KARACHI: The Federal Board of Revenue (FBR) has turned down the declaration submitted by M/s. Changhong Ruba Electric Company (Pvt) Limited for the clearance of TV boards.
This decision comes after a series of deliberations and appeals, culminating in the rejection of the classification provided by the importer.
The issue arose when the Directorate of Post Clearance Audit (Central), Lahore, referred the matter to the FBR for determining the correct classification of ‘PCB Boards for LED TV’ under the Pakistan Customs Tariff. The Directorate observed that the imported printed circuit boards, cleared by M/s. Changhong Ruba Electric Company under PCT heading 8534.000, were fully mounted and should be classified under PCT heading 8529.9090 as parts of LED TVs.
The controversy escalated when the importer, M/s. Changhong Ruba Electric Company, filed an appeal (Appeal No. 62/LB/2022) before the Appellate Tribunal, Lahore Bench, challenging the classification and assessment made by the Collectorate. The Tribunal, in its orders dated 22.02.2022, directed a referral of the matter to the Classification Centre for a detailed determination.
The hearings on the case were conducted on various dates, and representatives of the importer, Directorate of Post Clearance Audit, and members of the Classification Committee presented their arguments. The Departmental Representative emphasized that the imported PCBs were specifically designed for use in manufacturing televisions, classifiable under PCT heading 8529.9090, while the declared heading of 8534.0000 was irrelevant.
On the other hand, the importer’s representative contended that printed circuit boards were correctly classified under PCT heading 8534.0000, citing the Pakistan Customs Tariff and relevant Valuation Rulings.
The Classification Committee, after considering the arguments and relevant provisions of the law, concluded that the subject ‘Printed Circuit Boards’ were designed for LED televisions, fully mounted, and thus excluded from PCT heading 8534. The Committee further noted that, according to the Explanatory Note to PCT heading 85.34, such boards fell under PCT heading 8529.9090.
The Committee clarified that the PCT Code ‘8534.000’ mentioned in Valuation Rulings was for reference purposes only and not for the legal determination of classification. It highlighted that changes in the Fifth Schedule to the Customs Act, 1969, made under the Finance Act, 2021-22, were meant to bring consistency in the description and PCT Codes.
In light of these findings, the Classification Committee concluded that the ‘PCB Boards for LED TV’ imported by M/s. Changhong Ruba Electric Company are appropriately classifiable under PCT heading 8529.9090, in accordance with the General Rules for the Interpretation of the Pakistan Customs Tariff. The FBR, consequently, rejected the declaration made by the importer for clearance under a different classification.
