The News reported that local steel vendors are importing steel bars in the garb of alloy steel bars from China making huge duty evasion to the national exchequer and threatening the local steel industry.
The letter from Amreli Steel Mills said to the Ministry of Industry that local manufacturers have been importing steel bars through wrong declaration of steel alloy bars from China. The import of alloy steel bars is zero rated in Pakistan and is used by the auto industry for manufacturing of parts.
The letter further stated that a consignment of 8,000 tonnes of alloy steel bars was imported from China recently, while another consignment of almost 16,000 tonnes is due in the next couple of weeks. Steel importers in Lahore and Karachi are importing such enormous consignments. Interestingly, in the past small consignments of alloy steel bars ranging from 2 tonnes to 20 tonnes were imported from different parts of the world as compared to the recent imports of 8,000 tonnes and 16,000 tonnes which will arrived shortly.
Mr Abbas Akber Ali CEO of Amreli Steels in a letter requested to amend the classification and valuation of alloy steel bars as per 7228.3010/3090 and other related headings for non alloy, alloy steel bars, flats, angles, channels etc and review the free trade agreement with China. China’s steel production is almost 700 million tonnes per year which is a production of almost 2 million tonnes per day.