Groups Demand Removal Of Import Clearance Norm On NR.

The All-India Rubber Industries Association (Airia) and the Automotive Tyre Manufacturers’ Association (Atma) have asked for withdrawal of random inspection of imported natural rubber (NR) by the Rubber Board, as the delay in clearance has started affecting production.

Due to historic high prices , companies import NR in quantities just adequate to meet current consumption requirements. As a result, any delay in clearance disrupts the production process and at times leads to delay in fulfilling export commitments of finished products, the rubber consuming industries have stated in their respective communications to the government. The provision for random inspection of imported rubber by the Board was introduced in December 2004 to check if the import meets technical and quality parameters.

The associations have stated that NR is not an end product (for direct consumption by the consumer) in the form that it is imported (as sheet or block rubber). It is a raw material and has to go through a long process of manufacturing to make end products like tyres. Hence, it is important that quality and standards are followed for the finished products and not for raw materials.

According to their communication, with prices high, user industries cannot afford to buy low quality NR, as the resultant fallout on the quality of the end product could be a drain on financial resources. Therefore, user industries are extra cautious that the imported NR is of high quality to ensure proper value addition.

Source : sify.com