In March 2014, customs department increased valuation on 14 motorcycle items or parts for local assemblers, which commercial importers import from China on lower valuations. PHOTO: EXPRESS/FILE
The difference in valuation of the import of motorcycle parts between commercial importers and assemblers – valuation for assemblers is mostly higher – is leading to an increase in the smuggling of motorcycle parts from China, industry officials said.
In March 2014, customs department increased valuation on 14 motorcycle items or parts for local assemblers, which commercial importers import from China on lower valuations. Thus, smuggling increased manifold with 104 assemblers in the country now using smuggled parts in the motorcycle assembling industry.
Commercial importers are those who import motorcycle parts for approximately 20 million motorcycles that are plying on the country’s roads. On the other hand, motorcycle assemblers import parts from China and then use them in the assembling industry.
Industry officials say the increase in smuggling is denting the national exchequer, and can possibly reach up to Rs5 billion on an annual basis. With the rise in valuation for assemblers, industry officials estimate that the cost of a Chinese assembled motorcycled has risen by Rs3,000 to Rs6,000. This is why motorcycle assemblers are now shielding themselves by using smuggled parts in assembling.
Pakistan produces around 1.6 million motorcycles every year out of which 1 million units are assembled with Chinese technology. Branded Japanese motorcycle makers fill the remaining market share.
Published in The Express Tribune, May 15th, 2014.
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Smuggled parts motor cycle, shows the high handedness of the entrepreneurs. Motor cycle manufactured/assembled from the parts kit are not subject quality assurance, standardsiation, and safety of the vehicle and passenger. A survey of accidentsw be taken for the quality of parts and Pakistan Customs which is member of the World Customs Organisation, Brussels should do the needful to recover the duties of the smuggled, or else retire and go back home. As they have no competence for the ir sjobs.