35% Customs duty to be imposed on copper, aluminium waste

Tag: Insulated Cable

In order to discourage the manufacturing of sub-standard wires, cables and electrical products in the country, the government is expected to impose 35 percent customs duty on the import of copper cable waste and aluminium waste which are at present being imported at zero percent duty, official sources told Daily Times Thursday.

It has been agreed and recommended during EDB sectoral committee meeting that a sub-classification be introduced as copper cable waste and copper conductor scrap and 35 percent customs duty be levied on its imports. It has also been agreed and recommended during the said sub-committee meeting that similar is the case with HS code 7602-000 classification 7602-0090 aluminium waste or scrap, which is at present importable on zero percent customs duty should also have a duty rate of 35 percent.

According to the official estimates, the use of sub-standard wires and cables and electric products is resulting in increased consumption of electricity in the country. This is also instrumental in increase power demand in the country at a time when faced with a huge power deficit, which is being bridged through billions of rupees investment in infrastructure.

The rational behind this imposition of higher duty is that the duty would prevent the production and manufacture of low quality sub-standard electrical products, specially wires and cables which are dangerous to life and property. When or if used by the Water and Power Development Authority (WAPDA) or Karachi Electric Supply Corporation (KESC) would result in severe loss of generated electricity, which is now costing billions of rupees.

It has been brought to the notice of the government that such imports are being made through wrong declaration under HS Code 7404 (copper waste and scrap). Previously such imports were permissible under SRO 567 (i) 2006 as copper waste and scrap, under HS Code 7404 on zero percent duty. It has also been clarified that HS code 7404 is the HS code for copper waste and scrap not for copper cable waste as scrap. In the budget 2007-08 the tariff was zero percent and relevant SRO was withdrawn.

Copper waste and scrap, is being imported into Pakistan as cable waste and conductor scrap. There is no HS code for cable waste and conductor scrap in Pakistan Customs Tariff. In the absence of HS code for cable scrap, the payable duty would be 25 percent for HS code 8544.4990 or 20 percent as per HS code 7413.000 (stranded wire, cable plaited bands the like of copper not electrically insulated). Copper scrap, which is being imported in the garb of cable scrap, cannot be entitled to zero percent customs duty. The zero percent customs duty is for copper waste and scrap (HS code 7404) and not for cable waste and scrap, the government have been informed accordingly.