Consignments cleared after two years: Betel nuts import
By Parvaiz Ishfaq Rana
KARACHI, Aug 10: After a lapse of around two years, the Karachi Customs on Tuesday cleared first two consignments - 54 tons each, of betel nuts worth about $100,000.
"It will take some time to restore the confidence of importers. It is, however, a move in right direction as it will curb smuggling and encourage formal trade," respond importers when contacted by Dawn to comment on the development.
The friction between the importers of betel nuts and the customs authorities developed about two years ago when containers were not cleared to unload the commodity. The customs authorities were not satisfied with the quality of betel nuts and claimed that they were unfit for human consumption. The importers denied the claim and maintained their merchandise was good enough.
Since both the sides stick to their position, the betel nut import came to a standstill. During this period, the entire local market demand was met through illegal channels and smugglers were having a field day. The domestic consumption of betel nuts stood at around 50,000 tons annually that may cost $40 million at an average international price of $800 per ton.
Nevertheless, soon after the announcement of the budget, CBR chairman Abdullah Yousuf and member customs (CBR) Ramzan Bhatti convened a meeting of betel nut importers and worked out parameters for the import of the commodity.
The new criterion laid down by the CBR for ensuring the import of quality betel nuts, however, did not help remove importers' fear of an expected change in the attitude of the customs authorities. But the clearance of first two consignments on Tuesday help restore the confidence of importers.
The importers met all the conditions and the customs authorities did not only draw samples, but also verified the certifications of the quality from the supplier's country. The import of betel nuts through official channels will not only help the government collect revenue, but will also ensure that only quality produce reach the end-consumer.
The importers told Dawn that a large number of shipments, which had been held back by the importers, would now make their way into the country. They said that even now around 3,500 containers loaded with betel nuts were at the border areas of the country, awaiting the clearance.
The rationalization of customs duty in the budget 2004-05 has helped check the smuggling of betel nuts. Finance Minister Shaukat Aziz in his budget speech reduced the import duty on betel nuts from 25 per cent to five per cent and withholding tax from six per cent to two per cent.
As a result of the duty cut, betel nut prices in the domestic market came down from Rs225 per kg to Rs100, and after the arrival of first consignment, the prices declined further to Rs70 per kg, the importers added.
