20000226

ATT importers urge govt to cut duty on goods having BoE

MUZAFFAR QURESHI

KARACHI: Importers of Afghan transit cargo have requested the government to reduce customs duty on goods for which home consumption bills of entry have been filed. This will allow them to clear goods lying at the Karachi Port due to embargo on Afghan transit cargo imposed in 1996.

The Chief Executive had recently directed the Central Board of Revenue to clear all Afghan transit cargo lying at the Karachi Port since 1996 due to the ban on import of 17 items mostly electronics. The KPT was also directed to waive demurrage on such cargo so that held-up goods could be quickly disposed of eliminating congestion at the Port.

On the Chief Executive's directive, Collectorate of Customs (Appraisement) had made special arrangements for clearance of cargo in transit and so far 35 percent of the total held-up cargo has been cleared.

The importers pointed out that huge consignments were still held-up because they were converted into the home consumption bills of entry on an offer by the government that these goods could be released for domestic market on payment of prevalent rate of duty. The importers are, however, reluctant to clear goods on such a high rate of duty meant for goods imported for the local market and are keen to clear the goods under ATTs.

According to importers, huge consignments of Afghan transit cargo which were banned under an Economic Co-ordination Committee decision in October last year are still held up and the importers have approached the government to waive of demurrage on clearance of this set of cargo. If the facility was allowed, another big chunk of cargo in transit would move towards its destination, they added.

Meanwhile, the government has made fool-proof arrangements to ensure that the goods brought under ATTs reach Afghanistan and are not smuggled back into Pakistan which in the past had caused serious damage to local industries.

The ATTs goods cleared by the Customs are handed over to Railway for their safe passage to Peshawar from where they are taken to Afghan border under Customs escort. Vigilance by land and through air has been increased on Pak-Afghan border to curb the menace of smuggling. Besides regular deployment of para-military forces on the border helicopters will regularly fly to keep a watch on movement of goods and people from across the border.