ISLAMABAD, March 18: National Tariff Commission has decided to hold an enquiry into the issue of concessional customs duty imposed on the raw materials used by a local seamless pipes and tubes industry, according to official source.
This follows a request by the local industry that the NTC should recommend to the government to exempt the industry from customs duty sales tax and regulatory duty on raw materials- rods and bars of non-alloy steel (PCT No. 7214.9900), semi-finished products of iron or non-alloyed steel (PCT No. 7207.1900), bars and rods of stainless steel (PCT No. 72222 and 7228) and lubricating preparations (PCT No. 3403).
To protect the local industry, these materials had been granted a special exemption from all taxes under an special order (216/92) for a limited period. After the expiry of that order, the government levied 10 per cent customs duty under concessionary SRO 358(I)/2002 dated June 15, 2002.
Contending that the circumstances under which the exemption order was issued still prevail, the applicant industry has stated that the technology employed in production of seamless pipes, etc., was experiencing obsolescence.
Investment in the industry involved high risk and besides, a large amount of foreign exchange was being saved by export of seamless pipes and tubes to 12 countries including Germany and Singapore.
The country might be able to dispense with imports of seamless pipes, etc., entirely if the standard raw materials were available at competitive prices, it was further argued.
The commission, the source said, had as part of its inquiry invited all parties having interest in the business relating to or associated with the finished products and inputs of this industry. These views should be transmitted to the National Tariff Commission Secretary within 10 days.
Besides, the Commission will hold a public hearing on the issue at its office on March 30 at 11 a.m. to which all the interested parties have been invited.
