The Federal Board of Revenue has brought massive changes in customs duty structure through new Pakistan Customs Tariff (PCT) 2008-09, raising customs duty on the import of arms and ammunition from 15-25 percent to 35 percent; hair dryers 15 to 30 percent; sewing machine 25 to 35 percent and duty on import of polyester films has been raised from 5 to 20 percent.
Sources told Business Recorder on Thursday that the government has enhanced customs duty on a number of items including foreign food items/perfumes, etc, to discourage import of non-essential and luxury items. A uniform customs tariff regime has been introduced on the import of mobile drilling derricks, firefighting vehicles and concrete-mixers.
Arms and ammunition have been placed in higher duty slabs of 35 percent including revolvers, pistols, single barrel, semi-automatic or otherwise, pistols, multiple barrel, firearms and similar devices which operate by the firing of an explosive charge (sporting shotguns and rifles, muzzle-loading firearms, muzzle-loading firearms, other sporting, hunting or target-shooting shotguns, shotgun-rifles); sporting, hunting or target-shooting rifles: and other arms like spring, air or gas guns and pistols/truncheons.
Special purpose vehicles like mobile drilling derricks, firefighting vehicles and concrete mixers have different duty rates of 10 percent, 30 percent and 80 percent. Concrete-mixer lorries have a tariff rate of 60 percent but are allowed on reduced rate of 5 percent through an SRO. Now a uniform rate on all such type of vehicles is being introduced in tariff (2008-2009). Therefore, duty rate on crane lorries (8705.1000) and other (PCT code 8705.9000) has been raised from 10 percent to 30 percent and the rate of duty on concrete-mixer lorries (PCT Code 8705.4000) is reduced from 60 percent to 30 percent and the concession given to concrete-mixer lorries through SRO 567(1)12006 stands withdrawn. This decision has been implemented through amendment in tariff and SRO 567(I)2006.
Duty has been raised on the import of dairy products like cheese, butter, yoghurt etc, from 25 to 35 percent; fruits all sorts, 25 to 35 percent; chewing gum, chocolate etc 25 to 35 percent; processed food like macaroni, corn flakes, biscuits, potato chips, processed packed vegetables/fruit products etc 25 to 35; fruit juices, soup, ice cream etc, 25 to 35; aerated water, 25 to 35; cosmetics, 20-25 to 35; marble/granite products, 25 to 35; ceramic products, 25 to 35; electric fans, 25 to 35; air-conditioners, refrigerators, deep freezers, 25 to 35; food grinders mixers, 20 to 30 percent; hair dryers, 15 to 30; electric ovens, cooking ranges etc, 20 to 30 percent; coffee makers, toasters, microwave ovens, 25 to 35 percent; cassette players 20 to 30 percent; LCD TV/other TVs, 25 to 35 percent; furniture 25 to 35 percent; chandeliers & other lighting equipment 25 to 35 percent and duty has been raised on the import of vacuum flasks from 25 to 30 percent.
So far, there was no customs duty on import of mobile phones (PCT 8517.1210). The exemption stands withdrawn and customs duty @ Rs 500/ per set has been introduced. This has been done through amendment in tariff.
Cars and jeeps of 1800-cc engine capacity and above are mostly luxury vehicles, which are liable to duty @ 90 percent. In order to discourage the import of these vehicles, duty rates have been increased from 90 percent to 100 percent. Fixed duty/tax rates on old and used cars/jeeps notified vide SRO 577(1)12005 have also been increased by 10 percent through an amending SRO 560(1)/2008 of June 11, 2008.
Duty rate on motor cycles in CBU condition has been reduced from 80 percent to 70 percent along with readjustments in duty rates on parts. Duty rate on CKD kits of cars has been reduced from 35 percent to 32.5 percent. These measures have been implemented through amendments in SRO 656(1)12006 vide amending SRO 563(1)12008 dated 11.6.2008.
The collectors of customs have reported to the FBR that clearance of over 400 seized/confiscated vehicles was held up because of contravention of law and procedure. Therefore, those vehicles could not be released even against payment of leviable duty/taxes and redemption fine @ 30 percent. The existing adjudication SRO does not allow the same. The government has decided to resolve this issue by allowing a one time opportunity to get the vehicles cleared on payment of leviable duty/taxes plus 30 percent redemption fine This decision shall apply to those vehicles only which have already been seized/ confiscated on or before May 31, 2008 and the option is availed up to June 30, 2008. This measure has been implemented while amending existing SRO.481(I)/2007 vide SRO 588(I)2008.
Under the new tariff regime, customs duty on betel leaves increased from Rs 150 per kg to Rs 200 per kg. In order to provide a reasonable level of protection to the local manufacturing industry, duty rate on import of sulphonic acid (soft) PCT (3402.1110) has been increased from 10 percent to 15 percent. Its raw material is liable to customs duty at the rate of 5 percent.
Polyester films (3920.6310) are chargeable to duty @ 5 percent under a separate national heading which was created at a wrong place whereas, all remaining items of this category are presently chargeable @ 20 percent under their respective headings. It has been reported that the above-said arrangement is being misused. In order to address this loophole, the PCT headings 3920.6310 & 3920.6390 stand deleted. The restoration of polyester film at proper place in the customs tariff has brought it in uniformity with alt other identical items of this family which are chargeable to customs duty @ 20 percent.
Duty rate on CKD/SKD of sewing machines (PCT 8452.1010) has been increased from 5 percent to 20 percent to incentives the local manufacturing activities. This decision has been implemented through amendment in the Tariff.
Enhanced rate of 35 percent customs duty would also be applicable on the import of butter and other fats and oils derived from milk; dairy spread; dates, figs, pineapples, avocados, guavas, mangoes, fresh or dried; citrus fruit, fresh or dried; grapes, fresh or dried; apricots, cherries, peaches (including nectarines), plums and sloes, fresh; fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen; fruit and nuts, provisionally preserved; fruit, dried, other than that of headings 08.01 to 08.06; mixtures of nuts or dried fruits; mixtures of nuts or dried fruits; sugar confectionery (including white chocolate), not containing cocoa; chewing gum, whether or not sugar-coated; Bread, pastry, cakes, biscuits and other bakers'' wares, Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid; mushrooms and truffles; jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes; ice cream and other edible ice, whether or not containing cocoa; cheroots and cigarillos, containing tobacco; cigarettes containing tobacco and other manufactured tobacco and manufactured tobacco substitutes; perfumes and toilet waters; other beauty or make-up preparations.
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