QUETTA, Nov 24: Massive smuggling of scrap from Iran and Afghanistan is badly affecting Gadani Shipbreaking industry as scrap is reaching market without any check. The chairman of Pakistan Shipbreakers Association, Azam Malik told Dawn on Saturday that the Care system introduced by the Customs was also creating problems for shipbreakers of Gadani.

The ship-breaking industry, he said, had started flourishing in the country in the recent past, and in last two months 17 ships were anchored at Gadani beach and breaking of 10 ships was already in progress.

He said thousands of people got jobs in Gadani while ship-breakers were paying millions of rupee taxes to the government.

However, he said that clearance of closed containers without checking under the newly-introduced Care system was affecting ship-breaking industry very badly as under the garb of re-metal items, roll-able scrap, including various items of ships, are being smuggled into the country.

“Scrap from Iran and Afghanistan via Quetta was also reaching Karachi and Lahore markets without paying any duty,” Azam Malik said, adding he had informed the chairman of FBR, but no action had, so far, been taken.

He said before the current budget, duty on roll-able scrap was $290 per ton, but in budget 2007-08 the duty was enhanced to $400 per ton on rollable scrap under SRO-678 (1) 07.

However, because it had not yet been fed in the computer system, it was causing million of rupees loss to the government.

Mr Malik said that the business community welcomed the Care system as helped clear containers swiftly, but in the grab of this facility, some elements were smuggling rollable scrap without paying any duty.

He said due to smuggling of roll-able scrap, ship-breakers were facing difficulties in importing abandoned ships for breaking.

He said the price of abandoned ships had reached between $490 to 520 per ton in the international market.