A leading automobile company is said to have requested the government to slap a ban on import of used cars, recently allowed by the Economic Co-ordination Committee (ECC) of the Cabinet, well-informed sources told Business Recorder here on Friday. Local car assemblers argue that frequent import of used cars on the basis of 'sold' documents is hurting their business.
Indus Motors has also requested the federal government to eliminate duty depreciation concept in Pakistan, the sources added. The company maintains that clearance of used auto parts by customs on payment of penal duty should be stopped, proposing that the present condition given in IPO be amended to read as "auto parts (including serviceable auto parts imported as steel scrap)."Pak Suzuki Motors Company Limited, another assembler, has sought permission to import components, machines, jigs, dyes and moulds from India.
The sources said Import Policy Order will be amended with regard to sale of imported lubricants on the recommendations of the Ministry of Petroleum and Natural Resources.
According to the Ministry of Petroleum, current Trade Policy provides that import of automotive engine oils of quality level (API/SC/CC) and above and automotive gear oil of (API) GL-4 and above shall be imported by commercial importers, lubricants blending companies, lube oil marketing companies and refineries. Ogra being regulatory authority argues that sale/marketing of imported lubricants should only be allowed to persons with valid registration with the authority under the rules.
The commerce ministry has agreed to a proposal of ministry of environment, which proposed that the industry would obtain NOC from the ministry of environment and would follow the standards/guidelines issued by the ministry for use of shredded tyres as alternative fuel. The commerce ministry argues that the proposal be supported for industrial users, subject to exporter's mill certificate.
The commerce ministry has also agreed to consider 25 percent freight subsidy on the export of furniture, marble and granite, leather and leather products and sports goods on the same pattern as that of live sea food. This proposal has been submitted by the Small and Medium Enterprises Development Authority (Smeda).
The government of Khyber Pukhtunkhawa has proposed that re-export of imported goods via land route to Afghanistan and onwards to Central Asian Republics should be on the following condition: "After value addition of the imported goods particularly the consumable items meant for re-export, should not be allowed in bulk quantity via land route to Afghanistan or Central Asian States but rather in small packets with inscription on its packing "for export only" in order to check its smuggling/back flow across the Pak-Afghan border to KP.
The commerce ministry has promised to send the proposal to the Federal Board of Revenue. The provincial government has proposed that import of raw material for re-export to Afghanistan should be allowed as there is no manufacturing unit established in Afghanistan to check the back flow/smuggling of items across Pak-Afghan border. The price competitiveness of the produce of manufacturing units established in KP should be safeguarded vis-à-vis low priced smuggled (re-exported) goods from Afghanistan.
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