National Tariff Commission (NTC) on Thursday imposed definitive antidumping duties against dumped imports of One Side Coated Duplex Grey Back Paper Board originating in and/or exported from China, Indonesia, South Korea and Taiwan, according to a NTC notification.
As per notice of final determination, antidumping duties ranging from 4.29 per cent to 22.44 per cent have been levied against dumped imports for a period of five years w.e.f. December 27, 2012. The antidumping duties may be extended up to a further period of five years as a result of Sunset Review.
In Pakistan companies are producing the product, sales of, which is injured by under invoiced and dumped imports. Earlier the importers had contested the initiative proceedings by NTC in this regard but later High Court remanded the matter back to the commission for afresh proceedings. The NTC acts as a referee between domestic manufacturers and its interest and the contesting position if any is taken by importers.
According to stakeholders, customs clearances of under invoiced goods in Pakistan continue to remain a major problem for sustaining the competitiveness of domestic manufactured goods. The valuations and clearances of goods on Kg basis instead of Pcs basis of automotive parts has already deprived the domestic automotive part manufacturing industry from taking its legitimate share in the aftermarket dealing with replacement goods. The industry has become reliant on car assemblers due to its eroded competition in the replacement market because of the wrath of gross under invoiced imports. The precision metal manufactured bearings and hi-tech parts are cleared in terms of values against Kgs and while the low tech parts also have similar treatment. It is strange that the Customs, Ministry of Commerce and elsewhere policy makers do not feel the need for correcting the clearances from present in Kgs to Pcs.
The situation with all other products which are domestically manufactured also face the competition of gross under invoiced cleared goods. This is causing closing of the industries or under capacity utilisation of domestic industries which continues to face the situation of non-competitive imports which are less duty paid. With the proliferation of preferential trade agreements and free trade agreements and bilateral agreements causing the reduction of cross border tariffs combined with imports of under invoiced goods, the weakness of manufacturing is exposed to the extent that 60 per cent of the portfolio of Non-Performing Loans belongs to SMEs.
The banks are reluctant to advance further loans to domestic manufacturing as the three quarter of a trillion rupees constitutes the non-performing loans. The banks have comfort to place their money with government instruments and as per no prudent policy given by SBP, the banks as a policy are not obliged to advance loans to the sectors about which they have discomfort.
The energy and gas economy, which has shrunk our DGP from 300 days to 200 days is another added disadvantage for the domestic industry in which the cost per unit increases because of the fixed charges with no variations due to non-availability of the supporting infrastructure, gas and power.
The law and order situation is above to all and extra burden for the industry which through FPCCI has demanded the involvement of army in managing the affairs of law and order in particular Karachi where the reported crime is alarming, they said. The under invoicing and antidumping can be dealt by the Commerce Ministry through policy guidelines such as fixation of prices in Pcs instead of in Kgs as far as auto parts is concerned and provisioning of technical barriers to trade which can be applied as mandated by WTO.
The antidumping is being dealt exclusively by National Tariff Commission while the under valuation which sometimes is worded substitute of dumping is being dealt by Pakistan Customs. When the customs fails to check the under invoicing, the industry seeks recourse through a very difficult and cumbersome process by invoking the provision of National Tariff Commission. On many counts these success of Pakistani applicants has been recorded and very recently another antidumping has been granted by NTC, stakeholders said.
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