The National Board of Revenue (NBR) has imposed 15 per cent additional regulatory duty (RD) on import of a particular category of steel sheets after it found excessive import of the product despite having local production.
Customs officials found that import of the steel sheets increased to 12,000 tonnes in the first four months of the current fiscal year (FY) which was 4,000 tonnes in the whole year of FY 2012-13.
The revenue board imposed the duty following proposals of the local CR coil manufacturers association.
The steel sheets known as 'flat-rolled products of iron or non-alloy steel painted, varnished or plastic coated with a thickness of more than 0.6 mm' are used in manufacturing air conditioners, refrigerators and pre-fabricated buildings.
The board has issued a Statutory Regulatory Order (SRO), dated January 7, by imposing 15 per cent RD on import of the products.
With the imposition of the duty, importers of such steel sheets will have to pay a total of 55 per cent duty including 15 per cent Value Added Tax (VAT), 4.0 per cent Advance Trade VAT (ATV), 5.0 per cent Advance Income Tax (AIT) and 25 per cent, Customs Duty (CD).
The NBR can impose maximum 25 per cent RD on imported products as a safeguard for local industry. Earlier, RD was 10 per cent on import of steel sheets that has been increased to 25 per cent by imposing 15 per cent RD on it. "We have identified an abnormal increase in import of the product in the July-October period while local demand can be met by the domestic production," said a senior customs official.
Customs officials suspect import of other products in the name of steel sheets through some customs houses, he added. The NBR imposed higher duty in a bid to check excessive import of the product, the official said.
He said the NBR can impose RD in the mid-year if it finds any inconsistencies that might affect the local manufacturing industries.