Customs duty exemption, concession granted

Customs duty exemption, concession granted

KARACHI: The Finance Act, 2022 has amended provisions of Customs Act, 1969 to grant exemption and concessions from customs duty.

Following are the exemptions and concessions of customs duty:

Exemption of Customs Duty and Additional Customs Duty

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Customs Duty (CD) leviable on the import of following categories of items / sectors is exempted for incentivizing the respective sectors:

– 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.

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– Membranes for filtering / purifying water.

– The drug ‘Grafalon’ and gadget ‘Irisvision’.

– Raw materials of Ivy leaves extract powders.

– Motor spirit.

– Cinematographic equipment imported during the period commencing on the 1st July, 2018 and ending on the 30th June, 2023.

– Bullet proof vehicles and jammers imported by Federal Government, Provincial Government or such states and territories as are or may be included in Pakistan.

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– Smartphones including those in CKD/SKD condition (subject to certain conditions prescribed for import of CKD/SKD units).

In addition to CD, Additional Customs Duty (ACD) is also 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.

Reduction in Customs Duty and Additional Customs Duty

CD leviable on import of following goods is reduced:

– Specified categories of other woven fabrics and artificial flowers / foliage of other materials imported by manufacturers of footwear.

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– High-density fiber (HDF) boards of wood or other ligneous materials

– Specified fibers of polypropylene.

– Through the Finance Bill, CD was proposed to be reduced on 10 categories of direct and reactive dyes. Such reduction in CD has now been restricted to 6 categories through the Act.

In addition to CD, ACD, leviable on import of following goods is also 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.

– 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.