Importers of steel products have refused to pay duty on valuation linked with London Metal Exchange (LME), and have demanded previous structure of valuation. They are not happy with the new formula, and said that it would open new doors of corruption and the whole beneficiaries would be officers of customs appraisement.
They said that LME basically issues prices for prime quality steel products, and the prices were negotiable. They said that this step of customs would take the prices of these steel products to new peaks and would cost more for the consumers. According to them, over a thousand steel products are traded in LME and all products have different quality and prices, while dealers are also allowed time, quality and quantity discount on the LME prices.
The importers said: "Customs officials have said that this step will increase the revenue. However, we also believe that revenue will increase as, after the imposition of new formula, the powers of appraisement would widen."
They said that negotiations had been started between customs officials and importers and it was expected that both would reach some solution. However, if the matter would not be resolved, then the importers would be compelled to protest.
Although, the customs officials have allowed shifting of the imported consignments from port to godown, importers are bound not to sell the imported goods till the matter is resolved.
"This step has been taken to save the importers from extra demurrage charges at port," officials said.
Importers said that HRC, CRC and galvanised products were the major steel products imported as Pakistan Steel was meeting only 15 to 20 percent of local demand.
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