The Federal Board of Revenue (FBR) on Wednesday intimated Collectors of Customs that customs duty has been reduced from 30 percent to 20 percent on import of specialised vehicles by the construction companies registered with Securities and Exchange Commission of Pakistan (SECP) and Pakistan Engineering Council, in budget (2015-16).
According to the customs budget instructions issued to the Collectors of Customs Model Customs Collectorates here on Wednesday, the FBR has issued instructions/guidelines for implementation of Budget 2015-16. The FBR's Customs Budget instructions dated June 30 have been received at the MCCs on July 1, 2015. FBR said that the customs duty has been reduced to 2 percent on import of agricultural machinery [Sr. No 1 of Part-I of Fifth Schedule].
Customs duty has been exempted on import of plant, machinery and production line equipment used for the manufacturing of mobile phones. This exemption will be available to local manufacturers of mobile phones duly certified by Pakistan Telecommunication Authority {No 29 of Part-I of Fifth Schedule].
Customs duty has been exempted on sunflower seeds, mustard seeds and canola seeds imported for sowing purpose as certified by Ministry associated with the business of national food security and research r. No 49 to 51 of Part-I of Fifth Schedule], FBR said.
Customs duty has been exempted on import of paper for printing of Holy Quran if imported by a federal or provincial government institution and the imported paper contains water mark indicating its use for printing of Holy Quran [No 52 of Part-I of Fifth Schedule]. In order to further facilitate investment in power sector, the condition of "US $50 million and above" has been substituted with condition "project of 25 MW capacity and above duly certified by EDB" in CGO 4 of 2014 dated 16.10.2014.
A new Part-V, has been added in Fifth Schedule to provide exemption from customs duty on import of various items used in Aviation sector. However, aero planes and other aircraft of an un-laden weight exceeding 15000 kg (PCT code 8802.4000) have only been given exemption from customs duty, FBR said. Customs duty has been exempted on import of colostomy bags and appliances for colostomy use by including these items in PCT code 9925. The condition of "Local manufacturing" for, availing exemption of customs duty on import of solar panels and related components has been extended till 30th June, 2016 vide Board's letter No 1(56)Mach/95 dated 30th June. 2015.
The FBR's instructions said that the maximum general slab of 25 percent has been reduced to 20 percent. Number of general tariff slabs has thus been reduced from 6 to 5. One percept duty slab in the tariff has been substituted with 2 percent.
Tariff Rationalisation: Customs duty on networking equipments has been rationalised as follows to eliminate misuse:-

=========================================================
PCT code      Description       Pre-budget    Post-budget
                CD rate          CD rate
=========================================================
8517.6100       Base station        20%               10%
8517.6290       Other
               (Networking
                equipments)        20%                15%
8517.6990       Other
               (Networking
                equipments)        10%                15%
8529.1090       Other (Parts
                for networking
                equipments)        20%                15%
=========================================================

The FBR said that the customs duty rate on car tyres (PCT code 4011.1000) and light truck tyres (PCT code 4011.2010) has been reduced to 15 percent. Regulatory duty at the rate of 10 percent has been levied on heavy truck tyres (PCT code 4011.2090). It said that the customs duty on Coal (PCT code 2701.1200 and 2701.1900) has been increased from 1 percent to 5 percent. Customs duty on Portland cement (PCT code 2523.2900) has been increased from 1 percent to 20 percent.
Customs duty has been increased on parts of grinders, mixers, juice extractors etc (PCT code 8509.9000) from 10 percent to 20 percent. Customs duty on Non-ionic surface active agents (PCT code 3402.1300) has been reduced from 20 percent to 15 percent. Customs duty on aluminium wire (PCT code 7605.2900) and aluminium sheets (PCT code 7606.9290), being intermediary products for various sectors of industry, has been reduced from 20 percent to 15 percent.
The FBR said that the customs duty on master batches PCT code 3206.4990 and 3206.4910) has been increased from 10 percent and 15 percent to 20 percent. Customs duty on polymers of styrene (PCT code 3903.1990 and 3903.9000) has been increased from 5 percent to 10 percent. The FBR said that the customs duty on ball bearings (PCT code 8482.1000) has been increased from 5 percent to 10 percent. Customs duty on loudspeakers (PCT code 8518.2990) has been increased from 15 percent to 20 percent.
Customs duty on linear alkyl benzenes (PCT 3817.0000) has been reduced from 5 percent to 2 percent. Customs duty on Ethylene (PCT 2901.2100) has been reduced from 5 percent to 2 percent. The FBR said that the customs duty on bars and rods (PCT codes 7227.2000 and 7227.9000) has been decreased from 20 percent to 10 percent whereas customs duty on wire of alloy steel (PCT codes 7229.2000 and 7229.9000) has been increased from 10 percent to 20 percent. Tennis balls were classified under two PCT codes 9506.6100 and 9506.6950 which create distortions. The duplicate PCT code 9506.6950 has been deleted.
Budget instructions said that 3-D Printer is a new technology and prior approval from Ministry of Interior is required for its import. Since there was no specified PCT code for this item, a new PCT code "8479.8960" has been created to regulate its import and it has been subjected to 15 percent customs duty, FBR said.
The FBR said that the tubular day lighting device (TDD) is an emerging product for energy conservation. There was no specified PCT code for it. A new PCT code "8539.3930" has been created in Tariff at the rate of 2 percent. However, exemption of customs duty has been extended on its import under Fifth Schedule. Compressor scrap is imported in substantial quantity. To capture correct statistical data, a specified PCT code "7204.4940" has been created for it and it is subject to 2 percent CD in Tariff and RD at the rate 5 percent has also been levied on import thereof.
On recommendation of Engineering Development Board (EDB), PCT codes for new localised auto parts of five vehicles ie mini vans, sport utility vehicles, mini cargo van, 3 wheeler cargo loader, have been created / amended in tariff. These new localized auto parts have also been included in SRO 693(1)/2006 for levy of additional customs duty, FBR maintained.