The Indian Paper Manufacturer's Association has submitted a study to the government pointing out discrepancies in the present laws and has suggested ways to overcome them. The association believes that if the suggestions are implemented, then most of the problems facing the paper industry will be solved.

Says R Narayan Moorthy, secretary, IPMA, "The main factor crippling the paper industry today is the fact that large amount of paper is being imported at very low duty (5 per cent) under the guise of newsprint."Moorthy says that the paper, which should have actually been imported by paying 30 per cent import duty, is sold in the market at low prices making Indian paper uncompetitive."

"Through our study we have tried to bring to the attention of the authorities that by modifying certain import rules, unscrupulous imports can besuccessfully stopped."

The study says that a registration certificate authenticated by designated authorities should not be the only condition to determine actual users. Actual users should be only those who can prove that they will be using the paper for publishing daily, weekly, monthly newspapers/magazines for sale.

It should not be used for journals published to promote sale of goods/services, house journals, price lists/catalogues, directories and lottery news, racing guides and sex magazines.

The study points out that these uses were not eligible even earlier as per Newsprint Allocation Policy of 1994-95 issued by ministry of information.

At present there is no specific definition for glazed newsprint. IPMA fears that without clear-cut parameters, and at zero per cent import duty, it can open up gates for import of other varieties of paper specially coated ones. It suggests that glazed newsprint should have all parameters as per standard newsprint. It should additionally have high gloss orpolish not less that 70 per cent through friction, glazing, calendering, plating or drying on a yankee dryer without coating.

As per custom tariff rules, Light Weight Coated (LWC) paper is a graphic paper of total fibre content obtained by mechanical process more than 10 per cent by weight. IPMA's study says that as the definition does not specify the furnish nor the extent of coating, it is highly inadequate and any coated variety can be imported in the guise of LWC.

It has been suggested in the study that LWC paper should have at least 70 per cent mechanical pulp, a coating within a range of 5-8 g/m2 on both sides and weight of not more than 70 gsm.

For getting tax benefits reserved for newsprint importers, an independent agency's inspection certificate certifying the characteristics of the imported item i.e. newsprint-standard or glazed and LWC as per the definitions given in the study should be made mandatory and should be submitted with the invoice by the supplier, says IPMA.

Under the presentlaws middlemen or agents import newsprint on behalf of authentic users and also stock and sell. The study suggests that while allowing agents to import paper, stocking and selling by them should be disallowed.

Says Moorthy, "In our country demand for newsprint has been pegged at 7.3 lakh tonne of which 4.4 lakh tonne is produced domestically. The custom officials should ensure that only the difference of 2.9 lakh tonne is imported."