F.No. 2(16)/07-D(S&P)/NTC

Government of Pakistan

National Tariff Commission

****

Islamabad, the November 13, 2007.

PRESS RELEASE

Subject:            REMOVAL OF ALLEGED TARIFF ANOMALY RELATING TO TARIFF ON INPUTS AND OUTPUTS OF FORTIFIED ROSIN (PCT NO. 3806.1090) AND ISO PROPYL ALCOHOL (PCT NO. 2905.1220)

Descon Chemicals (Pvt) Limited, manufacturer of synthetic resins and allied chemicals, approached the National Tariff Commission for removal of alleged tariff anomaly pertaining to its finished product fortified rosin and iso propyl alcohol (industrial) and inputs. The applicant’s contention is based on the following grounds:

(i)                  “Fortified rosin is subject to 10% customs duty rate and its raw materials gum rosin, meleic anhydride and sodium hydroxide are attracting customs duty rat of 5%, 10% and Rs. 5000/MT respectively.

(ii)                The average rate of customs duty on these raw materials has been worked out by the applicant to be 8.86% and it has been argued that the duty differential between finished product and its raw materials is negligible.

(iii)               In case of iso propyl alcohol the finished product is attracting lower rate of customs duty i.e. 5% while its raw materials propyl alcohol (pure) is also attracting 5% customs duty rate where ethanol is attracting very high rate of customs duty at 50%.

(iv)              The applicant has contended that weighted average customs duty rate of these two raw materials works out to be 23% and therefore an anomaly has been alleged in the duty rates of finished product and raw materials.”

2.                  In order to remove the alleged anomaly and to provide adequate protection to indigenous industries, the applicant has requested for;

(i)                  increase in customs duty on fortified rosin from 10% to 15%

(ii)                reduction of customs duty on gum rosin from 5% to 0%.

(iii)               increase in customs duty on iso propyl alcohol (finished product) from 5% to 15%, and 

(iv)              reduction of customs duty rate on iso propyl alcohol (pure form) from 5% to 0%.

3.         The National Tariff Commission accordingly invites views, suggestion and proposals from all parties having an interest in the business relating to or associated with the imports, manufacturing and marketing of fortified rosin and iso propyl alcohol and their inputs. The views / suggestions may be sent within seven days of publication of this press release in the newspapers, to the Secretary, National Tariff Commission, 4^th Floor, State Life Building No. 5, Blue Area, Islamabad.

4.         A public hearing is scheduled to be held on November 28 2007 at 11.00 a.m. in the Committee Room of National Tariff Commission, 11^th Floor, State Life Building No. 5, Blue Area, Islamabad. All interested parties may attend the hearing and bring their comments and suggestions in writing. The comments and suggestions my be supported with essential facts, information and supporting evidence, which must be brought to the public hearing. The views not supported with reliable documentary evidence(s) will not be considered.

(Mrs.  Batool Iqbal Qureshi)

Secretary

Phone: 9202839 Fax: 9221205

  For wide circulation and suitable coverage of the above press release:

(1)               Mr. Karim Mada, Economic Editor, APP, Islamabad. Fax: 2203077

(2)               Mr. Abdul Qayyum, Director Publicity, Press Information Department, Islamabad. Fax: 9207008, 9208940

(3)               Mr. Ikram-ul-Haque, Bureau Chief, Business Recorder, Islamabad. Fax: 2271882

(4)               Mr. Asim Yasin, Daily The News, Rawalpindi. Fax: 5962271

(5)               Mr. Mubarik Zaib Khan, Dawn, Islamabad. Fax: 2202710

(6)               Mr. Afzal Bajwa, The Nation, Islamabad. Fax: 2202648

(7)               Notice Board.

(8)               Web Site.