ISLAMABAD: The National Tariff Commission (NTC) has initiated an investigation on the request of a local razor blade manufacturer for waiving the regulatory duty on import of its key raw material — carbon steel strips.

The sole manufacturer of double edge shaving blades, safety razors and disposable razors in Pakistan, Treet Corporation Limited, Lahore approached the NTC for waiver of regulatory duty on carbon steel strips.

In October 2015, the government imposed regulatory duties on several products to meet revenue shortfall.

An official announcement of the NTC said the local manufacturer imports highly precise cold rolled steel strips for manufacturing of shaving blades/razors, having thickness of 0.0098mm and width of 22.2mm.

However, in Pakistan Custom Tariff (PCT), the carbon steel strips are treated at par with general category of cold rolled steel coils having 600mm width like iron steels, plates of alloy steel.

The local manufacturer has requested the NTC for reduction in custom duty on carbon steel strips having width of 22.2mm and thickness of 0.098mm from 10 per cent to 5pc as it is not locally manufactured; and abolishing of regulatory duty at the rate of 17.5pc imposed on carbon steel strips having width of 22.2mm and thickness of 0.098mm.

It was also demanded to remove the tariff anomaly in duty structure applicable to the double edge shaving blades as presently the import duties on the finished product PCT No. 8212.2000 are 25pc (custom duty 20pc plus 5pc regulatory duty), whereas import duties on main raw material i.e. carbon steel strips having width of 22.2mm and thickness of 0.098mm PCT No. 7226.9200 is 27.5pc (10pc customs duty plus 17.5pc regular duty).

The manufacturer demanded creation of separate PCT sub-heading at eight digit level to classify carbon steel strips having width of 22.2mm and thickness of 0.098mm used in the manufacturing of shaving blades.

The NTC in its announcement said, “Views/suggestions may be sent within 15 days to the NTC.”

A public hearing on the issue is scheduled to be held on Feb 18 at NTC, Islamabad. All interested parties can attend the public hearing with prior information, the release added.

Published in Dawn, February 13th, 2016