KARACHI, Jan 19: The Pakistan Leather Garments Manufacturers and Exporters Association has resented imposition of penalties by the Customs on holders of manufacturing bonds for overstayed goods.
In a meeting with member customs CBR Ramzan Bhatti, a PLGMEA delegation led by its chairman Fawad Ijaz Khan raised issues related to pending cases of duty drawback and imposition of penalties on overstayed goods at manufacturing bonds.
Fawad Ijaz asked the member customs to ensure early clearance of all outstanding and pending duty drawback claims of PLGMEA members on priority basis ahead of Eidul Azha so that exporters-cum-manufacturers of leather goods could purchase hide and skins.
The PLGMEA chairman also gave a list of outstanding duty drawback claims of Karachi members to the member customs, while the list of claims from other collectorates will be submitted in this week for expediting release of duty drawback claims.
He informed the member customs that last week the export collectorate, Karachi, had issued an order-in-original to the leather garment exporters holding manufacturing bonds, asking them to pay the amount of penalties on overstayed goods. These demands were raised based on different observations pointed out by the Directorate of Revenue Receipt and Audit (DRRA).
Most of these penalties have been charged due to varying interpretation of Customs Act 1969 and Manufacturing Bond Rules, he added. As per interpretation of Section 98 of Customs Act 1969 by the DRRA the warehouse surcharge should be imposed on unconsumed goods after one year whereas Manufacturing Bond Rules had allowed warehouse period for three years.
Fawad Ijaz further said that PLGMEA strongly felt that the penalty should be imposed after expiry of three-years' bonding period allowed. He said the Association had also taken up this matter with the DRRA and they are recommended PLGMEA case to the CBR for consideration. He said the show-cause notices issued to Manufacturing Bond holders for overstayed goods were not the fault of its member exporters but due to unfavourable international situations and cancellation of orders. The customs officials were also convinced that the actual fault did not lie on the Manufacturing Bond holders but was due to interpretation of bond rules by the DRRA.
Ramzan Bhatti advised the PLGMEA delegation that such aggrieved exporters should file appeal in Tribunal and assured that Customs officials will take a lenient stand on these cases and provide maximum relief to genuine exporters.
The PLGMEA chief also presented a revised draft of public notice to the member customs regarding maximum prices of various types of leather garments and varying consumption. PLGMEA also submitted a revised price list to the customs collectorate for checking price of leather garments.
Any exporter who is exporting leather garments above these prices will be required to submit a sample for the Price Check Committee of Customs and will have to justify higher prices in order to claim duty drawback.
Fawad Ijaz informed the member customs that PLGMEA had already submitted its recommendations to the ministry of commerce to make suitable changes in Duty and Tax Remission for Exports scheme.