ISLAMABAD, April 21: Auto manufacturers on Saturday finalised tariff and non-tariff recommendations for consideration in the upcoming budget of 2007-08.

The recommendations were given final shape in the meeting of the committee on Tariff-Based System and vendor industry.

It was headed by General Manager, Engineering Development Board (EDB) Zahid J. Yaqoob. The meeting was attended among others by representatives of the relevant ministries and auto industries.

An official announcement issued after the meeting said the recommendations will be forwarded to the CBR for incorporation in the budget 2007-08. Amendments to concerned SROs were also made.

The auto industry demanded incentive in the shape of reduction in tariff for introduction of Euro II standards for environmental safety as introduction of new components was necessary.

Some manufacturers informed that they were already implementing standards in some models which have resulted in increased cost. In the absence of any incentive, they will be forced to pass on this increase to the customers, they said.

The committee also reviewed one year performance of the TBS and expressed satisfaction on its smooth implementation.

A team of EDB will visit Karachi Port next month for getting full assessment of the Customs authorities on its working.

The committee deliberated on handing over the commercial audit to private companies for verification of lawful assembly of vehicles from imported components.

It underlined the importance of audit as the facility of import on component of lower duty rates was being misused by some manufacturers, especially in motorcycle sector.

The audit will also verify and reconcile the lawful assembly / manufacturing of vehicles from CKD kits imported directly by the OEM under the import policy at normal rate of duty and parts, attracting additional customs duty.

The committee was also briefed about improved custom clearance system and it was decided that further discussions will be held with the customs authorities in Karachi next week, as the industry wanted to understand its full implications.