APTMA sounds alarm over new customs system

December 12, 2024 (MLN): The All Pakistan Textile Mills Association (APTMA) has flagged a series of critical issues regarding the new customs system set to be implemented in the coming days.

In a letter to FBR, the association urged immediate intervention to prevent severe disruptions to industrial operations while highlighting the negative consequences that could arise if these concerns are not addressed proactively. Among the key issues raised:

• Under the new system, goods declarations (GDs) will no longer be prioritized based on urgency. All GDs will be processed in strict sequence, eliminating the possibility of expediting industrial GDs.
• Even after completing one queue, GDs may face additional delays in secondary queues for principal appraiser review, leading to further inefficiencies.
• Misallocation of appraisers for specific items could result in incorrect processing, including deletion of SROs or enhancement of duties, as appraisers' names will not be visible for accountability.
• The above inefficiencies will lead to long queues outside assistant collectors' offices, sparking disputes and straining customs' already limited manpower.
• Industrial imports are being treated on par with commercial imports, ignoring the critical need for expedited processing for industrial inputs.
• Clearing agents are reportedly reluctant to file GDs on behalf of clients due to increased risks, further complicating the system as clients struggle with unfamiliar procedures.
• The agent monitoring mechanism assigns 50 points per agent, making it unviable to handle significant volumes without facing blacklisting within months.
• Appraising officers (AOs) and principal appraisers (PAs) are reluctant to amend erroneous assessments, as assistant collectors and deputy collectors are unwilling to override their decisions due to accountability concerns.
• Additional monitoring teams are creating excessive scrutiny, discouraging appraisers from processing even straightforward GDs efficiently.
• The green channel utilization has already plummeted from 65% to 15%, creating congestion at ports and customs facilities.
• These inefficiencies are causing mounting demurrage and detention charges, adding substantial financial burdens on industries.

The cumulative effect of these issues will significantly delay the clearance of industrial inputs, disrupt production schedules, and increase costs for exporters, the letter reads. 

In an already challenging economic environment, these procedural bottlenecks will hinder competitiveness, harm export growth, and exacerbate the challenges faced by local industries.

“We urge immediate measures to ensure that the clearance system supports, rather than obstructs, industrial operations and exports,” APTMA emphasized.

The association remains committed to collaborating with authorities to find solutions that mitigate the negative impact of these changes on Pakistan’s industrial sector.

Copyright Mettis Link News