950827

CEC clarifies

carrying

cost charges

RECORDER REPORT

KARACHI: The Secretary of Cotton Export Corporation (CEC), has said that CEC had no other option but to charge carrying costs from the applicant mills who took deliveries of their purchased cotton after August 21, because no further instructions for extension in delivery date of the cotton were available to the CEC.

In a clarification issued on Sunday, he said that those applicant mills which had paid for their cotton by August 7 were not charged any carrying costs. However, the Commerce Ministry later extended the delievery date till August 18 without carrying charges, and all applicant mills which made full payments till that date were given delivery without charging carrying costs.

CEC even extended the delivery date till August 20 as a matter of facility for the applicant textile mills because August 18 fell on a Friday. Since no further instructions regarding extension of delivery period were received from the government, and since CEC was incurring carrying charges on the imported cotton, CEC had no other option but to charge carrying costs beyond the last date fixed by the government (August 21st), he said.

He further said that those mills which did not avail of the opportunity provided by the government twice and were late in making payments, will be required to pay carrying costs from August 21 till August 28, which is the last date for delivery for their purchased cotton.