The FBR released crucial details on Thursday regarding the transformative changes brought to the Customs duty regime through the Finance Supplementary (Second Amendment) Bill, 2019, which was presented on January 23, 2019. These modifications are poised to impact various sectors and streamline the country’s trade policies.
Here are the salient features of the changes to the Customs duty regime:
1. Extension of Exemption for Ostomy Use Items: The benefit of exemption from customs duty on the import of all items for Ostomy use is being extended, including colostomy bags and appliances. This move reflects a commitment to supporting individuals with specific medical needs.
2. Exemption of Customs Duty on Newsprint: The existing 5 percent customs duty on the import of newsprint is being fully exempted, providing relief to the media industry and encouraging the free flow of information.
3. Reduction in Customs Duty on Plastic Moulding Compound: The customs duty on Plastic Moulding Compound is being reduced from 5 percent to 3 percent, aiming to stimulate the plastics industry.
4. Removal or Reduction of Customs Duty on Industrial Inputs: Customs duty on industrial inputs covered under 53 tariff lines is being either removed or reduced. Additionally, the Additional Customs Duty on industrial inputs covered under 22 tariff lines is being removed, effective from March 31, 2019.
5. Adjustments to Regulatory Duty on Industrial Inputs: Regulatory duty on industrial inputs covered under 30 tariff lines is being either removed or reduced, fostering a more competitive environment for local industries.
6. Reduction in Regulatory Duty on Smuggling-Prone Items: Regulatory duty on items prone to smuggling, such as Tyres, Padlocks, Groundnuts, Food/Chocolate preparations, Floor Coverings, and Vacuum flasks (falling under 24 tariff lines), is being reduced.
7. Removal of Regulatory Duty on Input Materials for Auto Parts Manufacturing: Regulatory duty is being removed on approximately 200 tariff lines of input materials imported under SRO 655(I)/2006 dated 05.06.2006. These materials are crucial for the manufacturing of auto parts by local vendors.
8. Rationalization of Duty and Taxes on Mobile Phones: The collection of duty and taxes on mobile phones is being rationalized through the collection of all duty/taxes on uniform slabs based on C&F values at fixed rates, simplifying the process.
9. Removal of Regulatory Duty on Lead and Copper Scrap Exports: Regulatory duty leviable on the export of lead, lead products, scrap of lead, and copper scrap is being removed for exports made under DTRE/Manufacturing Bond Schemes, promoting trade in these materials.
10. Overhaul of Export-Oriented Schemes: Significant changes are being made to Export-Oriented Schemes, with a focus on facilitating exporters, especially small and medium-sized enterprises (SMEs), to enhance the competitiveness of the export sector.
These amendments signify a proactive approach by the government to stimulate economic growth, promote industry, and simplify trade procedures. The revisions aim to create a more business-friendly environment, fostering growth and innovation in various sectors.
