Duty exemption only on items not produced locally: CBR directive to collectors

The exemption of customs duty on imports of most of the items is linked with the condition that the items are not being manufactured locally. Explaining the customs budgetary measures, official sources told Business Recorder on Friday that the Board has directed the regional collectors to ensure implementation of this policy.
The import duty exemptions in many cases are subject to the condition that the item is not locally manufactured to support the local industry. Sources said that CBR has made changes in 1300 customs tariff lines on adoption of new Harmonised Commodity Description and Coding System (HS Code) 2007 from July 1, 2007. It was a cumbersome exercise to change tariff structure while transposing the existing Pakistan Customs Tariff (PCT) to HS 2007 version.
In some cases, the whole tariff heading, containing sub-headings of items of the same family, had to be changed or amended to place it under the HS 2007 version.
The CBR has issued instructions to the collectors of customs that the changes in 1300 tariff lines needed to be evaluated carefully. For this purpose, each collectorate should formulate a committee, headed by an Additional Collector, to go through new tariff and submit feedback immediately.
According to sources, the adoption of new HS-2007 system has important bearing on classification structure of goods imported into Pakistan. The HS version 2007 is being maintained by the WCO, which is updated after every five years to accommodate modern trading practices, product developments technological changes and needs of the users etc.
Pakistan being a signatory to the HS convention is obliged to adopt HS 2007 version. In this regard, necessary addition/deletions and amendments have accordingly been made in the PCT.
About introduction of new zero-percent duty slab in budget, officials said that there was no zero percent duty in PCT prior to budget. Over 2,000 tariff lines were being used at zero percent duty under different general and industry specific Statutory Regulatory Orders (SROs).
Most of these items, which presently are at zero percent of duty, have been transposed at zero percent duty rate in tariff. These items have been omitted from the relevant SROs. However, only those items have been moved from notifications to new zero percent duty slab where no condition has been specified against these items in the SROs, officials said.