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Chairman and members of Pakistan Soap Manufacturers Association invites Indonesian Consul General at Lunch

Karachi, June 25, 2013 (PPI-OT): Mr. A. Abdullah Zaki, Chairman and other members of Pakistan Soap Manufacturers Association invited Indonesian Consul General Mr. Rossalis R. Adenan at Lunch in its Karachi office.

Mr. A. Abdullah Zaki presented his views in his welcome address. He said that the Members of Pakistan Soap Manufacturers Association are very happy over your presence. Your presence here proves the importance and attachment to this Association. We welcome you and express thanks from the depth of our hearts.

He explained that there are approximately 600 Factories making Soap and employing approximately 200,000 workers in Pakistan, 500 in unorganized sector and 100 in organized sector. The production of Laundry Soap is 500,000, Toilet Soap 125,000, Carbolic Soap 45000 and Detergents 150,000 Metric Ton per year. Usage of imported raw materials is 80% and local 20%. The soap manufacturers of Pakistan prefer to use Palm Bye Products for the manufacturing of best quality Laundry and Toilet Soap. Soap Industry in Pakistan contributes approximately Rs.17 billion to the national exchequer.

Mr. Abdullah Zaki briefed that Soap is such an essential item that the day starts and ends with the use of Soap. But unfortunately the Soap Industry is being given step motherly treatment by the government. The local industries are showing continuous decline in sales and production due to various damaging policies of the Government. Indonesia and Pakistan are business partners. The major imports from Indonesia consist of Edible Oils and Soap Raw Materials. And now finished Soap is also coming sometime directly and occasionally via third country.

He stated some grievances and problems of Soap Industry in brief. Some problems are cumbering since long and some have recently crop up due to the attitude of Indonesian Custom Authority. Briefing the multi faceted complicated processes of clearance of a particular raw material i.e. Palm Acid Oil/Palm Sludge Oil.

Mr. Muhammad Ali Zia, the former Chairman of this Association highlighted the problem in detail, he said that Palm Acid Oil / Palm Sludge Oil” is mainly used for making Laundry Soap in Pakistan by lower and middle class population who cannot afford to buy expensive Laundry Soap. Since long it was under HS Code 3823.1920/3823.1910 for the last many years but suddenly in March 2013 Jakarta Customs Authorities start to hold all shipments of Palm Acid Oil / Palm Sludge Oil at Jakarta Sea Port without any prior or any clear regulation / notification. Bea dan Cukal informed the exporters of Palm Acid Oil / Palm Sludge Oil that this raw material will be under HS Code 2306.6000 but as per Indonesian and International Code this new HS Code is for “Oil Cake Kernel Meal” and other hard residues of Oil Cake and others of Palm Fruit and Kernel Nuts and in Indonesia there is Export Duty for new HS Code products. That’s why members of our Association are facing problem in its imports. It is highly unjustified and illogical.

The Honorable Guest Mr. Rossalis R. Adenan presented his viewpoint at the event; he thanked the Acting Chairman and members of Pakistan Soap Manufacturers’ Association and said that Pakistan has emerged as a good business partner for Indonesian suppliers. He thanked the importers and soap manufacturers of Pakistan for which last year our government set an export record of 1.3 billion dollar; he further hoped that the opportunities for better business between two countries will be more strengthen.

The Honorable guest said that he will inform the Ambassador regarding the discriminatory treatment of Indonesian Custom Authority and hardships of Pakistani Soap Industry. He hoped that these matters must be solved by arranging meetings among the high officials of ministries of both countries.

After his address, the Consul General presented a souvenir to Mr. Abdullah Zaki. The PSMA Chairman also presented a memento to Consul General Mr. Rossalis R. Adenan.

For more information, contact:
Syed Aijaz Ahmed
Secretary General
Pakistan Soap Manufacturers Association
Pakistan Soap Manufacturers Association Room no. 148,
Sunny Plaza, 1st floor, Hasrat Mohani Road,
Off I.I. Chundrigar Road Karachi
Tel: +92 (0) 21 263 4648
Fax: +92 (0) 21 221 8937

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