A local manufacturer of Card Clothing Tops and Flats has approached the National Tariff Commission (NTC) for increase in customs duty on imports of Tops and Flats. According to an announcement of Pakistan Card Clothing Co (Pvt) Limited, a manufacturer of Card Clothing Tops and Flats (PCT CODE 8448.3110) has approached the NTC for increase in customs duty on imports of Tops and Flats and exemption of duty on raw materials used in the manufacturing of Tops and Flats.
The local manufacturer argued that the applicant is involved in the manufacturing of Card Clothing Tops & Flats (PCT CODE 8448.3110). The raw materials for these items are not manufactured locally and are imported. Before 1997, the applicant was allowed to import the necessary raw materials on concessionary duty of 10 percent under SRO 600(I)/83 when the duty on the finished card clothing was 55 percent.
In 1997, when the duty of different items was drastically reduced, National Tariff Commission recommended the Imposition of 35 percent duty on Import of Tops & Flats and reduction of duty on the raw materials for the same to 10 percent. Since 1997, the duty on Tops & Flats was gradually reduced without any reduction in the duty on its raw materials.
Currently the duty on tops and flats/(PCT CODE: 8448:3110) is 15 percent. However, the same is being imported mostly from China under pak-China PTA @ zero percent duty. Furthermore, there is 17 percent Sales Tax on above cited item No 2&3 whereas there is no sales tax on the finished card clothing. The advance income tax on the imports or raw material is 4 percent whereas on the finished card clothing is only 1 percent.
As a result of the above anomalies, the importers of raw materials are in continuous loss since 2008 and are unable to compete with the Chinese finished card clothing Tops & Flats. Above facts show that finished Flats & Tops mainly being imported from China at zero percent customs duty whereas the three raw materials for the same product being imported are being charged @5 percent 10 percent and 10 percent customs duty.
As per the Public Notice dated February 8, 2011, 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, manufacture and marketing of Tops and Flats ("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: 0092-51-9218963 Fax: 0092-51-9221205.
A public hearing in this regard is scheduled to he held on February 24, 2011 at 11:03 in the Hearing Room of the Commission, 11th Floor, State Life Building No 5, Blue Area, Islamabad. All interested parties, who wish to appear before the hearing, are hereby advised to get themselves registered with the Commission latest by February 22, 2011 for participation in the Public Hearing.
Names of participants, their telephone numbers (Cell/LL) and fax numbers may be faxed to the Assistant Director (Inv-II) Fax No 051-9221205. For any further inquiry, please contact 051-9205447. All interested parties may bring along additional information, if desired, supported by reliable documentary evidence. The views/comments not substantiated with reliable evidence(s) shall not be considered, NTC added.
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