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Tag: aviation policy

  • Aviation industry allowed duty free import of aircraft, spare parts

    Aviation industry allowed duty free import of aircraft, spare parts

    KARACHI: Federal Board of Revenue (FBR) has allowed duty free import of aviation related goods including aircraft and spare parts under National Aviation Policy 2015.

    According to Finance Act, 2019 following goods related to aviation have been allowed duty free import:

    1. Aircraft HS Code 8802.4000 at zero percent customs duty under condition whether imported or acquired on wet or dry lease. In case of M/s Pakistan International Airlines (PIA) Corporation this exemption shall be admissible on and from the 19th March, 2015.

    2. Spare parts Respective headings at zero percent for use in aircraft, trainer aircraft and simulators.

    3. Maintenance Kits Respective headings at zero percent for use in trainer aircraft (8802.2000 & 8802.3000).

    4. Machinery, equipment & tools respective headings at zero percent for setting up Maintenance, Repair & Overall (MRO) workshop by MRO company recognized by Aviation Division.

    5. Machinery, equipment, operational tools, furniture& fixture respective headings at zero percent on one time basis for exclusive use of New/Greenfield airports by company authorized by Aviation Division.

    6. Aviation simulators Respective headings zero percent on one time basis for aircrafts by airline company recognized by Aviation Division.

    The FBR said that for the purposes of this Part, the following conditions shall apply besides the conditions as specified in column (5) of the Table below:—

    (i) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify that the imported goods/items are the company’s bonafide requirement. He shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis;

    (ii) the exemption shall be admissible on production of certificate by the Aviation Division, Government of Pakistan to the effect that the intending importer is operating in the country or intends to operate in the county in the airline sector;

    (iii) the list of imported items is duly approved by the Aviation Division, Government of Pakistan in line with Policy Framework approved by the Government of Pakistan;

    (iv) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall furnish an undertaking to the customs authority at the time of import that the goods imported shall be used for the purpose as defined/notified by the Aviation Division, Government of Pakistan under the Aviation Policy; and

    (v) in case of deviation from the above stipulations, the Collector of Customs shall initiate proceedings for recovery of duty and taxes under the relevant laws.

  • Govt. decides to end open sky policy: Fawad

    Govt. decides to end open sky policy: Fawad

    ISLAMABAD: The government has decided to end the open sky policy in order to prevent losses to national flag carrier i.e. Pakistan International Airlines (PIA).

    Federal Minster for Information and Broadcasting Chaudhry Fawad Hussain at a press conference after the federal cabinet meeting on Tuesday said that the government had decided to end the country’s open sky policy which proved to be disastrous for PIA.

    Most of the profitable routes were given to international airlines which led to huge loss for PIA, he said.

    All agreements with international airlines would be reviewed, he added.

    He said that the cabinet approved civil aviation policy to pro-actively promote tourism and give boost to aviation industry in the country.

    The decisions made in the cabinet meeting, chaired by Prime Minister Imran Khan.

    He said traveling to the tourist resorts of Pakistan will be facilitated by reducing travel expenditures.

    Fawad said facilities, including reduction in traveling expenses and cuts in taxes, worth Rs3.8 billion would be offered to promote tourism and aviation sector.

    He said the cabinet also discussed to start helicopter and 40-seat plane service to the tourist sites in the country including Gilgit-Baltistan and Swat.

    The purpose for this initiative, was to provide benefits to local aviation industry,” he said, adding that it was necessary to improve travel facilities to the country’s tourist locations to attract elite tourism.

    The minister announced that passenger airlines in Pakistan will be allowed to import aeroplanes which are 18-years-old compared to the previous limit of 12 years while cargo planes up to 30 years old, could be imported.

    New recommendations with regards to aviation also included charges on flight kitchens being abolished, and a recommendation to reduce taxes on domestic routes, he added.

    The minister also announced a special initiative by CAA of paying up to Rs 400,000 in fees for women to attract them for becoming pilots.