Recycling industry troubled as Customs stops clearance of plastic scrap

KARACHI: More than 300 containers of plastic waste and scrap have stuck up at Port Muhammad Bin Qasim, as the Customs authorities have stopped clearance of these goods. These containers are imported by different companies from different sources of the world but have been detained on flimsy ground.[the_ad id=”31605″]Customs authorities said there were reports the importers of plastic scrap were availing undue benefit by purporting to be the manufacturers while they were actually commercial importers and selling the imported item in open market. Custom authorities have stopped the clearance of these consignments pending verification of the manufacturing facilities of these importers.

Collector Port Qasim Mumtaz Khoso formed a team headed by Deputy Collector Amjad Rajpar to visit and verify the manufacturing facilities. The exercise has been completed and  clearance of legitimate manufacturers would start from Monday.

According to market sources, there was shortage of plastic waste/scrap and recycling industry was running in to losses. The association said of the clearance was not started on Monday, they would approach court of law for redressal of their woes.

According to industry and port sources, Pakistan Customs which regularly releases consignments of plastic scrap in routine but now are processing the Goods Declarations (GD’s) treating them as violative of import policy order.

The importers have been asked to mention the details of the consignments and to prove that the import is for local consumption by the importer, manufacturer.

Due to non-clearance of consignments the importers have to pay huge amounts in demurrages and the beneficiary of the demurrage will be the shipping lines, while the local industry was being badly damaged besides precious revenue is being lost, the port sources maintained.

According to port sources Consignments of Prime Packages, Premier Plastic, MR Enterprises, MS Enterprises, S&S Khan Enterprises, Elysium Corporation and Sana Packages are among the major importers facing huge losses besides dozens of small companies due to acts of officials of Pakistan Customs exceeding jurisdiction and authority.

It may be mentioned here that it is not the jurisdiction of Customs, but it is the jurisdiction of Inland Revenue to verify the existence and activity of manufacturing units.

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