Govt directs industries to seek tariff relief through Tariff Policy Board first

The government has decided that all future tariff rationalisation requests from industries will first be reviewed by the Tariff Policy Board (TPB), with cases to be referred to a finance minister-led Steering Committee only if stakeholders remain dissatisfied with the board's decision.

Business Recorder reported, citing officials familiar with the matter, that the decision was taken after a review of tariff rationalisation proposals under the National Tariff Policy (NTP) 2025-30 and concerns raised by various industries.

The process was discussed by a sub-committee constituted under the Minister of State for Finance and Revenue, following Prime Minister Shehbaz Sharif's directives to examine sector-wise and product-wise tariff proposals prepared by the working group on customs and trade tariffs.

The Joint Secretary (Tariff Policy) informed the committee that the exercise focused on identifying products that recorded a 20-30% increase in import volumes following tariff rationalisation measures introduced under the National Tariff Policy.

To support the review, the sub-committee established a working group that conducted sector-specific assessments of the Soda Ash and Polyester Staple Fibre (PSF) industries.

During deliberations, the minister of state for finance said consultations had been held with both upstream and downstream industries. The review found that anti-dumping duties had already been imposed on Soda Ash imports from Turkey and Kenya. In the case of imports from China, it was concluded that the domestic industry could file a separate anti-dumping application before the National Tariff Commission (NTC) if it considered further protection necessary.

Regarding PSF, the assessment concluded that the industry's competitiveness challenges were not linked to tariff reforms. However, affected stakeholders were advised to approach the NTC for trade remedies if required.

The senior technical advisor on commerce told the committee that industries could continue to raise concerns through the established mechanism. The SAPM on Petroleum reiterated that all tariff-related requests should first be presented before the TPB, chaired by the commerce minister. If industries remain dissatisfied, the matter can subsequently be referred to the Steering Committee through the sub-committee for a final decision.

The Steering Committee decided that the prime minister's assigned review had been completed, as the concerns raised by the relevant industries had been addressed. It further approved the same mechanism for handling future tariff rationalisation requests.

The committee also reviewed the case of the latex rubber industry. The Joint Secretary (Tariff Policy) informed members that tariff protection on latex rubber thread, classified under HS Codes 4007.0010 and 4007.0090, had been reduced from 20% to 17% in FY2025-26.

Under the China-Pakistan Free Trade Agreement (CPFTA), the product currently attracts a customs duty of 12%, which is expected to decline to 8% in the coming years.

The industry requested increased tariff protection and the removal of latex rubber thread from the CPFTA framework. However, the Ministry of Commerce maintained that the case did not qualify as reverse cascading because most raw materials used in manufacturing latex rubber thread already carry a zero-duty import status.

The Steering Committee endorsed the ministry's assessment and advised the industry to seek relief through available trade remedy laws at the National Tariff Commission. It also ruled that the request to remove the product from CPFTA could not be accepted.