ISLAMABAD: The customs classification committee of the Federal Board of Revenue (FBR) has ruled that the imported networking equipment (Smart Signal Booster) are subject to a higher rate of 16 percent customs duty and not 11 percent as claimed by an importer.
According to a new ruling issued by the classification committee, the committee is of the view that the imported impugned goods, ie, “Networking equipment namely System Cell FT DUO EXA D32-1/0 BT system Celfi Repeater and CL-Fl Duo Smart Signal Booster (Network Unit)” are classifiable under Pakistan Customs Tariff (PCT) heading 8517.6290.
The Committee observed that the impugned goods are a combo of two units (ie, Network Unit and Coverage Unit) which do not require installation of antenna or cables to access the strongest possible 30, 40 and LTE Signal for improved voice coverage throughout home, for smoother video and surfing, thereby function falling under ‘—Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus’ whereunder different goods are specified by description/name, the committee said.
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The audit department wanted to impose 16 percent import duty under the PCT heading 8529.1090 whereas the importer claimed 11 percent duty under the PCT heading 8517.6100. The committee concluded 16 percent duty on the import of the said Networking equipment under the PCT heading 8517.6290.
The Collectorate of Customs, Islamabad and the Appellate Tribunal forwarded a reference for classification of ‘Networking equipment namely System Cell FT DUO DCA D32-1/0 BT system Celfi Repeater and CL-FT Duo Smart Signal Booster (Network Unit)’.
Brief facts as reported by the referring Collectorate are that importer M/s Mavetech Private Limited, Rawalpindi imported consignments of ‘Networking equipment namely System Cell Fi Duo Exa D32-1/0 Bt system Celfi Repeater vide GD No.5571 and CL-F1 Duo Smart Signal Booster (Network Unit) under PCT Heading 8517.6100.
However, audit authorities made audit para on the ground that the same importer got cleared identical equipment under PCT Heading 8529.1090. The case was adjudicated vide Order-in-Original dated 30.04.2018 passed by Collectorate of Customs (Adjudication), Islamabad against the importer. The importer filed appeal before the learned Customs Appellate Tribunal, Islamabad against the said orders.
The Customs Appellate Tribunal referred the matter to Classification Committee for determination of the classification of impugned goods. The audit authorities are of the view that the identical goods were rightly classified by Customs authorities under PCT heading 8529.1090 vide GD No.1674 dated 24.05.2016. However, the importer contends that same are classifiable under PCT heading 8517.6100 meant for base stations, classification committee added.
Copyright Business Recorder, 2022