The Central Board of Revenue (CBR) has not incorporated necessary changes in the Duty and Tax Remission for Export (DTRE) scheme on adoption of HS-Code 2007, creating hurdles in smooth clearance of consignments under the Pakistan Customs Computerised System (PACCS).
Sources told this scribe on Wednesday that the changes in the Pakistan Customs Tariff headings are needed for commodities/items cleared under the DTRE scheme following adoption of new coding system.
Senior officials of the Customs Administrative Reform Project (CARE) have informed the collectors of customs about the hurdles in clearance of consignments due to adoption of HS Code 2007.
Sources said that all collectors should make necessary changes in already issued warehousing licences where clearance in HS code has been necessitated in light of the budget changes in the Finance Bill 2007-08.
So far, the required amendments have not been made by customs collectorates, which is causing difficulties in smooth flow of clearance from PACCS. This requires changes in HS codes appearing in DTRE approvals, form-S approvals, warehousing licences taking into account the new system.
The warehouse regulators should also allow new HS codes to concerned active warehouse licensees of all types including public, private and manufacturing bonds.
The regulators of DTRE and Form-S should identify HS codes, which have been revised in the existing DTRE form's approval and also identify HS codes where concessionary rates have been specified.
It may be recalled that the absence of Pakistan Customs Tariff headings of HS-Code 2007 in the relevant sales tax and income tax notifications has resulted in confusion blocking the import consignments.
The HS 2007 version has been adopted vide Finance Bill 2007. This adoption has resulted into substantial changes in the existing classification tariff regime. The SROs relating to customs concession regime like SRO 565(I)2006; SRO 567(I)/2006 and SRO 575(1)/2006 have been aligned with the new version. However, numerous codes are still required to be aligned in these as well as other SROs with the new HS version, sources added.