Friday, November 02, 2007
By our correspondent
LAHORE: Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) in a meeting demanded the government to immediately take stringent measures for curbing the malpractices in the import of auto parts by original equipment manufacturers (OEMs) and commercial importers.
In press release issued here on Thursday PAAPAM stated that OEMs and commercial importers bring in auto parts at lower than prescribed rate of tariff to save duty. Since, there are no strict checks, on declared value of indigenised auto parts importable at SO per cent duty and non-deleted parts at 35 percent duty under TBS (Tariff Based System) enforced from first July, 2006, mostly, they declare lower value of deleted parts and higher value for non-deleted parts to save duty and thus keep the total invoice price unchanged.
As a result of this mal-practice, the Auto Vending Industry, which has shown phenomenal growth during the past few years is having a drastic impact and most of its Member are forced to close down their units.
PAAPAM urged that the Engineering Development Board (EDB), while conducting Technical Compliance Audit must include a Representative nominated by the association to carry out such audit. Moreover, this Audit must be across the board and to cover all automotive assemblers and manufacturers.
PAAPAM appreciate the measures announced by State Bank of Pakistan for providing finance at concessionary rates to some engineering sectors for enhancing their production capacity for which condition of exports equivalent to $5,00,000 have been fixed.
Dies, Jigs & Fixtures have not been included in the items that could be financed through this facility. Pakistan Association of Automotive Parts & Accessories Manufacturers requested that since majority of its members comprises of small and self financed vendors the limit of $5,00,000 may substantially be reduced to the exports equivalent to $50,000 and Dies, Jig & Fixtures to be included in the items that could be financed under this scheme.