Leather exports: Concern voiced over delay in duty drawback

KARACHI:

A delegation of the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) on Tuesday apprised the customs collector of delays in issuance of rebate cheques to exporters.

The delegation, led by PLGMEA Chairman Fawad Ijaz Khan, met Collector of Customs (Exports) Ibrahim Vighio for expediting release of duty drawback claims of exporters that have been pending for the last couple of months.

Vighio said that the rebate claims have been delayed due to investigations into fraudulent claims by some exporters in connivance with customs staff. Some customs officials had collaborated with bank staff and obtained rebates on fake documents, he said.

The matter was being investigated by the Federal Board of Revenue and proceedings will be finalised in two weeks. Vighio said that shortage of staff at the collectorate was also hampering smooth processing of rebate claims. He assured PLGMEA members that their pending claims will be cleared by the end of this month.

Khan pointed out that exporters were facing theft of leather garments from export consignments after customs examination at airports, which was not only causing loss to them, but also bringing a bad name to the country due to complaints from international buyers.

Khan also informed the collector about rising prices and the need to revise the price ceiling notification issued by customs authorities. The last public notice for determining maximum prices for export of leather garments for duty drawback purposes was issued in 2000.

Published in The Express Tribune, March 16^th, 2011.