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About EDB

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March 2015


EDB Organized Engineering Pavilion in Expo 2015

Minister meets Delegations

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Technologies offered by Malaysia to D-8 Memeber Countries

Tariff Based Systems

Tariff Based System (TBS)


Automotive Sector



[1] Guidelines for Assembly/Manufacturing of Vehicle under Regulatory Environment.


[2] Background of Tariff Based System (TBS)


As of July 1st 2006, the deletion programs for the Automotive Sector have been replaced by the Tariff Based System (TBS).


[SRO 656 (I) / 2006 dated June 22, 2006 (For OEMs)]

[SRO 693 (I) / 2006 dated July 1, 2006 (For OEMS)]

[SRO 655(I) / 2006 dated June 22, 2006 (For Vendors)]


The deletion programs have gradually been phased out under the WTO regime to become TRIMs compliant. The TBS is the outcome of a long drawn consultative dialogue between all stakeholders including OEMs and Vendors, belonging to different sub-sectors of the Automobile Industry.


The TBS has been developed with the following overriding objectives:


  1. Preservation & promotion of technologies that have been developed in the country

  2. Protection to the present job structure in the auto sector.

  3. Promote job creation

  4. Protect the existing & planned investment by the OEMs & Vendors

  5. Promote new investment

  6. Expand the consumer base to create economies of scale


The basic framework of Tariff Based System is as under:


1. Imports in CKD condition would be allowed only to assemblers having adequate assembly

facilities and registered as such by the concerned Federal Government Agency.

2. Parts/ components indigenized by June 2004 have been placed at higher rate of

     Customs Duty

3  Parts not indigenized would be allowed at CKD rate of Custom Duty.

EDB Organized Engineering Pavilion in Expo Pakistan 2015. Minister of Industries and Production met Chinese delegation.

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