A local manufacturer of agricultural surfactants has approached the National Tariff Commission (NTC) for tariff protection through exemption of customs duty and sales tax on import of raw materials. In this regard, Surfactants Chemicals Company, Karachi, has submitted an application to the NTC.
The unit has sought tariff protection by exemption of duties and taxes on import of Surface Active Agents; Sulphonic Acid - Soft (PCT Heading 3402.1110), Other Surface Active Agents (PCT No 3402.1190), Cationic (PCT No 3402.1290), Non Ionic Surface Active Agent (PCT No 3402.1300), Other Organic Surface Active Agents (PCT No 3402.1990 & 3402.9000) used by the Applicant.
The unit has informed the NTC that the applicant is the only domestic manufacturer of surfactants, which are used on the raw material/input for agricultural pesticides. Under SRO 565(I)/2006, dated June 5, 2006, formulators or manufacturers of agricultural pesticides (users of applicant's product) are exempt from customs duty and sales tax on import of raw materials, which is the same product as manufactured by the unit.
The local unit is at disadvantage vis-à-vis the imports of surfactants as it is paying duty @ 20 percent, while the formulators of pesticides are exempt from such duty. The rate of duty on raw materials @ 20 percent is very high as also the international prices. Therefore, it is difficult to compete with imports of finished product. Keeping this in view, the applicant has requested for waiver of customs duty and sales tax on import of raw materials to enable it to compete.
As per Public Notice dated December 21, 2010, NTC has initiated an inquiry and has sought views, suggestions and proposals from all parties having interest in business relating to or associated with the imports, manufacturing and marketing of surfactants and/Surface-Active Agents. Views/suggestions may be sent within fifteen days of publication of the press release in newspapers to the Secretary, National Tariff Commission, 4th floor, State Life Building No 5, Blue Area, Islamabad.
A public hearing on the issue is scheduled to be held on January 4, 2011 at 11:00 am in the Committee Room of National Tariff Commission, 4th floor, State Life Building No 5, Blue Area, Islamabad.
Further, all parties having interest in the business relating to or associated with the imports, manufacturing and marketing of surfactants and Surface-Active Agents heave advised to get themselves registered with NTC, latest by December 28, 2010, for participation in the public hearing by providing names of the participants with their telephone numbers (Cell/LL) and fax numbers to the Director (Inv 1) on fax No 051-9221205.
For any further inquiry parties can contact the NTC on 051-9206921. All interested parties may submit their comments and suggestions in writing. The comments and suggestions may be supported with essential facts, information and documentary evidence, which must be brought to the public hearing. The views not supported with reliable documentary evidence shall not be considered, the NTC added.