The local markets are flooded with tinplate and Cold Roll Coil (CRC) that have been imported through misdeclaration of goods via Iran and Afghanistan by availing zero-rated duty advantage.
The sources at local manufacturers said that the local importers at large import tinplate and CRC from neighbouring country under the garb of waste and scrap in order to evade duties of the government. They said that the traders declare import of scrap HS Code number 7204, which is zero-rated, but import tinplate and other material in connivance with officials of custom and other government departments.
These traders are evading millions of rupees revenues of the government and involved in trading of tinplate to their buyers of different sectors in the domestic market, they added.
They said that the local manufacturers have informed the custom authorities several times about the illegal trade of tinplate under misdeclaration with solid evidences but they are reluctant to take any notice and are disinterested to examine duly the import of scrap and waste.
The sources said that the tinplate imports are on the rise as it is usually supplied to major cities where big go-downs have been established by the local traders. Recently, it was found that heavy quantity of tinplate was imported under the garb of scrap from the neighbouring country’s renowned steel company and is constantly being smuggled unabated, they added. They said that industry is unable to compete with local traders in the local market as majority of the different sectors purchase tinplates from illegal importers or traders.
They said that the local tinplate makers urged the government to impose ban over the import of waste and scrap from Iran and Afghanistan so that it could earn revenues from the legal import of tinplate. The sources urged the government to protect the local tinplate industry and impose duties on the imports of scrap and waste and get sales tax, federal excise duty and advance income tax etc.
They also mentioned that the custom authorities should treat value as $600 of the imported waste and scrap tinplate and charge duties at Rs10,000 PMT which would stop under-invoicing on imports and at the same time will generate the revenue for the government. They said that it is high time the authorities play its due role in order to encourage local manufactures and provide them protection in long-run.