Tiles smuggling, mis-declaration termed major issues for local industry.
Lahore -- Terming smuggling of tiles and mis-declaration as major issues for the local tile industry, industry sources claimed that mis-declaration is also costing a huge forex annual outflow of around $40 to $50 million to our struggling economy.
Elaborating, the sources claimed that tiles industry has provided proof of dumping of Chinese products into Pakistani markets and NTC though imposed anti dumping duty on import of tiles from China in October 2017, the industry is yet to get a relief due to litigation. Citing an example, the sources said a company in Karachi imported (GD number KAPE-HC-129712-11-02-2019) 15939.0000 square meter (223.14600MT) ceramic tiles from China with the import value of Rs 6,084,583 but did not pay a single penny in terms of anti-dumping duty. Similarly, another company from Lahore imported (GD number KAPE-HC-124178-01-02-2019) 10725.1200 square meter (215.99200MT) porcelain tiles from China with the import value of Rs 6,485,739 without paying any anti-dumping duty on them. Moreover, a company from Sialkot imported (GD number KAPE-HC-136068-20-02-2019) 13587.8400 square meter (242.10000MT) polished porcelain tiles from China with the import value of Rs 9,864,480 but no anti-dumping duty was paid.
'These three examples clearly show that the importers did not pay a single penny in terms of anti-dumping duty on the imported tiles worth Rs 22 million, which would have been more than 2 million rupees in just these three cases,' said the sources.
Considering these three examples, the sources added, one can easily imagine the extent of loss to the national economy just because NTC is not interested in safeguarding the national interest and local tiles industry. 'Almost 12 million square meter tiles are imported in the country every year from China and if we calculate the anti dumping duty it will translate into a significant amount from (6 Billion rupees to 24 Billion rupees) at a defined range of (9.35% to 36%).The NTC must pursue this case in the best interest of the national economy and to stop loss to national industries,' the sources added.
According to the sources, the importers are also involved in mis-declaration as that value of the tiles imported in one case under GD number KAPE-HC-124178-01-02-2019 was declared at$4.30 instead of $4.90, which resulted in loss to the national exchequer in a single case of 943,542.00rupees whichalso doesn't include anti-dumping duty.
'The Ministry which claims to protect the local industry has so far not even established a case against the importers who are inflicting loss on the national exchequer by mis-declaration,' the sources said, adding: 'The government should also make efforts to curb smuggling which eats up a major chunk of government revenues and local industry share.'
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|Publication:||Pakistan Observer (Islamabad, Pakistan)|
|Date:||Apr 28, 2019|
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