ISLAMABAD: The customs classification committee of the Federal Board of Revenue (FBR) has imposed 20 percent customs duty on the import of “Emulsifier, Combined Emulsifier & Stabilizer” used for foods and dairy products by a multinational company.

According to a ruling of the committee issued on Wednesday, the company has declared 3 percent customs duty for clearance of the imported goods. However, the goods actually fall under the Pakistan Customs Tariff heading which is subjected to 20 percent customs duty.

The classification committee disclosed that the Collectorate of Customs Appraisement, Port Muhammad Bin Qasim, Karachi, forwarded a reference for appropriate classification of ‘Recodan RS-100 & Recodan RS Veg’.

Brief facts as reported by the referring Collectorate are that the said company imported 144 consignments of Emulsifier, Combined Emulsifier & Stabilizer- used for foods and dairy products, declared under Pakistan Customs Tariff (PCT) heading 3824.9999.

The Directorate of Intelligence & Investigation-Customs, Karachi framed contraventions in respect of consignments that the impugned goods were correctly classifiable under PCT heading 2106.9090 instead of declared PCT heading 3824.9999.

The Adjudication Collectorate decided in favours of department, holding the goods to be classifiable under PCT heading 2106.9090.

The importer preferred an Appeal No.K-478/2023 before Customs Appellate Tribunal against Order-in-Original. The Customs Appellate Tribunal vide its order dated 04.04.2023 directed the Collector of Customs, Appraisement, Port Qasim to refer the matter to classification committee for determination of classification of the impugned goods.

Copyright Business Recorder, 2023