NTC Initiates Multiple Inquiries on Various Tariffs, Duties and Taxes

The National Tariff Commission (NTC) has initiated several inquiries on the request of three domestic sectors/industries for rationalization of tariffs on commercial imports of auto-parts; reduction of duties and taxes on the import of raw materials of Flexographic Photopolymer Printing Plates and imposition of duties on the import of Caramel Color.

According to the details, the NTC has initiated an inquiry under Section 8(1)(c) of The National Tariff Commission Act, 2015 for the rationalization of tariffs and proposals for tariff reforms on the request of The Pakistan Automobile Spare Parts Importers & Dealers Association.

The applicant is an association of importers and suppliers of various after-market and replacement-market auto parts and submitted that irrationally higher tariff on commercial imports of auto-parts has encouraged illegal imports from western borders.

The Applicant has also presented its estimate to the Commission regarding the extent of smuggling of auto parts into Pakistan and claims that up to 41% of domestic demand is met through legal channels. Therefore, the Commission has decided to carry out a detailed study in order to propose a rationale and streamlined tariff structure to minimize the incentive of smuggling without eroding the protection to the domestic industry and incentive differential available to new entrants in line with the federal government’s Automotive Development Policy 2016-21.

The Commission would welcome views, suggestions, and proposals from all parties having an interest in the business relating to or associated with the imports, manufacturing, marketing and use of automotive parts.

M/s Digital Process Pvt. Limited (the “Applicant”), a manufacturer of Flexographic Photopolymer Printing Plates, has approached the Commission with a request for reduction of customs duty (CD) from 20% to 10%, removal of 7% additional customs duty (ACD), and removal of 5% regulatory duty (RD) on the import of raw material i.e. Photopolymer Printing Plates imported under HS Code: 3701.3090. Flexographic Printing is done through Photopolymer plates and it is the fastest-growing printing process today. It is used for printing on a variety of different materials including film, foil, plastic, paper, and board, using a wide range of inks, printing with high speeds. These photopolymer Printing Plates are not manufactured locally. This will help the domestic industry to grow and operate at full capacity, primarily engaged in offering high quality.

The Commission has initiated an inquiry and would welcome views/suggestions and proposals from all parties having an interest in the business relating to or associated with the imports, exports, manufacturing, marketing and use of raw Photopolymer Plates imported under HS Code: 3701.3090.

M/s National Chemical Pakistan, (the “Applicant”), a manufacturer of Caramel Color, has approached the NTC for enhancement of customs duty (CD) from 11% to 25% and the imposition of 25% Regulatory Duty (RD) on imported Caramel Color.

The caramel color is a colloid. Though the primary function of caramel color is for coloration, it also serves additional functions. In soft drinks, it can function as an emulsifier to help inhibit the formation of certain types of “floc” and its light protective quality can aid in preventing oxidation of the flavoring components in bottled beverages. Caramel Color is made by heat treatment of carbohydrates (sugars), in general in the presence of acids, alkalis, or salts, in a process called caramelization.

Its color ranges from pale yellow to amber to dark brown. It is produced from commercially available nutritive sweeteners consisting of fructose, dextrose, glucose, invert sugar, sucrose, malt syrup, molasses, starch hydrolysates, and fractions thereof. Caramel color is used in many commercially produced foods and beverages, including brown bread, buns, chocolate, cookies, cough drops, chocolate-flavored confectionery and coatings, custards, decorations, fillings and toppings, potato chips, dessert mixes, doughnuts, fish and shellfish spreads, frozen desserts, fruit preserves, ice cream, and more.

The Commission has initiated an inquiry and would welcome views/suggestions and proposals from all parties having an interest in the business relating to or associated with the imports, exports, manufacturing, marketing and use of Caramel Color imported under HS Code 1702.9020.



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