Spare parts importers advised to create a cottage industry – Business & Finance


KARACHI: Karachi Chamber of Commerce and Industry (KCCI) Chairman Mohammad Tariq Yousuf has advised motorcycle spare parts importers to set up their own cottage industries for manufacturing various spare parts which were currently being imported as it was no longer possible to import these parts due to the uncertain situation triggered by the unstoppable currency fluctuation.

During an exchange of views with a delegation from the Motorcycle Spare Parts Importers and Dealers Association of Pakistan (MSPIDA), led by its President Nasir Maqbool during a visit to KCCI, Tariq Yousuf pointed out that the establishment of small industries for the manufacture of spare parts was the only solution to most of the problems faced by traders, including exorbitant customs duties, delays in clearance of shipments, heavy demurrage / detention losses and the high cost of imported goods due to rising dollar values.

Tariq Yousuf assured that the Karachi Chamber, being the true representative of the entire commercial and industrial community, is well aware of the problems faced by traders due to the increase in street crimes and has constantly pushed the law enforcement to take strict measures so that they could conduct their business without fear.

“Any member of MSPIDA, who is having difficulty in resolving public order issues, can easily get in touch with the KCCI Police Chamber Liaison Committee and the Law and Order Sub-Committee which are working around the clock to help traders, troubled businessmen as well as industrialists,” he said.

Additionally, any MSPIDA members facing delays in clearing imported goods can also contact KCCI and we will liaise with customs authorities and the State Bank of Pakistan so that imported items can be cleared as soon as possible. delays, which would save importers from suffering serious losses due to demurrage and detention costs, assured the KCCI chairman.

He also pointed out that the government should study the possibility of reducing customs duties on spare parts and streamlining valuation decisions, as these do not support the economy but open the way for smuggling and cause losses to the Treasury.

Earlier, Nasir Maqbool, in his brief remarks, congratulated the newly elected officials and wished that the support and cooperation between the two institutions will be further strengthened in the coming days and that collective efforts will be made to solve many problems, in particular customs issues and valuation issues faced by importers of spare parts.

Speaking on the occasion, the former MSPIDA Chairman, while concurring with the KCCI Chairman’s view on import substitution, said that although many parts importers have established small manufacturing units in order to to be able to manufacture various imported items locally, the raw material needed to manufacture these spare parts has also been blocked under sections 84 and 85 of the customs tariff, which requires special attention.

He said that exorbitant customs duties of 35% along with additional duties of 11%, high GST and other levies had an overall impact of around 90% on the cost of imported spare parts for motorcycles, making this important mode of travel more expensive and beyond the reach of the poor segment of society.

“We request KCCI to raise this important issue with relevant policy makers in Islamabad so that customs duties and other taxes can be drastically reduced which would not only save the businesses concerned but also prove favorable to the economy by discouraging the widespread smuggling of spare parts,” he added.

Copyright Business Recorder, 2022


About Author

Comments are closed.