In a move to tighten control over the illegal movement of essential commodities, the Finance Act, 2022, has expanded the definition of smuggling.
(more…)Category: Pakistan Customs
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FBR transfers BS-19, BS-20 Customs officers
The Federal Board of Revenue (FBR) has issued notifications for the immediate transfers and postings of officers within the Pakistan Customs Service (PCS) in BS-19 and BS-20.
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MCC Gwadar to auction motor vehicles on July 18, 2022
ISLAMABAD: Model Customs Collectorate (MCC) Gwadar has announced auction of motor vehicles on July 18, 2022 which will be held at Custom House Gwadar.
Following is the list of motor vehicles to be presented for the auction:
01. Zamyad Pickup, Chassis No. NAZDL104TD-0068010
02. Zamyad Pickup, Chassis No. NAZPL140TB-N272445
READ MORE: Customs Sukkur to auction huge lot of motor vehicles
03. Toyota Pickup S/cabin, Model 1984, Chassis No. YN55-0017594
04. Toyota Pickup S/cabin Model 1984 Chassis No. YN55-0018440
05. Toyota Hilux Surf Model 1999 Chassis No. RZN185-9030039
06. Toyota Hilux Surf Model 1998 Chassis No. RZN185-0031909
07. Toyota Premio Model 2008 Chassis No. NZT260-3038101
08. Toyota Axio Model 2007 Chassis No. ZRE142-6008183
READ MORE: Customs to auction NDP vehicles on June 8, 2022
09. Toyota Vitz Model 2004 Chassis No. SCP13-0030163
10. Toyota Probox Model 2003 Chassis No. ZNE10-0101673
11. Toyota Land Cruiser Pickup Model 1988 Chassis No. FJ75-0043421
12. Toyota Land Cruiser Pickup Model 1988 Chassis No. FJ75-0074709
13. Toyota Land Cruiser Pickup Model 1988 Chassis No. FJ75-0075357
14. Toyota Land Cruiser VX 4×4 Model 1998 Chassis No. UZJ100-0015026
15. Toyota Hilux D/cabin Vigo Model 2005 Chassis No. MR0FZ29G701508652
READ MORE: Lahore Customs to auction vehicles on May 26, 2022
16. Toyota Land Cruiser Pickup Model 1986 Chassis No. FJ75-0040747
17. Toyota Hilux Surf Model 2003 Chassis No. RZN215-0008039
18. Toyota Land Cruiser Pickup Model 1986 Chassis No. FJ75-0043119
19. Toyota Premio Model 2003 Chassis No. ZZT245-0018897
20. Toyota Land Cruiser Prado Model 1995 Chassis No. KZJ71-0004062
21. Toyota Hilux Pickup S/Cabin Model 1983 Chassis No. RN40-156765
22. Toyota Hilux Pickup S/Cabin Model 1983 Chassis No. RN40-0155452
23. Toyota Hilux Pickup S/Cabin Model 1983 Chassis No. RN40-0168695
24. Toyota Surf Model 1998 Chassis No. UZN185-0078719
READ MORE: Gwadar Collectorate auctions motor cars on May 23
25. Hino Bus Model 2006 Chassis No. AK1JMKA-10688
26. Hino Bus Model Chassis No. AK1JRKA-177243
27. Hino Truck Model 1999 Chassis No. FG1JPC-10097
28. Hino Truck Model 2013 Chassis No. FM1JNPD-19364
29. Hino Truck Model 2015 FM8JNKD-44766
30. Hino Truck Model 2005 FD8JLF-11877
31. Hino Bus Model 2004 AK1J-11063
32. Toyota Hilux Surf SSR-X (05 door) Model 1993 KZN130-9048371
33. Hino Oil Tanker Model 1997 FG1JKB-10162
34. Hino Oil Tanker 1997 FG1JPB-10349
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Pakistan makes amendments to baggage rules
ISLAMABAD: The apex revenue collecting agency of Pakistan on Wednesday issued a draft to amend baggage rules.
The Federal Board of Revenue (FBR) issued SRO 985(I)/2022 to propose amendments to the Baggage Rules, 2006.
The draft proposed to substitute Rule 3 of the Baggage Rules, 2006. According to the substituted rule:
READ MORE: Customs directed not to confiscate personal baggage
3. Allowance for Pakistani nationals not availing transfer or residence: The following shall be various allowances for the Pakistani nationals not availing transfer of residence, namely:
A. Items of personal use allowed duty-free on any visit:
(i) personal wearing apparel and clothing accessories;
(ii) one laptop computer; and
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(iii) any other item except mobile phone, following allowances shall be admissible:
S. No. Stay Abroad Value of Duty Free allowance (1) (2) (3) (i) Upto thirty days Upto four hundred US Dollars (USD 400) (ii) Between thirty to sixty days Upto eight hundred US Dollars (USD 800) (iii) More than sixty days Upto twelve hundred US Dollars (USD 1200) B. Purchases from a Duty Free Shop:
Duty free allowance of the aggregate value upto one hundred US dollars in case the goods are purchased from one of the duty free shops in Pakistan within sixty days of the arrival, and provided that the stay abroad of the passenger is more than sixty days.
The draft also recommended to substitute Rule 4 of the Baggage Rules, 2006, which is:
4. Allowance for Pakistani nationals availing transfer of residence:
A. Duty Free Allowance:
(i) personal household goods generally used by a family.
(ii) second hand or used professional equipment in use of a registered Pakistani practitioner during stay abroad, having proof of registration in the country abroad and duly recognized by the concerned regulatory authority or association:
Provided that an inspection certificate from an internationally recognized inspection agency in the exporting countries to the effect that such equipment is free from bacteria and other material injurious to human health, is furnished at the time of import of the equipment.
(iii) any other item (excluding mobile phones) of the value not exceeding fifteen hundred US dollars; and
(iv) weapon of non-prohibited bore for the personnel of armed forces, customs, police or any other law enforcement agency.
B. Purchases from a duty free shop:
Duty free allowances of the aggregate value upto fifteen hundred US dollars in case the goods are purchased from one of the duty free shops in Pakistan within sixty days of the arrival.
The draft rules amended table in Rule 5 of the Baggage Rules, 2006.
5. Special allowances for Foreign Exchange Remittance Card holders.— In addition to the allowances hereinbefore provided, the duty credit as specified in the Table below shall be admissible to a Pakistani national holding Foreign Exchange Remittance Card (FERC) once in a calendar year. The duty credit can also be utilized for the unaccompanied baggage or any purchase from one of the duty free shops. The duty credit under this scheme shall not be utilizable on import of vehicles.
The proposed amended table is as follow:
(1) (2) (3) (4) S.NO. TYPE OF FERC AMOUNT REMITTED THROUGH NORMAL BANKING CHANNEL (in US $ or equivalent foreign currency) DUTY CREDIT IN PAKISTANI RUPEES 1. Silver 2500 or more 20,000 2. Silver Plus 5000 or more 40,000 3. Golden 10,000 or more 60,000 4. Golden Plus 25,000 or more 100,000 5. Platinum 50,000 or more 200,000 The draft also recommended to substitute Rule 6 of the Baggage Rules, 2006, which is:
6. Allowance for foreign nationals and tourists: The following allowance shall be admissible to foreign national and tourist, namely:
(i) personal wearing apparel and clothing accessories; and
(ii) any other item (excluding mobile phones) of the value not exceeding eight hundred US dollars.
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Tampering PSW data to attract 4-year jail sentence
KARACHI: About four years jail term has been prescribed for tempering data of Pakistan Single Window (PSW).
According to Finance Act, 2022 certain amendments have been made to Customs Act, 1969 to prescribed fine and penalty for attempting to tamper or making unauthorized entry to the online data of PSW.
According to the Finance Act, 2022:
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Offence: If any person makes or attempts to make unauthorized access to information, data or personal details of registered user of Pakistan Single Window system or systems connected or ancillary thereto;
Penalty: Imprisonment which may extend up to six months or with fine which may extend to one hundred thousand rupees or with both.
Offence: If any person makes or attempts to make unauthorized copy, transmission or cause to transmit any data, information or detail in relations to Pakistan Single Window system or systems connected or ancillary thereto;
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Penalty: Imprisonment which may extend upto six months or with fine which may extend to one hundred thousand rupees or with both.
Offence: If any person makes unauthorized interference, or attempt to interfere, damage or attempt to damage any part of whole of the Pakistan Single Window system or data or system connected to or ancillary thereto;
Penalty: Imprisonment which may extend to three years or fine which may extend to five hundred thousand rupees or with both.
Offence: If any person makes or attempts to make use of any information system, device or data to make any illegal claim or title or cause any person to part with property or to enter into any express or implied contract or intent to commit fraud by any input, alteration, deletion or suppression of data, resulting in unauthentic data with the intent that such data be considered or acted upon for legal purpose, as if it were authentic in relations to Pakistan Single Window system or Systems connected or ancillary thereto;
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Penalty: Imprisonment which may extend to four years or fine which may extend to one million rupees or with both.
Offence: If any person uses, makes, supplies, retains, obtains device, system or software for offences under section 13 of the Pakistan Single Window Act, 2021 (III of 2021);
Penalty: Imprisonment which may extend to six months or with fine which may extend to one hundred thousand rupees or with both.
Offence: If any person obtains, sells, process, uses or transmits another person’s Unique User Identifier or makes an attempt thereof without authorization;
Penalty: Imprisonment which may extend to four years and fine which may extend to one million rupees or with both.
READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23
Offence: If any person tampers with or attempts to tamper with, alters, reprogrammes any Pakistan Single Window system or system connected or ancillary thereto for unauthorized use;
Penalty: Imprisonment which may extend to four years and fine which may extend up to one million rupees or with both and any devices or systems used in offence shall be liable to confiscation.
Offence: If any person writes, offers, makes available, distributes or transmits a malicious code or abets in the same, with intent to cause harm to Pakistan Single Window system or data resulting in or intending to result in corruption, destruction, alteration, suppression, theft or loss to the Pakistan Single Window system or data, or any attempt thereof.
Penalty: Imprisonment for a term which may extend to four years and fine which may extend to five million rupees or with both.
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Pakistan allows duty exemption on coal import from Afghanistan
ISLAMABAD: Pakistan has allowed exemption of customs duty on import of coal from Afghanistan.
The country’s apex revenue authority i.e. Federal Board of Revenue (FBR) issued SRO 968(I)/2022 to exempt customs duty on import of certain items, including coal from Afghanistan.
Earlier this week Prime Minister Muhammad Shehbaz Sharif approved the import of super-critical quality coal from Afghanistan in Pakistani rupee instead of dollars to help generate low-cost electricity in the country.
READ MORE: Govt. may exempt customs duty in emergency situation
The prime minister, chairing a meeting to improve the mechanism for transportation of Afghan coal, expressed concerns over the rising price of coal in the international market.
He said the rise in coal price was also one of the reasons behind the generation of expensive electricity by the coal power plants operating in the country.
He viewed that the import of Afghan coal in Pakistani currency would save the foreign exchange.
The prime minister was told that the import of Afghan coal – initially for Sahiwal and Hub power plants – would save around $2.2 billion annually.
READ MORE: Rate of customs duty in Pakistan on imports
The FBR allowed duty exemption on import of following goods: Description (Pakistan Customs Tariff)
Other Coal (2701.1900)
Bituminous coal (2701.1200)
Talc (2526.1010)
Marble (Crude or roughly trimmed) (2515.1100)
Plants & parts of plants (including seed & fruit) (1211.9000)
Seeds of cumin neither crushed nor grounded (0909.3100)
Sulphur of all kinds, other than sublimed sulphur (2503.0000)
Yams (Dioscorea spp.) (0714.3000)
Containers (including containers for the transport of fluids) (8609 0000)
The FBR said that the SRO would take effect from July 01, 2022.
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Procedure notified for TAD under Afghan transit trade
ISLAMABAD: The Federal Board of Revenue (FBR) has notified procedure for issuance of temporary admission document (TAD) under Afghan Transit Trade.
The FBR issued SRO 802(I)/2022 to amend Customs Rules, 2001 by inserting new rule 482A.
In March 2022, Pakistan and Afghanistan implemented movement of transit and bilateral trade through TAD for commercial vehicles.
Under the arrangement, the Pakistan Embassy in Kabul and the consulate generals in Jalalabad and Kandahar will issue TAD for Afghan vehicles. The Afghan Embassy in Islamabad and consulate generals in Peshawar and Quetta will issue the entry documents for Pakistani vehicles.
The move, aimed at improving regional connectivity with the Central Asian States, envisages the provision of TAD to transporters from both sides.
“482A. Procedure for issuance of TAD.- Notwithstanding the provisions of rule 482, initially the following procedure and conditions shall be followed for issuance and regulation of TAD, namely:-
(1) Directorate of Transit Trade, Karachi and Afghanistan Ministry of Transport shall share list of approved transport operators and their vehicles before starting issuance of TAD. When new transport operators and their vehicles are added to the list, the other side shall be informed via email, immediately. Both sides shall nominate focal persons for timely exchange of this information. Proper and complete record of all approved transport operators and their vehicles shall be maintained by the both sides;
(2) The list of approved Afghan transport operators and their registered vehicles shall be forwarded by Directorate of Transit Trade, Karachi to the concerned officers in the Embassy of Pakistan, Kabul and the Consulate General of Pakistan at Kandahar and Jalalabad and the list of approved Pakistani transport operators and their registered vehicles shall be forwarded by Afghan authorities to the concerned officers in the Embassy of Afghanistan in Islamabad or the Consulate General of Afghanistan in Karachi, Quetta and Peshawar.
(3) the application of TAD by Afghan approved transport operators for Afghanistan registered vehicles, as per Appendix-IIIA, along with required documents, shall be collected on all working days at window No. 5 of Pakistan Embassy in Kabul and Pakistan Consulate in Kandahar during 1100 to 1200 hours. Whereas applications for TAD for Pakistan registered vehicles as per Appendix-IIIB shall be collected on all working days at Afghan Embassy in Islamabad, and Afghan Consulate General in Karachi, Quetta and Peshawar during 1000 to 1100 hours;
(4) no fee shall be charged application form. Both availability and shall also or consulate websites downloadable;
(5) Trade Officer or Commercial Assistant posted at commercial section in Pakistan Embassy, Kabul and at the Pakistan Consulate General in Kandahar shall issue the TAD for vehicles registered in Afghanistan. The Transport Attaché, Afghan Embassy at Islamabad, and Afghan Consulate General in Karachi, Quetta and Peshawar Pakistan shall issue the TAD for vehicles registered in Pakistan. The format of TAD is enclosed as Appendix IIIC.
(6) at the time of issuance of TAD, by Pakistani authorities, to approved transport operators of Afghanistan for an Afghan registered vehicle, the particulars of the vehicle shall be cross-verified with the details sent by the Directorate General of Transit Trade, Karachi;
(7) TAD shall be issued against payment of fee of US $ 100. The TAD fee collected by Pakistan Embassy or Consulates in Afghanistan shall be transferred to the account of Directorate General of Transit Trade on monthly basis. A bar code having all the details of the vehicles may be embossed on TAD;
(8) TAD shall be issued within five working days of receipt of applications;
(9) validity of TAD shall be 180 days (06 months) from the date of issue with the option of multiple entries with the maximum one time stay of 30 days in Pakistan and Afghanistan;
(10) statement of TADs issued by Pak Embassy and Consulates shall be finished to the designated focal person of Directorate of Transit Trade, Karachi on daily basis via email and Afghan side will develop same system on their side;
(11) TAD shall be valid for one vehicle at a time and only for the carrier to whom it was issued; it shall not be transferable to other carriers;
(12) any unauthorized entry or tampering in TAD shall render it void and invalid.
(13) Pakistan customs shall be entering each entry or exit journey on the back page of TAD; the same shall be done by Ministry of Transport and Civil Aviation Afghanistan;
(14) security and safety of the TAD in the home country shall be the responsibility of the transport operator. If the TAD is lost in the home county, the transport operator in whose name the TAD is issued shall first register an FIR and then apply for a new TAD by providing a copy of the FIR. The embassies or consulates shall inform the relevant authorities, to cancel that TAD in their record;
(15) security and safety of the TAD in the territory of the other contracting party shall be the responsibility of the driver of the vehicle. If the TAD is lost, the driver shall first register an FIR in the nearest Police station and shall inform the transport or customs authorities. For exit on the crossing points he shall provide the documentary proof of his lawful entry and copy of FIR lodged with the police. The embassies or consulates shall inform the relevant authorities, to cancel that TAD in their record;
(16) if the vehicle goes missing in the territory of Pakistan, the driver will immediately report the incident to the nearest police station and register the FIR. He shall submit the copy of FIR in the office of the nearest Customs Enforcement Collectorate. The transport operator in such cases will be liable to pay duties and taxes leviable on the goods as ascertained by Pakistan Customs. Similar procedure will be adopted by the other contracting party in their territory.
(17) the TAD will be valid for both bilateral and transit trade at following BCPs:-
(a) Torkham (transit and bilateral trade)
(b)
(c) Chaman (transit and bilateral trade)
(d) Ghulam Khan (transit and bilateral trade)
(e) Kharlachi (bilateral trade)
(f) Angoor Adda (bilateral trade)
The cabotage is not allowed. Any violation of this rule will result in black listing of the vehicle and cancellation of TAD.
(18) the respective Directorate of Transit Trade shall act as focal formation for TAD for transportation of transit as well as bilateral goods.
(19) The following documents shall be filed by the applicant transport operator for obtaining TAD:
(a) application form as per format given in Appendix IIIA and Appendix IIIB;
(b) expired TAD of the Vehicle (in original) this shall be required after 180 days of operationalization;
(c) copy of National ID Card or passport of the owner;
(d) copy of registration book of the vehicle;
(e) copy of license or authorization issued by Afghanistan Ministry of Transport to transport operators of Afghanistan for international carriage of goods or copy of license or authorization issued by Pak customs to transport operators of Pakistan for international carriage of goods;
(f) a valid fitness certificate shall be required for Afghan vehicles after every 180 days;
(g) picture of the vehicle for record purpose; and
(h) serially numbered authority letter issued by the
relevant transport operator.
(21) the contracting parties shall, in accordance with their respective laws, rules and regulations, grant multiple entry visa to the driver and one helper of the vehicle valid for a period of one year, each stay not exceeding 30 days. In exceptional circumstances the Ministries of Interior of the two countries will consider the request for extension of VISA after fulfilment of legal requirement.
482B. The arrangement prescribed through rule 482A is a temporary arrangement which will prevail till formalities under Afghanistan-Pakistan Transit Trade Agreement, 2022 are finalized and would cease to have effect from the date FBR notifies.
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Pakistan decides 10% regulatory duty on petrol import
KARACHI: Pakistan has decided to impose regulatory duty at 10 per cent from July 01, 2022.
The country presented its federal budget 2022/2023 on June 10, 2022 and proposed increase on regulatory duty on various imported goods.
READ MORE: Penalty amount revised for late filing income tax returns
The Finance Bill, 2022 suggested levying 10 per cent regulatory duty on import of motor spirit as against existing rate of zero percent.
Experts at PwC A.F. Ferguson Chartered Accountants said that the notifications for amendments relating to regulatory duty and additional duty are yet to be issued. “The comments are based on ‘Salient Features’ issued with the finance bill,” they added.
READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers
The government also proposed increase in regulatory duty from zero per cent to 10 per cent on other paper, paperboard, cellulose wadding and webs of cellulose fibers.
Furthermore, the government planned to increase regulatory duty from 10 per cent to 20 per cent on optic fiber cables.
The Finance Bill also proposed amendments in reduction of regulatory duties, which included:
Regulatory duty has been proposed to be reduced as follows:
Case hardening steel from 30 per cent to 20 per cent
Chrome yellow from 15 per cent to 0 per cent
The Finance Bill proposed reduction / concessions in customs duty:
Customs Duty (CD) leviable on the import of following categories of items / sectors is proposed to be exempted for incentivizing the respective sectors:
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– Machinery and capital goods for mechanization of farming including machinery pertaining to irrigation, drainage, harvesting, plant protection etc.
– Specified raw materials used for manufacturing of LED lights, LED bulbs (including parts thereof) and brush ware.
– 26 Active Pharmaceutical Ingredients for incentivizing Pharmaceutical manufacturers.
– Raw materials for manufacture of first aid bandages.
– Membranes for filtering / purifying water.
– The drug ‘Grafalon’ and gadget ‘Irisvision’.
– Raw materials of Ivy leaves extract powders.
– Motor spirit.
In addition to CD, Additional Customs Duty (ACD) is also proposed to be exempted on import of the following goods:
– Raw materials imported by paper sizing industry and chlorinated paraffin wax industry and manufacturers of aluminum conductor composite cores.
– Stamping foils for manufacturing of optic fiber cables.
– Aluminum paste and powder imported by the Coating industry.
– Guts, bladders and stomachs of animals.
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Reduction in Customs Duty and Additional Customs Duty
CD leviable on import of following goods is proposed to be reduced:
– Specified categories of other woven fabrics and artificial flowers / foliage of other materials imported by manufacturers of footwear.
– High-density fiber (HDF) boards of wood or other ligneous materials
– Specified fibers of polypropylene.
In addition to CD, ACD, leviable on import of following goods is also proposed to be reduced:
– Direct and reactive dyes.
– Glycerol crude and Glycerol for the coating industry.
– Goods pertaining to Aluminum, polymers of ethylene, Biaxially Oriented Polypropylene (BOPP) used by the packing industry.
– Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality imported by manufacturers of filters, other than automotive.
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– Organic composite solvents and thinners imported by manufacturers of Dibutyl Orthophthalates.
– Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate) and cyanoacrylate.
– Flavoring powders for food preparation for snacks manufacturers.
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FBR’s committee to examine service record of customs officials
ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday constituted a scrutiny committee to examine service record of employees of Pakistan Customs Department.
According to a notification, on the directives of FBR chairman, the following scrutiny committee to examine the service record of all those employees of Pakistan Customs Department, who have joined their duties in pursuance of order dated December 17, 2021 passed by Supreme Court of Pakistan:
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i. Mehmood Aslam Butt, Chief (Legal – HR): Chairman
ii. Rai Naheed Ahmad, Secretary (Lit.SC): Member
iii. Muhammad Shakeel Abbasi, Second Secretary (HRM-IR-VI): Member
iv. M. Saeed-ur-Rheman, Secretary (HRM-IV): Secretary
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The FBR has mandated the committee to obtain the available record of all such employees from the concerned field formations and establishment division, if any of the required documents are not available with the respective offices.
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It is also mandated to the committee to examine the complete service record of their initial appointment, termination from service and subsequent reinstatement under the Sacked Employees (Reinstatement) Ordinance Act, 2010, on case to case basis, and to determine their status in accordance with the judgment dated December 17, 2021 passed by the Supreme Court of Pakistan.
The FBR asked the committee to furnish conclusive report/recommendations in each case to Member (Admn/HR) through Chief (HRMC) preferably within two months time.
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Budget 2022/2023: Salient features of customs duty act
ISLAMABAD: Following are salient features of amendments made to Customs Act, 1969 through Finance Bill, 2022.
GUIDING PRINCIPLES
(a) Remove anomalies in cascading structure of tariff.
(b) Promote and protect domestic industry by introducing targeted interventions.
(c) Rationalizing tariffs on industrial raw materials / intermediate goods.
READ MORE: Budget 2022/2023: Salient features of sales tax
ADOPTION OF WCO HS – 2022 VERSION:
The World Customs Organization (WCO) updates its Harmonized Commodity Description and Coding System (HS) after every five years to accommodate modern developments and changing trade patterns. The last HS version was updated in 2017. The current amendments to the HS nomenclature have entered into force since 1st January, 2022. Pakistan being a signatory to the HS Convention has obligation to adopt the HS 2022 version. Since, these amendments are required to be incorporated in the First Schedule to the Customs Act, 1969 (Pakistan Customs Tariff), therefore, Pakistan adopted the same by incorporating all of its latest amendments introduced in earlier nomenclature / HS codes in Pakistan Customs Tariff by the process of addition / deletion and creation of local PCT codes, accordingly. It will be effective from 1st of July, 2022.
READ MORE: Budget 2022/2023: Salient features of income tax
INDUSTRIAL RELIEF MEASURES:
1. To incentivize packaging industry, CD and ACD on various tariff lines pertaining to aluminum, polymers of ethylene, BOPP etc. have been downward rationalized.
2. Reduction in CD and ACD on 10 tariff lines pertaining to direct and reactive dyes.
3. To incentivize agricultural sector and farmers, customs duty exemption extended further to Farm Mechanization and Logistics including agricultural machinery pertaining to irrigation, drainage, harvesting / post- harvest handling & processing, plant protection equipment as well as machinery, equipment and other capital goods for miscellaneous agro based set ups in Sr. 1, 2 and 3 of Part-I of Fifth Schedule.
4. To incentivize Coating Industry, CD and ACD have been exempted on Aluminum paste and powder and CD and ACD have been reduced on glycerol crude and glycerol.
5. To incentivize manufacturers of filters other than automotive, CD and ACD have been reduced on their raw materials i.e, Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality.
6. To incentivize footwear industry, customs duties have been reduced on different categories of other woven fabrics and artificial flowers / foliage of other materials.
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7. To incentivize LED lights and bulbs manufacturers customs duties have been exempted on import of 05 more items i.e, Aluminum Electrolytic capacitor, SMT Electrical Transformer, aluminum alloy sheet, Tantalum capacitors (DIP/SMD) and Other inductors, small transformer, coil (DIP/SMD). Furthermore, the scope of exemption has also been extended for the manufacturers of Parts of LED light and Bulbs.
8. Tariff structure on the different tariff lines related to MDF / HDF have been rationalized evenly.
9. To encourage local manufacturers of brush ware, customs duties have been exempted on import of Poly-butylene terephthalate.
10. CD & ACD on import of Stamping foils have been exempted for manufacturing of Optical Fiber Cable.
11. Tariff structure on import of Synthetic filament yarn, monofilament, staple fibers of polypropylene has been rationalized to resolve the cascading issues.
12. To encourage export oriented industry, CD and ACD have been exempted on import of Guts, bladders and stomachs of animals etc.
13. Reduction in CD and ACD rates on import of Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate), cyanoacrylate.
14. Extension in scope of concession on import of organic composite solvents and thinners for the manufacturers of Dibutyl Orthophthalates.
15. Rationalization of Tariff structure on import of IV Leaves extract powders and exemption of CD & ACD on its raw materials i.e, other plants and parts of plants from 3 per cent CD and 2 per cent ACD.
16. Exemption of customs duties on import of membrane for filtering / purifying water from 16 per cent CD & 4 per cent ACD.
17. Exemption of customs duties on 03 different raw materials for first aid bandages manufacturing industry from 5 per cent.
18. Reduction of customs duties on import of flavouring powders for food preparation for snacks manufacturers.
19. Exemption of CD & ACD on raw materials of aluminum conductor composite core manufacturers.
20. Exemption of CD & ACD on import of raw materials of paper sizing industry and chlorinated paraffin wax industry.
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RELIEF FOR COMMON MAN:
21. To keep the prices of medicines stable in the market and to encourage local manufacturing of pharmaceuticals, customs duties have been exempted on 26 more APIs and on one drug “Grafalon”.
22. Irisvision is for low vision individuals of all ages and with this gadget low vision persons can read and write easily, therefore customs duties have been exempted on import of Irisvision Device with its complete components.
REVIEW OF RD REGIME:
23. 10 per cent CD rate on import of motor spirit has been replaced with 10 per cent RD.
24. Continuation of 20 per cent RD on import of Disodium Carbonate to protect the local industry.
25. To encourage the vendor industry, RD has been reduced on import of case hardening steel from 30 per cent to 20 per cent.
26. Withdrawal of 15 per cent RD on import of Chrome yellow.
27. 10 per cent RD has been levied on import of Other paper, paperboard, cellulose wadding and webs of cellulose fibres to protect the local industry.
28. Withdrawal of RD exemption available on import of High Carbon Wire Rod.
29. RD on import of optical fibre cables has been increased from 10 per cent to 20 per cent to encourage the local manufacturers.
READ MORE: Tax exemptions cost Rs1.76 trillion in FY22
LEGISLATIVE CHANGES:
1. The definition of smuggling has been widened to include smuggling of essential commodities out of Pakistan through bordering and coastal areas to curb this menace.
2. To facilitate trade and industry, changes have been incorporated to align the provisions of the Customs Act, 1969 with the Pakistan Single Window (PSW) Act, 2021, providing platform for integration of other government agencies.
3. The timeline to finalize the provisional assessment has been reduced from existing nine months to four months to facilitate trade and avoid delay in realization of government revenue.
4. Powers regarding extension in warehousing period have been delegated to Additional Collector of Customs to facilitate trade by expediting grant of requests for extension.
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5. Option to change consignee name in relation to frustrated cargo has been provided to address the issue of port congestion.
6. Pecuniary jurisdiction of Additional Collector and Deputy Collector has been increased to rationalize the workload of adjudicating authorities and quick disposal of legal cases.
7. To reduce the cost of doing business and rationalize fees charged by the terminal operators, enabling provision has been provided for determination of various charges by customs authorities.
8. Provision has been incorporated to indemnify the officers of provincial governments for their actions taken in good faith to prevent the smuggling of essential commodities under the Customs Act, 1969.