Additional duty on import of vehicle components

To give protection to the local industry, the government has levied 'additional customs duty', ranging between 15 to 35 percent, on the sub-components and components, imported as part of any kit form for the assembly or manufacturing of agricultural tractors, other tractors, CNG dedicated buses, non-CNG buses and vehicles (gross vehicle weight below or over 5 tons).
For other importers, the government has levied 'additional customs duty' at the rate of 15 percent on the import of components for vehicles falling under the chapter 87 of the Pakistan Customs Tariff (PCT).
This levy would be in addition to the actual customs duty applicable on the components of these vehicles as specified in the Pakistan Customs Tariff (PCT) 2006-2007.
In this regard, the CBR has issued SRO. 693 (I)/2006 on Saturday using powers obtained through Finance Bill 2006 to levy 'additional customs duty' on the auto sector.
Thirty-five percent additional customs duty would be applicable on the import of components used in the manufacture of agricultural tractors; 25 percent duty, other tractors (PCT 87.01); 35 percent, CNG dedicated buses; 30 percent, Non-CNG buses; 25 percent, vehicles of g.v.w exceeding 5 tons and 30 percent additional customs duty has been imposed on the import of vehicles of g.v.w not exceeding 5 tons.
According to the notification, the government has levied additional customs-duty on the import of goods:
(a) at the rate of 15 percent of the customs value on goods classifiable under tariff headings of the First Schedule to the Customs Act, 1969, as specified in Appendix I to this notification; and
(b) at the rates specified in column (4) of the Table below on the sub-components and components, specified in Appendix I and Appendix II as mentioned in column (3) of the said Table, imported as part of any kit form for the assembly or manufacturing of motor cars and vehicles classifiable under headings mentioned in column (2) of that Table, namely:

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TABLE

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Sr. No    PCT Headings                          Appendix           Rate of

                                                                additional

                                                              customs-duty

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(1)           (2)                                  (3)                 (4)

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1         87.01 (Agricultural Tractors)         Appendix II    35% ad val.

2         8701.2090 and 8701.9060               Appendix II    35% ad val.

3.        87.01 (Tractors other than            Appendix II    25% ad val.

          mentioned at Sr. No 1

          and 2 above).

4         87.02 (CNG dedicated buses)           Appendix II    35% ad val.

5         87.02 (Non-CNG buses)                 Appendix II    30% ad val.

6         87.03                                 Appendix I     15% ad val.

7         87.04 (vehicles of g.v.w              Appendix II    25% ad val.

          exceeding 5 tons).

8         87.04 (vehicles of g.v.w not          Appendix I     30% ad val.

          exceeding 5 tons)

9         87.11                                 Appendix I     20% ad val.

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