FAISALABAD, Nov 24: Textile exports worth $10 million are stuck up in America because of the US Customs refusal to accept ‘overshipments’ allowed by Pakistan authorities.

These goods, specifically designed for Christmas, might be declared out of fashion and subsequently rejected if not cleared immediately.

This was disclosed by Azhar Majeed Shaikh, Chairman, Export Committee of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), while talking to newsmen here on Saturday.

These consignments of bedsheets and pillow (Category 666 S&P) have been refused entry by US Customs since October 22 on the plea that Pakistan has already exhausted its textile quota ceiling for the year 2001. When the Pakistani exporters approached the authorities concerned, they said that it was revealed on reconciliation that with seven per cent carryover and 20 per cent over programming, the Pakistani exporters have made excess shipment to the tune of 28 per cent over and above country’s ceiling.

The US Customs have released only four per cent of the held-up shipments as admissible under the bilateral trade agreement and 24 per cent of overshipped goods are still pending clearance at the US destination.

These goods are incurring huge demurrage and are endangered to be spoiled as these have been specifically designed for Christmas sales and are liable to be rejected if these are not cleared immediately, he said.

Azhar Majeed stated that the buyers and importers of these goods have already made commitments to their retailers and sale outlets in time supply for Christmas. If these goods do not reach the sale outlet within time the retailers and importers would lodge massive claims of damages and loss of profit against the Pakistani exporters, he said.

The FPCCI Export Committee chief said that no visible effort was being made by the authorities concerned to resolve the issue with the US Customs. He said the matter was of dire consequence both for the economy of the country as well as the Pakistani exports. There is apprehension that the buyers would cancel further orders form Pakistan if this state of uncertainty and chaos continued further.

Already some exporters have reported that their buyers have cancelled orders worth $2 million because of the embargo and non-clearance of Pakistani goods, he said.

Shaikh said that it was very difficult to win export markets once these were lost, adding that if stuck-up goods were not cleared immediately other countries would fill the gap and capture the hard won markets.

He appealed to the President to immediately intervene in the matter and save the country form huge losses by sending out a high-powered delegation to settle the matter with the US authorities.