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Category: Pakistan Customs

  • Duty, taxes up to Rs5,000 exempted on imported goods

    Duty, taxes up to Rs5,000 exempted on imported goods

    ISLAMABAD: An amount up to Rs5,000 has been exempted in case minimum total duty and taxes on imported goods.

    An amendment to Customs Act, 1969 has been introduced through Finance Bill, 2020 issued on Thursday.

    Through the amendment the minimum duty and taxes that is not demanded by the customs authorities have been increased to Rs5,000 from existing Rs1,000.

    Through the bill Section 19C of the Customs Act, 1969 has been substituted.

    Finance Bill proposed following amendment to the Customs Act:

    “19C. Minimal duties not to be demanded.- Where the value of imported goods does not exceed five thousand rupees, no duties and taxes shall be demanded, subject to conditions and restrictions as may be prescribed by the Board under the rules.”

  • Advance ruling in Customs laws introduced

    Advance ruling in Customs laws introduced

    ISLAMABAD: The government has introduced mechanism of advance ruling to facilitate importers and investors to ensure transparency in clearance process.

    Section 212B has been inserted to the Customs Act, 1969 through Finance Bill, 2020 to introduce advance ruling.

    Section 212B: Advance Ruling.

    (1) An applicant desirous of advance ruling shall make an application in such form and in such manner as may be prescribed under the rules, stating any of the questions as contained in sub-section (2), on which the advance ruling is sought.

    (2) The question on which advance ruling is sought shall be in respect of-

    (i) classification of goods under First Schedule to this Act;

    (ii)determination of origin of the goods under the rules of origin notified for bilateral and multilateral agreements;

    (iii)applicability of notifications issued in respect of duties under this Act or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act; or

    (iv)any other matter as the Board may specify by notification in the official Gazette.

    (3)The advance ruling issued under sub-section (1) shall be binding on the applicant.

    (4)The advance ruling issued under sub-section (1) shall be binding on the customs collectorates for the period specified by the Board in the rules, unless there is a change in law or facts or circumstances on the basis of which the advance ruling was pronounced.

  • Customs duty exempted on import of industrial raw material

    Customs duty exempted on import of industrial raw material

    ISLAMABAD: Federal Minister for Industries and Production Hammad Azhar announced to exempt customs duties on import of industrial raw material.

    While presenting the Budget 2020/2021, the minister highlighted the key points of changes brought to Customs Act, 1990 through Finance Bill, 2020.

    He said that the government had initiated customs tariff rationalization during the last year and allowed exemptions from customs duties on 1600 tariff lines of raw material.

    In order to reduce cost of production it is suggested that all raw material should be exempted from customs duty from next fiscal year.

    These exemptions has been proposed for import of raw material for manufacturing of chemicals, leather, textile, rubber, fertilizers etc.

    These tariff lines include 20,000 items which are around 20 percent of the total imports.

    Furthermore, he said that customs duty has been reduced on 200 tariff lines on import of raw material and secondary products which, included bleaching, rubber and raw material for home consumption.

    Hammad Azhar on the floor of the National Assembly said that regulatory duty has been reduced to 6 percent from existing 12.5 percent on import of hot rolled coils for encouraging domestic engineering sector.

    He said that the regulatory duty has been reduced on various products in order to discourage smuggling. The minister said that in the past regulatory duty was imposed which resulted in reduction of import of such goods. However, it is observed that some products were imported by Afghanistan and then entered into Pakistani markets.

    Therefore, it is suggested the reduction of regulatory duty on import of cloths, sanitary ware, electrodes, blankets, pad locks etc.

    The government has also abolished duty and taxes on import of diagnostic kits for coronavirus and cancer to provide relief to the masses. Further, duty and taxes have also been abolished on import of special food supplements and dietetic food.

  • FBR reconstitutes licensing committee for tracking transit, transshipment cargo

    FBR reconstitutes licensing committee for tracking transit, transshipment cargo

    ISLAMABAD: Federal Board of Revenue (FBR) has re-constituted committee for grant of license for tracking transit and transshipment cargo.

    The FBR on Wednesday issued SRO 542(I)/2020 dated June 08, 2020 to amend Tracking and Monitoring of Cargo Rules, 2012.

    The reconstitution of committee shall comprise of Director General of Transit Trade (Chairman), Director Transit Trade (I-IQs), Karachi, Director Transit Trade (Peshawar), Director Transit Trade (Quetta), Director Reforms and Automation (Karachi), Collectors of Customs (Enforcement and Compliance, Karachi), (Appraisement and Facilitation, Port Muhammad Bin Qasim, Karachi), (Appraisement and Facilitation-East, Karachi), (Appraisement and Facilitation-West), Karachi, and Director of Intelligence and Investigation, FBR, Karachi or any other authority designated by the FBR Headquarter.

    As per amendment the project director shall be Director (HQs), Directorate General of Transit Trade. Previously, the project director was Collector, Model Collectorate of Customs (Preventive).

    In another amendment, Director Transit Trade (HQs), Karachi shall be the convener of the Licensing Committee and its headquarters shall be located in Directorate General of Transit Trade, Karachi. The Director Transit Trade (HQs), Karachi shall provide secretarial and other allied support required for functioning of the Licensing Committee.

    A new rule introduced through the amendment that any function enumerated in these rules including mounting and un-mounting of tracking devices in the designated areas, whereof, the staff of the Directorate General of Transit Trade is not posted, shall be performed by the staff of the respective Enforcement and Compliance or Composite Customs Collectorate of jurisdiction.

  • FBR allows repayment of customs duty on import of plastic raw material

    FBR allows repayment of customs duty on import of plastic raw material

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed repayment of customs duty at Rs5.42 per kilogram on import of raw material for manufacturing of plastic goods meant for export.

    The FBR on Tuesday issued SRO 461(I)/2020 to amend SRO 212(I)/2009 to allow repayment of export duty on import of raw material.

    Through the instant SRO the FBR allowed duty drawback on import of 10 different raw material for the manufacturing of plastic goods at the rate of Rs5.42 per kilogram.

    The FBR allowed duty drawback on export of manufactured products from May 20, 2020. The FBR said that repayment of custom duty shall be paid on manufacturing of 100 percent goods including packaging materials used in the goods meant for export such as bottles, jars, vials, containers, droppers and the like.

    The conditions for the facility prescribed in the actual SRO is that:

    — the manufactured goods are exported out of Pakistan and an application for repayment of customs–duties is presented to the proper officer of Customs within two hundred and ten days of such exportation or within one hundred and eighty days from the date of realization of foreign exchange as shown on Bank Credit Advice issued in accordance with the current directive of the State Bank of

    Pakistan; and

    — the exporter makes a declaration on the goods declaration filed under section 131 of the Customs Act, 1969 (IV of 1969) and on other export documents for his claim for repayment of the customs–duties paid on the imported raw materials used in the production or manufacture of the goods being exported.

  • FBR advised to allow examination before filing GDs

    FBR advised to allow examination before filing GDs

    KARACHI: Federal Board of Revenue (FBR) has been advised to allow examination/ weighment should be allowed before filing goods declaration (GDs) in order to verify contents of containers.

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its proposals for budget 2020/2021 submitted to the FBR said that as per proviso of para 1 Section 79 of Customs Act, 1969, in case of used goods, before filing of goods declaration, the owner can make a request to an officer of customs to permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration.

    “As per KYOTO Convention of WCO guidelines Standard 3.9 “Before lodging the goods declaration the declarant shall be allowed, under such conditions as may be laid by the customs (a) to inspect the goods; and (b) to draw samples,” the FPCCI said.

    The apex trade body proposed that examination / weighment may be allowed before filing of goods declaration, in all cases, where the owner is in doubt about the contents of the consignment, especially in cases of machinery, fabrics, article of plastic and food items etc.

    “Keeping in view the above facts, the weighment / examination before filing of goods declaration may be allowed for all class of goods,” the FPCCI advised.

    The FPCCI also highlighted an issue related to time duration related to decision of cases as heavy demurrages were hampering economic activities.

    The FPCCI said that as per sub-section 3 of Section 179 of Customs Act 1969 (IV of 1969) the cases are required to be decided within 90 days of the issuance of show cause notice or within such period extended by the collector for which reason shall be recorded in writing, but such extended period shall in no case exceed sixty days.

    The FPCCI proposed that the period specified to decide the cases under sub-section 3 of section 179 should be fifteen working days instead of existing period i.e. 90 days and further the extended period of 60 days should be reduced to 07 working days as an estimated cost Rs.15000 to 20000 per day is incurred on a 40 ft container.

    Therefore, to reduce the cost of doing business and trade facilitation the cases should be decided within 15 working days.

  • Time limit for customs valuation issuance should be fixed

    Time limit for customs valuation issuance should be fixed

    KARACHI: Federal Board of Revenue (FBR) has been recommended to fix time limit for issuance of customs valuation.

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its proposals for budget 2020/2021, said that the validity of Valuation Ruling under Section, 25-A of the Customs Act, 1969 is life time utill or unless revised or rescinded by the competent authority and Genuine Importer suffer as the Assessing Offices reject the transaction Values and Increase the Values of Assessments.

    Time limit may be fixed for issuance of Valuation Ruling under subsection 1 of section 25A of Custom Act, 1969, may not be more than 30 days and validity period under subsection 4 of section 25A of the Act should not be more than 90 or 120 days as we have fast internet system in the world over.

    (i) The following proviso may be inserted after subsection 1 of section 25A of the ACT,1969.

    “Provided that the time limit to notify the customs values under subsection 1 of section 25A should not me more than 30 days from date of first initiative of the subject exercise”.

    (ii) The words after the “applicable” in subsection 4 of section 25A should be substituted as; “till ninety days from the date of issuance of determined customs values.”

  • Huge lot of Afghan transit vehicles to be auctioned on May 15

    Huge lot of Afghan transit vehicles to be auctioned on May 15

    KARACHI: A large number of motor vehicles of Afghan Transit Trade has been offered for auction at Port Muhammad Bin Qasim International Terminal Operator (QICT), Karachi.

    The auction is scheduled for May 15, 2020.

    Following vehicles will be presented for auction:

    S. No.Lot No.DescriptionNo pkgs/Units
    1QAT=01July2011Suzuki Jeep and Motorcycle06 units
    2QAT=08June2011Toyota Corolla car06 units
    3QAT=05June2011Toyota Corolla Car06 units
    4QAT=03June2011Toyota Corolla Car06 units
    5QAT=11May2011Toyota Corolla Car06 units
    6QAT=10May2011Toyota Corolla Car06 units
    7QAT=06May2011Toyota Corolla Car06 units
    8QAT=05May2011Toyota Corolla Car05 units
    9QAT=04May2011Toyota Corolla Car05 units
    10QAT=01Jan2011Suzuki STRIMB/Toyota Corolla Car06 units
    11QAT=02Nov2010Toyota Corolla Car05 units
    12QAT=01Nov2010Suzuki Balino05 units
    13QAT=02Sep2010Used Toyota Corolla05 units
    14QAT=02Sep2009Toyota Corolla Car05 units
    15QAT=02Feb2011Toyota Corolla Car06 units
    16QAT=01Mar2011Toyota Corolla Car06 units
    17QAT=02Mar2011Toyota Corolla Car06 units
    18QAT=01Apr2011Toyota Corolla Car06 units
    19QAT=05Mar2011Toyota Corolla Car06 units
    20QAT=04Mar2011Toyota Corolla Car06 units
    21QAT=03Mar2011Toyota Corolla Car05 units
    22QAT=03Apr2011Toyota Corolla Car05 units
    23QAT=02May2011Toyota Corolla Car06 units
    24QAT=10Jun2011Toyota Corolla Car06 units
    25QAT=25July2011Toyota Corolla Car06 units
    26QAT=24July2011Toyota Corolla Car06 units
    27QAT=12Jun2011Toyota Corolla Car06 units
    28QAT=11Jun2011Toyota Corolla Car06 units
    29QAT=07Jun2011Toyota Corolla Car06 units
    30QAT=06Jun2011Toyota Corolla Car06 units
    31QAT=01Aug2010Truck Cabin With Accessories04 units
    32QAT=01Sep2010Toyota Corolla Car04 units
    33QAT=01May2011Toyota Corolla Car06 units
    34QAT=26July2011Crane01 unit
    35QAT=02Jun2011Toyota Corolla Car06 units
    36QAT=03May2011Toyota Corolla Car06 units
    37QAT=01Dec2010Divo Matiz Car04 units
    38QAT=01Oct2010Old Used TV 
    39QAT=03Feb2011CT Scanner Machine 
    40QAT=01Dec2011Glass Wool (Loos) 
    41QAT=02Oct2013Oil Base Paint 
    42QAT=01June2011Old Used Road Roller06 units
    43QAT=08May2011Vehicles Suzuki Maruti06 units
    44QAT=09May2011Vehicles Toyota Corolla05 units
    45QAT=03Jan2011Vehicles Toyota Corlla04 units
    46QAT=03Aug2012Glass Weare1X40 Cont
    47QAT=05Nov2010Toyota Corolla05 units
    48QAT=09June2011Toyota Corolla06 units
    49QAT=07Mar2011Toyota Corolla06 units
    50QAT=04April2011Toyota Corolla06 units
    51QAT=21July2011Toyota Corolla06 units
    52QAT=23July2011Toyota Corolla06 units
    53QAT=22July2011Toyota Corolla06 units
    54QAT=02Jan2011Toyota Corolla06 units
    55QAT=07May2011Toyota Corolla06 units
    56QAT=17June2017Excavator Model DX-22501 unit
    57QAT=01April2011Toyota Corolla Car 199606 units
    58QAT=25July2011Toyota Corolla Car 199705 units
    59QAT=24July2011Toyota Corolla 199606 units
    60QAT=02April2011Toyota Corolla Car 199705 units
    61QAT=11Aug2011Toyota Corolla Car 199706 units
    62QAT=08June2011Toyota Corolla Car 199606 units
    63QAT=02Sep2011Toyota Corolla Car 199505 units
    64QAT=02Feb2011Toyota Corolla Car 199706 units
    65QAT=03April2011Toyota Corolla Car 199505 units
    66QAT=03Nove2010Suzuki Alto 199508 units
    67QAT=10May2011Toyota Corolla Car 199406 units
    68QAT=10Aug2011Toyota Corolla Car 199906 units
    69QAT=08Aug2011Toyota Corolla Car 199705 units
    70QAT=01Dec2010Daewoo Matiz 199905 units
    71QAT=02Sep2010Toyota Corolla Car 199506 units
    72QAT=01Sep2010Toyota Corolla04 units
  • FBR urged to reduce regulatory duty on lighting fittings

    FBR urged to reduce regulatory duty on lighting fittings

    KARACHI: Federal Board of Revenue (FBR) has been urged to reduce regulatory duty on lighting fittings in alignment with LED bulbs and LED tubes.

    The Overseas Investors Chamber of Commerce and Industry (OICCI) in its proposals for budget 2020/2021 submitted to the FBR, stated that current regulatory duty on lighting fittings with fixed / fitted LED under HS code 9405.1030 and 9405.4020 is 30% whereas on LED bulbs (HS code 8539.5010) and LED tubes (HS code 8539.5020) the same is 2 percent.

    Therefore, it is recommended that regulatory duty should be reduced on Lighting fittings with fixed / fitted LED under HS code 9405.1030 and 9405.4020 in alignment with LED bulbs and LED tubes.

    Consequent to amendments in law relating to IOCO arrangements, sales tax (including duties) is exempt under fifth schedule of Customs Act under serial no 23 on all type of housing i.e. ‘’Housing/Shell, shell cover and base cap for all kinds of LED Lights and Bulbs under respective headings.

    Accordingly, sales tax should have been exempt on said product under sixth schedule of STA 1990. However, this is not the case as related amendment in sixth schedule of STA 1990 was not made.

    To align with amendment in fifth schedule of Customs Act under serial no 23, consequent amendment be made in serial no. 15A of sixth Schedule of STA 1990 for description of goods for HS code 9405.1090 be changed from Aluminum Housing /shell for LED (LED Light Fixture) to Housing/Shell, shell cover and base cap for all kinds of LED Lights and Bulbs as.

    The OICCI said that through Finance Supplementary (Amendment) Act October 2018, Energy Saving Tubes under HS code 8539.3120 are exempted from sales tax (including duties) under serial no. 22 (xiii) of fifth Schedule of Customs Act 1969. However, related amendments are not made in table 3, serial no. 15 of sixth Schedule of STA 1990.

    To align with amendment in fifth schedule of Customs Act under serial no 22 (xiii), consequent amendment be made in serial no. 15 in table 3 of sixth Schedule of STA 1990 by addition of HS code 8539.3120.

    Taxation of Export of Services and Execution of Contracts outside Pakistan: As per Clause (3) of Part II of second schedule of ITO, the rate of tax has been increased from 1 percent to 3.5 percent and 4 percent on account of execution of contract outside Pakistan and export of services respectively. This significant increase in Finance Act 2016 has adversely affected the export business of companies.

    The rate of tax needs to be reverted back to 1 percent.

  • Pakistan Customs cadre strength (BS-17-22) increases to 501

    Pakistan Customs cadre strength (BS-17-22) increases to 501

    ISLAMABAD: The cadre strength, which includes officers of BS-17 to BS-22, of Pakistan Customs Service (PCS) has increased to 501 by May 06, 2020, according to a notification issued by the Federal Board of Revenue (FBR) on Thursday.

    The number of senior officers of Pakistan Customs has increased by 25 from 476 on August 21, 2019.

    As per latest cadre strength, there are two officers of PCS presently working. The number of officers in BS-21 are 25. Further BS-20 officers are 71.

    The number of BS-19 are 140, BS-18 are 156 and BS-17 are 107 working across Pakistan.