ISLAMABAD: Afghanistan has imposed duty on import of kinnow from Pakistan causing loss of a 100,000 metric tonnes market to exporters while the two countries are in talks for signing a preferential trade agreement, besides revising existing agreements.
In a letter sent to the Ministry of Commerce, Pakistan Fruit and Vegetable Exporters Importers and Merchant Association (PFVA) has informed that Afghanistan has raised taxes by an increase in assessed value of kinnow from Pakistan, which will increase the value of grapes from Afghanistan by Pakistan Customs.
Currently, Afghanistan is assessing the value of kinnow at $272 per tonne as compared to $124 per tonne previous season, whereas custom duty at the import stage is 30 per cent at the Afghan side.
Pakistan Customs is currently assessing grapes at $700 per tonne against its fair value at $450 per tonne, whereas custom duty on grapes is 10 per cent.
The association has informed that kinnow export to Afghanistan is a lifeline for kinnow exporters as Pakistan is exporting is No-2 category and small sized kinnows to Afghanistan which is not exported anywhere else.
With the sudden increase of taxes, exports have been hampered as exporters have no other option but to sell the small sized fruit in the domestic market at throw away prices.
According to the association, Pakistan is importing a small quantity of grapes from Afghanistan while with allowance of import of grapes at its correct value will encourage Afghan Customs to correct the value of kinnow.
It has suggested that since Pakistan is also proceeding with a PTA with the neighbouring country, taking the first step to allow grape import from at fair value would be encourage Afghanistan to reciprocate the move in good will.
Meanwhile, a delegation of PFVA headed by Waheed Ahmed held a meeting with Advisor to Prime Minister for Commerce and Investment Razak Dawood and apprised him of the issues related to export of fruits and vegetables including kinnow after which the advisor assured that he would make all-out efforts to resolve issues faced by the association.
He also said that the duty structure is being reviewed and simplified to facilitate Pak-Afghan trade.
The delegates of PFVA appreciated initiatives taken by the advisor to address the exorbitant increase in import duty on kinnow by the government of Sri Lanka by taking it up at the diplomatic level which resulted in the withdrawal of an increase in the cess. “This timely action led to the elimination of likely repercussions in kinnow export to Sri Lanka and will help attain the export target of 350,000 metric tonnes,” they said.
Sharing issues related to the export of fruits and vegetables to the international markets of Indonesia, Afghanistan and Iran, Waheed Ahmed emphasised the need for immediate action.
The PFVA delegation shared that the quota of Pakistani kinnow import by Indonesia is due to expire on December 30, whereas Pakistan would be deprived of the Indonesian market if steps are not taken to renew the quota deal.
“It is, therefore, essential to have an immediate negotiation on the issuance of a new quota by Indonesia so that export to the country can continue without any interruption,” the PFVA stressed.
Moreover, the need for an immediate negotiation with Iranian authorities to withdraw the ban on Pakistani kinnow, a lucrative market which has been closed for many years now.
