ISLAMABAD: The Auto Industry Development Committee (AIDC) of Engineering Development Board (EDB) has recommended additional duty on auto parts imported by M/s Al Haj FAW which are to be localised.
As per details, the AIDC made the recommendation in its 18th meeting. The EDB is scheduled to evaluate the Federal Board of Revenue’s (FBR) reply which it expects within 10 days and will submit a report to the AIDC for discussion. The committee in its 19th meeting will take up the M/s Al Haj FAW’s failure to comply with the conditions of the SROs/New Entrant Policy.
It is to be noted that the auto parts which are to be localised were imported by M/s Al Haj FAW Motors during July-Dec 2013 and no additional duty was paid. The house evaluated the options available in following condition of SRO 1098(1)/2011.
The report further added that the continued non-levy of additional customs-duty shall be contingent upon achievement of progressive annual indigenization as determined by AIDC.
In case of any material deviation by the new entrant, the AIDC will determine the stoppage or withdrawal of the incentive of non-levy of said additional customs-duty, allowed as such, retrospectively.
The committee deliberated upon the prevailing market conditions and the green field investment by M/s Al-Haj FAW Motors. In view of the options available in condition of SRO, AIDC members maintained that an additional duty on parts which were to be localized according to localization plan but imported at concessionary rate during specified period should be collected from the company, retrospectively.