Import clearance: ‘Ambiguity’ in MoC’s OM leaves timber traders thoroughly perplexed

KARACHI: The ambiguity in office memorandum (OM) of federal government regarding import of timber/wood by August 31, 2022 has perplexed the timber traders about the clearance of their imported consignment.

The Ministry of Commerce had issued OM F.No. 10(2)2022-IMP-I dated: 22nd July 2022 for wood/ timber H.S. Code: 44.01 to 44.09 but there is a difference in the point of view of the Ministry and Customs Department.

Sharjil Goplani, Chairman All Pakistan Timbers Traders Association (APTTA) and President Karachi Timer Merchant Group (KTMG) noted said that OM issued by the Ministry of Commerce covered all shipments arriving with Bills Of Ladings issued until 31st August’ 2022 will be released whereas custom department due to the language of OM interpreted that the memorandum is effective only for goods arriving until 31st of August’ 2022.

He said that Ministry of Commerce presented a summary on suspension of import conditions contained in import policy order 2022 with regard to import of Timber/Wood. In view of hardship case of timber importers as the consignments were supplied against contracts months ago and the shipments have already arrived, the ECC decided that date of implementation of IPO 2022 regarding import of timber and wood falling under HS Codes 4401 to 4409 may be suspended till 31st August, 2022 i.e. for the bills of Lading issued till 31st August, 2022.

He said the ECC had also suspended certain conditions on the import of timber/wood till August 31, 2022 because of the “hardship case of timber importers” as the consignments were supplied against contracts months ago and the shipments had already arrived at ports. The implementation date of the Import Policy Order (IPO 2022) for the import of timber and wood falling under HS Codes 4401 to 4409 will be postponed until August 31, 2022, i.e. for Bills of Lading issued on that date.

Goplani said that we have appealed and written several letters to the Prime Minister, the Minister of Commerce, the Minister of Finance, Secretaries of Commerce, Chairman of the FBR, and to Member customs Operations, FBR as timber community is aggrieved and going through tremendous amounts of hardships to get the decision of the Economic Coordination Committee (ECC) and Cabinet Division to get the OM corrected and rectified to be as per the decision of the ECC and Cabinet Division concerning the implementation. He believed this disagreement in interpretation of OM by both departments may hinder and delay the clearance of goods and incur significant detention and demurrage charges. “We are hopeful to get an amended Office Memorandum or a fresh OM which should /will read Bills of Lading issued until 31st August 2022 to smoothly clear all the shipments,” he said.

Copyright Business Recorder, 2022