Customs department has refused to reduce the import trade price (ITP) of three steel products, which was raised during last week in line with prices in world market, source said on Wednesday.
Customs valuation directorate had raised ITP of three major steel products including Cold Rolled Coiled (CR), Hot Rolled Coiled (HR) and Galvanised Products (GP) by 19-34 percent up to 730 dollars per ton in the wake of rising steel prices in the world market on July 29, 2008.
Customs authorities had fixed the ITP of HR, a raw material, and CR, a semi-finished product, higher than the finished steel product of GP, and claimed that the current surge in the ITP had been made after consultation with steel sector representatives.
But Pakistan Iron and Steel Merchant Association has refused its claim, saying that customs authorities had never consulted with the steel importers, and had fixed the ITP of raw material higher than the finished goods.
With the current surge, the ITP of HR valuation mounted to 710 dollars by 179 dollar per ton and CR import trade price stood at 730 dollars per ton after an increase of 186 dollars per ton, while the ITP of GP is less than the HR and CR and stood at 689 dollars from 580 dollars per ton.
Sources said that two rounds of dialogues had taken place between the customs authorities and steel importers but could no agreement was reached. However, some customs officers had hinted that ITP would not be re-evaluated.
In the first meeting, the attitude of customs officer Farukh Sajad was insulting. Therefore two members Khalid Tawab and Tariq Irshad of steel importers'' delegation boycotted the talks. During the meeting DG customs valuation Naseer was also present and did not play any role to settle the issue and remained like an audience.
The second meeting was held on August 1. This was also unfruitful due to the transfer of DG valuation and customs officials instructed the steel importers to send an application.
The application for the revision of three steel products'' ITP was sent to the new DG customs valuation Zafar Iqbal on August 2. However, still customs have not made a decision and are rather using delaying tactics. A delegation of steel importers also went to Customs House on Wednesday to meet DG valuation on the issue but he was not in his office.
"We have made it clear to the customs authorities that new formula is not workable as it leads to unrealistic values. However, they have refused to revise or cut the new value of steel products, " importers said. They said that for the first time in the history the new value of HR, which is a base material, is higher than the coated material.
"It was decided that the formulas need modification, where a difference of 25 dollars would be maintained between HR, CR and GP and if the ITP of HR stood at $600 per ton when the value of CR will be 625 dollars per ton and GP 650 dollars per ton," they added.
Therefore, the customs should reduce the value of HR and CR lower than the GP. However, importers have decided to make some efforts as a final attempt for the revision of steel products ITP and not to clear their imported consignment till final decision.