Budget salient features related to customs duty

ISLAMABAD: Federal Board of Revenue (FBR) issued budget salient feature related to Customs duty presented through Finance Bill, 2020.

Industrial Relief Measures

1. Exemption of additional custom duties on those tariff lines which are now @ 0 percent customs duty in tariff.
2. Reduction of custom duty on 40 raw materials of various industries.
3. Tariff rationalization under National Tariff Policy 2019, by reducing customs duty on 90 tariff lines from 11 percent to 3 percent and 0 percent.
4. Allowing the exemption on import of raw material to those Nashiran-e-Quran also who do not have their own in-house printing facility.
5. Reduction in regulatory duty from 12.5 percent and 17.5 percent to 6 percent and 11 percent, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes 7208 and 7225& 7226, respectively.
6. On the request of various local industries, a number of their inputs/intermediary raw materials are being allowed concessional import under new serial number of the fifth schedule through IOCO quota determination.

• Exemption of custom duties on import of raw materials by manufacturers of Butyl Acetate.

• Exemption of custom duty on import of raw material by manufacturer of syringes and saline infusion sets.

• Exemption of customs duties on import of raw material by manufacturers of buttons.

• Reduction in custom duty on import of raw material by manufacturers of interlining/buckram.

• Reduction of custom duty and exemption of additional custom duty and regulatory duty on import of raw materials by manufacturers of Wire rod

• Exemption of custom duties and regulatory duty on import of machinery, equipment and other project related items for setting up of internet cable landing stations.

• Exemption of custom duties on import of raw material by beverage can manufacturers.

• Reduction in Custom duty and exemption from Additional custom duty on import of raw material by food packaging industry.

Relief to Common Man

1. Exemption from customs duties on import of 61 COVID19 related items, which was due to expire on 20th June has been extended due to the continuation of pandemic.
2. Exemption from 2 percent ACD on import of edible oils and oil seeds under PM’s COVID19 Relief Package has been extended.
3. Exemption of duties & taxes on import of Dietetic Foods for Children with inherited metabolic disorders.
4. Exemption of all duties & taxes on import of Diagnostic Kits for Cancer and Corona Virus.
5. Exemption of Customs duties on inputs of Ready to use Supplementary Foods (RUSF).
6. Exemption of Customs duties on import of life saving drug Meglumine Antimonite for treatment of leishmaniasis.
7. Extension up to 2023, in exemption of customs duties on imports for setting up new industries in erstwhile FATA area.

Miscellaneous

1. Reduction in regulatory duty on smuggling prone items to bring these items under legal imports
2. Regulatory duty on several industrial inputs is also being reduced to decrease their cost of doing business
3. Tariff protection for domestic industry by increasing/levy of regulatory duty on import of those items which are also locally manufactured
4. Incentivizing soap manufacturing industry by reducing rate of Additional customs duty on Palm Stearin
5. Enhancing scope of concessions available to Special Economic Zones.