ISLAMABAD (March 21 2003) : Pakistan has allowed import of 78 more items from India with concession in tariff, despite strong opposition by the Industries and Production Ministry, sources close to Central Board of Revenue (CBR) chairman told Business Recorder here on Thursday.
The sources said the Economic Co-ordination Committee of the Cabinet (ECC) three days back had approved the summary submitted by the Commerce Ministry, wherein it was decided that this should be kept secret as opposition could exploit the issue.
Commerce Minister Humayun Akhtar Khan said on several occasions that trade with India would not be enhanced till the resolution of political disputes, including the occupied Kashmir issue, but the current decision was taken as per South Asian Preferential Trading Arrangements (Sapta) among Saarc nations, the sources added.
The documents, made available to the Business Recorder suggested that during the first three rounds of deliberations in the Inter Governmental Group (IGG), Pakistan offered tariff concessions under the Sapta to India on 682 items, which have been notified by the Revenue Division under SRO 370 (I) on June 15 last year.
These items were also included in the Consolidated National Schedule of Concessions notified by the Saarc's Secretariat.
However, the positive lists of items importable from India do not include 78 items offered by Pakistan to India for concessions under the pact.
The Commerce Ministry was of the view that since 78 items offered by India for export to Pakistan were also reflected in the Consolidated National Schedule of Concessions notified by the Saarc Secretariat and SRO 370 (I) of the Revenue Division, Pakistan was bound to allow import of these items from India.
The document further revealed that the Commerce Ministry had sought the comments of the CBR, Industries Ministry and Foreign Affairs Ministry on the subject before approaching the ECC.
The Foreign Affairs Ministry and the Revenue Division had consented with the proposal but Industries and Production Ministry had opposed the move, saying that allowing import of 78 listed goods from India might not be undesirable as these could be imported from any other country.
The ministry further said that allowing concession of Customs duties would hurt the local industry, especially milk powder, unsweetened milk and ferrous products as tariff was low on the import of these items.
The Commerce Ministry, however, was of the opinion that since the net decrease in tariff in case of powder and unsweetened milk was only 5 percent (from 25 percent to 20 percent) and in case of ferrous products only 1 percent (from 10 percent to 9 percent) respectively, it was quite an insignificant margin to cause any harm to the domestic industry.
The ministry argued that the above stated concession on these items was committed by Pakistan during the Sapta negotiations, and has been already notified by the Saarc Secretariat in the Consolidated Schedule of Concessions as well as by the Revenue Division under SRO 370 (I).
The Sixth Saarc Summit held in Colombo in December 1991 approved the establishment of an Inter Governmental Group (IGG) to formulate an agreement for Saarc Preferential Trading Arrangement (Sapta).
It reflects the desire of the Saarc countries to promote and sustain mutual trade and economic co-operation within Saarc region through exchange of tariff concessions.
The list of items, which have been allowed to import from India.
List of items granted concession under SAPTA but not included in the list of items importable from India.
=================================================================================== S No PCT No Description Extent of Tariff Concession under SAPTA (as a Percentage of Tariff) ----------------------------------------------------------------------------------- 1 2 3 4 =================================================================================== 1. 0402.1000 Milk in powder granules or other solid forms, of a fat content by weight, not exceeding 1.5 percent 20 percent 2. 0402.2100 Milk not containing added sugar or other matter 20 percent sweetening. 3. 0703.1000 Shallots. 20 percent 4. 0801.3200 Shelled cashew nuts. 10 percent 5. 0810.9000 Other (tamarind fresh). 10 percent 6. 0909.3000 Cumin black. 10 percent 7. 1005.1000 Maize (corn) seed. 10 percent 8. 1005.9000 Maize (corn) others. 10 percent 9. 1106.3000 Flour, meal and powder of the dried leguminous vegetables, of the nature of the heading of the products of chapter 8. 10 percent 10. 1203.0000 Copra. 10 percent 11. 1302.3200 Guar meat. 10 percent 12. 1508.9000 Groundnut oil, of edible grade. 10 percent 13. 2305.0000 Oil cakes. 10 percent 14. 2306.9000 Oil cakes and oil cake made of other oil seeds. 10 percent 15. 2504.9000 Other natural graphite. 20 percent 16. 2520.1000 Gypsum; anhydrite. 10 percent 17. 2525.1000 Crude mica and mica rifted into sheets or splinting. 10 percent 18. 2525.2000 Mica powder. 10 percent 19. 2525.3000 Mica waste. 10 percent 20. 2821.1000 Iron oxides and hydroxides. 10 percent 21. 2821.2000 Earth colours. 10 percent 22. 2903.1400 Carbon tetrachloride. 10 percent 23. 3102.1000 Urea. 10 percent 24. 3103.1000 Super phosphates. 10 percent 25. 3303.0000 Keora water. 10 percent 26. 3403.1100 Preparations for the treatment of textile material, leather, furskin or other materials. 10 percent 27. 3506.9100 Adhesives based on rubber or plastics, other than of shoes adhesives. 10 percent 28. 3506.9900 Other adhesives, other than of shoe adhesives. 10 percent 29. 3809.9100 Finishing Agents of a kind used in Textile Industry. 10 percent 30. 3903.1100 Polymers of Styrene. 10 percent 31. 3910.0000 Silicone resins. 10 percent 32. 3920.7100 Other plates sheets, film, foil and strip, of plastics of regenerated cellulose. 10 percent 33. 4001.2100 Natural rubber in other forms - smoked sheets. 10 percent 34. 4001.2200 Technically specified natural rubber. 10 percent 35. 4001.2900 Natural rubber in other forms. 10 percent 36. 4010.1100 Reinforced only with metal. 10 percent 37. 4010.1200 Reinforced only with textile material. 10 percent 38. 4010.1300 Reinforced only with plastic. 10 percent 39. 4010.1900 Other. 10 percent 40. 4017.0000 Plates, sheets, rods and tubes etc of 10 percent ebonite and vulcanite. 41. 4206.1000 Catguts. 10 percent 42. 4418.2000 Doors and their frames and thresholds. 10 percent 43. 4904.0000 Music, printed or in manuscript whether or not bound and illustrated. 10 percent 44. 6802.2100 Marble blocks/tiles, polished. 10 percent 45. 6802.2300 Granite blocks/tiles, polished. 10 percent 46. 6804.1000 Millstones and grindstones for milling, grinding 10 percent or pulping 47. 6805.1000 Natural or artificial abrasive powder or grain. On base of woven textile fabrics only. 10 percent 48. 6805.2000 Natural or artificial abrasive powder or grain. On base paper or paper board only. 10 percent 49. 6814.1000 Plates, sheets and strips of agglomerated 10 percent or reconstituted mica. 50. 6815.1000 Non-electrical item of graphite or other carbon. 10 percent 51. 6815.9900 Alumina balls. 10 percent 52. 6909.1100 Ceramic wares for laboratory chemical or other technical use of porcelain or china. 10 percent 53. 7005.1000 Non-wired glass, having any absorbent relecting or non-reflecting of float glass. 10 percent 54. 7007.1100 Toughened tempered safety glass. 10 percent 55. 7103.1000 Unworked or simply sawn or roughly. 20 percent 56. 7103.9100 Rubles, sapphires and emeralds. 20 percent 57. 7103.9900 Other. 20 percent 58. 7203.1000 Ferrous products. 10 percent 59. 7506.1000 Of nickel, not alloyed. 10 percent 60. 7506.2000 Of nickel alloys. 10 percent 61. 7904.0000 Zinc bars rods profiles and wires. 10 percent 62. 7905.0000 Zinc plates, sheets, strip and foil. 10 percent 63. 8405.1000 Producer gas and water gas generators. 10 percent 64. 8446.1000 Needle looms and spares thereof. 20 percent 65. 8447.1200 Circular knitting machine and spares thereof. 20 percent 66. 8448.1100 Dobby, jacquard and punching machines and 20 percent spares thereof. 67. 8545.1900 Graphite electrodes. 10 percent 68. 9101.1200 Wrist watches, electrically operated, with 20 percent opto-electronic display. 69. 9101.1900 Other - Other wrist watches, electrically operated whether or not incorporating a stopwatch facility. 20 percent 70. 9101.2900 Other wrist watches. 20 percent 71. 9101.9100 Other wrist watches electrically operated. 20 percent 72. 9101.9900 Other wrist watches. 20 percent 73. 9103.1000 Clocks with watch movement electrically operated. 20 percent 74. 9103.9000 Other clocks with watch movement. 20 percent 75. 9105.2900 Other wall clocks. 20 percent 76. 9105.9100 other clocks electrically operated. 20 percent 77. 9105.9900 Other clocks. 20 percent 78. 9506.6100 Tennis balls. 10 percent ===================================================================================
