Acma Opposes Levy On Ckd-Skd Kits

The Auto Component Manufacturers Association (ACMA) has expressed displeasure at the government proposal to allow import of car kits in CKD-SKD condition at 30 per cent duty.

In a presentation to the industry and commerce ministries a week ago, it highlighted the adverse impact such a levy would have on the component industry.

They pointed out that new car manufacturers prefer to import complete engines instead of indigenising the manufacturing process.

ACMA president K Mahesh says treating these kits on a par with components is unfair as the components industry would be hit badly.

The industry is reeling under a customs duty anomaly, where raw material imports like steel is higher than the 25 per cent charged for engine and engine components.

 

He says by allowing completely built vehicles to be brought in as components without import licence, the government is doing irreparable damage to the auto component industry.

Mahesh points out that the government has to have a correct sequencing of reforms in place to make the auto component industry competitive.