Zero percent customs duty: value of duty free imported items nears Rs 1.07 trillion

The value of duty free imported items, liable to zero percent customs duty under the Pakistan Customs Tariff, was approximately Rs 1.07 trillion during 2009-2010. On the other hand, the value of duty free import made by privileged persons, diplomats/ embassies, organisations, relief goods, charitable educational and other covered under the Special Classification Provisions of Chapter 99 of the Pakistan Customs Tariff was approximately Rs 91 billion during 2009-2010.
Sources told Business Recorder here on Thursday that the FBR has drafted an analysis on the costs and benefits of the duty free imports to the local industry and the national exchequer. According to the FBR analysis, duty free imports are broadly covered under two regimes; items which attract a zero percent rate in tariff and items which are allowed duty free or a concessional rate of duty under different statutory regulatory orders (SROs).
The duty free imports under tariff can be subdivided in two categories; one covering items from Pakistan Customs Tariff (PCT) Chapters 1-97 and second covering items imported under Special Classification Provisions of Chapter 99 of the tariff. The details revealed that the items at the rate of zero percent customs duty in tariff are either of basic consumer needs (eg POL products, pulses, fresh and dried essential vegetables, oil seeds etc) or basic agricultural industrial requirements (like primary raw materials eg fertilisers, sowing seeds, breeding animals, raw hides, raw wood, iron ore and scrap, basic chemicals etc). The duty free import value covered under this category during 2009-2010 was approximately Rs 1.07 trillion.
The FBR said that the items at the rate of zero percent customs duty under Special Classification Provisions of Chapter 99 of the tariff allows duty free imports to privileged persons, organisations, relief goods, charitable educational, scientific and health institutions, temporary and replacement imports and life saving diagnostic and other medical equipment.
The Chapter 99 of the PCT also covers goods imported into (except to tariff area of Pakistan) from the Export Processing Zones established under the Export Processing Zone Authority Ordinance, 1980 and any enactment relating to Gwadar Special Economic Zone, subject to such conditions, limitations and restrictions as the FBR may impose from time to time.