Amreli Steels has issued an explanation on the ongoing import of Heavy Meltable Scrap (HMS) consignment which contained a high level of unserviceable scrap auto parts, clarifying that it was a breach of agreement from the seller’s end.
A dispatch of 48 containers of HMS was inspected by Collectorate of Customs at Port Qasim. Customs found a high percentage of unserviceable scrap auto parts, which in Pakistan pulls in a higher occurrence of obligation than standard piece.
The dispatch is presently being surveyed at port to decide the real effect of obligations and duties.
Amreli Steels indicated out in its notification to the Pakistan Stock Exchange (PSX) that that a significant source for HMS is the destruction and shearing of automobiles, therefore, unserviceable auto parts generally do come in small proportions in the HMS category worldwide.
However, the high percentage of unserviceable/broken scrap auto parts was a breach of contract on part of the scrap supplier and there was no way for Amreli Steels Limited to know or detect such a lapse upon clearance at Customs.
They further added that Amreli Steels contractually discourages suppliers from inclusion of unserviceable scrap auto parts in consignments.
Nevertheless, a hundred percent of HMS imported by the company is processed through a shearing machine and charges in the furnaces to manufacture steel billets. Representatives of the company have discussed the situation with Customs Officials.