PAAPAM demands duty withdrawal on imports for auto sector

Says move is in contravention of Automotive Development Policy

LAHORE: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has asked the Ministry of Industries to request the Economic Coordination Committee (ECC) and Federal Board of Revenue (FBR) to provide relief to auto parts manufacturers from regulatory duties (RD).

The proposal was made by Paapam in a meeting with new federal secretary for industries Maroof Afzal.

The association’s former chairman Muhammad Saleem explained that the auto industry is governed by the Automotive Development Policy (ADP) 2016-21, issued on March 21, 2016.  Under this policy, all APMs are registered with Engineering Development Board (EDB), who govern and monitor all imports of their raw materials to safeguard against misuse of concessionary duties fixed in the ADP.



He said that levying of RD is a complete contravention of the policy framework laid down in the ADP and renders the auto parts industry uncompetitive against imported auto parts.

Referring to ADP 2016-21, Senior Vice Chairman Ashraf Shaikh drew the attention of Secretary Industries to the mechanism of ‘mid-term policy review’ built in the ADP document, and requested him to use his good offices to arrange this review of ADP at the earliest.

“We request induction of an expert/nominee on the Technical Committee of Engineering Development Board, so that the expertise of our members can be utilised to formulate rational decisions and policies,” Shaikh said.

Paapam further said that rampant imports of under-invoiced auto parts from China has been hurting the auto parts industry, but this is further compounded by the low valuations assigned by the Customs department, for levy of duties.

In addition, valuable hi-tech auto parts are assessed by weight and low rates of duties per kg are applied to them. He requested the secretary industries to approach the FBR and remove ‘these anomalies which are hurting the auto industry’.

Published in The Express Tribune, November 3^rd, 2017.

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