5 Export Sectors Ask FBR To Maintain Zero-Rating Status.

The five major export sectors asked Federal Board of Revenue (FBR) to remove anomalies in SRO 231 in order to keep intact the zero-rating status of the export industry of sports goods, surgical instruments, leather goods and sportswear.

In this respect FBR chairman Salman Siddique is expected to meet the delegation of these export industry members within a couple of days. Under SRO 231 zero-rating on five major export sectors has been restricted to registered manufacturers-cum-exporters etc.

The members of the five leading export sectors had earlier apprised the chairman about the problems faced by the businessmen and the exporters. The members during a recent meeting with the FBR chairman agreed that registration in sales tax department for the leather sector would start with the tanning industry, exempting the other vending facilities. While for the surgical industrial sector, registration would start from the industrial unit’s stage, while the vendors would remain exempted. The meeting also suggested to the FBR that the export industry should be facilitated by allowing it duty free import of accessories against the export performance up to 10 percent.

According to stakeholders, the FBR chairman assured them to consider allowing duty free import of accessories up to 5.0 percent of export performance.

There was a big 18 percent decline in surgical instruments annual exports from Pakistan due to unending energy crisis and rising POL prices in the country.

Surgical Instruments Manufacturers Association (SIMA) Chairman Waqar Ameen demanded research development fund for the next three consecutive years to the surgical industry out of the exiting financial crisis, aggregating day-by-day.

He said that this big decline in surgical exports could be a great set back for surgical industry and the time was ripe for the concerned governmental institutions meant for trade development to wake up for providing the necessary guidance, assistance and sharing hand to surgical instruments manufacturers and exporters for saving the sinking surgical industry of Sialkot.

He said that both of these sectors (own brand developing and international marketing) still remain ignored by the local manufacturers and exporters due to the alleged slackness of governmental institutes meant for promoting trade and enhancing national exports. Its 90 percent products are exported, but its annual exports have never crossed the figure of $261 annually during this century and till now.

He said surgical manufacturers and exporters have enough potential to capture the international markets of hospital-related surgical items, having market of $1 billion, if government properly patronises this industry, which has only 1.0 percent share in this world market consumption.

Pakistan Carpets Manufa-cturers and Exporters Association (PCMEA) has demanded for provision of funds for holding exhibitions for promotion of carpet exports from the country.

PCMEA Vice Chairman Akhtar Nazir said World Hand Made Carpets Organisation (WHMCO), a body comprising Pakistan, China and India has been constituted with an aim to promote export of carpets to the world. Nazir said following formation of WHMCO a delegation from China first visited India and then came here to review prospects of cooperation in carpet manufacturing sector.

The second leading export leather sector has warned the government it could shift its manufacturing facilities to other countries where policies are rational and practical.

Former Pakistan Tanners Association (PTA) chairman Agha Saiddain said the SRO 231 (1) 2011 could prove last nail in the coffin as cost of doing business in Pakistan has gone up and exporters feel difficult to sell their products in competition with India, China, and Bangladesh.

The anomalies of SRO 231 (1) 2011 should be removed immediately as the authorities have drafted SRO 231 (1) 2011 in a hurry and it carries both latent and patent ambiguities. The higher authorities are awaiting clarification from FBR to release the goods under customs clearance department. The tanning sector is already facing high cost of doing business, shortage of wet-blue grains and wet-blue split besides shortage of hides and skins in the aftermath of smuggling of live animals to Iran and Afghanistan.

Source : dailytimes.com.pk