The Federal Board of Revenue (FBR) has allowed concessionary rate of 10 percent customs duty on the import of completely knock down (CKD) kits used in the manufacture of agriculture diesel engines (single cylinder) upto 3-36 HP. The board has issued SRO.384(I)/2008 on Thursday to implement the decision retrospectively ie December 29, 2007.
Details revealed that the Agricultural Diesel Engines Manufacturers Group (ADEMG) had requested the FBR to enhance the existing range of agriculture diesel engines (single cylinder) from "12-32 HP" to "3-36 HP" under the serial number 94 of SRO 565(1)/2006.
The plea has been taken on the basis that single cylinder diesel engines of 3HP to 36HP have been declared as "manufactured locally" vide customs general order (CGO) No 18/2007 of December 29, 2007.
The FBR has examined the request in consultation with the Ministry of Food, Agricultural and Live Stocks (Minfal) and the Engineering Development Board (EDB). A consensus was developed among the government departments to accede to the request of the ADEMG and thereby allowed the import of CKD kits of agriculture diesel engines (single cylinder 3-36 HP) at 10 percent concessionary rate of customs duty.
Accordingly, a notification SRO 384(1)/2008 has been issued, enhancing the existing range of CKD kits of agriculture diesel engines (single cylinder) from 12-32 HP to 3-36 HP under SRO 565(I)/2006. Through this amendment, the CKD kits can now be imported at 10 percent concessionary rate of duty for manufacture of said engines. The notification has been made effective from December 29, 2007 ie, the date on which the CGO No 18/2007 had been issued.