Cement exporting units: release of Rs 270 million against inland freight subsidy urged

Chairman, All Pakistan Cement Manufacturers Association (APCMA), Aizaz Mansoor Sheikh appealed to the Federal Minister for Finance, Dr Abdul Hafeez Sheikh to order release of Rs 270 million against inland freight subsidy as promised by the government to cement exporting units.
In a letter written to the financial head of the government, the chairman APCMA requested him to intervene into the matter to provide relief to the ailing industry, which has been incurring severe losses due to high cost of production, declining exports and low local demand.
He reminded the finance minister that the Economic Co-ordination Committee (ECC) and Trade Development Authority of Pakistan (TDAP) approved inland freight subsidy on export of cement by sea. Accordingly, the government issued a public notice dated March 26, 2010 allowing inland freight subsidy at the rate of 35 percent on cement exports till June 30, 2010.
Based on this decision, the cement producers have exported a huge quantity of commodity but unfortunately not a single claim was entertained even after a lapse of eight months, he expressed his concerns. The letter pointed out that during these eight months, the overall exports stood at 6.72 million tons to different countries in which the exports carried out by sea have major share, he added.
The chairman APCMA also asked the minister to resolve the issue of Gumrak at the earliest in order to boost up cement exports. The duty draw back on cement exports to Afghanistan is allowed based on Afghan Custom document called Gumrak. Earlier, the custom authorities were allowing the duty draw back based on photocopy of Gumrak but some time back they have started asking for the original Gumrak.
He termed the custom authorities' demands for original Gumrak against duty draw back illogical because it is unavailable with exporters themselves and retained by authorities in Afghanistan. "Issue should be resolved once and for all and duty draw back should be allowed on photocopy of Gumrak and the pending cases should be cleared accordingly," he said.