APMA protests Suspension of Assemblers

The Association of Pakistan Motorcycle Assemblers (APMA) has strongly protested against suspension of various motorcycle assemblers by EDB (MOBILE WORLD April 2011 page-11) and urged the Board to approve importable lists/ allocation of quota for all assemblers in the first week of every financial year.

Muhammad Sabir Shaikh, Chairman APMA talking to MOBILE WORLD said if EDB starts this practice every assembler will import their CKD through PRAL as per Board's requirement. He urged the EDB to withdraw suspension letters and direct the PRAL not to block their import and allow clearance of the items importable according to law and also send the copy of withdrawal letters to PSQCA for issuance of our member licenses.

Earlier, in his letter addressed to Dr. Muhammad Zubair, General Manager (Tariff), Engineering Development Board dated 12th April, 2011 the APMA Chairman invited his attention towards letters bearing No. EDB/TBS-II/11 in the month of January and February 2011 to many assemblers/ members of the association, whereby Board had suspended the certificates under SRO 656/2006.

He said it was alleged that many of our members were not directly importing the CKD parts and taking input from the commercial importers for the assembly of motorcycles. "This is clear allegation on your part without any basis," Sabir Shaikh said.

"Our members have already placed many letters to your department for issuance of production certificates including importable lists/ allocation of quota for the year 2010-11 valid up to 30-06-2011, but you neither responded the said letters not corrected the said certificates. In result you issued letters to many assemblers suspending their certificates on the basis of non submission of documents/ lists. Due to suspension letters issued by you the PSQCA stopped renewal of our licenses since last 5 months," Sabir disclosed.

"It may please be appreciated that SRO No. 656/2006 was amendment on 11-06-2008. According to this SRO the assembler or the manufacturer shall directly import the components as per the duly approved list for import to all assemblers every year. But your office not issued approved importable lists at the first week of every financial year. Instead, your staff approved our lists at the end of the year, while next year EDB starts demanding input records from the assemblers as per approved importable lists. How it is possible? Because EDB approved lists provided in the end of financial year and the assemblers are importing parts during the financial year, before issuance of approved importable lists. Due to non-issuance of lists within the time reckoned, this discrepancy arose, which is a violation on the part of EDB, the manager tariff, DGM Tariff, and the GM tariff for which we cannot be panelized. These facts were brought to your kind notice verbally and written as well, but having no fruitful result," Chairman APMA stated.

He further added that the situation mentioned above is alarming and your department is not issuing the import list at the beginning of the financial year. You issue the lists as and when it is desired by you, for the reasons best known to you. How a person can import the items as provided in belated list is a common question to be answered by your good-self.

It may also be appreciated he said that according to revalidation certificates up to 30-09-2010 the first quarter of financial year, we are fulfilling all the conditions as enumerated in Para 2 & 3 of the certificate and nowhere any violation has been pointed out and penalty clause exist in the certificate as well. Under these circumstances the suspension letters issued is without any jurisdiction and smells malafide intention by your department, Shaikh alleged.

"As per information from your office you are issuing importable lists/ allocation of quota under Inter-Department Technical Committee (IDTC) which is created by EDB and manager tariff, DGM Tariff, GM Tariff and GM Policy of EDB are the member of this committee. It means that your Committee is deciding for the issuance of importable lists/ quota to assemblers and you people are the member of this Committee. Please don't make jokes with assemblers and facilitate them, don't destroy the small & medium motorcycle industry of the country," Muhammad Sabir Shaikh appealed.

He once again reminded; "As you know all over the year our many members always continuously approaching your office for the issuance of importable lists/ allocation of quota but your office does not issue approved importable and not allocating quota for the import through PRAL."

"We request you to please approve importable lists/ allocation of quota for all assemblers in the first week of every financial year if you start this practice every assembler will import their CKD through PRAL as per your requirement. We also request you to withdraw the suspension letters and direct the PRAL not to block import and allow clearance of the items importable according to law and also send the copy of withdrawal letters to PSQCA for the issuance of licenses to our members," Muhammad Sabir Shaikh, Chairman APMA concluded.
-Nasir Mahmood

-Published on page#-08, May-2011 issue of MOBILE WORLD Magazine.

www.mobileworld.com.pk

Need of separate Association for 2-3 Wheelers

PAMA is not true representatives of 2-3 Wheelers Assemblers as only seven assemblers of 2-3 Wheelers are their members whereas more than 60 Assemblers of 2-3 Wheelers are members of APMA.

This is a known fact that 2-3 wheelers are different category than four wheelers or heavy vehicles according to criteria given in the Trade Organization Ordinance. WTO also recognized it as separate category according to Harmonized Sector Code (H S Code) which is recognized by Pakistan in Custom Tariff through FBR. Out Transport/Traffic Codes also recognized 2-3 wheelers as separate category.

Separate Associations are also allowed by the DTO in Textiles Sector for Spinning, Weaving, Hosiery, Apparels and Garments etc.

On the other hand PAMA membership form is very tedious and cumbersome and they are demanding heavy admission fee which is Rs300,000 and Annual fee is Rs250,000 which is very high for Small and Medium Companies. PAMA is also not entertaining the new membership of 2-3 Wheelers Assemblers and using delaying tactics. This fact can be confirmed through an independent checking of their record.

PAMA instead of resolving problems of the 2-3 wheelers assemblers was creating more problems for small and medium assemblers of 2-3 wheelers as one of their member of Motorcycles Assemblers (Yusuf H. Shirazi, Atlas Group) who have dominating role in PAMA did not want that small and medium assemblers of 2-3 wheelers prosper in the country as they were providing 2-3 wheelers transport at 60% of its price with same quality.

In view of the above it was requested to the government to restrict PAMA being Association of Four wheelers or Heavy vehicles and register APMA as genuine representative of 2-3 wheelers.

Government should seriously consider that Small and Medium Assemblers have already exported 25,000 Motorcycles due to competitive price and to attract R&D Support. They have also order in hand for export of another 10,000 units but due to non availability of Research and Development Rebate as mentioned above they are unable to compete in export prices.

Hence it is imminent that government should resolve the problems being faced by APMA members on immediate basis to just enable Small and Medium Assemblers to play their role in boosting exports and earn valuable foreign exchange for the country.