‘Liberal policy to open floodgates for used auto parts import’

LAHORE: Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) is the major opponent of used car’s liberal import policy on the apprehensions that this will open up floodgates for used auto parts import, an official said on Monday.
During a meeting with commerce secretary, Paapam chairman Iftikhar Ahmad said that it is a common knowledge that the personal baggage, gift and transfer of residence schemes, that were meant to facilitate overseas Pakistanis, have been grossly misused and circumvented to undertake de-facto commercial import of used cars by unscrupulous dealers on passports of overseas Pakistanis. Now these elements are pressing the ministry of commerce for making soft policy on the import of used auto parts, which will be drastic for the auto industry.
He also said Paapam has serious concerns on the government’s proposal to include the auto sector in the free trade agreements (FTAs) with Turkey, Thailand and other countries. The Auto Development Policy (ADP), issued by the Economic Coordination Committee (ECC) of the Cabinet on March 21, 2016, is the sole authentic document that governs the future policy for the auto sector.
Including auto sector in any FTA would discredit the government and scare away massive investments in the pipeline, he added. Firstly, for localised parts, offering concessionary Customs duties in the FTAs is incomprehensible, as it would shut down the entire auto parts industry.
Secondly, for non-localised CKD parts, FTA duties would deprive the exchequer of huge amount of tax revenues and also eliminate the potential of future localisation of CKD parts, he said.