Assembly/Manufacturing of Vehicle under Regulatory Environment.
 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for the Automotive Sector have been replaced by the Tariff Based System
[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:
Preservation & promotion of technologies that have been developed in
Protection to the present job structure in the auto sector.
Promote job creation
Protect the existing & planned investment by the OEMs & Vendors
Promote new investment
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
2. Parts/ components indigenized by June
2004 have been placed at higher rate of
3 Parts not indigenized would be
allowed at CKD rate of Custom Duty.