Huffaz Seamless Pipes Industries Ltd has applied to the National Tariff Commission under NTC Act 1990, seeking a recommendation to the government for tariff protection of indigenous industry, manufacturing seamless pipes and tubes.
The applicant has sought total exemption of customs duty, sales tax and regulatory duty on import of raw materials, namely rods and bars of non-alloy steel, semi finished products of iron or non-alloy steel, bars and rods of stainless steel, and lubricating preparatory materials used in manufacturing of seamless tubes and pipes.
The applicant has based its request on the following grounds: (i) To protect the local industry, special exemption order 216/94 was issued under which the applicant was exempted from payment of customs duty, sales tax and any other taxes. (ii) After expiry of exemption order, 10 percent customs duty was imposed on import of raw materials for seamless pipes and tubes under concessionary SRO 358(I) 2002, dated 15-06-2002. (iii) The circumstances under which exemption order 216/94 was issued still prevail besides an increasing trend in prices of raw materials.
The applicant has also stated that: (a) The technology employed is experiencing obsolescence. (b) Investment involves high risk. (c) The company has been saving Rs 300 to 400 million of foreign exchange. (d) The company exports to 12 countries including Germany and Singapore. (e) The company can meet the entire domestic demand if standard raw material is available at competitive prices.
The National Tariff Commission invites views, suggestions and proposals from all parties having interest with the business relating to or associated with the finished products and inputs of this industry.
All interested parties are advised to bring their comments and suggestions in writing. Such comments and suggestions supported by essential facts, information and evidence may be brought in the meeting.
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