Steel industry for curbing import of deformed bars

Demands imported alloy steel bars be valued at $1,500-2,000 per ton.

KARACHI: The domestic steel-melting industry has asked customs valuation authorities to check the import of deformed construction-quality steel bars, which are wrongly declared as alloy steel bars.

It has also demanded that all alloy steel bars imported under Pakistan Customs Tariff (PCT) code 72.28 should be valued by customs authorities at $1,500-$2,000 per ton, says a press release.

The only manufacturer of alloy steel namely People Steel Mills had also recommended, in a letter, to the director of customs valuation that alloy steel bars be valued at a minimum of $1,500 per ton, it said.

Steel-melting industry players stressed that unchecked import of deformed steel bars, under the guise of alloy steel bars, was damaging the domestic industry, which was already running below capacity. They urged customs authorities to take immediate notice of the violation.

Under the free trade agreement with China, alloy steel bars are plain and cold-drawn used in the automotive and engineering industry, which have zero-rated duty.

Alloy steel bars are never deformed. However, bringing in construction-quality steel bars in the form of alloy bars is causing a huge loss of revenue on account of sales tax and income tax due to low valuation.

“There is a need to look into the matter where PCT code 72.28 is being used for importing construction-quality steel bars to evade government revenues on a massive scale,” the release quoted the industry players as saying.

The steel industry is also seeking at least 15% increase in import duty on all mild steel products to offset the higher cost of production in the wake of 75% increase in sales tax on local steel melting units.

Published in The Express Tribune, June 12^th, 2014.

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