LAHORE - The old and used auto parts dealers based in Lahore have requested the federal government to allow limited import of the old and used auto parts on the premise that the inventory is still being used by a considerable number of road users besides the fact that the same is already being brought into the local market by the smuggling chains.
In a budget proposal document prepared by the Lahore Chamber of Commerce & Industry Research Department and being sent to the Ministry of Finance and the Central Board of Revenue (CBR) for inclusion in the Finance Bill of 2006-07, the dealers have requested that old model vehicles between the years 1972-75, which includes old brands of Toyota, Mazda, Volkswagen etc are still being used by the considerable number of road users and the market demand invariably creates a strong case for the smuggling networks to operate in an elaborate manner, creating supply chains in all the major markets of Pakistan’s major cities, in the process depriving the government of much needed revenue.
The used auto parts dealers in their deliberations submitted to the LCCI for onward transmission to the CBR have requested that the import may be allowed under the clear head of old and used auto parts and not under the general head of scarp, as it currently practiced. They have also proposed that each item and component being imported should be clearly mentioned like any other imported item to enable the customs authorities to evaluate the item as they want to. They also propose that the imports may be but in the medium to high tariff wall, on one hand enabling the government to accrue revenue and at the same time allowing a level of protection to the local industry.
They have also proposed a join committee may be formed with the representatives of Custom Department, Relevant trade, PAPPAM and the concern Chamber of Commerce & Industry. Here the dealers are very much clear on the count that if despite a high tariff proposed by them, the local industry still faces injury, the restricted import regime may still be done away with.

Here, it is pertinent to note that that the new auto parts importers are also faced with a similar situation, on the count that they are already allowed import as a last tariff slot of 35 per cent. They are demanding a 25 per cent tariff regime on the premise that if they are allowed the opportunity, that can strike a blow to the incidence of smuggling of these parts into Pakistan especially those imported by the Afghan traders under the Afghan Transit Trade Agreement and then smuggled back into Pakistan.