July 11, 2003	Friday	Jumadi-ul-Awwal 10, 1424

FAISALABAD, July 10: Bed-linen exporters have termed the carry-over quota facility allowed by the EPB too small in quantity to fill a single container, making shipment difficult.

The facility was granted to the exporters who were denied export licenses in December last because of ban by the European Union (EU) on over-shipment.

A circular issued on Tuesday by the EPB allows bed sheet exporters “to avail carry over of unutilised quota of the year 2002 into the year 2003” of Cat-20 EU up to 36pc of 7pc permissible limit under rules and regulations.

The QSC/EPB dole-out was all the more pinching for bed linen exporters (Cat-20 EU) when the exporters of all other categories have been allowed larger limits of carry over facility, they said.

The exporters pointed out that the QSC/EPB combine had allowed full carry over facility to exporters of US categories 315/317 (cotton print/twill/sateen cloth) 334/634 (other coat MB) 338 (knitted shirts) 339 (knit shirt & blouses) 347/348 (trousers), slacks and shorts 351/651 (night-wears and pajamas) 352/652 (under wears) 613/614 (sheeting poplin and broad cloth) 615 (print cloth) vide circular dated July 5.

Similarly 100pc of permissible limit facility was also allowed in US category 363 (terry and other pile towels). For EU categories the exporters of Cat-6 (shorts/trousers) have been allowed up to 70pc of permissible limit and 63pc for Cat-2A Turkey but surprisingly the bedlinen exporters have been allowed only 36pc of permissible limit (7pc). The exporters termed it a cruel joke, others described it as a peanut.

Criticising the QSC/EPB, the exporters pointed out that the whole problem started with issuance of over-programming quota last year. The QSC/EPB twice issued over-programming each time 10pc while the regular entitlement and performance quota was still unutilized. They said the over-programming (OP) facility is issued only when the regular quota stands fully utilized. As a result of this mishandling the regular quota remained unutilised while the OP quota was over-shipped.

Furthermore, they said the OP quota was acquired by some exporters and traded in the market raising the quota premium very high. The genuine and regular exporters were the worst sufferers as their regular quota shipments were embargoed by the EU due to over shipment and they also had to bear the demurages. New exporters also suffered heavily as they had to purchase the quota from the open market at very high premium.

The exporters further stated that the up country exporters suffered double loss. Firstly their regular shipments for 2002 were held up and export licenses were denied to them. They were constrained to obtain licenses of their quota 2002 against quota of 2003. Thus they were bereft of their performance quota in year 2003.

The exporters stated that EPB had promised to compensate the affected exporters duly in year 2003. But once again the QSC/EPB failed to keep their promise. The quota available with the EPB was auctioned instead of compensating the affected exporters.