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MoC asks, total ban or 50% export duty on wet blue exports?
Jul '10
The Ministry of Commerce (MoC) has requested leather industry stakeholders for their suggestions so that, it is able to assess the impact of the proposed 50 percent export duty or a complete ban, on wet blue exports.

Following the Ministry's letter, Trade Development Authority of Pakistan (TDAP) conducted a meeting with members of Pakistan Tanners Association (PTA) to discuss the subject matter in detail.

During the meet, a TDAP official suggested certain steps to solve the wet blue export and smuggling issue, such as temporary ban on wet blue exports for the time being. This official also stated that, temporary ban on wet blue exports was even permitted under WTO.

However, if temporary ban was not feasible on exports of wet blue, then other measures were also suggested by this official, such as adopting Minimum Export Price (MEP) for wet blue, raising the regulatory duty from 20 to 50 percent on raw materials and wet blue exports and finally, invoices should be made only in square feet and those displaying rate per kilogram or per piece should be discarded.

Explaining wet blue in detail, an industry expert informed that, wet blue is a semi-processed form of leather, which is manufactured when tanneries preserve raw materials by converting them in to wet blue. Owing to increased demand of Pakistani raw stocks in global markets, few corrupt traders, not related to the leather industry, have been selling out huge stocks of wet blue.

Hence, with a vision to discontinue this practice, government has already imposed 20 percent duty on exports of wet blue, after due discussions with all the associations including Leather Garments Association (PLGMEA), Footwear Association (PFMA), PTA and Leather Gloves Association (PGMEA).

Fibre2Fashion News Desk - India

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