KARACHI, Dec 26: The Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has requested Commerce Minister Humayun Akhtar Khan to extend the validity of SRO410 (I)/2001.

In a statement issued on Friday, PLGMEA chairman Fawad Ijaz Khan said that many exporters have a number of shipments of accessories used in leather garment production in pipeline which would reach Pakistan in January 2004 and would be stuck up at ports.

He further said that the newly introduced DTRE scheme was still far from practical for most exporters. The SRO410 should be extended along with DTRE and exporters should be allowed to choose between the two temporary importation schemes.

PLGMEA held a meeting with the concerned DTRE officer and proposed amendments in the DTRE scheme to accommodate the leather garment exporters.

The PLGMEA chief said that SRO410 was more attractive to exporters as compared to other schemes because it contained a clause which suited the exporters. Under the SRO410 exporters deduct the fob value of imported raw materials from the duty drawback. The correct procedure is specified by the CBR under CGO 02/99 for Manufacturing Bond holders, which states that customs duty on raw materials should be deducted from duty drawback and not the fob value.

He further said that similarly this procedure should also have been applied to SRO410 but due to omission by CBR this could not be done. Mr Fawad urged the CBR to take note of this anomaly and rectify it.

He hoped that Ministry of Commerce should extend the SRO410 with necessary amendment to enable exporters to continue to clear their shipments imported under the SRO. Meanwhile, necessary changes should be made in the DTRE scheme to make it practical for all exporters.