Ban raw, semi-finished leather exports: PLGMEA

26 Jun '12

2 min read

Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has urged the Ministry of Commerce to immediately ban exports of raw, pickle, wet and dry blue and crust hides, skins and split leather from the country.

PLGMEA Patron-in-Chief, Fawad Ijaz Khan said exports of raw and wet blue hides and skins from the country are subject to a duty imposition of 20 percent, but to avoid paying this duty exporters are mis-declaring wet blue leather as crust leather, which is unfortunate.

In several instances, PLGMEA has aided the Customs authorities by helping them detect such mis-declaration by physically checking the leather, and taking steps against the wrong-doers. However, several containers are still being exported with wrong declarations, Mr. Khan said.

Aiming to bring an end to the practice of mis-declaration and stop raw material export, he suggested the Ministry of Commerce should impose an immediate ban on export of all leather till crust stage.

He cited example of India, where all leather exports till crust stage are subject to a 60 percent duty.

Mr. Khan said the Pakistan Government must encourage export of finished leather and value added items like leather garments, leather items, leather footwear and leather gloves, while discouraging export of raw materials.

Imposition of high duty on all leather exports till crust level would also lead to enhanced availability of leather for value addition and it would boost leather garment exports from the country, he added.

Leather garment exports from Pakistan for May 2012 dipped by a massive 27.59 percent as compared to May 2011. Exports for the first 11 months of the current fiscal also plummeted by 16.94 percent over same period of last fiscal.

Fibre2fashion News Desk - India

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