The Auto Industry Development Committee (AIDC) has refused to support proposed amendment in the Trade Policy meant to name the pre-shipment inspection agencies, after strong opposition from the local OEMs, well informed sources told Business Recorder.
The committee in its previous meeting was informed about inter-ministerial group comprising of Ministries of Science & Technology, Commerce and National Food Security & Research constituted to review the list of pre-shipment inspection companies.
The committee was also briefed that the group had decided that following text would be included of IPO instead names of pre-shipment inspection agencies: (i) pre-shipment Inspection shall be conducted by inspection agencies accredited in accordance with the requirement of ISO/IEC 17020; (ii) the inspection agency's scope of accreditation shall encompass the type of inspections required for the particular inspection work; (iii) the accreditation of inspection agency must be issued by an accreditation body in the country of origin or export, which is operating in accordance with ISO/IEC 17011, and preferably a member of International Laboratory Accreditation Co-operation (ILAC). List of such agencies is available on www.ilac.org and ;(iv) in case, there is no accreditation body in the country of origin or export, a pre-shipment Inspection Certificate will be issued by one of the inspection agencies accredited by Pakistan National Accreditation Council. Details of Inspection Bodies are available on www.pnac.org.pk.
Keeping in view the reservations raised by the local OEMs the committee decided not to support the proposed amendment in the Trade Policy. However, Ministry of Commerce may take the final decision in view of international commitment, if any, but after ensuring protection for the local industry against misuse. The committee was briefed that 10th meeting of the Advisory Committee of Ministry of Planning, Development and Reform was held under the chairmanship of Minister for Planning, Development and Reform in August, 2016. EDB made a presentation on deletion programs and its implementation and the ADP (2016-21). Further, following decision taken by the Advisory Committee "EDB will carry out a study on converting Automobile Industry into an export oriented industry."
The AIDC advised PAMA and PAAPAM to ensure feedback to EDB for submission of recommendations on converting automobile industry into export oriented industry. The committee was briefed about the request of Ghandhara DF (Pvt) Ltd., regarding start of production period as per following schedule from date of commercial production on products approved by the AIDC in previous meetings:
The committee was informed that since the above case was the last under previous Auto Policy i.e. 2007- 2012 they may therefore be facilitated however for all future cases involving investment/ localization plans, generation of first sales tax invoice may be considered as start of commercial production. The committee approved the request of M/s Gandhara DF and that in future first Sales Tax invoice shall be considered as start of commercial production.