LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) will take-up the issue of massive increase in customs valuation on the import of unbranded garments with the Directorate General of Customs Valuation.
This was stated by the LCCI Vice President Nasir Saeed while talking to a 50-member delegation of Readymade Garments Association, Shahalam market, Allama Iqbal Town and other markets of the city. Tanveer Ahmed Soofi, Zahid Maqsood Butt, Ashraf Bhatti, Muhammad Shahzad, Shahzada Baber, Haji Farrukh Iqbal, Muhammad Adress, Ashfaq Butt, Ikhlaq Ajmeri and other members of the delegation also spoke on the occasion.
The delegation members informed the LCCI Vice President Nasir Saeed that Directorate General of Customs Valuation has drastically increased custom evaluation with an average of around 900 percent on imported garments under SRO 886. They said that an extraordinary increase in customs duty with an average of around 900 percent on imported garments as compared to previous valuation ruling is unjustified and force commercial importers to find other illegal means to bring imported garments into the country.
They further said that valuation ruling on the import of unbranded garments was previously based on per dozen basis but the customs department had now imposed duty on per piece basis. They said that the imported garments were being valued at the rate of 4.4 dollar per dozen which has increased to 3.3 dollar per piece after amendment in the SRO 886.
They informed the LCCI Vice President that if this new valuation ruling is not withdrawn then customs department would not be able to generate the revenue collected against the clearance of around hundreds of garment containers per annum. The said that the initiative would setup the monopoly of local garment manufacturers and poor would deprive of cheap garments. They said that traders want to play their due role for economic development of the country and don’t want to opt agitation therefore Directorate General of Customs Valuation should withdraw increase in valuation.
Nasir Saeed said that illegal import of garments would not be in the favor of national economy therefore Directorate General of Customs Valuation should resolve this issue at the earliest. He said that huge increase in the customs valuation would promote illegal import of garments and importers would bring garments into the country under the guise of Afghan Transit Trade (ATT). He said that it would cause massive revenue loss to the national exchequer besides encouraging smuggling which is already hollowing the foundations of economical infrastructure of the country.
He said that Directorate General of Customs Valuation should listen to the point of view of the importers of unbranded garments and find out an amicable solution of the issue. He said that if new valuation mechanism continued to be implemented, importers of imported garments would be left with no other option but to adopt illegal ways to bring imported garments into the country or become defaulter.
