ISLAMABAD, March 19: The National Tariff Commission (NTC) is considering a proposal of a local industry seeking downward revision in customs duty on import of raw materials used in the manufacturing of soap. An official told Dawn on Saturday that the NTC was considering the proposal following the request of Pakistan Soap Manufacturers Association (PSMA) asking for rationalization of duty on raw materials and finished soap products. The NTC accordingly invited views, suggestions, and proposals from all parties having an interest in the business relating to or associated with the imports, manufacturing and marketing of soaps. The views and suggestions might be sent within three days to NTC Secretary, Islamabad. According to the official, a public hearing was scheduled for March 24, 2005, at 11:00 a.m. in the NTC, Islamabad. All interested parties might attend this hearing and bring their comments and suggestions in writing. The comments and suggestions might be supported with essential facts, information and supporting evidence, which must be brought to the public hearing. The views not supported with reliable documentary evidence will not be considered. The PSMA has approached NTC for reduction in customs tariff to 5 per cent on imported raw materials: tallow falling under PCT classification 1502.0000, palm stearin falling in PCT 1511.9010, PFAD falling under PCT 3823.1910, palm acid oil falling under PCT3823.1920, caustic soda falling under PCT, palm kernal acid oil falling under PCT 3823.1990, RBD palm kernal oil falling under PCT 1523.2900, palm kernal fatty acid distillate falling under PCT 3823.1999, coconut oil falling under PCT 1813.1100, RBD coconut oil falling under PCT 1513.1900. These raw materials were used in the manufacturing of soaps (laundry and toilet). The applicant’s request is based on following grounds: the finished soaps were attracting lower rate of customs duty — 25 per cent against the raw materials (mentioned above), which were subject to customs duty rate ranging between 10 to 50 per cent.
In order to manufacture a better quality and low cost soap the same concession in the form of 5 per cent customs duty rate regarding palm stearin be given to both the laundry and toilet Soap industry as provided to Oleo Chemical industry vide same SRO and the excise duty be withdrawn from soaps, added the applicant.
