ISLAMABAD, Nov 14: A local manufacturer of fortified rosin has approached the National Tariff Commission (NTC) for removal of anomaly relating to customs duty on import of raw materials and finished product.
The average rate of customs duty on the raw materials has been worked out by the local industry to be 8.86pc and it has been argued that the duty differential between finished product and its raw materials was negligible.
An official announcement of NTC issued on Wednesday confirmed that Descon Chemicals (Pvt) Limited, manufacturer of synthetic resins and allied chemicals, approached the NTC for removal of alleged tariff anomaly pertaining to its finished product fortified rosin and isopropyl alcohol (industrial) and inputs.
The applicant in its application said that fortified rosin is subject to 10 per cent customs duty rate and its raw materials gum rosin, meleic anhydride and sodium hydroxide are attracting customs duty rat of 5 per cent, 10 per cent and Rs5,000 per ton, respectively.
In case of isopropyl alcohol the finished product is attracting lower rate of customs duty — 5 per cent, while its raw materials propyl alcohol (pure) is also attracting 5pc customs duty where ethanol is attracting very high rate of customs duty at 50 per cent.
The applicant has contended that weighted average customs duty rate of these two raw materials works out to be 23pc and therefore an anomaly has been alleged in the duty rates of finished product and raw materials.
The applicant has requested for increase in customs duty on fortified rosin from 10 per cent to 15 per cent; reduce customs duty from 5 to zero per cent on gum rosin; increase in customs duty on isopropyl alcohol (finished product) from 5pc to 15 per cent, and reduction of customs duty rate on isopropyl alcohol (pure form) from 5 per cent to zero per cent.
The NTC has invited views from all parties and has also scheduled a public hearing for November 28 to have their viewpoints on the matter.
