04 July 2004	Sunday	15 Jamadi-ul-Awwal 1425

KARACHI, July 3: A twenty-month-old dispute between importers of betel nut and customs authorities has finally been resolved after both sides agreed upon new criteria for its import.

The two sides reached an understanding at a meeting held on Friday in Islamabad. The meeting was presided over by Central Board of Revenue Chairman Abdullah Yousuf and assisted by Member Customs (CBR) Mohammad Ramzan Bhatti and Chief Customs Tariff Faiz Ahmed.

Pakistan Commodity Traders Association Chairman Raees Ashraf Tarmohammad led a delegation of importers who argued that the dispute was only promoting smuggling and allowing all sort of betel nut qualities to find their way into the local market.

In order to resolve the dispute it was also agreed that the detained consignments of around 1000 to 1200 containers at the Karachi Customs will await the tribunal's (Customs) decision. However, under the fresh parameters/criteria for new imports, widely-used betel nuts will come through official channels.

According to some estimates, around 50,000 tons of betel nuts worth around $40 million were consumed annually in Pakistan.

As the previous consignments of betel nuts were detained by the customs authorities because of quality dispute with importers, therefore, both the sides agreed that quality should be ensured and all imports should be fit for human consumption.

Five major conditions have been agreed upon by both the sides for the importation of only those good quality betel nuts for which certifications and verifications will be required from the country of origin (export). It should be certified by the health authorities of the country of origin that the produce is free from infestation and is fit for human consumption.

It was further agreed that the importer will require to have a certification from an international recognized company like Lloyd International confirming that the betel nuts consignment is free from infestation and is fit for human consumption.

In case any infestation is found during customs examination, the matter will be referred to the Joint Examination Committee, consisting of representatives from the trade bodies concerned and senior officers of the relevant collectorate. If the committee recommends for sample testing, the same will be carried out either through the PCSIR or the HEJ Research Institute.

In case the tested sample is found infested and not fit for human consumption the importer will be given an option to re-export the goods to the country of origin.

The betel nut consignments lying at the export processing zones will be allowed re-export to the country of origin. Whereas those consignments imported for domestic use, which are not under adjudication, will also be allowed re-export provided their re-export value is higher by 2.5 per cent.

With regard to the disposal of the already confiscated consignments, a committee representing trade bodies concerned and customs officers will be constituted to make appropriate recommendations.

Raees Ashraf Tarmohammad told Dawn that already L/Cs for the import of around 3000 to 4000 tons of betel nuts had been opened on Saturday and advance booking for shipments had been placed with world traders. At present world price of betel nuts ranged between $700 and $800 per ton.