Illegal export of wet-blue: authorities directed to curb misdeclaration, under-invoicing-Texglobe

LAHORE (June 18 2010): Some unscrupulous elements are engaged in exporting wet-blue; a precious raw material for leather industry, causing shortage of leather in the country on one hand and depriving national exchequer of huge amount of revenue on account of export duty on the other.

Such elements are using traditional means of under-invoicing and misdeclaration of goods in the exported consignment by giving wrong PCT head-code. The International Council of Leather Tanners has already resolved that wet-blue would be sold according to per square feet only, all over the world.

Countering this, these elements have adopted deceptive techniques, quoting the wet-blue price either per kilogram or per piece before the customs officials so that they could avail the minimum duty of 4-5 percent on exports of wet-blue, hides and skins.

The Pakistan Tanners Association (PTA) (North Zone) delegation headed by its Chairman Shaikh Muhammad Naim revealed this in a meeting with the FBR authorities, here on Thursday. PTA former Central Chairman Agha Saiddain, PTA NZ former Chairman Khurshid Alam and Anjum Zafar were also present on the occasion. The delegation briefed Additional Collector Customs (Dryport) Zeba Hai Azhar about the minimum running price of wet-blue so that Customs Department could determine the actual worth of the stocks that arrived at various ports for export.

According to the delegation members, despite levy of 20 percent duty, fraudulent exporters were still exporting precious raw material by declaring crust leather whose exports is allowed by the government. "Recently, it came to our notice that some consignments of wet-blue leather are exported under the cover of crust leather, thus avoiding 20 percent duty, whereas the consignments were comprised of wet-blue after 'sammying'.

They said that despite PTA's efforts, export of wet-blue was going on as the evil forces have devised ways to counter restrictive measures. The delegation members also apprised Additional Collector Customs about different stages of leather processing and described key tools for identification of different type of leather and related materials like, wet-blue, sammed leather and crust/finished leather.

They sought co-operation of different agencies to check and restrict wet-blue exports besides enforcing minimum prices for the precious leather material. Understanding the gravity of situation, Zeba issued directions to take necessary measures to restrict misdeclaration and/or under-invoicing of goods.

She also directed her staff to call members of Valuation Subcommittee of PTA-NZ to evaluate export consignment of leather, crust and related goods as and when required.

On this, Chairman PTA (NZ) offered the services of PTA Valuation Committee to assess the quality and price of leather export consignments as and when required. Meanwhile, Agha Saiddain briefed Additional Collector about his meeting with Munir Qureshi, Collector Customs Karachi (who is now Member Customs) wherein he was requested to facilitate Lahore-based exporters with regard to CARE rebate claims.

He also pointed out that the FBR Chairman, in a recent meeting agreed to PTA proposals, and urged Additional Collector to take up the issue so that FBR could set up a special counter expediting CARE rebate claims procedure.