ISLAMABAD, Sept 24: Local manufacturers of Viscose Staple Fibre (VSF) have approached the National Tariff Commission for protection through increase in customs duty on the imported product from 5 per cent to 25 per cent.

The reason given for the demand by Chemi Viscofibre Limited, which has been established at the Special Industrial Zone, Nawabshah, to produce 10,000 tons of VSF was that without the suggested protection, the industry might go sick.

The unit is scheduled to go into commercial production next December.

Justifying its demand, it recalled that when the project was conceived in 1995-96, the customs duty on VSF was fixed at the rate of Rs18 per kg plus 25 per cent, which corresponds to ad valorem rate of 40 per cent.

The import duty has since been reduced to the current level of 5 per cent. This rate renders the indigenous production unviable, it was contended. This rate was justified so long as it was not produced within the country. Now that this is no longer the case, the duty should be increased to the maximum level of 25 per cent for a period of three and half years, Chemi Viscofibre stressed.

The Commission has scheduled a public hearing on the issue on October 8 at 11 am at its office.

Besides, all the interested parties have been invited to send their views to the secretary of NTC within 10 days.