LAHORE: Pakistan Customs, through ruling No 685/2014, has reevaluated the Import Trade Prices (ITPs) for Chinese motorcycle parts and gave commercial importers huge 400 per cent concession against the values determined for OEMs.
However, Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has censured the Customs for reducing valuation of Chinese motorcycle parts and said that such ‘illogical’ valuation rulings was dangerous for the survival of the auto parts industry.
PAAPAM newly-elected Chairman Siddique Misri, in a letter written to Director General of Customs Valuation, stated that valuation ruling was issued without inviting the Association’s any representative, which is clear violation of the rules.
It is pertinent to mention that after the customs valuation, Carburetor will have 177 percent devaluation in price for commercial imports against its OEMs’ manufactured prices. Likewise, CDI unit will have 321pc devaluation; Cylinder Head will have 146pc; Ignition Coil 123pc; Insulator Carburetor 206pc; Main Shaft and counter Shaft 227pc; Magneto 154pc; Piston 155pc; Rectifier Regulator 197pc; Ring for Piston 150pc; Spark Plug 317pc; and Valve inlet/Exhaust 400pc.
The auto manufacturers association’s Senior Vice Chairman, Mumshad Ali, observed that smuggling and under-invoicing of auto parts was already affecting the local manufacturers business. He said that low valuation of imports is already showing declining trends in sales tax, withholding tax, Customs duty and Federal Excise Duty on imported items during 2013-14 and the major reasons for lower revenue collections was the absence of foolproof mechanism for accurate assessment of duties and taxes at the import stage.
