PTA’S POLICY / ACHIEVEMENTS FOR THE EXPORT OF WET BLUE & WET BLUE SPLIT LEATHER FROM PAKISTAN
Karachi : 14th June, 2011

The Pakistan Tanners Association has realized the gravity of the situation for the severe scarcity of raw materials in Pakistan and also price hike, which are main obstacles now for serving PTA’s members in meeting their export orders already committed with the valued foreign buyers/customers at the negotiated prices internationally.

PTA has taken-up the matter with FBR, Ministry of Commerce, Member Customs, all Customs Collectorates, Dry Ports in Lahore, Sialkot, Faisalabad, Islamabad, Multan specially at Sea Ports at KPT/ West Wharf & Port Qasim, Karachi. The Model Customs Collectorate (MCC) has claimed to have arrested an exporters allegedly involved in multimillion scam, which was allegedly being fraudulently exported to Taiwan by Mis-declaration and without payment of regulatory duty of million of Rupees. The team of Customs Department with the help of PTA have intercepted a consignment having 3 Containers, which entered for export to Taiwan and the total consignment was declared as US$ 54,440.91 equal to Pak Rs.4.709 Million. The containers on examination were found comprising of “Wet Blue Split Leather” of PCT Code 4104.1900 as against the fraudulently declared description of “Buffalo Side Split Leather of Cow double Butt Leather of PCT heading 4113.9000. The ascertained description classifiable under PCT Code 4104.1900 attracts export “Regulatory Duty at the rate of 20%” in terms of notification SRO 1011(1)/2005.

In this context, PTA has made immediately intervention at the instance of Customs Department to ascertain the actual price & confirmation of description as Wet Blue split Leather, resultantly the consignment has been seized under Section 168 of the Customs Act, 1969 and the exporter was arrested. The Customs Department concerned has lodged an FIR under the Customs Act, 1969 for further investigation.

It reveals from the initial investigations carried out by the Task Team transpired that five exporters had earlier clandestinely exported as many as 155 consignments of wet blue hides/skins through the self assessment automated web based system of the Collectorate declaring incorrect PCT code to avoid levy of Regulatory Duty as the system calculates the same on the basis of PCT codes. This act also promotes illegal export of leather from the country thus damaging severely to the Leather Industry of Pakistan and consequently harmful to the national exchequer as well.

A meeting of PTA’s delegation led by the Mr. Khurshid Alam, Chairman, PTA was held with the Additional Collector of Customs of Model Collectorates in Lahore, Mr.Abdul Basit Choudhry, wherein, it was inter-alia discussed the matter and PTA’s delegation was assured on special request made by the Chairman, PTA to him during the meeting to eliminate the process of export of Wet Blue Hides/skins through the Self Assessment automated web based system and to keep maintain the export through “Manual Procedure” to eradicate the illegal export of wet blue & wet blue split leather from Pakistan. In this context, the Chairman, PTA has already attended various Important Meetings in Islamabad with the higher Government authorities concerned at FBR, Member Customs, Ministry of Commerce for this specific of unscrupulous practice of export of wet blue & wet blue split leather and by virtue of which the results are being brought out now.

PTA has issued necessary directives to all Clearing & Forwarding Agents in Pakistan to keep them away from these negative activities of export of wet blue & wet blue split leather to save themselves from unnecessary problems.

PTA rest assure to all members of PTA that this matter of significant nature is being dealt on priority basis under my direct patronage/supervision with all Government quarters concerned specially all Customs Collectorates & Sea Ports & Dry Ports in Pakistan / Karachi for taking maximum possible measures to stop this exercise of misdeclared / illicit export of Wet Blue & Wet Blue Split Leather from Pakistan to ensure availability of this basic raw materials for the Industry at the reasonable price value.

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