Amendments to HS codes: Clearance of textile pigments falls into abeyance

The clearance of textile raw material (pigments) has virtually fallen into abeyance, following the amendments made to its HS codes in federal budget 2018-19. According to sources, the federal government in recent budget had split HS codes of textile raw material (Pigments) into three PCT headings, creating problems for the importers to avail the tax benefit of SRO 1125(I)/2011.
They said that customs department had so far not fed the said PCT headings - 3204.1790, 3204.1720, 3204.1710 in the WeBOC system. Resultantly, the importers are being denied to get SRO 1125(I)/2011 benefits by the system, which led virtually, suspended the clearance of subject goods.
Meanwhile, the Karachi Customs Agents Association (KCAA) in its letter cited that in the recent budget, the HS code 3204.1700 of pigment has been substituted with the HS code 3204.1710 and 3204.1720 but the exemption under SRO 1125(I)/2011 has not updated in system, creating difficulties for the importers and clearing agents to claim the benefit of sales tax under the said SRO, which was integrated with the PCT headings 3204.1700.
It said that following the said reasons, unnecessary delay in the clearance of consignments, which were presently lying at ports, was costing heavy demurrages to the trade. Therefore, the KCAA has requested the authority concerned to look into the matter and issue necessary instructions to update the system in accordance with the changes made in the tariff of sub-headings to facilitate the trade at maximum.