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February 22, 2007
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Thursday
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Safar 4, 1428
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Silicon clearance procedure changed
By Our Staff Reporter
KARACHI, Feb 21: The customs authorities have changed the clearance procedure of imported silicon sheets and coils to check misdeclaration by the commercial importers.
Certain commercial importers have been importing steel under the garb of silicon sheets and coils in order to evade customs duty as the former has high rate of duty (20 per cent) while the latter has only 5pc duty. However, this was hurting the local industry, which manufactures steel.
The collector of Appraisement and collector of Model Customs collectorate taking note of the industry’s complaint decided to change the procedure of clearance of silicon sheets and coils. It has also sought the help of Pakistan Iron and Steel Merchants’ Association (Pisma) in checking the menace of misdeclaration, which was not only depriving the national exchequer of the legitimate revenue but also damaging the local industry.
The collectors of customs in a meeting with the Pisma observed that a lot of irregularities were taking place in clearance of steel items, which was causing huge loss to the national kitty. Hence it needs to be checked at the earliest.
The customs authorities also observed a sudden jump in import of silicon sheets and coils, a basic raw material for the fan
industry, in the last two years and were of the opinion that the cold rolled and hot-rolled steel, which attracts 20 per cent duty, is also being imported as silicon sheets and coils with the former imports also declined considerably.
The production and expansion of the fan industry has not increased as compared to the increase in import of silicon sheets and coils during this period. This indicated that a wide gap of duty (15 per cent) between the two imported goods was the cause of attraction for the commercial importers to import steel in the garb of silicon sheets and coils.
The Pakistan Iron and Steel Merchants’ Association assured the customs authorities of their full cooperation and support in checking the menace of misdeclaration thereby causing huge revenue loss to the national exchequer.
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