KARACHI, June 25: A delegation of the Pakistan Leather Garments Manufacturer and Exporters Association (PLGMEA) on Friday discussed customs related issues with CBR member exports Zafar-ul Majeed.

The PLGMEA delegation lead by its chairman Fawad Ijaz Khan drew the attention of the member exports towards an order issued by the Karachi Customs (Exports) with regard to manufacturing bond licences.

It was pointed out that under this order leather garment exporters had been directed to pay penalties and surcharges worth millions of rupees. These demands were raised by the customs authorities based on observations of the Directorate of Revenue Receipt and Audit (DRRA).

The PLGMEA chairman explained that most of these penalties had been charged due to varying interpretations of Customs Act 1969 and Manufacturing Bond Rules 450 and 1140. The main issues are non-exportation of imported inputs during bonding period, applicability of penal surcharge, allowance for wastage and minor modification in accessories as per buyer requirements.

It was further stated that Manufacturing Bond SRO1319, which is specific to leather garment exporters, was erroneously not granted exemption from warehouse surcharge that was granted to other manufacturing bond holders for the period November 24, 1996 till November 6, 1997.

Consequently leather garment exporters have been issued demands amounting to millions of rupees by the customs.