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The Site Association of Industry (SAI) has suggested that the customs duty and other taxes on the smuggling-prone items like spices, watches, tyres and tubes, tools and equipment, tea and consumer products should not be more than 10 percent in total.
The association, in its suggestions, pleaded that they had reasons to believe that the expenses incurred by the smugglers through illegal imports were also approximately 10 percent and, therefore, such a reduction in import duty would compel the smugglers to abandon smuggling and to make their imports through legal channels.
In its suggestions to curb smuggling, the association further suggested that the duty structure should be adjusted in such a manner that the higher rate of duties should be restricted to finished/consumer products and lesser rates for the basic raw materials used for manufacturing such goods that boost industrialisation and increase the tax base and revenue.
The punishment and fine, provided under the Pakistan Penal Code for using any false property mark, makes or having in one's possession any die, plate or other instrument for the purpose of counterfeiting a trade mark or property mark or manufacturing any merchandise illegally, were too soft and should be increased. The offence should also be made non-bailable, it further suggested.
The association proposed that all intellectual property laws, applicable for the time being in Pakistan, should also be extended to operate in the Federally-Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (Pata).
The association further suggested that the vehicles, carrying fake goods manufactured within or outside the regulated areas and owned by whosoever, should be confiscated outright.
Necessary legislation be made or amendments be brought about in the relevant laws, it said.
The association proposed that under the Trade Marks Ordinance 2001, the high court or a district court should be given powers in addition to seizure, removal or destruction, also order closure of the factory, cancellation of licence to the manufacturer and seizure of the machinery manufacturing infringing goods, materials or articles.
The association suggested that only the legitimate manufacturers according to their clearance of goods should be authorised to import machinery and raw materials for the manufacturing of goods.

Copyright Business Recorder, 2004

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