Provisional release of certain imported goods allowed

The Central Board of Revenue (CBR) has allowed provisional release of imported consignments where discrepancies were detected in calculation of customs duty on adoption of new HS Code-2007 under ''''One Customs'''' and the Pakistan Customs Computerised Clearance System (PACCs) Sources told Business Recorder on Wednesday that with the implementation of HS-Code 2007, two technical problems have emerged.
First, new HS-Code 2007 is in clash with the provisions of the Trade Policy 2006-07 and upcoming Trade Policy needs to be revamped accordingly. Some items importable under the Trade Policy are non-importable on adoption of new HS Code 2007.
Secondly, the absence of Pakistan Customs Tariff headings of HS-Code 2007 in the relevant sales tax and income tax notifications has resulted in confusion blocking the import consignments.
The CBR has issued guidelines to all collectors of customs to ensure provisional clearance of consignments in cases where problems have been witnessed vis-à-vis new HS-Code 2007.
According to the CBR instructions, HS-2007 version has been adopted vide Finance Bill 2007. This adoption has resulted in substantial changes in the existing classification of tariff regime. Numerous PCT Codes available under HS 2002 version have either been deleted or shifted elsewhere from their previous locations.
Likewise, numerous new codes have come into being under HS 2007 version. The SROs relating to customs concession regime like SRO 565(1)12006, SRO 567(1)/2006 and SRO 575(1)/2006 have been aligned with the new version. However, numerous codes are still required to be aligned in these as well as other SROs with the new HS version. This process is in progress and may take some more time to complete, the directive said.
The Collectorates have pointed out that necessary changes in this regard have also not been made in sales tax and income tax notifications which is hampering the clearance of goods in PACCs and ''''One Customs'''' project.
In order to address this situation facilitating the flow of trade, the CBR has taken the following decisions: One, the clearances of the import cargo should not be stopped due to discrepancies resulting from adopting the HS 2007 version of the PCT Codes.
In case of discrepancies in old and new PCT codes, the rate of duty or description, the consignments may be allowed provisional release. Simultaneously, the matter shall be referred to the Board for rectifications/corrections in SROs.
The transposition from HS 2002 to HS 2007 version has also been hit, in certain cases, by provisions of Trade Policy 2006-07 where earlier importable items have become non-importable.
The CBR has requested the commerce ministry in January 2007 to align it with the new US version. The commerce ministry has again been requested to give special dispensation in these cases till the time the Trade Policy is aligned with HS 2007 version.
Thirdly, the computer parts which were exempt under SRO 567(I)/2006 shall also be released provisionally at zero percent customs duty if already not allowed at zero duty in Finance Bill, 2007. Collectorates are requested to strictly follow the CBR instructions and any problem relating to implementation of HS 2007 version may immediately be brought to CBR''''s notice for corrective action.