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Tariff Based Systems

Tariff Based System (TBS)

For

Automotive Sector

 

 

[1] Guidelines for Assembly/Manufacturing of Vehicle under Regulatory Environment.

 

[2] Background of Tariff Based System (TBS)

 

As of July 1st 2006, the deletion programs for the Automotive Sector have been replaced by the Tariff Based System (TBS).

 

[SRO 656 (I) / 2006 dated June 22, 2006 (For OEMs)]

[SRO 693 (I) / 2006 dated July 1, 2006 (For OEMS)]

[SRO 655(I) / 2006 dated June 22, 2006 (For Vendors)]

  

The deletion programs have gradually been phased out under the WTO regime to become TRIMs compliant. The TBS is the outcome of a long drawn consultative dialogue between all stakeholders including OEMs and Vendors, belonging to different sub-sectors of the Automobile Industry.

 

The TBS has been developed with the following overriding objectives:

 

  1. Preservation & promotion of technologies that have been developed in the country

  2. Protection to the present job structure in the auto sector.

  3. Promote job creation

  4. Protect the existing & planned investment by the OEMs & Vendors

  5. Promote new investment

  6. Expand the consumer base to create economies of scale

 

The basic framework of Tariff Based System is as under:

 

1. Imports in CKD condition would be allowed only to assemblers having adequate assembly

facilities and registered as such by the concerned Federal Government Agency.

2. Parts/ components indigenized by June 2004 have been placed at higher rate of

     Customs Duty

3  Parts not indigenized would be allowed at CKD rate of Custom Duty.

 
   

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