ISLAMABAD (APP) - A delegation of National Steel Complex Limited met Federal Minister for Commerce Jam Kamal Khan to discuss issues relating to industrial competitiveness, tariff rationalization, value-added manufacturing and operational challenges being faced by the steel and engineering sectors.
During the meeting, the delegation briefed the minister on concerns arising from the existing duty structure applicable to raw materials, intermediate goods, and products processed through Export Processing Zones (EPZs), said a release issued here on Monday.
Representatives explained that industries importing raw materials into the tariff area were required to pay customs duties at the import stage, while additional duties were again imposed when processed or value-added products returned from EPZs to the tariff area.
The delegation informed the minister that the current mechanism effectively resulted in double taxation on industrial products and increased the cost of manufacturing, particularly for industries involved in machining, lining, coating, fabrication and other value-added industrial activities.
They proposed that duties should only apply to the additional value created within the EPZ instead of the total value of the finished product.
The participants also highlighted technical complexities related to customs valuation, classification of processed products, and determination of value addition during industrial processing.
They emphasized the need for transparent and practical mechanisms to facilitate genuine industrial activity while ensuring regulatory compliance.
During the discussion, it was clarified that NTC primarily functions as a technical body on tariff-related matters, providing analytical and advisory support regarding tariff structures and trade remedy measures.
The Commission is responsible for implementing trade protection instruments, including safeguards against unfair trade practices by foreign exporters to protect local manufacturers.
Matters relating to customs valuation, industrial costing, regulatory enforcement and sector-specific compliance fall within the respective mandates of relevant authorities such as FBR, Ministry of Industries, and other concerned regulatory bodies.
The delegation further apprised the Minister of the challenges being faced by long-term industrial projects due to rising energy costs, evolving tariff structures, and changing economic conditions.