ISLAMABAD: The Federal Board of Revenue (FBR) has implemented customs relief measures from July 1, 2020 by abolishing Additional Customs Duty (ADC) on the import of 1,643 items, duty reduction on 130 items, and decreasing regulatory duties on the import of dozens of other items.
Under the relief provided to the industry and trade, the FBR has also enforced the changes in the customs duties structure under the Pakistan Customs Tariff (PCT) headings on the import of 130 items under PCT from July 1, 2020.
This also covers reduction of customs duty on 90 items from 11 percent to three percent and zero percent.
From July 1, 2020, the FBR will implement the amended free trade agreement notifications with China and Malaysia to grant concessionary treatment to new PCT codes or new tariff lines, the FBR official said.
From July 1, 2020, the FBR has also prescribed anti-smuggling statements for the law enforcement agencies including Pakistan Coast Guards and Pakistan Maritime Security Agency for submitting monthly details of seizures to the relevant Collector of Customs (Enforcement and Compliance) to monitor the anti-smuggling performance of these agencies.
The FBR has superseded SRO.670(I)/2019 through issuance of SRO.572(I)/2020, here on Tuesday.
Under the notifications, the ADC has been totally abolished on the import of 1,643 items from July 1, 2020.
However, the RDs would be applicable from July 1, 2020 to June 30, 2021.
The FBR has imposed regulatory duty on the import of 5-7 items for protection of the domestic industry, whereas RD has been reduced on many items under SRO.573(I)/2020 issued here on Tuesday.
The FBR reduced regulatory duty from 12.5 percent and 17.5 percent to six percent and 11 percent, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes, 7208, 7225 and 7226, respectively.
According to the notification i.e. SRO.572(I)/2020, the additional customs duty would be applicable on import of goods specified in the First Schedule to the Customs Act, at the rate of two percent on goods falling under tariff slabs of zero percent, three percent, and 11 percent;
(four percent on goods falling under tariff slab of 16 percent, and (i) seven percent on goods falling under tariff sab of 20 percent, and higher slabs as well as slabs of specifñic rates, except goods falling under PCT codes 1507.1000, 1507.9000, 1511.1000, 1511.9010,1511.9020, 1511.9030, 1512.1100, 1512.1900, 1512.2100, 1512.2900, 1514.1100, 1514.1900, 1514.9100 and 1514.9900, which shall be charged at the rate of two percent on import. The value of goods for purpose of this levy shall be the value as determined under Section 25 or, as the case may be, Section 25A of the Customs Act. The additional customs duty would not be applicable on the import of goods falling under customs tariff slab of zero percent except the PCT heading 72.04.
The ACD would not be applicable on the import of seeds and spores for sowing; imports under Chapter-31 of the First Schedule of the Customs Act, 1969.
The additional customs duty shall not be levied on the import of goods classifiable under PCT codes, as specified in the notifications and plant and machinery used in manufacturing or production of goods as is classifiable under Chapter 84 and 85 of the First Schedule to the Customs Act. 1969 (V of 1969) and import under PCTs 8517.1211 and 8517.1219.
The additional customs duty would not be applicable on the import of goods under Chapter 99 of First Schedule of the Customs Act, 1969; import under Fifth Schedule to the Customs Act, 1969; import under the Baggage Rules, 2006; import under sub-chapters 3 and 7 of Chapter Xll and Chapter XV of Customs Rules; Import under Notification No.SRO.577(0/2005 dated 6th June,2005; import under Notification No.SRO.5660/2006 dated 5h June, 2006; import under Notification No.SRO.6930)/2008 dated 1" July, 2006; import under Small and Medium Enterprises and Export Oriented Units Rules, 2008; import under temporary importation scheme; imports under condition (vi) of SRO 678 by the exploration and production companies, their contractors and service companies for offshore projects only made with effect from the 18 August 2018, and import of oil seeds and edible oil till September 30, 2020.
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