PTA urges SBP to issue procedure for refund of claim of leather exporters

Mr. Amanullah Aftab, New Chairman, Pakistan Tanners Association (PTA) has requested the State Bank of Pakistan to finalise for early issuance of “submission procedure” against SRO # 1062 without further delay with incorporation of association’s proposals/suggestions and already submitted to Central Bank, Karachi during a meeting held on 30.10.2017. He expressed his deep concern/worries in a statement issued today for the inordinate delay in issuance of “submission procedure” against the SRO # 1062 dated 20.10.2017 already issued by Ministry of Commerce for the NEW DLTL cases effective from 1st July, 2017. MOC has authorized SBP to issue further submission procedure for the claim of leather exporters, which is still pending despite lapse of considerable time period from the date of SRO i.e. 20.10.2017.

Chairman, PTA, Mr. Amanullah Aftab also shared that all observations/amendments to be incorporated in the submission procedure have already been discussed with SBP and also submitted in witting to SBP, Karachi during a meeting for finalisation with all stakeholders of Leather Sector of Pakistan, since the claims for DLTL are already due from 1st July, 2017 and almost 4.5 months have already been elapsed for submission to SBP duly ratified by the concerned Association as per framed procedure resultantly our member exporters are completely unable & are in hesitation either to pass on this incentive benefit in the net unit price of leather to international buyers/customers for future export orders execution or not while our member exporters are already in-competitive in international market as compared to our neighbor competitive countries.

Mr. Amanullah Aftab, chairman PTA urges the SBP to finalise for early issuance of “submission procedure” against SRO # 1062 without further delay with incorporation of PTA’s proposals/suggestions and already submitted to SBP, Karachi during a meeting held on 30.10.2017.

The Chairman, PTA also highlighted core burning issues of Leather Industry and some vitals issues are briefed hereunder:

01. Removal of 20% Additional Regulatory Duty as recently imposed vide SRO # 1035 dated 16.10.2017 on certain chemicals of Leather Industry which is purely fundamental chemicals for Leather Industry and the Industry is already defraying 20% custom duty on import stage and additional burden regulatory duty is causing increase of production cost, which is already at exorbitant extent in Pakistan.

02. Removal of condition of Quarantine for Raw Materials such as (Raw hides & skins, wet blue/pickled) import into Pakistan as imposed this condition vide SRO # 1067dated 18.10.2017,which is really irrelevant/illogical because the raw materials are already covered with the Quarantine Certificates of Original at the time of export to Pakistan, which is mandatory element for the import from destination to Pakistan as such duplication of submission of health/quarantine certificate for the raw materials into Pakistan is completely unnecessary and also to be caused of delay at the time of clearance in ports of Pakistan and of course resultantly to the another cause of heavy demurrage for the delay.

03. Prompt Release of Duty drawback claims & Sales Refund Claims to Leather Industry, which is the main obstacle for the liquidity crunch confronting by PTA’s member exporters in the execution of export business activities.

Chairman, PTA,Mr. Amanullah Aftab informed that the Leather Industry is eagerly awaiting for STPF 2015-18 with all our submissions already discussed with the Honourable Federal Commerce Minister during meetings held in Islamabad, which desperately needs prompt issuance of STPF 2015-18 without further delay so that the business community could chalk out their future business plans with due incentives of the government to the industry.

While concluding, Mr. Amanullah Aftab, Chairman, PTA strongly requested SBP to issue “submission procedure” against SRO # 1062 without further delay as the matter has already been delayed considerably and also appeal to MOC to look into the genuine demands/proposal specially for removal of Regulatory Duty and Quarantine condition at the earliest so that the Leather Industry, which is already in severe turmoil’s may flourish to achieve the desired goals for the promotion of country’s exports to the desired extent with convenience.

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