Siddiqsons Tin Plate Limited (STPL) a producer of various kinds of tinplates has approached the National Tariff Commission (NTC) for removal of anomaly in the rate of customs duty on its major raw materials by reducing customs duty of secondary quality Tin Mill Black Plate (PCT No 7209.1810) from 205 to 5 percent. The applicant's request is based on the following grounds.
i. At the start of their commercial production in 1999, market consumption of Electrolytic Tin Plate was around 90,000MT.
ii. Initially, the applicant imported Prime Black Plate coils only, based on this, they were selling prime tin plate to their limited customers.
iii. The applicant suffered huge losses of Rs 215 million in June 30, 2000) and Rs 51 million in June 30, 2001. Although the applicant was allowed incentives under SRO.71(I)/95 exempting him from customs duty, sale tax and income tax on raw material for 10 years but could not achieve desired results, ultimately the applicant started import of good secondary quality (secondary quality only due to size) for supply to non food grade market. The applicant thus started import of both qualities and produced different grades and covered 60 percent to 70 percent of market share.
iv. Secondary quality import was giving them breathing space in the import tinplate market as well as their books started to come in green. After that, the same practice was carried out for the purpose of their survival in the market.
v. Considering the factors of prices and market requirements, if the applicant import both quality materials only then he is able to compete in the market.
vi. Finally, the applicant claims net loss of Rs 11960/MT on import of secondary quality Tin Mill Black Plate (PCT No 709.1810) at the current duty rate of 20 percent.
As per the Public Notice dated November 17, 2009 the National Tariff Commission has initiated an investigation and would welcome views/comments from all parties having an interest in the business relating to or associated with the imports, manufacturing and marketing of Tin Mill Black Plates ("Interested parties").
The views/comments may be sent within fifteen days of publication of the public notice in the newspapers, to the Secretary, National Tariff Commission, 4th floor State Life Building No 5 Blue Area, Islamabad, Tel: 009251-9218963 fax No 009251-9221205.-PR
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