Auto parts: PAAPAM urges withdrawal of duty

Association says small, medium-sized APMs on verge of closure

KARACHI: Pakistan Association of Auto Parts and Accessories Manufacturers (Paapam) Chairman Siddique Misri has urged the government to immediately withdraw the regulatory duty on raw materials imported for the manufacturing of auto parts.

He stated that the duty has been wrongfully imposed on materials (CRC/HRC/pipes/tubes) being imported by Auto Parts Manufacturers (APMs), although none of these “auto-grade” raw materials are manufactured locally. This duty was imposed through amendments made in SRO 568, vide SROs 18 and 246 on January 14 and March 27, 2015 respectively.

Misri explained that all APM imports are fully verified by Engineering Development Board under SRO 655 and monitored by the WEBOC System, to the effect that these raw materials are not manufactured locally.

“Levy of regulatory duty is, therefore, causing irreparable damage to the small- and medium-sized APMs, who are now on the verge of closure,” he said. Paapam Senior Vice Chairman Mumshad Ali emphasised on the immediate withdrawal of the duty on raw materials as rules have been strictly followed under the government-approved auto policy of Pakistan. “This has to be done in order to avoid closure of APM plants and a large scale loss of jobs,” he said.

Paapam chairman demanded that similar exemptions were granted to manufacturers of CRC and other products – who are approved under SRO 565), hence an exemption should also be granted to APMs – who are similarly approved under SRO 655).

Published in The Express Tribune, May 10^th, 2015.

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