Karachi, June 24, 2023: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced concerns over anomalies in the proposed amendments to the Customs Act of 1969, as outlined in the Finance Bill of 2023.
In a recent meeting with the Finance Minister, Ishaq Dar, the FPCCI highlighted these anomalies and discussed the matter with a delegation comprising Tariq Bajwa, SAPM Finance, Ashfaq Tola, Chairman of the Reforms & Resource Mobilization Commission, and senior officials from the Federal Board of Revenue (FBR).
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President of the FPCCI, Irfan Iqbal Sheikh, raised several key issues regarding customs duties. One of the concerns was the irrational rate of customs duty on non-woven fabric (finished product) in comparison to its raw materials, such as Polypropylene in primary form and Polyester Staple Fiber. The FPCCI requested the restoration of the earlier tariff rate of 11 percent for the import of non-woven material.
Sheikh also highlighted an anomaly related to paper and paperboard (HS Code 4802 & 4810) in the Finance Bill of 2023-24. He stressed that a Regulatory Duty (RD) of 10 percent was imposed on uncoated wood-free paper (HS Code 4802), despite the existence of an Anti-Dumping Duty ranging from 11 percent to 39 percent on the same item. This double taxation is unjustified, and the FPCCI called for the removal of the RD due to the presence of the Anti-Dumping Duty.
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Regarding pharmaceuticals, Sheikh expressed concerns about the increase in customs duty from 3 percent to 20 percent on pharmaceutical raw materials (HS Code 2933.4990). He warned that this increase would lead to a shortage of medicines and drugs in the market.
Sheikh also drew attention to Section 14-A of the Customs Act of 1969, which states that any agency or person, including port authorities, must entertain a delay and detention certificate issued by a customs officer. He emphasized the need for trade facilitation measures without adversely affecting the notification. In cases of failure to entertain the delay in detention certificate, shipping lines or agents should manage the return or re-export of goods, cargo, or containers to the destination port as requested by the consignee, without imposing charges for detention, landing, storage, terminal handling, or warehousing costs during imports.
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Additionally, Sheikh pointed out the lack of clarification in the third schedule, which identifies tea as retail packing. As a result, sales tax is being unfairly and illogically collected on the price of bulk-packed teas weighing more than 5KG.
The FPCCI has urged the Finance Minister to address these anomalies in the proposed amendments to the Customs Act, emphasizing the importance of fair and rational customs laws that promote trade and economic growth.
