Aptma Calls for Revamping of New Customs System by FBR to Prevent Industry Disruptions
Karachi: In a statement, the All Pakistan Textile Mills Association said that it has requested FBR to review the recently introduced customs system. “The system, if devised without industry feedback, risks disrupting industrial operations and creating a negative impact on Pakistan’s exports,” said a statement from Aptma.
In a letter to the FBR Chairman, Shahid Sattar, Secretary General of Aptma, referred to ongoing issues and also mentioned his previous letter from September 6, 2024. He stressed that these issues should be addressed before full implementation so that the industry and economy are not severely disrupted.
Important Issues Raised by Aptma:
Processing Delay
The new system eliminates the capacity to expedite industrial shipments through, prioritizing urgent goods declarations (GDs). It will process all GDs in the same order and therefore cannot accelerate industrial shipments.
More Delay in Queues
After clearing the first queue, there are additional delays in the secondary queues where the principal appraisers review the GDs, which means more inefficiency.
Chances of Wrong Processing
The wrong allocation of appraisers to specific items could result in the wrong processing, like deleting SROS or raising duties, without clear accountability since the names of appraisers are not visible.
Long Lines and Tension
The system will result in long lines outside assistant collectors’ offices, which will create tension and strain already limited customs staff.
Equal Treatment of Industrial and Commercial Imports
Industrial imports are being considered as equal to commercial, disregarding the need to have industrial raw materials cleared on time.
Clearing Agent Resistance
The clearing agents fear to present. GD as risks are now higher hence resulting in delayed clearance when the clients find themselves within unknown procedures.
Unbalanced Monitoring System
Agents get 50 points per clearing for each transaction, resulting in large volumes hence risking blacklist after a few months.
Appraisers Fear to Correct Mistakes
Appraisers are unwilling to correct mistakes, assistant, and deputy collectors are afraid of overriding decisions due to the fear of accountability.
Increased Scrutiny
The new monitoring teams are overwhelming the system, making simple GDs more difficult to process.
Decline in Green Channel Usage
Usage of the green channel has declined from 65 percent to 15 percent, creating congestion and delays at ports.
Increasing Costs
These inefficiencies result in piling up demurrage and detention charges which put cost pressure on industry.
Effects on Industry and Export
According to Aptma, all these issues are going to delay the clearances of industrial goods causing disturbance to production schedules besides putting burden on exporters.
Already disturbed economic environment due to above-mentioned. delays, exports would lose Pakistani market shares and export volumes.
Action Requested Now
Aptma urges FBR. Chairman to take these changes urgently into consideration and consultation with industry stakeholders. Urgent measures must be taken that ensure the system of clearing customs is conducive to industry and export. Restoration of priority to industrial GD, staffing of adequate manpower at collecting and clearance points, and responsibility at customs stations among; the main steps.
Therefore, resolving these issues can enable the FBR to avoid any further disruptions to the Pakistani industries and improve the customs system’s efficiency, thereby serving the cause of economic growth and trade.
