August 1, 2019 (MLN): Amreli Steels has issued a clarification on the recent import of heavy meltable scrap (HMS) consignment which contained a high percentage of unserviceable scrap auto parts, explaining that it was a breach of contract from the supplier’s end.
Recently a consignment of 48 containers of HMS was examined by Collectorate of Customs at Port Qasim. Customs found a high percentage of unserviceable scrap auto parts, which in Pakistan attracts a higher incidence of duty than regular scrap.
The consignment is currently being assessed at port to determine the actual impact of duties and taxes.
The company pointed out that a significant source for HMS is the destruction and shearing of automobiles, therefore, unserviceable auto parts generally do come in small proportions in the HMS category worldwide.
However, the high percentage of unserviceable/broken scrap auto parts was a breach of contract on part of the scrap supplier and there was no way for Amreli Steels Limited to know or detect such a lapse upon clearance at Customs.
They further added that Amreli Steels contractually discourages suppliers from inclusion of unserviceable scrap auto parts in consignments.
Nevertheless, a hundred percent of HMS imported by the company is processed through a shearing machine and charges in the furnaces to manufacture steel billets. Representatives of the company have discussed the situation with Customs Officials.