KARACHI, June 5: The Polypropylene Cement Sack Manufacturers have taken strong exception to the proposal of reducing customs duty on Kraft paper from 10 to five per cent in the budget 2007-08.

It has been claimed that the Kraft paper producers of cement sacks import finished draft paper rolls and simply assemble cement sacks by cutting, pasting and printing having value-addition of five per cent, as compared to 70 per cent value- addition during cement sacks manufacturing from polypropylene granules.In a complaint lodged by the chairman of Polypropylene Cement Sack Manufacturers, Iskander M Khan, with Dr Salman Shah, advisor to the prime minister, it was stated that undue customs duty advantage given to the Kraft paper cement sack assemblers compared to the polypropylene cement sack manufacturers has denied a level-playing field.

He further said that Kraft paper lobby got finished Kraft paper’s customs tariff reduced in each budget.

During 2006-07, the imported finished kraft paper rolls (PCT 4804201000 & 4804029000) despite being a finished product was reduced from 15 to 10 per cent as compared to five per cent for the polypropylene granules (PCT 3902.1000), a basic and primary raw material.

Sikander M Khan apprehend that in the federal budget 2007-08, customs duty on finished Kraft paper would be placed at five per cent.

Therefore, the undue customs duty advantage given to the Kraft paper cement sack assemblers compared to the polypropylene cement sack manufacturers has given advantage to the former which is being quoted at Rs10.90 and the later at Rs11.90.