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Iran raised custom duty on base value of Kinnow

Pakistan`s kinnow export to Iran is facing bleak prospects during the upcoming season starting from November owing to increase of custom duty. Iran charges 45% custom duty on base value of product which last year was 400 $ US Dollar Per ton. This season it has been increased to 1300 $ Us Dollar per ton by Iran, claimed traders and exporter on Wednesday.
According to a press release issued here by Pakistan Horticulture Development & Export Company (PHDEC) today, In view of the emerging critical situation, exporters are apprehensive about the future of their exports as Iran is regarded a valuable market in terms of prompt payment for the imported fruits and relegation of Pakistani fruits to zero status would serve as a severe blow to them.

Mr. Shahid Sultan, a leading exporter of Kinnow has showed his serious concern about this huge increase in valuation and as a consequence in custom duty by Iran and iterated that it has become difficult for them to export kinnow to Iran. He said that 70 % fruit of Bhalwal region is being affected due to this reason as most of the exporters are reluctant to purchase Kinnow from growers.
He further said that not only Pakistan would loose a major chunk of fruit business, but some 200 kinnow processing factories operating around Sargodha would become dysfunctional as their working entirely depends on fruit export to Iran rendering thousands of people as unemployed in the process.

Mr. Sultan suggested that Ministry of Commerce (MOC) must constitute delegation of government higher officials and exporters to visit Iran to resolve this issue immediately otherwise this huge increase in custom duty by a brotherly country may spell severe financial repercussion for the fruits’ export of the country.

Agha Muhammad Ajmal
Media Consultant
Mobile # 0301-4499578

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