KARACHI, May 5: Despite the fact that the import of Indian origin fabrics is not allowed but still a huge quantity is making its way into the local market. The illegal entry is either the result of misdeclaration or smuggling through Afghan Transit Trade (ATT) thereby causing injury to the textile industry, which is already passing through difficult period, official sources told Dawn on Saturday.
Most of the fabrics of Indian origin are being imported from the UAE and in order to curb the menace of misdeclaration, the Central Board of Revenue (CBR) recently laid down the condition of furnishing a certificate of origin issued by the manufacturer. However, this move seems to have also failed to give the desired results.
According to Customs sources many consignments of fabrics of Indian origin have been detained after it was ascertained by the fabrics experts committee constituted by the Collectorate of Customs with the approval of the respective trade body that the goods (fabrics) are of Indian origin.
The Import Policy 2006-07 states that if any person tries to clear the Indian fabrics on misdeclaration it will be considered as an attempt to clear the banned item and in violation of section 16 and 32(1) and (2) of the Customs Act 1969, punishable under clause 9 and 14 of section 156(1).
Presently, a huge quantity of Indian made polyester fabrics is still making its way into the local market on being misdeclared. On witnessing enormous increase in the availability of Indian fabrics in the local market and a strong protest lodged by textile industry the Customs authorities recently detained fairly a large number of containers coming from Dubai loaded with fabrics.
Arshad Jamal, vice-chairman All Pakistan Customs Agents Association told Dawn that there was no respite in the flow of Indian origin fabrics. He was critical of the CBR for constituting a committee to check and verify the origin of imported consignments of fabrics coming from Dubai.
He said that the constitution of such a committee does not fall under the ambit of law and secondly, how can an industrialist, who is heading the committee, be allowed to operate in Customs and enjoy the power of issuing no objection certificate. This means, Arshad continued, that the said importers are at the mercy of an individual for getting their goods cleared.
The Indian fabrics is still being cleared on misdeclaration, he said and added that samples are changed to certify that the containers are loaded with fabrics not made in India. As a result of this the smuggling of Indian fabrics has increased manifold as the ATT is also being rampantly used for smuggling of Indian origin fabrics.
He further said that the importers have changed the shipment port from Dubai to some other countries in order to escape the condition of furnishing certificate of origin from the manufacturer. Mr Jamal urged the CBR not to follow theories of individuals and instead should consult the relevant trade to find a correct solution to the issue.
