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 20 percent to five percent. According to a press release of the NTC, issued here on Thursday, the applicant's request is based on the following grounds:
-- At the start of their commercial production in 1999, market consumption of electrolytic tin plate was around 90,000 metric tonnes. Initially, the applicant imported prime black plate coils only, based on this, they were selling prime tin plate to the limited customers.
The applicant suffered huge losses of Rs 215 million (June 30, 2000) and Rs 51 million (June 30, 2001). Although the applicant was allowed incentives under SRO 71(I)/95, exempting him from the customs duty, sale tax and income tax on raw material for 10 years, the applicant could not achieve the 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 the market share. Secondary quality import was giving them breathing space in the imported 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. All interested parties, who wish to appear before the hearing, are hereby advised to get themselves registered with the Commission latest by December 5, 2009 for participation in the public hearing.-PR