PROPOSED PLAN OF ACTIVITIES

Proposed Plan of Activities

(Long & Short Term Targets)

Executive Summary:

The Pakistan Tyre Importers & Dealers Association has been granted License bearing No. 60 dated August 9, 2008 from the Ministry of Commerce, Islamabad for proper representation of Tyre business in Pakistan, under the Trade Organizations Ordinance 2007. The Association is engaged in the organizing the legal imports and dealership of Tyre Trade.

The current situation of Tyre Trade in Pakistan are as under:

  • Only 35 Tyre Sized are produced locally against the market requirement of 200 plus sizes.
  • As per estimated calculation, out of 7 million annual Tyre demand, only 19% (estimated)is fulfill by the local Tyre Manufacturer and 17% (estimated) by the legal importers, whereas balance gap is filled by the illegal imports of 64% (estimated) through smuggling.
  • There is no local production of Truck / Bus Radials Tyres in Pakistan, whereas now-a-days 75% of Truck / Bus are using Radial Tyres because of its longer performance, fuel saving and comfortable driving.
  • Also, there is no production of off-the-road (earth-moving) Tyes in Pakistan.

In this situation, the Pakistan Tyre Importers & Dealers Association is playing important role for the affairs of this Sector and facilitating import business and bridging between tyre importers and dealers and Government Institutions, especially the Customs Department and safeguarding the business interest of the Tyre Dealers and Importers throughout Pakistan.

Since the imposition of CGO 1/86, we have been working closely with customs institutions to formulate undisputed and fair assessment values for duties and taxes. We have an agreed price list for the frequently imported tyre size which is updated regularly.

We verify the import values for the sized not in the lsit at any time and issue certificates for assessment. On average 10 such certificates are issued monthly and save / increase the revenue.

Achievements:

In the year 2004-2005, the Ministry of Finance was conveyed by our presentation and the report on Smuggling of Truck / Bus Tyres and Import duty and withholding taxes were lowered to 5% to 2% respectively which resulted in import by 50% in year 2004-2005 of Truck / Bust Tyres and National Exchequer received substantial increase in Revenue as admitted by FBR in their Quarterly Review Report of July-September 2004.

Regular Activities that will be carried out for the next 3 years

Regular Activities:

  • Maintenance of Valuation database of the regular tyre sizes imported with the Custom Valuation Department ensuring smooth clearance of consignment and updating the concern authorities with the on-going correct import prices.
  • To verify the value of the Tyre sizes, which are not mentioned in Valuation database list and issue Certificates for Assessment ensuring no loss to the National exchequer.
  • To take up the matters of smuggling to protect the areas, with the Ministry of Finance and FBR and the Custom Anti-Smuggling Department.
  • PTIDA is working since its inception and grant of license for the valuation and ITP and taking part to reduce the under-invoicing.
  • The Custom House Karachi send the prices of Tyres to this Association, then the Committee check the prices and give valuable recommendations and the exact prices. This activity increase the revenue of the government.
  • Formulation of proposals and recommendations for the preparation of National Budget through FBR to increase the revenue to the National Exchequer and curtail the illegal imports (smuggling) of Tyres.
  • To attend the queries on Custom or any other concerned organization regarding Tyre
  • To take up the matter with the Ministry of Finance, FBR as Tyre is a Smuggling Prone item and always been favorite of the smuggler due to its easy handling – good profit because of High Valuation addition taxes on legal import in Pakistan and misuse of Afghan Transit Trade.

Regular Short Term Activities:

In the fast growing production of vehicles with frequent changing models in the world, the Association provides a platform for the members to know exchange the latest developments in the tyre industry to cater for upcoming demands.

We are also taking up the matter of smuggling of passenger and light truck tyres and have submitted presentations to FBR to reduce the import duty / taxes to save this trade which is under great threat increasing illegal trade.

Future Plans:

It is a fact that at today’s developing pace, no country can be self sufficient in production with the very much diversified sizes and patterns of Tyres for so may different vehicles, the imports have to go on.

  • As the representative Association of Tyre Trade, we will carry on our research and development plan to bring in the latest knowledge to achieve this goal, we will hold Seminars also with brief intervals and will invite local as well as foreign experts. We will arrange visits to such conferences held abroad also.
  • The Association is playing important role as representative of the tyre importers and Dealers and interaction with the government for fixation of correct values and justified import duty / taxes.
  • The Association is working on vigilance on Illegal Trade and raising its voice for safeguarding the legal trade.
  • The Association is establishing a consultancy department which will provide initial study about the possible sources of imports and will verify credibility of manufacturers for their quality and business fairness. This will protect our members from any possible fraud in future.
  • We have plan to play a role for settlement of international disputes amongst our members and their principles. This will not only save individuals from any losses but also save previous foreign exchange.

The Association has a strong believe and ensure that the industry and the legal trade would share the business. Although the Association represents the import trade, but have a solid thinking to boost the industry in our country with our R&D work and statistical knowledge of supply and demand in Pakistan. The Association will encourage the members to enter into much important field of production to contribute to the industrial growth of the country. The Association will play a part to create such environment at the earliest and serve the nation.

Need for Establishment:

After four decades of ‘business as usual’ the Trade and Industry of Pakistan is faced with intense competition and de-regulated global environment. The need for attaining and retaining competitive advantage is business performance is more than ever before. The new operational realities require PTIDA to formulate a new strategic thrust in its Management and operations.

Main Objectives:

  1. To define Corporate Vision, Mission, Objectives and Operating Strategy of PTIDA so as to serve the best interests of Stake Holders effectively and efficiently.
  2. To organize Human Resource and Operating Systems of PTIDA for optimum efficiency.
  3. To make PTIDA Pro-active and Members-oriented.
  4. To improve profitability of PTIDA.
  5. To improve Corporate Image of PTIDA the Apex body of Trade & Industry in Pakistan.

Vision for Next 10 Years:

As apex body, PTIDA shall endeavor to provide effective and efficient leadership and direction to trade & industry in Pakistan for optimum promotion of trade, industry, professionalism and good corporate governance.

Key Responsibilities:

  • Effective–government interface for formulation & implementation of business oriented policies and operating systems.
  • Efficiently redress business problems.
  • Promotion of all sectors of trade & industry.
  • Promotion of country’s international trade.
  • Promotion of professionalism, good corporate governance and business ethics.
  • Making positive contribution towards development of society.

Core Functions:

  • Government policy and regulations management.
  • Sectoral business development.
  • International trade promotion.
  • Business information management.
  • Positive image promotion of trade & industry.

Supportive Functions:

  1. Research & development
  2. Accounts & corporate affairs
  3. Human resource management
  4. Administration
  5. Communication
  6. Event management
  7. Public relations & protocol
  8. Record management
  9. Regional offices management

Functions / Responsibilities of the Executive Committee:

  1. To formulate Policies for the operation of PTIDA.
  2. To discuss and decide upon important issues facing the PTIDA and its Members.
  3. To review implementation of decisions taken by the Executive Committee.
  4. To review Reports of the specific Standing Committees, Working Groups, Task Force, Ad-hoc / Sub-Committees, etc.
  5. To approve Annual Operating Budget and Annual Accounts of PTIDA.