Exporters call for streamlining khashkhash trade

Reveal discrepancy between FBR’s system and Export Policy Order

KARACHI:

Exporters have urged the government to eliminate the discrepancy between the Federal Board of Revenue’s (FBR) system and the Export Policy Order, as it is hampering the trade of khashkhash – white poppy seeds.

Union of Small and Medium Enterprises (UNISAME) President Zulfikar Thaver revealed that the FBR’s Web-based One Customs (WeBOC) system read that the export of poppy seeds was not allowed, which contradicted the Export Policy Order.

Highlighting the discrepancy, Thaver urged the FBR secretary of transit and border trade to resolve the issue on priority.

The Small and Medium Enterprises Development Authority (Smeda) and UNISAME both had proposed the export of khashkhash to benefit SME farmers, processors and exporters in the country, he said.

Its exports would benefit Pakistani indenters as well, who booked orders from overseas buyers for their principals in Afghanistan, he added.

“Exporters/ indenters are receiving enquiries and foreign buyers are ready to place orders and requesting them to arrange shipments to their destinations,” Thaver revealed.

The resolution of the discrepancy issue would also help in the relationship with Afghanistan and at the same time would benefit the exporters, he added.

Talking to The Express Tribune, an exporter of herbs and roots, Zeeshan Nazim, underlined that exports of imported poppy seeds should be allowed if these were imported from the countries where opium poppy was grown legally, in accordance with provisions of the Single Convention, according to the Export Policy Order code number 1207.9100.

“It is only for opium and not for white food-grade poppy seeds for which no conditions are imposed,” he added.

Read Analysing another trade deficit crisis

“The matter is misinterpreted because opium is distinctively different from white poppy seeds, which is a food and food ingredient according to Pakistan Standard Quality Control Authority (PSQCA) PS 550,” Nazim underlined.

He was of the view that the FBR should issue a Statutory Regulatory Order (SRO) to distinguish their status and avoid any misunderstanding/ misinterpretation of the code.

“It will be best if the code is amended to indicate white poppy seeds and opium clearly and separately,” Nazim added.

He emphasised the need to boost trade with Afghanistan in order to avail opportunities and facilitate imports from Afghanistan for re-exporting to global buyers, as banking facilities and financing were absent in the neighbouring country.

“Afghanistan is also an agricultural country just like Pakistan and is blessed with crops, fruits and vegetables,” an SME logistics facilitator, Hussain Ratnani, underlined.

In addition, the country had herbs and roots as well, he acknowledged.

He also stressed the need to promote transit and border trade and requested the Ministry of Commerce to examine the possibilities and facilitate trade without any impediments.

Published in The Express Tribune, December 29^th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.