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Pakistani auto part manufacturer push for exemption from steel import duty-The 17th China(Guangzhou )Int¡¯l Casting product Exhibition
4/8/2016 Casting product expo |
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The Tribune reported that the auto part makers in Pakiostan have urged the Federal Board of Revenue to immediately withdraw the new regulatory duty on all raw materials that they import.
The government has recently imposed 15% additional import duty on different steel products. However, this has caused problems for the auto industry that imports various steel raw materials under the common Pakistan Customs Tariff codes. The association did appreciate the imposition of duty to protect the local steel industry, but asked the government to find out ways to deal with both industries separately.
The intention behind levying duties on steel imports was to protect the local steel industry in the face of dumping by Chinese manufacturers that resulted in underutilisation of local plants. The steel used for auto parts, on the other hand, is a specific variety that is not produced in Pakistan. Levying duty on such steel will not result in increased utilisation of local plants for it is not produced locally, it will merely inflate the costs.
The Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) published an appeal on Monday in a newspaper advertisement, saying that the duty would make locally produced auto parts uncompetitive compared to imported finished auto parts, on which duty was not applicable. It said ¡°The imposition of such abrupt import duties will also badly affect the confidence of investors who are preparing to invest after the announcement of new auto policy.¡±
There are 375 auto part makers in Pakistan and about 1,600 tier two suppliers that supply parts to local auto assemblers and also export them.
-The 17th China(Guangzhou
)Int¡¯l Casting product Exhibition
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