The Automotive Parts Sector In Pakistan Export Performance - TRTA i

• Letters of Credit (LC) and other documentary requirements like delivery againstdocuments have to be fulfilled.• Purchase orders.• Prices already determined and negotiated.• Advance payments.• Parts have to be manufactured according to the customer’s requirement (given in theform of drawings). Before delivery, the product is tested in their labs and then shipped(assembly, forging).2.10.2 Rules and regulations related to autoparts imports• Different laws are implemented depending on the type of product being manufactured.• Import duties.• Central excise duty (casting).• LCs, purchase orders.• Sales tax (assembly).2.11 Six studies on international trendsTo give an overview of the global changes and trends in the automotive industry, the followingstudies have been used:• China’s Automotive Market – Myths and Realities, published 2004 by McKinsey &Company.• Trends and Drivers of Change in the European Automotive Industry, published 2004 bythe European Monitoring Centre on Change (EMCC).• Unlocking the Value of Globalisation, published 2004 by Deloitte Research.• Supplier of the Future – the CEO Agenda, published 2002 by Roland Berger StrategyConsultants.• EU Market Survey 2004 on parts for cars, trucks, trailers and other mobile equipment,published 2005 by the Centre for the Promotion of Imports from the DevelopingCountries (CBI), The Netherlands.• Power Buyers – Secrets of the world’s best automotive purchasing and supply managers,Purchasing and Supply Management (PSM) survey and analysis by Original EquipmentSuppliers’ Association (OESA) and McKinsey & Company, published 2006 by RussellHensley.China’s automotive market — Myths and realities, by McKinsey & Co.China is seen as a threat to the Pakistan automotive industry. The myths and realities, plus theareas where the Chinese can have great influence on costs (competitiveness), are summarizedin Table 2.5 below.International Trade Centre Page 23