Auto industry demands exemption from regulatory duty on steel


The auto parts industry is on the verge of collapse due to imposition of regulatory duty and anti-dumping duties over the past two years, said Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) Chairman Iftikhar Ahmad.

He said this at a meeting convened by the federal secretary for commerce, at the request of PAAPAM, to discuss the issue of regulatory duty on steel products and granting exemption to the automotive industry through the exemption clause (n) “for imports under SRO 655(I)/2006” in the recently issued SRO 1035(I)/2017.



The meeting also included representative from the Federal Board of Revenue, Engineering Development Board and the National Tariff Commission.

Ahmad said that initially, the only justification for imposition of regulatory duty was decline in prices of steel in the international market. Now, the international market has turned bullish and prices are constantly rising, which is making it difficult to bear the burden of the duty.

He further said that as per new five-year Auto Development Policy (ADP) 2016-21, which was formally announced by the ECC on March 21, 2016, a comprehensive tariff structure for the auto industry was notified in Budget 2016-17, including customs duty rate of 1% on import of raw materials not manufactured locally.

In the light of the new ADP, it is totally unjustified to modify its approved tariff structure by maintaining the previous levies of regulatory duty on raw materials not manufactured locally.

The representative of all departments attending the meeting looked convinced by the narration of PAAPAM chairman and assured of their support of the proposal when submitting reports to their respective heads.