KARACHI, Aug 18: While disputing the method of allocation of textile quotas the exporters have refuted the Quota Supervisory Council's claim that a residual quota could be placed under First-Come-First-Served (FCFS) basis.
"We have asked the Export Promotion Bureau for the compensation as most of the quotas distributed are not residual but are blocked quotas belonging to performance holders," asserted S M A Rizvi the Patron-in-Chief of Towel Manufacturers' Association of Pakistan (TMA).
The EPB's Textile Quota Management, through a public notice appearing in the print media on August 11, offered textile quota allocation of the US, Canada, the EU and Turkey categories on the FCFS basis from August 15, 2004, and onwards.
Even before the advent of the distribution date (August 15, 2004) exporters at large contested the method and short time given for availing these quotas, which mostly belong to 'hot cake' or fast running categories and are normally fully utilized.
However, the chairman QSC Abdul Aziz Memon did not only rejected exporters' objection but also came out with a written clarification that the quota being distributed was a residual quota and have become available after allocating 100 per cent of the performance to the performance holders and adjusting over-shipments.
Nevertheless, exporters continue to claim that a 'big game has been played' to favour a few, particularly when there was no mention of many categories like 363 USA, Category 4 and 9 for the EU and 42/A for Canada in the last meeting of the QSC held under the chairmanship of Abdul Aziz Memon.
Tahir Jahangir, who is a member of the QSC and had already given his dissenting note over the method of allocation of quota on the FCFS basis told Dawn on Wednesday, that, if needed, he could make available the copy of last QSC meeting minutes in which only category 5 EU was discussed.
He said that other categories like 363 USA, category 4 and 9 for EU and 42/A for Canada were never discussed or raised in the meeting or even thereafter no consultation have taken place with the relevant trade associations.
The TMA Patron-in-Chief S M A Rizvi on Tuesday registered his protest with the Minister of State and chairman EPB Tariq Ikram has contested that the said quota was not residual but it belongs to performance holders.
In support of his argument Mr Rizvi said that over the years US Customs, due to discrepancies arising from over-shipments, had been debiting quota of other categories into Cat-363. However, regular audit and close liaison between the Trade Commissioner and the US Customs helped them recover large quantity of quota, he added.
Consequently, till the incident of 9/11, he said the US Customs, after detecting discrepancies large quota quantities, were regularly crediting to our ceiling. After 9/11, he said the US Customs demanded that they should adopt ELVIS after which they will reconcile their discrepancies amounting to 4.5 million but they did not honour their commitment.
When the ceiling of the year 2004 was worked out, a quantity of 4.2 million was deducted by US Customs on account of over shipment which was nearly the same as the discrepant quantities. On top of that EPB also blocked 5.1 million pieces quota from the performance holders to avoid any excess allocation, he maintained.
Mr Rizvi said, therefore, it was clear that the quantities which are now being called residual quota of 1.8 million was the result of that blocked quota. Citing an example, he further said that a similar situation arose in 2002 but after the final computation EPB released 46 per cent of total blocked quota to performance holders. He demanded that similar formula should be applied in this year also, and 1.8 million should be released and distributed to performance holders.
