Key Takeaways
- FBR Chairman Rashid Mahmood Langrial has taken notice of concerns raised by PCDMA regarding the misuse of dyes and chemicals imported under EFS.
- A consultative meeting was held at Customs House Karachi to discuss the formulation of an effective monitoring mechanism.
- PCDMA urged for a review of imported quantities and their actual consumption levels to prevent diversion to local markets.
Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has taken notice of concerns raised by the Pakistan Chemicals and Dyes Merchants Association (PCDMA) over the possible misuse and diversion of dyes and chemicals imported under the Export Facilitation Scheme (EFS) to the local market.
Following the FBR chairman’s directions, Customs Export held a consultative meeting with the PCDMA at Customs House Karachi to discuss the formulation of an effective monitoring mechanism to ensure that dyes and chemicals imported under the EFS are used for their intended purpose.
The meeting was attended by Collector Customs Exports Afnan Khan, Deputy Collector EFS Waqar Ahmed, PCDMA Chairman Saleem Mukati, and other Customs officials.
During the meeting, the PCDMA delegation briefed the Customs officials on its concerns regarding the possible misuse of EFS imports, particularly textile dyes and chemicals, including reactive dyes imported under PCT 3204.1600, which fall under chapters 28 and 29.
The association pointed out that imports under the EFS have been increasing, but the corresponding impact on export growth has not been evident, raising concerns over possible misuse of the scheme.
The PCDMA delegation urged the Collector Customs Exports to ensure that dyes and chemicals imported under the EFS are used by the designated industries rather than being diverted for sale in local markets.
It also called for a review of the quantities of raw materials being imported in the names of industries under the EFS and their actual consumption levels to prevent possible misuse.
The association stressed the need to determine whether the imported raw materials were being fully utilized in the industries for which they were imported or were being diverted to the domestic market.
The meeting involved an exchange of data relating to imports, with the PCDMA emphasizing that permission for imports under the EFS should be based on a consumption formula and that such imports should be linked with exports.
The participants also stressed the need to improve administrative procedures and introduce a transparent audit mechanism to effectively monitor the use of raw materials imported under the EFS.
