All Pakistan Motorcycle Spare Parts Importers and Dealers Association: removal of anomaly in customs duty sought

All Pakistan Motorcycle Spare Parts Importers and Dealers Association (APMSPIDA) Senior Vice-Chairman Khurram Riaz has urged the federal finance minister to remove the anomaly in customs duty on the import of motorcycle spare parts. In a letter to the finance minister, Riaz criticised the discrimination of the authorities while formulating the customs duty criteria for motorcycle spare parts, which fell under Chapter 8714-0000 relating to Spare Parts for Vehicles of Heading 8711 to 8713.

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1     8711     Motorcycles (and Parts falls under heading

               8714.1010, 1020 & 1090)

2     8712     Bicycles & Other Cycles (and Parts falls

               under heading 8714.9100 - 8714.9900)

3     8713     Invalid carriage for Disabled Persons

              (and Parts falls under heading 8714.2000)

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HS Code 8711-0000 Related Vehicles Parts have been subjected to 35 percent CD as per 1st Schedule Plus 15 percent additional duty in terms of SRO 693(1)/2006 dated 1st July, 2006, which means the importers of motorcycles spare parts have been placed under the highest rate of customs tariff, whereas all other sectors have been brought under highest level of only 25 percent customs duty.
This difference in the duty structure is clear discrimination and an unfair treatment on the part of the Federal Board of Revenue (FBR), which will certainly hurt the national exchequer, as the revenue collection from this sector will drop sharply, the letter says. It is apprehended that this anomaly would give rise to smuggling and the registered commercial importers would not be able to compete in the local markets after paying such high rates of duty and taxes on their imports.
Riaz expressed the hope that the association's appeal would be given due consideration.
He said that if the duty structure on the import of motorcycle spare parts was reduced and brought at par with the duty structure set for all other sectors of import, then the revenue collection from the legitimate imports of motorcycle spare parts would increase significantly and the smuggling of spare parts would be discouraged. Central Vice-Chairman of the association, Ahsan Shakeel, pointed out the smuggling of motorcycle spare parts on a massive scale from China through Sust border and Afghan Transit Trade (ATT).
Copyright Business Recorder, 2014