Following are the salient features introduced to Customs Duty through Finance Bill, 2023, according to Pakistan Budget 2023-24 revealed on Friday.
CUSTOMS ACT 1969
GUIDING PRINCIPLES:
• No increase of duties on import of essential items
• Trade facilitation and ease of doing business
• Encourage the industrialization and investment
• Incentives for agriculture sector
• Promotion of Energy efficiency & Conservation
• Promotion of Information Technology (IT) and IT enabled services
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RELIEF MEASURES:
(1) Exemption of Customs duties on specific papers and Art card and board for Printing of Holy Quran.
(2) Incentive for Pharma sector by including one more API and 03 drugs in the existing duty free regime.
(3) Incentive for manufacturing of Solar Panels and allied equipment by exempting customs duties on import of machinery, equipment and inputs for manufacturing of solar panels, inverters and batteries.
(4) Incentive for exporters of Information Technology (IT) and IT enabled services by allowing duty free import of IT related equipment equivalent to 1% value of their export proceeds.
(5) Reduction of Customs duties and additional Customs duties on import of intermediary/ industrial inputs falling under 10 PCT codes.
(6) Exemption of Customs duties on raw materials of Diapers, Sanitary Napkins and Adhesive Tape.
(7) Concession of Customs duty on raw materials / inputs for manufacturers of Capacitors.
(8) Reduction of Customs duty from 10% to 5% on non-localized (CKD) of Heavy Commercial Vehicles (HCVs).
(9) Exemption of ACD on import of raw materials of Hemodialyzers fluid / powder.
(10) Extension in exemption on machinery and equipment imported by erstwhile FATA areas till June, 2024.
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(11) Continuation of concession on import of Flavouring powders for food preparation for manufacturers of snacks till June, 2024.
(12) Exemption of Customs duty on Organic Composite Solvent and Thinners for manufacturers of Butyl Acetate and Dibutyl Orthophthalates.
(13) Reduction of Customs duty on import of pet scrap for manufactures of polyester filament yarn.
(14) Exemption of Customs duties on Raw Materials for manufacturing of Moulds and Dies.
(15) Exemption of Customs duties on raw materials/ inputs for Mining machinery.
(16) Exemption of Customs duties on raw materials/ inputs for Rice mill machinery.
(17) Exemption of Customs duties on raw materials/ inputs for Machine tools.
(18) Alignment of Part(V) of Fifth Schedule to the Customs Act with Auto Industry Development and Export Policy (AIDEP) 2021-26.
(19) Exemption of Customs duties on import of seeds for sowing to promote growth in agricultural sector.
(20) Exemption of Customs duties on import of shrimps/prawns/juvenile for breeding in commercial fish farms and hatcheries.
(21) Exemption of Customs duties on roasted peanuts for manufacturing of ready to use supplementary foods (RUSF) by World Food Program certified manufacturers.
(22) Increase of Customs duty on Carbides of Calcium from 3% to 11% to protect the local industry.
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REVIEW OF REGULATORY REGIME:
(23) Removal of regulatory duty on second hand clothing to provide relief to the poor segment of the society.
(24) Reduction of regulatory duty on 151 PCT codes pertaining to second hand clothing, fish, tiles, sports goods.
(25) Removal of regulatory duty on IT related equipment to encourage Information Technology sector.
(26) Removal of Regulatory duty on Synthetic Filament Yarn of Polyester not manufactured locally.
(27) Removal of Regulatory duty on parts for flat panels, monitors, projectors.
(28) Removal of Regulatory duty on Silicon Steel Sheets.
(29) Exemption of RD on special steel round bars and rods of non-alloy steel exceeding diameter 50 mm.
(30) Increase / levy of regulatory duty on import of articles of glass to protect the local industry.
(31) To discourage the use of inefficient Tungsten Filament Incandescent Bulbs, 20% RD imposed on these bulbs and their parts.
(32) Export Regulatory Duty on the export of Molasses increased from 10% to 15%.
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MISCELLANEOUS:
(33) Creation of separate PCT Code for Smart Watches.
(34) Creation of separate PCT Code for wooden splints for Matches.
(35) Change in Description of PCT CODE 2501.0021.
(36) Change in Description of PCT CODE 8544.6010.
(37) Changes in Descriptions of PCT codes of localized auto parts.
(38) Conversion of Specific CD rate on Caustic Soda to Ad-Valorem rate.
REVENUE MEASURES:
(39) Withdrawal of capping of the fixed duties and taxes on the import of old and used vehicles of Asian Makes above 1300 CC under SRO 577(I)/2005 by omitting serial number 4,5 and 6 of the said SRO.
LEGISLATIVE CHANGES:
(40) Definition of smuggling is being proposed to be rephrased to enable Customs to conduct anti-smuggling operations within the territorial limits of the country.
(41) Provincial Levies and Khasadar Force have been proposed to be added in the list of Government agencies mandated to assist Customs in anti-smuggling operations in Khyber Pakhtunkhwa and Balochistan.
(42) Penal provisions for offence of smuggling of essential commodities are proposed to be made more stringent.
(43) Penal provisions for the offence of smuggling of banned and contra-banned goods are being proposed to be made more stringent.
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(44) To ease out congestion at border customs stations, the mandatory time for filing of goods declaration after arrival of goods in the border customs station is proposed to be reduced.
(45) In order to facilitate the trade, the warehousing period for perishable items has been proposed to be enhanced from one month to three months.
(46) The penalty on documents not found inside the consignment abolished.
(47) The pitch of penalty on documents not uploaded electronically with the goods declaration is being rationalized to facilitate trade.
(48) In order to reduce the clearance time and to eliminate human interaction, option is being provided to the respondent to go for adjudication through Customs Computerized System.
(49) To facilitate the passengers travelling as a group who cannot file their own baggage declarations, the representative of the group of passengers is being allowed to file baggage declaration on behalf of the group members.
(50) To check revenue loss, penal provisions for any attempt to evade duty and taxes in breach of laws and procedures are being proposed to be made more stringent.
