The national exchequer is being deprived of millions of rupees due to misdeclaration of tinplate, according to local manufacturers. Local markets, they said, are flooded with tinplate and cold rolled coils (CRC) through misdeclaration of the goods imported via Iran and Afghanistan by availing zero-rated duty advantage. To evade duties, these are being imported under the garb of waste and scrap.
The importers declare import of scrap, which is zero-rated, but import tinplate and other material with connivance of customs officials and other government departments. Although local manufacturers have been constantly informing the customs authorities about the illegal trade of tinplate, under misdeclaration, with solid evidence, but the latter seem reluctant to take any notice and show indifference in examining duly import of scrap and waste.
Tinplate imports are on the rise as the item is usually supplied to major cities where big godowns have been established by local traders. Recently, it was found that large quantity of tinplate was imported under the garb of scrap from neighbouring country''s renowned steel company. Local industry is unable to compete with local traders in the market as majority of different sectors purchase tinplates from illegal importers/traders.
Local manufacturers have urged the government to impose ban on the import of waste and scrap from Iran and Afghanistan so that it could earn revenue from legal import of tinplate. They have also emphasised that customs authorities should treat value as $600 of the imported waste and scrap tinplate and charge duties at Rs 10,000 per ton, which would stop under-invoicing on imports and at the same time generate revenue for the government.
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