*Centre approached for early decision on modifications in SOP
Mohinder Verma
JAMMU, June 8: In a bid to plug loopholes in the existing mechanism and to address the concerns of the security agencies, the Government has come up with new measures to streamline the processes and procedures relating to Cross-Line of Control (LoC) trade between Jammu and Kashmir and Pakistan-occupied-Kashmir.
This is for the first time that serious attention has been paid towards plugging the loopholes, which were existing ever since the start of Cross-LoC trade in October 2008, and State Government is hopeful of addressing the concerns of security agencies up to certain extent if not completely with these new measures.
For the Cross-LoC trade, which takes place in a primitive barter system with no banking facilities, around 1200 traders have registered themselves with the Custodians of Trade Facilitation Centres (TFCs) at Salamabad in Uri area of Kashmir valley and Chakan-Da-Bagh in Poonch district of Jammu region. Around 900 traders have registered themselves with Custodian of TFC at Salamabad while as the number of traders registered with Custodian TFC at Chakan-Da-Bagh is around 300.
Ever since the start of Cross-LoC trade there was no focus on renewal of registration of traders/firms after regular intervals and these around 1200 traders were never subjected to this mandatory exercise during the past nearly 10 years, official sources told EXCELSIOR.
Similarly, bank details of traders/firms were never obtained by the concerned authorities despite the wide-spread apprehensions about use of Cross-LoC trade for bringing in Hawala money for fuelling militancy in Jammu and Kashmir, sources further said. Moreover, security deposit was never obtained from the registered traders/firms, which otherwise was also equally important step.
Now, all these and other loopholes have received due attention and in order to plug the same and address the concern of security agencies the State Government has come up with measures for streamlining the processes and procedures related to Cross-LoC trade.
According to the Government Order No.121-IND of 2017 dated May 31, 2017 issued by Industries and Commerce Department, the copy of which is available with EXCELSIOR, registration of traders/firms for Cross-LoC trade shall be valid for a period of two years after which the same will be renewed. “All the existing registered traders have been conveyed through the Custodians of Trade Facilitation Centres to immediately apply for renewal of registration as per the fresh guidelines”, sources said.
The registration will be renewed after verification of Permanent Registration Certificate (PRC), Permanent Account Number (PAN), Taxpayer Identification Number (TIN), address proof of residence and business unit, audited bank accounts and antecedent verification etc. However, after two consecutive renewals, traders/firms will be rated as “A” category and will not be required to provide additional documents. “The competent authority will suspend or cancel the registration of any trader/firm due to administrative and security reasons”, read the latest Government Order.
Under the new measures, bank details of the trader/firm (account number and bank statement) will be obtained from each and every trader at the time of renewal of registration, Moreover, security deposit of Rs 5 lakh in the form of Fixed Deposit/Bank Guarantee will also be obtained from each one of them.
When contacted, a senior officer of the Industries and Commerce Department said, “these measures will help up to certain extent in addressing the concerns of the security agencies”. More steps will be taken only after Government of India modifies the Standard Operating Procedure (SOP) as proposed by the State Government, he added.
The State Cabinet in its meeting held on February 13, 2017 had approved changes in the SOP for the Cross-LoC trade and accordingly Industries and Commerce Department had forwarded the same to the Government of India. “State Government will shortly write to the Centre for early decision on modifications in SOP”, sources said.
“To stop proxy trading, J&K has proposed incorporation of provisions like compulsory establishment of trading unit in the State by the trader who would be required to provide business premises address to be verified along with site plan, employees details and annual accounts etc”, sources said, adding “in the proposed modifications stress has also been laid on incorporation of mechanism to check wrong valuation of goods”.
“This is being proposed with the observation that wrong valuation of goods results into un-accounted money flow into economy and its subsequent use for funding subversive activities in Jammu and Kashmir”, sources informed, adding “State has also proposed a suitable mechanism for proper identification of labourers/porters working at the TFCs which include issuance of badge numbers, identity cards, prescribing of dress code etc”.
It is pertinent to mention here that since December 2015 no new trader has been registered for Cross-LoC trade in view of the stay granted by the State High Court in a petition filed by the already registered traders.
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