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
Commission advises the government on:
measures or other forms of the assistance for providing
protection to the indigenous industry, improving its
competitiveness and promoting exports from Pakistan; and
other matter relating to protection or assistance to
indigenous industry that the federal government may refer to the
Composition of The Commission
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.
of the Commission
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.
of the Commission
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:
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,
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
to determine cost disadvantage to local industry vis-à-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.
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
Criteria Kept in View
examining a proposal for tariff protection or assistance and
making recommendations to the Federal government the Commission is
required to satisfy it self that:
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.
additional cost to the consumer will not be excessive, and
industry is not likely to need the protection or assistance
after reasonable period of time.
Does The Commission Initiate An Enquiry
Commission may initiate enquiries on:
application made to it by an industrial undertaking or
trading business in the prescribe form and accompanied by
the prescribed fee.
reference received by it from the Federal government, and
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.
provides that the Commission shall submit its recommendations to
the Federal government with in the period of 120 days.