Sir: Our economy is losing an enormous amount of revenue in the form of taxes and duties every year due to the smuggling of automobile parts.
These automobile parts smugglers usually work in collusion with government authorities to bring inferior or substandard equipment into the country. This has severely damaged our auto parts industry. The usage of these imported inferior parts also not only effects the performance of vehicles but also endangers the safety of the automobile users.
Under the existing custom rules, automobile parts classification is one of the major issues that effects their import since the duty is calculated on the basis of their weight rather than value. This creates a wide disparity in the valuation of imported parts, and the net result is that local auto parts manufacturer lose their competitiveness. In order to curtail this menace, the government should implement realistic customs rules, take effective measures to completely block the smuggling of automobile parts and ensure the recovery of 16 percent of the sales tax from all automobile parts importers and sellers. It is imperative to enforce these measures in order to safeguard the availability of genuine parts and also to protect our local auto parts industry.