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.

Govt. involves PRAL into Motorcycle Industry

The Engineering Development Board has announced to involve Pakistan Revenue Automation (Pvt) Limited (PRAL) into "On-line Quota Debiting System" for the automotive sector with effect from 1st July 2009.

According to EDB sources from 1st July all the imports of raw materials, direct materials, sub-components, components, sub-assemblies and assemblies under three different SROs shall be importable through this system. All the importers under the above SROs shall clear their goods under the system through their Authorized Officer or Clearing Agent. An individual user ID and Password will be provided by the PRAL. The importable lists for the year 2009-10 under the above referred SROs will be placed on the system and hard copy of the lists will be forwarded to the importers after necessary approval by EDB. The status of the imports during the year will be reflected on the system which can be checked at any time. The import of the items will be according to the Certificate/ Lists approved by EDB. Any deviation in the entry for clearance will not be acceptable by the system, the sources said.

In case of any delay in the approval of importable items, Provisional Clearance of consignments shall only be allowed on recommendations of EDB.

Chairman, Association of Pakistan Motorcycle Assemblers (APMA) Muhammad Sabir Shaikh commenting on this development under the Budget 2009-10 said that it was amazing that the above-referred order was issued just to implement on SMEs of Motorcycle Industry only while Car, Truck, Bus Assemblers and various other sectors were excluded from this system. What were the reasons behind this policy? It was yet not understood. This is a clear indication that EDB and the FBR authorities were not happy with the present development and progress of Motorcycle Industry in Pakistan which had crossed the mark of one million unit production during last fiscal year.