LAHORE - Elite Services System (ESS), a customs clearing services organisation, is going to set up Pakistan’s first ‘Common Bonded Warehouse (CBW)’ in collaboration with the world’s second largest apparel thread manufacturer, American and Efrid Lanka (A&E Lanka).

The Common Bonded Warehouse will enable small and medium enterprises (SMEs) to have access to quality raw materials for exports.

Elite Services System by setting up this facility is bringing foreign investment of over a million dollar in collaboration with its foreign partner to boost Pakistan’s textile exports by offering quality raw materials to SMEs. Elite Services System has already applied the CBW license from Pakistan Customs through.

Speaking to a select group of journalist, ESS Chief Executive Saad Mukhtar Siddiqui said the A&E Lanka was a global thread supplier having manufacturing facilities in 23 countries. It had sales and distribution networks in over 100 countries across the globe.

He said that the company had already built a state-of-the-art warehouse at industrial hub of Ferozpur Road. After getting approval from Pakistan Customs, the company would supply foreign manufactured raw materials to all export oriented SMEs and direct/indirect export manufacturers who were currently relying on sub-standard or low quality raw materials. Right now only big manufacturer who had capacity to import or hold millions of dollars raw material inventory could enjoy such facility, he maintained.

Under Pakistan Customs SRO 450 (I) 2001, he said, the law had provision to establish common bonded warehouses and it was need of the hour to boost the export potential of SMEs. The facility would provide the opportunity to all sorts of textile industries to produce quality goods and earn foreign exchange for the country.

Through this common bonded warehouse facility small exporters would have access to thread, yarn, fabric, leather, and artificial leather without payment of duty /taxes meant for supplying to small and medium enterprises having export quantum up to two and half millions dollars per annum and direct / indirect exporter for manufacturing and subsequent export of finished goods made there from.

The license shall be issued for a period of three years and the same shall stand revalidated for a further period of up to three years 55 [before every expiry date] by the Collector on the request of the licensee provided the Collector is satisfied that no action under the Acts is pending against the licensee.