LCCI, APCCMA call for withdrawal of ‘controversial’ SRO

LAHORE: In a significant development, the Lahore Chamber of Commerce and Industry (LCCI) Vice President, Adnan Khalid Butt, spearheaded an emergent meeting with the All Pakistan corrugated Carton Manufacturing Association (APCCMA) to demand the withdrawal of a controversial Statutory Regulatory Order (SRO).

The SRO in question pertains to the inadvertent inclusion of HS Code 4819.1000 in the Export Facilitation Scheme (EFS), causing undue hardship to the manufacturers.

The EFS, introduced by the Federal Board of Revenue (FBR) on July 30, 2021, aimed to provide relief to exporters by issuing authorization certificates for the import and local purchase of raw materials, semi-finished goods, and capital goods.

Nevertheless, the inclusion of HS Code 4819.1000, which covers cartons, boxes, and cases of corrugated paper or paperboard, has carelessly created a complex situation for the box manufacturers.

During the meeting, Adnan Khalid Butt underlined that corrugated boxes were not a raw-materials or semi-finished goods; they were finished products manufactured for packaging purposes. As a result, more than 2,000 local supply vendors of secondary packaging units, associated with the export industry, had been adversely affected. When registered under the EFS, their carry-forward input is automatically converted into a refund, which goes against the core objectives of the scheme to eliminate sales tax refunds.

The impact of this misclassification is particularly harsh on the financially vulnerable secondary packaging units, preventing them from claiming rightful refunds, thus hindering their operations and growth prospects.

The LCCI, being the oldest and premier Chamber of Pakistan, wholeheartedly supports the manufacturers in their plea for the withdrawal of the SRO. He emphasized the urgent need for the authorities to address this issue promptly and rectify the inadvertent mistake, in accordance with the law.

Responding the meeting, the LCCI urges the relevant authorities, including the FBR, to take immediate action and remove HS Code 4819.1000 from the EFS. This measure would not only alleviate the financial burden on the corrugated box manufacturers but also bolster the export industry, contributing positively to the nation’s economic objectives.

Adnan Khalid Butt showed his committed to advocating for ease of doing business and supporting local industries in their pursuit of growth and development.

The manufacturing community and industry stakeholders eagerly await a swift resolution from the authorities, as they anticipate a positive and business-friendly response to their genuine concerns.

Copyright Business Recorder, 2023