Regulatory Duty on Steel Products; PAAPAM delegation meets Secretary MOI

Pakistan Association of Automotive Parts & Accessories Manufacturers delegation consisting of Chairman, Sr. Vice Chairman and Former Chairman Muhammad Saleem held meeting with new Federal Secretary for Industries Mr. Maroof Afzal the other day in Islamabad and discussed grave issue of Regulatory Duty (RD) levied on the imports of raw materials by the Auto Parts Manufacturers (APMs).

Mr. Muhammad Saleem explained that Auto Industry is governed by the Automotive Development Policy (ADP) 2016-21, issued on March 21, 2016.  Under this policy, all APMs are registered with Engineering Development Board, who govern and monitor all imports of their raw materials to safeguard against misuse of concessionary duties fixed in the ADP.

He said that levy of RD is a complete contravention of the policy framework laid down in ADP and rendering the Auto Parts Industry uncompetitive against imported auto parts.

Muhammad Saleem proposed that Ministry of Industry to request ECC & FBR for providing relief to auto parts manufacturers from RD, through insertion of exemption clause (n) in SRO 1035(l)/2017 for ‘imports under SRO 655(I)/2006”.

Referring to ADP 2016-21, Sr. Vice Chairman draw the attention of Secretary Industries to the mechanism of ‘mid-term policy review’ built in the ADP document, and requested him to use his good offices to arrange this review of ADP at the earliest.

Mumshad Ali former Chairman requested for induction of PAAPAM expert/nominee on the Technical Committee of Engineering Development Board, so that the expertise of our members can be utilized to formulate rational decisions & policies.

Mumshad Ali further said that rampant imports of under invoiced auto parts from China has been hurting the auto parts industry, but this is further compounded by the low valuations assigned by the Custom department, for levy of duties. In addition, valuable hi-tech auto parts are assessed by weight and low rates of duties per kg are applied to them. He requested Secretary MOI for approaching FBR to remove these anomalies, which are hurting auto industry.

Delegates praised the courtesy of Secretary MOI extended to them and patiently listening view point of PAAPAM on the issues being faced by auto industry.