Daily Times

KARACHI: The Pakistan Pulp Paper and Board Mills Association (PPPBMA) expressed its concern over the import of finished paper products in the garb of waste paper under misquoting and false declaration by commercial importers.

The body also alleged foul play in 60 percent import of finish paper products, more than double of consumption in Afghanistan under the Afghan Transit Trade (ATT).

On the other hand, All Pakistan Paper Merchants Association (APPMA) blamed PPPBMA for the price hike of different paper products.

The paper industry is importing around 10-12 percent of the paper waste for manufacturing pulp to prepare different types of paper and paperboard. Due to rising wood pulp demand and a higher customs duty on commercial import, commercial importers were misappropriating the facts under the customs system.

While under customs tariff, paper is treated as a finished good under section (x) chapter 48 of Pakistan Customs Tariff, at a high customs duty slab, at the rate of 18 percent to 25 percent, while in customs policy, raw material is at 10 percent or zero rate duty slab.

The national exchequer is deprived of millions of tax due to misquoting the product by the commercial importers.

The international cost of waste paper comes around $145-$155 per tonne while import of finished paper coated and uncoated paper costs around $$780-$920 per tonne and $600 per tonne respectively. The government should take measures with the cooperation of paper manufacturing units and paper importers of the country in order to provide price relief on consumption by the all consumers.

Import of wood pulp comes around $950 per tonne from Canada, US, Norway, Indonesia and Sweden, besides paying one to two percent excise duty including regular taxes and sales tax, said a paper manufacturer.

He said units of PPPBMA were catering around 80 percent of the country’s paper and board requirements with supplying low cost products for all.

He said mills were manufacturing 55 to 70 and above gram-mage writing paper, with a yearly output of more than 550,000 tonnes. Around 45,000-50,000 tonnes of wood pulp is imported yearly.

Paper and duplex box paper is imported from China, Indonesia, Finland and the United Kingdom and other countries to meet domestic requirements.

Around 65 percent imported materials are used forthe making of office stationery and high-grade paper products and imported cardboards cater around 30 percent of the needs.

The domestic price is Rs 67,000 per tonne for paper used for school books and registers etc, Rs 69,000 per tonne for fine paper, used for photography and notebooks and Rs 60,000 per tonne for paper used for quality paper books etc. Similarly duplex boxboard price is around Rs 57,500 per tonne.

The price of lower quality and normal paper is Rs 50,500 per tonne, which was used in the production of copies and other items. The price of fine quality paper used in different value-added products is Rs 84,000 per tonne.

Prices for end users can be controlled if government reduces customs duty to a uniform level on two categories, uncoated and coated paper and board, besides using strict customs clearing mode to check imports on misquoting. Tug of war between paper manufacturing units and paper products importers in the country resulted in misery for the end users of the products by paying more and more on every kind of paper and board off and on.

The most affected segment of the society is the education sector including students of all levels, educational institutions and education books printing units in the country.

APPMA said because of high prices of paper, education was getting out of the reach of the common man.

The paper mills had made 15 percent raise in paper price from Rs 12,000 to Rs 15,500 per tonne, asserting that with this unjustified hike in paper prices, the paper mafia was trying to fail APPMA efforts to maintain the education within the reach of the poor, they alleged.

They urged the Competition Commission of Pakistan to pay attention towards the paper mafia, playing havoc with the traders. The prices of books and copies increased around 25 percent due to the rise in regulatory and other duties on imports.

With the imposition of a 25 percent regulatory duty, 12-15 percent import trade price and 18 percent anti-dumping duty, the total quantum of duties increased to Rs 42,000 per tonne for commercial importers.

The recent domestic price is Rs 63,000 per tonne used for school books and registers etc, Rs 64,000 per tonne for fine paper used for photography and notebooks and Rs 52,000 per tonne used for school books etc. Import of paper has registered a decline from 52,000 tonnes per annum to 49,200 tonnes, besides the government was facing a loss of taxes around Rs 12 billion.

The international cost of finished paper, coated and uncoated paper came around $1,000 per tonne and $881 per tonne, respectively. Rauf Ansari of APPMA said around 60 percent imported material was used for making office stationery and high-grade paper products and imported cardboards cater to around 35 percent of our needs.

He said around 30 percent imported material is used for making notebooks and high quality paperback books while more than 60 percent local paper was used in making secondary and higher secondary school books.