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Business Recorder
14-07-2025
- Business
- Business Recorder
Federal Budget: PAPGAI, APPMA decry preferential treatment to specific firm
KARACHI: The Pakistan Association of Printing & Graphic Arts Industry (PAPGAI) and the All Pakistan Paper Merchants Association (APPMA) expressed serious concern regarding the prejudiced /one-sided preferential discriminatory treatment granted to a specific company under the recently announced Federal Budget 2025–26. The printing and packaging industry of Pakistan—one of the country's largest economic contributors and the second-highest employment generator after textiles—strongly protests the undue and selective facilitation being extended to a single domestic paper manufacturer through recent tariff manipulations. Specifically, the introduction of a new HS Code, 4810.9210 (Aseptic Liquid Food Packaging), with a reduced customs duty of 10%, marks a significant departure from the previously applicable 20% duty under HS Code 4810.9200 for coated packaging board (multi-ply). This move is seen as arbitrary and lacks industry-wide consultation or justification. The reclassification and artificial tariff bifurcation, which now distinguishes HS Code 4810.9210 from 4810.9290, appears deliberately designed to benefit a single manufacturer. This not only exempts the manufacturer from alleged anti-dumping duties but also grants an unjust competitive advantage at the expense of the rest of the industry. Such preferential treatment distorts the market, disrupts fair competition, and imposes discriminatory cost burdens on the broader packaging sector that depends heavily on coated board materials as critical raw input. The consequences are far-reaching—raising costs, discouraging investment, and threatening jobs across the entire value chain. Further compounding this issue is the National Tariff Commission's continued push to impose anti-dumping duties on Coated Bleach Board (HS Code 4810.9290) imported from China. These actions, pursued without a fair and transparent consultative process, appear to serve narrow commercial Interests rather than the broader goals of National Economic Development. The proposed anti-dumping duty seems to be a policy instrument crafted to patronize a single domestic manufacturer, while placing an unjust burden on over 10,000 printing and packaging businesses across Pakistan. Such measures threaten the viability of a critical industry that plays a vital role in supporting both domestic production and export-oriented sectors. The printing and packaging industry, which serves both domestic and export-oriented sectors, is already burdened by the extreme 20% customs duty (CD) and 4% additional customs duty (ACD) on essential raw materials. The imposition of additional duties, coupled with unreliable alternative sources, will significantly wear down competitiveness, hurt SMEs, and discourage investment. This tariff manipulation and policy favoritism are in direct violation of Article 25 of the Constitution of Pakistan, which upholds the principle of equality before law. It also undermines the government's own stated objectives of industrial growth, fair competition, and export promotion. We urge the Federal Board of Revenue (FBR) and the Ministry of Commerce to immediately review and rectify transparent tariff structure across the board as under: Review and rectify the tariff reclassification to ensure uniform, fair, and transparent tariff structure across the board and aligns with WTO norms and Pakistan's trade obligations. Restore a level playing field by applying duties uniformly across all importers and end-users of coated packaging board. Consult with stakeholders across the industry before implementing structural changes that can impact thousands of businesses and livelihoods. Failure to address this issue could further destabilize a vital sector that is pivotal to Pakistan's export competitiveness and domestic economic resilience. Copyright Business Recorder, 2025
Business Recorder
28-06-2025
- Business
- Business Recorder
Business community leader expresses his views on budget
KARACHI: Convener of the FPCCI Central Standing Committee on Hardware Merchants, Nadeem Ahmed Kushtiwala, stated that peace in the region is vital for Pakistan to increase its share in global trade. He emphasized that the government should have incorporated suggestions from the business community in the federal budget to enhance exports, keep the wheels of industry running, and avoid entrusting local trade entirely to the grip of FBR officials. This, he said, would ensure business growth, higher tax revenues for the FBR, and enable the government to meet its revenue targets. He expressed these views while addressing the fourth meeting of the Central Standing Committee on Hardware Merchants held at the Federation House. The meeting was also attended by Deputy Convener Shaukat Ismail, Tariq Rasheed, Tariq Younus, Hamza Nisar, and Faizan Nasir. Kushtiwala pointed out that the budget lacks any notable tax incentives or facilitation plans for persons with disabilities, special individuals, and senior citizens. He further remarked that no projects or initiatives have been proposed for the development of key sectors such as agriculture, industry, manufacturing, and ports/shipping/logistics, the maritime economy, and exports. He criticized the absence of measures to address the ongoing brain drain, which is significantly harming the country, as nearly 90% of professionally educated individuals are migrating abroad. Kushtiwala also noted that the budget does not increase allocations for essential public services such as education, healthcare, and access to clean drinking water, which are crucial for improving the general quality of life. During the meeting, it was highlighted that no changes have been made to the Valuation Department's ruling system. The high valuation rulings on a wide range of HS Code items are driving up landed costs, severely affecting the export sector; particularly the textile and apparel industries in competing in the international market. Copyright Business Recorder, 2025
Business Recorder
02-05-2025
- Business
- Business Recorder
Imports under HS Codes 3402.1300 and 3402.1190: SC dismisses petition seeking zero duty
ISLAMABAD: The Supreme Court dismissed a petition seeking zero per cent customs duty on the import of items under HS Codes 3402.1300 and 3402.1190. A three-judge bench, headed by Chief Justice Yahya Afridi and comprising Justice Muhammad Shafi Siddiqui and Justice Shakeel Ahmad decided the matter on an appeal against the Sindh High Court (SHC) verdict. The petitioner (Surfactant Chemicals Company (Pvt) Limited, Karachi) sought exemption from customs duty in excess of zero per cent (0%) vide SRO 565(I)/2006, dated 05.06.2006 as amended vide SRO 474(I)/2016, dated 24.06.2016] on the import of items under HS Codes 3402.1300 and 3402.1190. SHC judgment: SC reserves verdict on DG Customs Valuation's pleas As the respondents (Secretary Ministry of Finance & Customs Department), declined relief, the petitioner filed constitutional petitions before the Sindh High Court claiming that the goods imported by the petitioner-company were fully covered by the exemption as per Column (3) of the Table at Serial (3) of the amending SRO. The respondents stance was that they were/are neither registered/recognised by the Federal Ministry of National Food Security and Research nor were manufacturer of pesticides. The petitioner claimed that it is not required to get such registration or approval, as the petitioner by itself is not a manufacturer of any agricultural pesticides. The petitioner stated that it imports, formulates and manufactures agricultural surfactants/surface active agents namely stabilisers, emulsifiers and solvents which were used in manufacturing pesticides. The judgment noted that under the SRO the treatment of such goods on its import as zero per cent duty is not absolute; it is qualified/contingent upon terms in the SRO itself. The requisite condition in respect of goods on zero per cent in terms of Serial (3) of the Table in Column (2) is apparent which requires approval by the Ministry of National Food Security and Research which has not been fulfilled by the petitioner. The goods were imported and were classified under HS Code 3402.1190 and 3402.1300 of the Pakistan Customs Tariff. On the strength of HS Code alone, as available in the column, the treatment cannot be extended as zero per cent duty, for such goods the pre requisites are inevitable. The judgment said that the treatment of goods disclosed in the SRO were subject to fulfillment of certain obligations. The amended SRO itself put the petitioner under obligations to provide its qualification in order to fetch the exemption as it was only available for manufacturing or formulation of agricultural pesticides by manufacturers and formulators and this could only be recognized and approved by the Ministry of National Food Security and Research. The Column (2) has restricted and prescribed a condition and the treatment of goods of Column (3) in terms of exemption of customs duty could only be if condition prescribed in Column (2) is met. Admittedly, the petitioner is neither recognized nor approved by the Ministry of National Food Security and Research either as manufacturer or formulator of Agricultural pesticides. The Court said that the application of the order passed in Constitution Petition No.D-8496 of 2017 was also rightly distinguished in impugned judgment as it relates to clause 133 of the Sixth Schedule to the Sales Tax Act, 1990 and was not pari materia with the aforesaid SRO. The Restriction, as is apparent in the ibid SRO, is not seen in respect of goods disclosed in clause 133 of the Sixth Schedule to the Sales Tax Act, 1990. Copyright Business Recorder, 2025
