Textile exporters assured of scaling down payment backlog

Chief Collector Customs (Enforcement) South, Manzoor Hussain Memon, has assured the textile exporters of scaling down the payment backlog, saying that his office has paid customs rebate of May 2017. "We are assuring that the payment cycle should not break and shall continue. Rebate shall also be paid in the month of June," he said, at a meeting with office bearers and members of Pakistan Hosiery Manufacturers and Exporters Association at the PHMA's main office where his team members Collector Customs (Exports), Dr. Saifuddin Junejo and Collector of Customs (Exports), Muhammad Saqif Saeed accompanied him.
Memon said efforts are underway to remove the current eleven months backlog. He said they endeavor to pay Customs Rebate within one month subject to availability of funds. He made it clear the claims which have objections would be entertained after the removal of discrepancies. Previously, he said, the backlog spanned over eighteen months, which has been brought down to eleven months. "This eleven months backlog is due to financial constraints and will be further reduced," he assured the PHMA members.
In response to the questions and other issues placed by PHMA's chief coordinator and Pakistan Apparel Forum's chairman Jawed Bilwani and PHMA members, he said his office prioritize the value-added textile sector because of its financial share to the national exchequer and jobs generations. He said exporters are reciprocating to the nation while exporting products "Made in Pakistan" which is a great service to the country but he expressed non-satisfaction over trade deficit with low exports. He said the nation is in a dire need to enhance its exports to improve the economy. In this connection recommendations and inputs had been given to the decision makers in FBR, he said.
He said that a majority of the exporters fails to directly check and give the task to their clearing agents, who often do not intimate the issue on time. He asked the exporters whose rebate claims are pending prior to May 2017 to approach the concerned collectors to remove objections for payments.
He said amendments were made to the rules and now under the DTRE, garment stitching units - manufacturers-cum-exporters will be able to import yarn and other raw materials. He said exporters can avail the facility of vending from outside. Replying to a query on objections raised on composition of products and difference in documents and consignment, he said, mistakes, if any, will be ignored where the difference of rebate is up to 20,000, and excess of limit shall be checked.
To the demand of exporters to allocate a separate examination area for export consignment at the PICT, KICT and QICT with an increase in number of examiners, he said, because of shortage of space it is not convenient at present. However, he assured, export consignments will be timely examined without any delay. He said exports consignments will be given a first priority for examinations while imports will be placed as secondary and even if any import consignment comes in queue export shipment will be given priority. He also pointed out shortage of staff.
Earlier Jawed Bilwani welcomed the Chief Collector Customs and his team at the PHMA House. He highlighted the importance of exports to uplift the national economy, terming exports as the lifeline in his key note speech. He said exporters are facing liquidity problems because of stuck refunds into billions of rupees.
He said exporters are running out of their capital to continue manufacturing. Commenting on the eleven months backlog, he said, it is actually fourteen months as export proceeds realized in three months. He lamented that when export remittances of exporters are not realized within 180 days, the SBP issues notices for immediate arrangement of remittances while exporters' refunds remain stuck with the government even after time specified in rules and procedures.
He demanded government should give a priority to exports over imports. Separate examination areas of exports consignments for inspection of goods at Terminals/PICT, KICT, QICT & SAPT should be allocated. "Exporters face timing problems in respect to Customs Examinations. No Custom Examination facility available at night at PICT, KICT and SAPT. Night Examination facility is available only at QICT," he said.
Custom examination facility should also be made available at night hours at the PICT, KICT and SAPT also. He called for more examiners for both day and night examinations. He also demanded to improve repacking system after examination. He was of the view that repacking system at QICT is better and same should be adopted that other three terminals.
Bilwani informed that members have told that during examination the composition of export consignments are examined and objections are raised on compositions like 60/40 (Cotton, Polyester) or 70/30, due to difference on documents and consignment. In case of no change in Rate of Rebate or no Revenue Loss such objections should not be made. Due to human error some wrong entry is made in weight. Some mechanism should be introduced to rectify the error in the system so that the export shipment should not be delayed.