ISLAMABAD: The Economic Coordination Committee (ECC) has directed the Ministry of Law and Justice to expedite the constitution of National Tariff Commission (NTC) Appellate Tribunal, official sources told Business Recorder.
The issue of Appellate Tribunal came under discussion at a recent meeting of the ECC when the issue of extension of Regulatory Duty on finished flat steel was considered.
The Commerce Division briefed the forum that the National Tariff Policy 2019-24 stipulates that all proposals for levy, amendment or removal of tariffs would be examined at the Tariff Policy Centre and after approval of the Tariff Policy Board (TPB), would be submitted to the Cabinet or Parliament, as the case may be, for consideration.
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It was stated that in the Finance Act 2024, on recommendation of Tariff Policy Board (TPB), Regulatory Duties (RDs) were imposed on several products including iron and steel flat products with sunset clause till December 31, 2024 to provide temporary protection to industry.
Following the budget exercise for FY 2024-25, several requests from industry had been received regarding extension of the RDs beyond December 31, 2024.
The Tariff Policy Board in its meeting held on December 26, 2024, analysed the requests of manufacturers of Iron and Steel flat products and recommended “to extend the currently imposed 5% and 10 % % RD on flat steel products (36 Tariff Lines) with sunset clause until March 31, 2025; and that the existing RD rates will be restored to their original position of 0% RD and 50% RD on April 1, 2025.”
The Commerce Division further briefed the forum that as per Sub-section 3 of Section 18 of the customs Act, 1969, the Federal Government is competent to take decisions regarding Regulatory Duties. It was proposed that Regulatory Duties on relevant Iron & Steel flat products may be extended till March 31, 2025, as per recommendations of the Tariff Policy Board.
During the ensuing discussion, while explaining the background of the case, the Commerce Division briefed the forum that Anti-Dumping Duty was imposed upon Galvanised Steel on the request from manufacturers of flat iron and steel products’; and that the Court had issued stay order against the imposition of Anti-Dumping Duties. The orders of the Court could not be challenged at the appellate forum because NTC Appellate Tribunal is not functional.
It was also noted that import of flat steel products, despite the imposition of regulatory duty, had increased by 4% during the first six months of the current financial year compared to same period of the previous year.
The Forum observed that it appeared that the stakes of the industry/manufacturers of erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) were involved; therefore the sponsoring Division should also have their perspective into account.
The forum also noted that an analysis on viability and overall health of steel industry is required, since this has implications for large scale manufacturing, which is registering a declining trend. It was also observed that an analysis should also be made by March 31, 2025 about the stakeholders who benefited from suggested measures versus those who did not get any benefit out of such measures.
The ECC further directed the Ministry of Commerce to share the import data of flat steel products and galvanised steel with the Industries & Production Division which shall conduct an overall analysis of Steel Industry and submit before the ECC vis-a-vis its growth prospects, viability and way forward given the demand and supply of steel in the country with a view to supporting the large scale manufacturing sector.
Copyright Business Recorder, 2025