Model Customs Collectorates (MCCs) are reportedly releasing the consignments of imported blankets, prayer mats & other related finished articles at the customs values less than the values fixed for its raw material, creating difficulties for local manufacturers to compete in the markets.

The issue was raised by the All Pakistan Customs Agents Association (APCAA) in a letter sent to the Member Customs here.

Talking to Business Recorder, Arshad Jamal chairman APCAA said that they were informed during a meeting with the manufacturers of blanket, prayer mats & other related articles made of polyester pile fabric that Customs Collectorates were reportedly releasing these imported goods @ USD 1.80 to USD 2 per kilogram, which was less than the customs values fixed for the clearance of its raw material.

He said that polyester pile fabric, a basic raw material for the said goods, were being cleared by customs department @ USD 2.45 to USD 5 per kilogram vide valuation ruling no 1003/2017 however, the finish articles made of same fabric were being assessing @ USD 3 per kilogram, creating difficulties for local manufacturers to compete in the markets.

Replying to a question, he said that customs department had issued valuation ruling 979/2016 but prayer mats & other related articles made of polyester pile fabric were not mentioned in it. Resultantly, the department without conducting survey has started clearing the said consignments at self-determined value of USD 3 per kilogram, making locally manufactured goods expensive in local markets. This may also hurt the government revenue, he added.

He said that APCAA has requested the member customs to look into the matter and take remedial measures in order to facilitate local industry.