The National Tariff Commission (NTC) is examining a proposal of local industry to reduce customs duty on import of Liquid Crystal Display Panel (LCD), Plasma TVs and parts/components under the Pakistan Customs Tariff (PCT 2008-2009). Pakistan Electronics Manufacturing Association (PEMA) has approached the government with the plea that due to higher duty on SKD kits, the cost of LCD/Plasma TVs has increased.
This has created difficulties for the domestic industry to compete with the imported product. In order to provide adequate protection to the indigenous industry, PEMA has requested for reduction of customs duty on SKD kits. The Commission is currently examining proposals relating to rationalisation of duty on import of LCD/ Plasma TVs and Parts/ Components.
The Commission accordingly has invited views, suggestions and proposals from all parties having interest in the business relating to or associated with the imports, assembling and marketing of LCD/Plasma TV sets. The views/suggestions may be sent within ten days to the Secretary, National Tariff Commission, 4th Floor, State Life Building No 5, Blue Area, Islamabad.
A public hearing is scheduled for Tuesday at 11.00 am in the Committee Room of National Tariff Commission, 11th Floor, State Life Building No 5, Blue Area, Islamabad. All interested parties have been invited to attend the hearing and furnish their views and suggestions, duly supported with essential facts, information and reliable evidence. The Commission would not consider views not supported by reliable documentary evidence.
PEMA and manufacturers/ assemblers of Plasma Display Panel (PDP) and LCD had represented to the government that they were facing tough competition because of smuggling of the said items. They claimed that smuggled television sets were available at prices 28 percent to 41 percent cheaper than locally produced/assembled LCD/PDP.
This price difference had rendered the local assembling/manufacturing of LCD/PDP uncompetitive in the domestic market. They proposed to abolish customs duty on the SKD of the LCD and Plasma TVs together with application of strict administrative measures. In March 2008, the government examined the representations with a view that administrative measures alone cannot address to curb the smuggling and there is a need to revisit the existing tariff regime for this industry.
Accordingly, government had exempted whole of the duty on CKD kits and reduce the duty on LCD/PDP in SKD kits and CBU from 5 percent and 20 percent from exiting 10 percent and 25 percent, respectively, for a period of one year and during this period the (NTC) was to carry out examination of the concessionary tariff for LCD/PDP and would submit its recommendations for continuance or otherwise of the tariff.
SRO 267(1)/2008 and SRO 268(1)2008 were issued by the FBR in March 2008. Thereby, the CKD kits, SKD kits for LCD and PDP were importable at the rate of duty at 0percent and 5percent, respectively, for the period from March 10, 2008 to March 9, 2009 under SRO 565(1)/2006 and LCD/PDP in CBU from shall be importable at the rate of duty at 20percent under SRO 567(1)/2006 for the said period.
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