FAISALABAD - The Pakistan Textile Exporters Association (PTEA) have rejected the move of drastic curtailment in powers of Model Customs Collectorates (MCCs) and its transfer to the Input Output Co-efficient Organization (IOCO) Karachi. Any change in custom policy regime without consultation of stakeholders will not be accepted.

Talking to newsmen here Monday, Pakistan Textile Exporters Association (PTEA) Chairman Asghar Ali Chairman and vice chairman Muhammad Asif said that shifting of all key imports/exports related powers of Collectors of Customs like export authorizations, approvals, reduced duty rate notifications and regulating/monitoring of all concessionary and duty remission export schemes to Input Output Co-efficient Organisation (IOCO) Karachi would hamper the export growth and exporters would face problems and burdens in processing of their DTRE related approvals and all other imports and exports schemes.

This major policy shift has been made in export regime without consultation of stakeholders, substantially enhancing IOCO powers, they said. Exporters across the country would be forced to physically go to Karachi for taking all imports/exports related approvals, Duty and Tax Remission for Export scheme and concessionary and duty remission export schemes. They questioned that whether the IOCO Karachi has sufficient workforce and infrastructure to deal with all imports/exports related schemes across the country. There was a panic like situation among the exporters as they were not expecting such an anti-export measure by the FBR.

The PTEA chairman was of the view that at present the exporters were availing the DTRE facility, manufacturing bonded warehouse, reduction in duty and revision and fixation of duty on imports and snatching powers from all Collectorates to the only one office located in Karachi would shed negative impact on exporters, resulting in great loss to foreign proceeds.

Muhammad Asif said that textile exporters were trying to fetch huge quantity of orders from European market due to given concessions and eying GSP Plus status to get the maximum share of the international market. This will create more opportunities in the domestic industry, resulting not only in competitiveness, jobs growth but also lead to the empowerment of people to meet future challenges but this major policy change by FBR would stop the export growth momentum and would also cause waste of extra funds and time, he commented.

PTEA office bearers urged the chairman Federal Board of Revenue (FBR) to intervene and stop the transfer of powers and functions from all Collectorates to one person only and involve the concerned stakeholders and trade bodies to make effective policies.