ISLAMABAD: Massive misuse of billions of rupees is underway in guise of cross border trade through the Line of Control (LoC) on both sides of Kashmir between Pakistan and India as fruits, vegetables and many other items are sneaking into all markets of the country illegally without paying any duty and taxes. Currently, Pakistani markets are flooded with Indian banana but the latest findings of the Quarantine Department found that it possessed some risks, so it should be banned in the country.
In the latest development, the Department of Plant Protection (DPP) in its official communication with Pakistan Customs wrote a letter on 14-3-2018 that fresh fruits and vegetables coming into Pakistan from India through cross LoC trade are carrying bio security risk.
Therefore, the Indian origin consignments seized by Preventive Division Model Customs Collectorate, Islamabad, need to be disposed off under Rule 34 (a) (1) of Customs General Order (CGO) 12/2002.
When contacted, sources in the Ministry of Commerce said that Pakistan and India had agreed to allow cross border trade across the LoC with the purpose to benefit inhabitants of both sides of Kashmir.
There was a condition that the fruits and vegetables produced in both sides of Kashmir will be allowed as duty free under the barter system. Under this agreement, only 28 items of fruits and vegetables are allowed to be consumed in Azad Jammu and Kashmir of Pakistani side and Indian Held Kashmir (IHK) of the Indian side.
“Its misuse is rampant as it has become one of the major sources of smuggling Indian goods into Pakistan’s all markets without paying duty and taxes creating distortions in our domestic markets,” said the official. The customs officials said that this barter trade agreement was aimed at benefitting people of both sides of Kashmir but it has now turned into one of the sources of smuggling of goods worth billions of rupees on annual basis.
“Whenever we had tried to stop this rampant smuggling, law and order situation was created by blocking roads,” said a Customs official and added that there was no objections to the Customs if something was imported through the Wagah border or sea by paying duty and taxes to the national kitty.
“There is need to probe this matter in details because it is causing loss to national exchequer heavily and it is also posing risks to the health of the countrymen as Quarantine Department had found some bio risks in different items of fruits and vegetables coming from Indian side into Pakistan so it should be banned on immediate basis,” said the officials.
They said that Indian clothes, some medicines and many other items are coming into Pakistan through this route of LoC so it was not true that only fruits and vegetables were coming into the country through this rampant misuse underway in the broad day light at the cost of national exchequer.
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