** ๐๐๐ฅ ๐ถ๐ป๐๐ฒ๐๐๐ถ๐ด๐ฎ๐๐ถ๐ป๐ด ๐ ๐ **
Is there some sort of Scandal ??
Recently there had been a lot of discussion about the operational behavior of MG. People were skeptical and many people were raising doubts. As per the auto policy 2016-2021, many new entrants invested in Pakistan to establish an assembly line.
As per policy, the car companies can import duty free machinery to set up and a plant and there were other tax subsidies were given like Concessional rate of custom duty @ 10 percent on non- localised parts and @ 25 percent on localised parts for a period of five years for the manufacturing of Cars and LCVs.
Additionally Import of 100 vehicle of the same variant in CBU form at 50 percent of the prevailing duty for test marketing after ground breaking of the project.
MG started importing vehicles into the country since September last year 2020 and imported over 400 vehicles. People started questioning this and it was told that JW-SEZ who is the local partner of MG/ SAIC in Pakistan is actually paying full 123.77% duty [ instead of 50% subsidy ] on each unit they are importing. The 123.77% duty is the correct duty for a vehicle as per FBR custom tariff if paid in full.
So, as they are paying full duty, any numbers of the units can be imported which is no doubt is correct and have no issues whatsoever.
BUT , recently Pakistan Automotive Manufacturer Association (PAMA) shown a concern that the federal government is giving favor to one specific car manufacturer, who reportedly is a fresh entrant. They expressed this concern during the 34th meeting of Auto Industry Development Committee (AIDC).
The main aim of auto policy was to bring in investment in the country , increase competition in the country which will eventually help consumers as well as will create a lot of jobs locally as well and help the associated industries grow also.
JW-SEZ did apply for green field status in this regard but less than a month ago while the auto policy is less than 5 months away from expiration. As per policy a vehicle MUST be assembled in Pakistan before the expiration date. There are reports that on ground there is nothing actively happening as far as plant setup and it seems that JW-SEZ is planning to just keep on importing CBUโs as they are doing right now.
So, if MG is imported on the full duty then whatโs is the problem? Yes there is NO problem but there is also a problem. Many MG HS owners in Pakistan reported issue with the registration of the vehicle. Because as these vehicle are imported vehicles, a BOL/ Bill of Lading / Good declaration is required at the time of registration. Many people reported that they were not provided with this document and they could not register their vehicles with excise department.
After repeated request to the MG officials in Lahore and Faisalabad for over a month, the BOL were still not given and instead goods declaration forms were handedover BUT the declared value, the taxes paid on the declared value was strike out with black marker.
When some of these individuals went with this document, Excise department in Lahore and Islamabad again declined to register the vehicle because the required information was not visible and the documents were not correct. Attached are some of the documents/ goods declaration paperwork I received and I am sharing it.
MG officials were approached and again the documents were not provided and instead โSOMEONEโ from MG called the excise department and told them to register the vehicles without asking for the required BOL. Number of vehicles got registered after a " PHONE CALL "..
Basically this is like overriding a required document and somewhat bypassing the system. This is totally irregularity with the system and seem someone is playing around.
After further investigation it was found that, MG HS declared value at customs is $ 11632 per unit. This is the price at which MG donโt sell even in China or other bigger established markets. Or we can say that SAIC might be selling these units to JW-SEZ at such a low price. This looks very attractive but at the same time raised question mark because it seems like it is being โUNDER-INVOICEDโ . This could also be the reason that the goods declaration has been strike out with the black marker and the declared value has been made discrete.
Anyways, whatever the situation is BUT as per todayโs news and I quote some part of it as follows.
โ ๐ญ๐๐
๐๐๐๐ ๐ฉ๐๐๐๐
๐๐ ๐น๐๐๐๐๐๐ (๐ญ๐ฉ๐น) ๐๐ ๐๐๐๐๐๐๐๐
๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐๐ ๐ ๐๐๐๐ ๐๐๐
๐๐-๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐
๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐ ๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐
๐๐ ๐ ๐๐๐๐
๐๐๐ ๐ช๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐, ๐๐๐๐-๐๐๐๐๐๐๐๐
๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐
๐ฉ๐๐๐๐๐๐๐ ๐น๐๐๐๐๐
๐๐. ๐ป๐๐ ๐๐๐
๐๐-๐๐๐๐๐๐๐๐๐ โ๐๐๐๐
๐๐๐๐โ ๐๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐
๐๐๐๐ ๐๐๐๐๐ ๐๐๐๐ ๐ด๐๐๐๐๐๐๐๐๐ ๐๐๐
๐๐๐๐๐๐๐๐ ๐๐๐ ๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐ ๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐.
๐ป๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐ ๐ฐ๐๐๐๐๐๐ ๐๐๐๐ ๐ช๐๐๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐๐
๐๐ ๐๐๐๐๐๐๐ ๐๐๐
๐๐-๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐๐ ๐๐๐๐ ๐๐
๐๐๐๐๐๐
๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐ ๐ช๐๐๐๐๐๐๐ ๐๐๐
๐ช๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐.
๐พ๐๐๐ ๐๐๐๐๐๐๐๐๐
, ๐บ๐๐๐๐๐๐ ๐จ๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐ท๐๐๐๐ ๐ด๐๐๐๐๐๐๐ ๐๐ ๐น๐๐๐๐๐๐, ๐ซ๐. ๐พ๐๐๐๐ ๐ด๐๐๐๐๐
๐๐๐๐
๐๐๐๐ ๐ญ๐ฉ๐น ๐๐๐๐๐๐๐ ๐
๐๐๐๐๐๐๐
๐๐๐๐๐ ๐๐ ๐๐๐๐ ๐๐๐/ ๐๐๐๐๐ ๐๐๐ ๐๐๐๐, ๐๐
๐
๐๐๐ ๐๐๐๐ ๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐
๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐ ๐๐๐ ๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐ . ๐๐ ๐
๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐ญ๐ฉ๐น ๐๐๐๐๐๐ ๐๐๐๐ ๐ด๐ฎ ๐ฏ๐บ ๐ช๐ฉ๐ผ ๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐ ๐๐๐๐
๐๐ ๐จ๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐ ๐๐ ๐จ๐ผ๐ซ 34,990 ๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐ผ๐บ $ 27,200.
๐จ๐๐๐๐ ๐
๐๐
๐๐๐๐๐๐ ๐๐๐๐๐ ๐
๐๐๐, ๐๐๐๐๐ ๐๐๐
๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐ ๐
๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐จ๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐ ๐๐ ๐๐๐๐ ๐๐๐๐ $ 22,000. ๐พ๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐
๐๐๐ ๐๐๐๐ ๐๐ ๐ช๐๐๐๐๐๐ ๐ฐ๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐
๐
๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐ ๐ฎ๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐,โ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐
. "
I think if SAIC is selling JW-SEZ these vehicles at rock bottom subsidized rate ot $11632, it's not a problem and they can sell it even for free BUT, striking out BOL / Goods declaration forms, not providing these documents clear and free from any doubts to buyers is also JW-SEZ responsiblity. Not providing these paperwork or giving runaround to buyers does not help. I hope this issue is sorted out immediately.
Lastly, we all here are not sure what's the real story behind all this and if there is any loophole and if there is any financial mismanagement and tax evasion is going on. Its important for concerned authorities to look and investigate in a greater public interest , as quickly as possible.
For MG/ JW-SEZ, its important that they publicly declare their game plan and inform about local assembly of their product line. Tweeting every other day does not help. They should also establish fully functional after sales service and support and dealership network. MG product might be good BUT without a proper after sales service , a product can fail.
Stop tweeting and get to work on ground and show us the details and timeline of the local assembly on the same Twitter account so, public trust can be initiated.
So, any MG owner who is facing issue with registration, can't get hold of required registration documents, please share here.
[ f-w @PakWheels.com]
