Dyes, chemicals imported under EFS: PCDMA calls for stronger monitoring mechanism

The Pakistan Chemicals & Dyes Merchants Association wants tighter checks on dyes and chemicals imported under the Export Facilitation Scheme, to prevent their misuse or diversion. In a letter to FBR Chairman Rashid Mehmood Langrial, PCDMA Chairman Salim Valimuhammad proposed a digital tracking and reconciliation system to follow how imported materials are moved and used. Business Recorder reported that the group's main worry concerns reactive dyes under PCT 3204.1600, as imports under the scheme keep rising without a matching increase in exports.

The association said it backs government efforts to boost exports and manufacturing, but argues that effective monitoring is necessary to stop misuse of the facilities. As an indicative industry estimate, processing is put at 8 to 10 percent of the article cost, with dyes and chemicals reaching up to 25 to 30 percent of processing costs, though these shares vary by product and finish. The PCDMA also said exact consumption is technically complex, so it proposed reasonable consumption norms, risk-based audits and physical stock verification where discrepancies appear.

It suggested piloting the mechanism on reactive dyes under PCT 3204.1600 before extending it to other dyes and chemicals, with duties and taxes recovered where diversion is established. The association has offered to share its observations and data, and an annexure containing the proposal has been attached to the letter.