You must have heard about vehicle smuggling within the bounds of the country but have you heard of tire smuggling? Yes, it is a real thing and it is increasing quite a lot in recent times. The value of tires is quite high on the market in bulk, especially brand new ones. Thus, this gives the wrong-doers an opportunity to commit such a crime. There are growing concerns within the industry regarding the resurgence of smuggled tires infiltrating local markets.
The decline in tire imports post-rupee devaluation is attributed to the surge in smuggled tire influx, prompting industry leaders to call for government intervention. Hussain Kuli Khan, CEO of Ghandhara Tire and Rubber (GTR) Company Ltd, voiced distress over the widespread availability of illicit tires across various sizes. Be it a hatchback or a truck, there is access to all such types of tires.
Tire Smuggling All-Time High
Hussain Kuli Khan emphasized the government’s duty to safeguard local industries, emphasizing their role in employment generation, tax contribution, and forex conservation. The rupee’s devaluation led to a decrease in tire imports, subsequently filled by a substantial influx of contraband tires despite their inferior quality.
Only 25% of the country’s annual tire demand is met by domestic manufacturers, with 10% sourced from authorized imports, leaving the remaining portion supplied through illegal channels. This shows that quite a lot of section of the country’s annual tire demand is being met with illegal means. To have more than three quarters of the demand met with illegal means is a major concern.
Curbing The Crime
Khan also urged authorities to scrutinize data on goods imported through Afghan Transit Trade (ATT). He further encourages them to address the disproportionate importation of tires relative to Afghanistan’s automotive market. He underscored the industry’s economic contributions, with GTR alone contributing Rs3.2 billion annually, and called for stringent measures to curb tire smuggling and promote fair competition among local producers.
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