The Federal Board of Revenue (FBR) has decided to waive the penal surcharge on goods that have overstayed at warehouses.
The announcement was made through the issuance of SRO 1399(I)/2021 dated October 27, 2021. This move is expected to provide relief to businesses and importers who have faced challenges due to extended storage periods.
Key Highlights of the Announcement:
1. Waiver of Penal Surcharge: The FBR has officially waived the penal surcharge on goods that have overstayed at warehouses. This decision aims to alleviate the financial burden on businesses and importers who may have experienced delays in clearing their goods.
2. Notification Duration: The waiver applies to goods cleared from the warehouse within 30 days starting from the date of commencement of the notification (SRO 1399(I)/2021). This provides a window of opportunity for affected parties to benefit from the relief measure.
3. Extension of Warehousing Period: In addition to the waiver, the FBR has extended the existing warehousing period for already in-bonded goods. Goods that were previously stored in bonded warehouses will now have an additional 30 days from the date of commencement of the notification.
4. Non-Applicability to Abandoned or Auctioned Goods: It’s important to note that the relief facility outlined in the notification does not apply to goods that have been abandoned or auctioned under the Customs Act, 1969. The waiver is specifically directed towards goods that are still within the warehousing system.
This initiative by the FBR is a step towards supporting businesses and importers who have faced challenges, including logistical delays and operational disruptions. The waiver of penal surcharge provides financial respite and encourages timely clearance of goods from warehouses.
Importers and businesses are advised to take advantage of the specified period covered by the notification to avoid additional surcharges. The FBR emphasizes the importance of adhering to the defined timeframe to benefit from the announced relief.
While providing relief, the FBR remains committed to ensuring compliance with customs regulations. The extension of the warehousing period reflects a pragmatic approach to the challenges faced by businesses in the current economic environment.
The FBR’s decision to waive penal surcharge and extend the warehousing period is a positive development for businesses, facilitating smoother trade operations. Importers are encouraged to stay informed about such regulatory changes and take prompt action to benefit from the relief measures provided by tax authorities.
