ISLAMABAD: The Federal Board of Revenue (FBR) has directed Customs authorities in Balochistan to take urgent steps and enforcement measures to stop the smuggling of steel products from border areas.
In this regard, the FBR has issued instructions to the Chief Collector of Customs (Balochistan).
The FBR has issued instructions to the head of the customs in Balochistan province to tackle the menace of smuggling of steel products on a top priority basis.
The FBR has also directed the Chief Collector (Customs) to submit a report on anti-smuggling measures and seizures to the Board by April 4 (Thursday), the FBR’s instructions added.
When contacted, sources said that the issue was mainly related to the smuggling of steel from Iran. The industry is apprehended that Eid holidays are availed to smuggle huge consignments and to dump the same in big purpose-built stores in Balochistan.
The quantum of smuggled steel products is so huge that the domestic steel industry is almost wiped out near border areas. The inflow of steel in such a large quantity is promoting and fueling the undocumented sector and systematically destroying the legitimate industry of the country.
According to the government’s official figures, during February 2024, over 22,000 MT of steel material was dumped from Iran via land route which includes steel slabs, steel bars, steel angles, sections, and pipes and plates among other things.
In the general market, the price of re-rollable is $500-$520. Whereas, these materials are assessed at $380 – $420 at the border by Customs authorities (Taftan mainly).
The official import data through Balochistan Customs Posts of February 2024 shows that a large number of trollers were cleared at 60 percent to 70 percent of their actual weight. This means that while officially 22,000 MT was imported during the period, the actual quantities must be much higher and could be to the tune of 30 to 35,000 MT. The inflow of this illegally brought material is killing the demand for steel in Punjab and eventually disturbing the entire domestic steel market.
There is no mechanism to share information on goods being exported or imported from and to Iran.
Copyright Business Recorder, 2024
Tags: Smuggling steel products Balochistan Customs directed urgent steps Business Finance
