RD slapped on 657 luxury goods: 2pc ACD imposed on import of 2,200 items

ISLAMABAD: The Federal Board of Revenue (FBR) has imposed 2 percent additional customs duty (ACD) on the import of 2,200 items and increased/imposed regulatory duties (RD) on the import of 657 luxury and non-essential items from July 1, 2024.

The 2 percent ACD has been imposed on the import of items which were earlier subjected to zero percent duty. The ACD would be applicable at the rates of 2 percent; 4 percent; 6 percent and 7 percent on the import of goods as specified in the SRO 929(I)/2024.

Regulatory duties have been imposed within the range of 5 percent to 55 percent on the import of hundreds of items from July 1, 2024.

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From July 1, 2024, the FBR has also imposed additional customs duty (ACD) on the import of wide range of goods including seven percent ACD would be applicable on the import of cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000 cc and heavy commercial vehicles in CKD condition.

The FBR has issued SRO.928(I)/2024 in supersession of its Notification No. S.R.O. 966 (l)12022 to levy regulatory duty on import of goods specified.

The import perfumes and sprays would be subjected to 20 percent RD; watches, 30 percent; sunglasses, 30 percent; imported cycles 10 percent RD; imported dairy products 20-25 percent; natural honey 30 percent; imported dates and other fruit 25 percent; cosmetics 55 percent RD; imported shaving cream and soap 50 percent RD; gents caps, overcoats, jackets, trousers and shirts 10 percent RD; female overcoat, jackets, skirts/trousers, 10 percent RD; imported jewellery 45 percent RD; preparations for oral or dental hygiene, including denture fixative pastes and powders; yarn used to clean between the teeth (dental floss) 50 percent RD; cheese and curd, 25 percent RD; potatoes/other vegetables and mixture of vegetables, 50-55 percent RD; sugar confectionery (including white chocolate) 40 percent RD; tobacco, partly or wholly stemmed/ stripped, 50 percent; dog or cat food, put up for retail sale, 50 percent RD; articles of apparel and clothing accessories, of leather or of composition leather, 50 percent RD and video game consoles and machines, table or parlour games would be subjected to 50 percent regulatory duty.

The regulatory duty shall not be levied on the import under Notification No. S.R.O. 678; import under Chapter 99 of First Schedule of the Customs Act; import under Temporary Importation Scheme vide Notification No. S.R.O. 492(l)12009; import under Fifth Schedule to the Customs Act, 1969; import of special steel round bars and rods of non-alloy steel exceeding diameter 50mm and exceeding 5omm (PCT code 7214.9990) by the seamless pipes manufacturers registered under the Sales Tax Act, 1990; import of Rubber Apron and Cots; import of vehicles (CBU) by new entrants; import of input materials used for manufacturing of auto parts by local vendors under Notification No. S. R.O.655(l)/2006.

The rate of Regulatory Duty on import of CKD/SKD kits, of home appliances, mentioned in the Table, and of which kits are not specified separately therein, shall be five per cent.

According to the SRO.929(i)/2024, two percent additional customs duty has been imposed on the import of sub-components, components and sub-assemblies of automotive vehicles, automotive climate control equipment and automotive batteries for in-house use or supply to OEMs and assemblers or sale in the open market. These equipment were used in the manufacturing of agricultural tractors; road tractors for Semi-trailers (Prime Movers) of 280 HP and above; road tractors for semi-trailers (Prime Movers) less than 280 HP; fully CNG-dedicated vehicles.

Two percent additional customs duty has been imposed on the import of components for assembly/manufacture in any kit form including tyres/tubes for manufacturing of agriculture tractors.

Two percent additional customs duty would be applicable on the import of components for assembly/manufacturing of road tractors for semi-trailers and trailers (prime movers) of 280 HP.

Two percent additional customs duty would be applicable on the import of components which include sub-components, components, sub-assemblies and assemblies but exclude consumables), imported in any kit form and direct materials for assembly or manufacture of vehicles falling under Chapter 87 of the First Schedule to the Customs Act.

The additional customs duty shall not be levied on the import of seeds and spores for sowing; motor spirit; high speed diesel oil; liquefied natural gas; polymers of ethylene in primary forms and polymers of propylene or of other olefins in primary forms; cotton; solar panels and fertilizer; import of plant and machinery used in manufacturing or production of goods as is classifiable under Chapter 84 and 85 to the First Schedule to the Customs Act, 1969; import under Chapter 99 of the First Schedule to the Customs Act, 1969; import under the Fifth Schedule to the Customs Act, 1969; import under the Baggage Rules, 2006; import under notification No.SRO.577 (l)/2005 dated the 6th June,2005; import under notification No.SRO.565 (l)/2006; import under Notification No.SRO.693 (l)/2006; import under temporary importation scheme; imports under SRO 678(l)/2004 by the Exploration and Production Companies, their contractors and service companies for offshore projects; import of electric vehicles 2-3 wheelers (CBU) falling under PCT codes 8703.8030 (electric auto rickshaw), 8711.6040 (electric motor cycle), and (3-wheeler electric loader) till 30th June,2025; import of cars, jeeps and light commercial vehicles in CKD condition up to 1,000cc and import of vehicles in CBU condition up to 850cc; This Notification shall take effect from the July 1,2024.

Copyright Business Recorder, 2024