TDAP reduces Certificate of Origin fee to Rs100

TDAP has reduced the Certificate of Origin fee from Rs1,000 to Rs100 for acquiring GSP facility for exports.

Farhan Zaheer January 05, 2011

KARACHI: The Trade Development Authority of Pakistan (TDAP) has reduced the Certificate of Origin fee from Rs1,000 to Rs100 for acquiring Generalised System of Preferences (GSP) facility for exports to the European Union and US.

TDAP had called a meeting on Wednesday of all stakeholders to discuss exporter reservations about a hefty increase in the certificate fee. TDAP Chief Executive Tariq Iqbal Puri, while talking to The Express Tribune, said that the authority has taken the decision in order to facilitate exporters.

TDAP had earlier raised the fee from Rs25 to Rs1,000, but after consulting the industrialists and exporters, it was slashed to Rs100.

Explaining the effects of GSP, Korangi Association of Trade and Industry Chairman Johar Ali Qandhari said that exporters of leather and towel industries especially need the Certificate of Origin for the export of their products to Europe and the US.

Qandhari said that the certificate is mandatory otherwise the exporter would have to pay additional charges. “Small exporters would have been particularly hit hard, had TDAP not reduced the fee,” he said, adding that the fee has to be paid on every shipment, owing to which the increase would have burdened the exporters.

“This is certainly a welcome step taken by TDAP and the exporters really appreciate it,” said Pakistan Readymade Garments Manufacturers and Exporters Association Zonal Chairman Mohammad Jawed Chinoy. “We persistently took up this matter with the relevant authorities explaining that the industry cannot bear such a heavy increase in these difficult times,” he said, adding that TDAP took an immediate decision to help the export industry, especially small-scale export units.

Karachi Chamber of Commerce and Industry’s acting president Talat Mahmood said that the move is highly appreciative, keeping in view the present economic conditions and high cost of doing business.

Federation of Pakistan Chambers of Commerce and Industry Vice President Dawood Usman Jhakura said “we appreciate the TDAP CEO for responding to the concerns shown by exporters.”

According to reports, the Sialkot Chamber of Commerce and Industry and the Pakistan Hosiery Manufacturers Association said that the fee reduction would help boost exports of small and medium enterprises from Sialkot.

Published in The Express Tribune, January 6th, 2011.


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