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Tariff Protection


National Tariff Commission (NTC) is a body corporate established under an act of the Parliament (Act VI of 1990) passed in June, 1990.

Functions of the Commission

The Commission advises the government on:

  • Tariff measures or other forms of the assistance for providing protection to the indigenous industry, improving its competitiveness and promoting exports from Pakistan; and

  • any other matter relating to protection or assistance to indigenous industry that the federal government may refer to the Commission.

Composition of The Commission

The Commission consists of Chairman of the status of Secretary to the Federal government and two members of the status of Additional Secretary to the Federal government.

Funds of the Commission

The funds of the Commission consists of grants from the Federal government, prescribed fee to be paid by the industry making representation for rationalization of tariff structure and aid from international agencies.

Powers of the Commission

The Commission has all the powers of a civil court while trying a suit under the code of Civil Procedure 1908 (Act V of 1908) in respect of the following matters:

  • Summoning and enforcing the attendance of any operson and examing him on oath; and

  • Requiring the supply of any information and production of any document which may be useful for the conduct an inquiry.

Where To Apply

All reference/application received from industrial undertaking or trading businesses should be accompanied by the prescribed fee and address to the Secretary, National Tariff Commission State Life Building # 5, Jinnah Avenue, Sector F-6/4, P.O.Box 1689, G.P.O Islamabad.

How To Apply

The application should be accompanied by duly filled in NTC forms (NTC form I in case of an industrial undertaking and NTC form II in case of trading business). In case of incomplete applications the applicant will be requested to fill in prescribed form and return the same with in the period of 15 days so that the examination and finalization of the case can be done expeditiously.

Criteria Followed in Processing Application

In order to determine cost disadvantage to local industry vis--vis its competing imported products the Commission shall carry out cost analysis as well as economic analysis before recommending certain measures of protection for a specific period. For this purpose the cost of production at reasonable capacity utilization level is required to be ascertained.

In the evaluation of a system of protection one may use nominal protection or effective protection. The former is defined as percentage excess of domestic prices over the world market prices of a commodity, resulting from the application of different protective measures while the later is defined as percentage excess of value added at domestic prices over the value added at world market prices of an activity resulting from the application of different protective measures on both the output and inputs. The consumers decisions are influenced by the nominal protection, while those of producers are guided by the effective rates of protection. Therefore, the nominal protection rates are used to measure the loss of consumer surplus due to protection and the effective protection rates are used to measure the incentives provided to the producers. The Commission may also use such tools as Domestic Resource Cost (DRC) (cost to national economy) to determine the level of efficiency of local industry.

Other Criteria Kept in View

While examining a proposal for tariff protection or assistance and making recommendations to the Federal government the Commission is required to satisfy it self that:

  • The quality of the product to which such protection or assistance is to be given is good and conform to the standards laid down by the Pakistan Standards Institution or where such standard has not prescribed, it conforms to internationally accepted standards.

  • The additional cost to the consumer will not be excessive, and

  • The industry is not likely to need the protection or assistance after reasonable period of time.

When Does The Commission Initiate An Enquiry

The Commission may initiate enquiries on:

  • An application made to it by an industrial undertaking or trading business in the prescribe form and accompanied by the prescribed fee.

  • A reference received by it from the Federal government, and

  • of its own motion.

While processing a case the Commission shall ensure that all concerned parties are dully informed so that their point of view be kept in view. For this purpose the Commission may, where deemed necessary, issue a public notice.

Time Limit

The Act provides that the Commission shall submit its recommendations to the Federal government with in the period of 120 days.


2005 National Tariff Commissio

2006 National Tariff Commission. All Rights Reserved.
National Tariff Commission
Postal Address: P. O .Box No. 1689, G.P.O
44000, Islamabad, Pakistan. Fax: 92 51 9221205