country's export earnings.
As a report appearing in January 13 issue of this newspaper, quoting various instances, pointed to the Customs' peculiar perception regarding cartons being simply used for packing purposes and in no way serving as the means of value-addition.
Mention in this connection may specifically be made of the instance quoted by Khalid Ijaz of Pakistan Fruits and Vegetable Processor and Exporters Group.
The exporter complained that his application for permission for duty-free import of cartons under the DTRE was kept pending for a month by the Customs on the plea that they would seek clarification from the Central Board of Revenue (CBR).
More to it, he said that before registration with the DTRE, the Collectorate of Customs had assured the exporters that the new system, being a simplified one, facilitated the exporters by relieving them of the hassle of time-consuming refund claims.
He had registered his firm with the DTRE, which was supposed to entitle him to duty-free import of any material used for export purposes.
The fruit exporters, in particular, were now faced with a predicament from the queer approach of the Customs authorities towards DTRE.
It will also be noted that he made a pointed reference to the ban imposed by certain importing countries on the shipment of Kinno in wooden crates.
Since these countries, the leading buyers of Pakistani Kinnoo, were now accepting shipments in properly packed cartons only to protect the fruits from contamination, the Customs' refusal to allow duty free import of cartons has caused a big hindrance in smooth flow of Kinnoo exports, thereby depriving the country of sizeable export earnings.
As for other hindrances in the export of Kinno, the bewildered exporters have also referred to shortage of refrigerated containers.
This is besides the failure of most of the foreign shipping lines to meet the requirement of refrigerated containers despite promises earlier made to address the problem.
According to Shamim Ahmed, a leading fruit exporter, on an average, 100 containers, full of Kinnos, were shipped every week.
However, presently the number had come down to no more than 50 containers only. Reference has also been made in the context to a foreign shipping line, which failed to honour its commitment to make available 75 containers.
It is, however, just another matter that a spokesman of the concerned shipping line later came out with the explanation that refrigerated containers have lately been in short supply because of heavy rush of shipments from the Far East to the Gulf and the Middle East.
As for Pakistan, which falls between the presently popular destinations, he reportedly said that the volume of imports into Pakistan is not large enough for the Far East exporters to induce them to focus shipments from this country to help meet the need of the fruit export season.
Viewed in this perspective, the Customs authorities' reluctance about allowing duty-free import of cartons for export shipment will certainly appear to be preposterous if not downright absurd.
For one thing, the plea that the cartons, serving as packing material only, make no contribution to value-addition in the export goods carries no weight either.
For in today's increasingly competitive and fast expanding global market, packaging has been rapidly developing into an effective marketing tool. Besides, there is a great deal more to modern packaging than mere wrapping of goods.
It is for nothing that packaging has developed into a fast growing industry, not only for protection of consignments but also for image-building of the manufacturers in more than one way.
Now that Pakistan is engaged in a brave exercise on the export front, with laudable success attained during the first half of the current financial year, it should be all the more necessary to lay due emphasis on public-private partnership which can help the country meet all the challenges in a befitting manner.
For while the private enterprise needs contributing to the big effort through investment for increased profits, the government agencies and organisations should keep up their tried and tested role through more and more enabling measures.
As such, instead of retarding the pace of export growth on flimsy and restrictive ideas, the Customs would do well to catch up with imaginative measures and actions and ensure increase in exports rather than indulge in frivolities ending up in sheer in futility.
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