Duty on palm oil reduced to make ghee cheaper
In a bid to decrease the cost of vegetable ghee and oil, the government has reduced customs duty on crude palm oil by Rs 1000 per metric ton from Rs 9000/MT to Rs 8000/MT. The duty structure on the import of old and used cars, re-conditioned vehicles and other cars has not been changed.
Copyright Business Recorder, 2010
This is for the first time that the FBR has not raised customs duty or regulatory duty on the import of any item. The government has also continued exemption of customs duty on the import of agricultural tractors in next fiscal year. During technical briefing of the FBR on budget, FBR Member Customs Munir Qureshi said that the custom duty is primarily meant to regulate international trade besides generation of revenues. No significant measure to increase rate of customs duty on any goods has been proposed in the next year''s budget.
Some relief measures aimed at providing relief to the common man, encouraging use of renewable energy resources and supporting agriculture sector have, however, been proposed such as exemption of duty on import of silk yarn which will cost Rs 40 million. Reduction of duty proposed on equipment with dedicated use of renewable energy will cost the exchequer Rs 36 million, Munir Qureshi added.
Under Customs Budgetary Measures (2010-11) announced here on Saturday, exemption of customs duty on import of fully dedicated LPG buses and dispensing equipment has also been made to encourage use of cheaper environment friendly fuel. The government has made exemption of customs duty on import of photographic plates and film for X-ray to lower cost of medical diagnoses for general public. In another measure, reduction of duty to 5 percent on pharmaceutical raw materials and drugs has been made to provide relief to common man.
The other measures include; (i) reduction of duty on equipment for dedicated use of renewable energy to encourage use of renewable energy resources;(ii) reduction of duty on raw materials for laundry soap and detergent to provide relief to general public; (iii) concession of customs duty on import of Road Sweeping Lorries to increase efficiency of municipal and local governments.
The government has also announced incentives to promote the local industry which are; exemption of customs duty on import of raw materials/components for energy saving lamps to support its local manufacturers; exemption of customs duty and sales tax on rice processing machinery to boost value addition and export of rice; reduction of duty on raw materials of leather industry to encourage leather exports; reduction of duty on raw materials of glass industry to make them more competitive; reduction of duty on secondary quality tin mill black plate for manufacturers of tin plate to reduce their manufacturing cost; exemption of duty on milk filters to support dairy industry; exemption of duty on other than pure bred breeding animals to bring their duty at par with pure bred breeding animals; rationalisation of duty on glucose and glucose syrup to avoid misdeclaration; rationalisation of duty on prepared industrial colours to rationalise their duty structure.
Inclusion of LED T.V. in industry specific concessionary regime to encourage their local manufacturing. Levy of 5 percent concessionary duty on copper & aluminium tubes and electro galvanised steel sheets if imported by manufacturers of evaporators and washing machines; exemption of duty on silk yarn spun from other than silk waste to rationalise tariff; rationalisation of duty on two PCTs of adhesives.
There are many other measures which government has taken to provide relief to the consumers and local industry. This included creation of separate PCT code for auto parts scrap in pressed bundles to streamline its clearance process; correction of PCT code for asphalt paver; correction in description of PCT codes 6813.2010 & 6813.8110 and rationalisation of PCT code 3920.6300 with Pak-China FTA.
Legal changes have also been made in Customs Act, 1969 keeping in view the change in rate of exchange USD vis-à-vis PKR and increase in prices of gold and other items the limit for taking cognisance under the smuggling related provisions is being enhanced from Rs 50,000 to Rs 150,000/.
The valuation formula for the goods to be exported is being simplified by including regulatory duty instead of export duty in section 25 in sub section (15)(b). The customs value determined under section 25A shall be applicable until and unless revised or superseded or rescinded by the competent authority. Section 25D is being elaborated by inserting the words "under section 25A" in order to clarify that review application before Director General Valuation shall lie in cases of the values determined by Director Valuation or Collector of Customs under section 25A.
For filing a review application, under section 25D, the time period of 30 days from the date of determination of customs value is being fixed. Section 32 is being amended so that cognizance could be taken in cases where revenue is paid through self assessment in order to curb the tendency of misdeclaration and less payment of revenue through computerised clearance system. Section 32A is being amended by inserting words and comma "payment of revenue through self-assessment," to curb the tendency of deliberate wrong self-assessments on the part of the importers. Proviso to sub-section (1) of section 79 is being amended in order to restrict the facility of filing of goods declaration after examining the goods by the importer to only in case of used goods. Besides, the permission for filing of goods declaration after examination of goods can now only be granted by the Additional Collector.
Section 81, sub-section (2) is being amended in order to finalise the cases of provisional assessment within three months. Section 81, sub-section (4) is being amended in order to streamline procedure for passing an order after final determination of provisional assessment. Section 156, sub-section (1), is being amended to enhance the general penalty to the extent of Rs 50,000/-. Section 156, sub-section (1), clause (64) is being amended to enhance the penalty to the extent of not less than twice the value of the offending goods besides the confiscation of goods for violation of section 128 and 129 of Customs Act, 1969.
This penalty will create a deterrence vis-à-vis the smuggling of transit trade goods. In section 194A, sub-section (1), a new clause (e) is being added which would enable any person or an officer of Customs to file an appeal before the Appellate Tribunal in cases of review order passed by the Director General Customs Valuation under section 25D provided the appeal is heard by the double bench of the Appellate Tribunal.