By Ikram Hoti
ISLAMABAD: The government is in a fix over fraudulent import of automobiles and spare parts and the relevant authorities say they can do little to stop the rising menace, which is threatening the multi billion-dollar industry.
While Engineering Development Board (EDB) plans to make public the future policy on the industry by next Wednesday, its chief, Imtiaz Rastgar told The News that the problem of under-invoicing of imported vehicles and parts is a challenge least addressed and most threatening in this context.
Under invoicing of imported automobiles and parts has been a nuisance that the government has been fighting by lowering the import duty and by keeping in check Afghan Transit Trade. There have recently been assessments that the Afghan Transit Trade and the lobby of auto-parts importers in collusion with the customs department have caused the glut in the local market.
The authorities have been taking up the issue of automobiles arriving in Afghanistan being smuggled to Pakistan, but without much success. On the other hand duty reduction in the Budget 2006-07 failed to discourage under-invoicing.
The only course left for making the new auto-industry promotion policy under the Automotives Industry Development Council (AIDC) a success in this context would be asking the Central Board of Revenue (CBR) to apply effective monitoring of collusion of the Customs with the lobbies of smugglers both in the local market and in the Afghan Transit Trade.
When approached for his comment on the issue, Chairman CBR, Abdullah Yousuf told The News that his office was ready to entertain views on this count when they are received from EDB and the stakeholders.
The EDB chief, Imtiaz Rastgar said the AIDC would be adopting only a course that wins consensus of all stakeholders, and all the irritants facing the local industry would be addressed in the new policy.
He added that a dialogue would be conducted with the stakeholders and the EDB website would in the next midweek display the proposals so far churned out in this connection for inviting their views.
On the used auto parts the importer-customs collusion for clearing under-invoiced consignments has been scandalous as such imports have been made under the guise of scrap or mis-declared goods.