The Federal Board of Revenue (FBR) in Pakistan announced on Monday the grant of duty exemption on the import of critical oxygen-related goods.
(more…)Tag: customs duty
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FBR notifies duty exemption on cotton yarn import
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified exemption of customs duty on import of cotton yarn till June 30, 2021.
The FBR issues SRO 533(I)/2021 to comply with the decision of Economic Coordination Committee of the Cabinet (ECC) to exempt whole of customs duty on import of cotton and cotton yarn.
The ECC on April 14, 2021 approved the withdrawal of customs duty to ensure smooth supply of cotton and cotton yarns to the value-added industry, while bridging the gap between domestic production and overall demand for the inputs.
The FBR allowed duty exemption on cotton yarn on import of following categories:
— Cotton Yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale.
— Cotton Yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale.
— Cotton Yarn (other than sewing thread) put up for retail sale.
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ECC approves customs duty withdrawal on cotton, yarn import
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the withdrawal of customs duty to ensure smooth supply of cotton and cotton yarns to the value-added industry, while bridging the gap between domestic production and overall demand for the inputs.
Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, chaired the ECC meeting.
Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Maritime Affairs Ali Haider Zaidi, Federal Minister for Energy Omar Ayub Khan, Federal Minister for National Food Security and Research Syed Fakhar Imam, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power and Petroleum Tabish Gauhar, Federal Secretaries, senior representatives of Provincial governments, Chairman BOI and other senior officers participated in the meeting. Governor State Bank of Pakistan joined through a video link.
Power Division presented a summary regarding waiver of minimum 66% Take-or-Pay commitment in Power Purchase Agreement(s) (PPA) & Gas Supply Agreement(s) (GSA) of three RLNG based Public Sector Power Plants namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant and Haveli Bahadur Shah Power Plant.
These amendments would envisage submission of a Monthly Production Plan (MPP) as a binding on the Power Purchaser and the Power Seller wherein the Power Purchaser shall be entitled to submit demand requirement as needed, at least seventy five days before the start of each such month, which will be finalized by the System Operator and Operating Committee under the PPA.
The concept of a Monthly Delivery Plan (MDP) for deliveries of Gas under the GSA, has been paired with the Monthly Schedule as provided under PPA. The MPP will come into effect from the year 2022.
After seeking input from relevant stakeholders, the Committee approved the summary and appreciated the concept of Monthly Production Plan (MPP) as a cost-effective solution, enabling the Power and Gas purchasers to make requisite purchases in line with actual requirements instead of following a fixed arrangement.
Power Division also presented another summary proposing amendment to the Facilitation Agreement and Amendment to the GoP Guarantee Agreement with KAPCO. It included the proposal that the project may be withdrawn from the Privatization Commission and entrusted to Private Power and Infrastructure Board (PPIB).
After due deliberation, the Committee approved the summary, in principle, subject to formal vetting by the Law Division. Secretary, M/o Commerce presented a summary before the ECC for withdrawal of Customs Duty on import of Cotton Yarns under PCT 5205, 5206 and 5207 till 30th June, 2021.
The ECC also approved a Technical Supplementary Grant for Finance division amounting to Rs.11.7 billion as the share of the Federal Government for the establishment of 4 mother and child hospitals in Punjab.
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Duty rebate payment to textile sector increases by over 100pc
ISLAMABAD: The payment of customs duty rebate to textile sector increased by over 100 percent during tax year 2020, which shows the commitment of Federal Board of Revenue (FBR) to facilitate the most import sector for resolving liquidity issues.
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Duty exempted on import of medical equipments for prevention, treatment of COVID
ISLAMABAD: Federal Board of Revenue (FBR) on Monday exempted customs duty, regulatory duty and additional customs duty on import of medical instruments and equipments for prevention and treatment of COVID pandemic.
The FBR issued SRO 1251(I)/2020 dated November 23, 2020 to exempt whole of customs duty, regulatory duty and additional customs duty on import of around 61 items. The exemption has been granted on import of such goods with effect from October 04, 2020 to June 30, 2021.
Following goods are exempted from customs duty, regulatory duty and additional customs duty:
01. Real-time PCR system (standard 96-well plate and 0.2ml tubes format, 5 channel)
02. Biosafety cabinet
03. Auto Clave 50 liter capacity
04. Multi channel pipette (0.5 – 10 ul)
05. Single channel pipette
06. Multi channel pipette 20-200 ml
07. Vacuum fold
08. Micro Centrifuge (Non-refrigerated, Rotor capacity 12X 1.5/2.0ml vessles, 2XPCR strip, Max. Speed: 12, 100 x g (13,400 rpm)
09. PCR cabinet (HEPA filter system, UV and white light)
10. Real-time PCR kit for the detection of Coronavirus (SARS-CoV-2)
11. Viral RNA Extraction Kit and machine (Automatic Extractor)
12. VTM (Viral Transport Medium)
13. Dr Oligo Synthesizer
14. Refrigrator/freezer (-20C)
15. Vortex Machine
16. Refrigerated Centrifuge Machine (Rotor capacity 1.5ml x 24, max. speed 14000 rpm)
17. UPS (6 KVA)
18. Tyvek Suits
19. N-95
20. Biohazard bags (18 liters)
21. PAPR (Powdered Air Purifying respirators)
22. Multimode ventilator with air compressor
23. Vital sign monitor with 21BP and ETco2 two Temp.
24. ICU motorized patient bed with side cabinet and over bed table
25. Syringe infusion pump
26. Infusion pump
27. Electric suction machine
28. Defibrillator
29. X-Ray Mobile Machine
30. Simple Nebulizer
31. Ultrasound machine
32. Noninvasive BIPAP
33. ECG Machine
34. Pulse Oximeters
35. Ripple Mattress
36. Blood gas analyzer
37. AMBU Bag
38. Nitrile Gloves
39. Latex Gloves
40. Goggles
41. Face Shields
42. Gum Boots
43. Mackintosh bed sheets
44. Surgical Masks
45. Air Ways
46. Diaflow
47. Disposable Nebulizer Mask Kit
48. ECG Electrodes
49. ETT Tube (Endotracheal Tubes) All sizes
50. Humidifier Disposable Flexible
51. IV Cannula all sizes
52. IV Chambers
53. Oxygen Recovery Kit
54. Padded Sheets
55. Stomach Tube
56. Stylet for Endotracheal Tube
57. Suction Tube control valve
58. Tracheostomy Tube 7, 7.5, 8
59. Ventilator Circuit
60. Ventury Masks
61. Disposable shoes over (water proof)
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Budget salient features related to customs duty
ISLAMABAD: Federal Board of Revenue (FBR) issued budget salient feature related to Customs duty presented through Finance Bill, 2020.
Industrial Relief Measures
- Exemption of additional custom duties on those tariff lines which are now @ 0 percent customs duty in tariff.
- Reduction of custom duty on 40 raw materials of various industries.
- Tariff rationalization under National Tariff Policy 2019, by reducing customs duty on 90 tariff lines from 11 percent to 3 percent and 0 percent.
- Allowing the exemption on import of raw material to those Nashiran-e-Quran also who do not have their own in-house printing facility.
- Reduction in regulatory duty from 12.5 percent and 17.5 percent to 6 percent and 11 percent, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes 7208 and 7225& 7226, respectively.
- On the request of various local industries, a number of their inputs/intermediary raw materials are being allowed concessional import under new serial number of the fifth schedule through IOCO quota determination.
• Exemption of custom duties on import of raw materials by manufacturers of Butyl Acetate.
• Exemption of custom duty on import of raw material by manufacturer of syringes and saline infusion sets.
• Exemption of customs duties on import of raw material by manufacturers of buttons.
• Reduction in custom duty on import of raw material by manufacturers of interlining/buckram.
• Reduction of custom duty and exemption of additional custom duty and regulatory duty on import of raw materials by manufacturers of Wire rod
• Exemption of custom duties and regulatory duty on import of machinery, equipment and other project related items for setting up of internet cable landing stations.
• Exemption of custom duties on import of raw material by beverage can manufacturers.
• Reduction in Custom duty and exemption from Additional custom duty on import of raw material by food packaging industry.
Relief to Common Man
- Exemption from customs duties on import of 61 COVID19 related items, which was due to expire on 20th June has been extended due to the continuation of pandemic.
- Exemption from 2 percent ACD on import of edible oils and oil seeds under PM’s COVID19 Relief Package has been extended.
- Exemption of duties & taxes on import of Dietetic Foods for Children with inherited metabolic disorders.
- Exemption of all duties & taxes on import of Diagnostic Kits for Cancer and Corona Virus.
- Exemption of Customs duties on inputs of Ready to use Supplementary Foods (RUSF).
- Exemption of Customs duties on import of life saving drug Meglumine Antimonite for treatment of leishmaniasis.
- Extension up to 2023, in exemption of customs duties on imports for setting up new industries in erstwhile FATA area.
Miscellaneous
- Reduction in regulatory duty on smuggling prone items to bring these items under legal imports
- Regulatory duty on several industrial inputs is also being reduced to decrease their cost of doing business
- Tariff protection for domestic industry by increasing/levy of regulatory duty on import of those items which are also locally manufactured
- Incentivizing soap manufacturing industry by reducing rate of Additional customs duty on Palm Stearin
- Enhancing scope of concessions available to Special Economic Zones.
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FBR suggested to reduce customs duty to 5 percent on steel products
The Karachi Chamber of Commerce and Industry (KCCI) has proposed a significant reduction in customs duty on steel products in its budget proposals for 2020/2021.
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FBR implements duty exemption/concession under 2nd Phase Pak-China FTA
ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday issued concessionary rates for 6,786 tariff lines for goods imported under Second Phase of Free Trade Agreement (FTA) between Pakistan and China.
The notified rates will be effective from January 01, 2020 for next 15 years i.e. December 31, 2034.
The FBR issued SRO 1640(I)/2019 to implement the revised customs duties for goods imported from China.
The SRO said:
“S.R.O.1640(I)/2019.- In exercise of the powers conferred by section 19 of the Customs Act,1969 (IV of 1969), and in supersession of Notification No. S.R.O. 659(I)/2007,dated the 30th, June, 2007, the Federal Government is pleased to exempt, with effect from the first day of January, 2020, unless specified otherwise, the import into Pakistan from Peoples Republic of China of the goods specified in column (3) of the Table below, falling under the Heading and sub-Heading numbers of the First Schedule to the said Act as specified in column (2) of the said Table, from so much of the customs duty specified in the First Schedule as on the 1st January , 2020 to the said Act as in excess of the rates specified in columns (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15), (16), (17) or (18) of the Table with effect from the corresponding date:
“Provided that the goods are manufactured or produced and imported in conformity with the Rules of Determination of Origin of Goods and the operational certification procedures for the Rules of Origin notified by the Ministry of Commerce vide No. S.R.O. 1286(I)/ 2005, dated the 24th December, 2005 read with the Import Policy Order, 2016:-
The second phase of China-Pakistan FTA came into effect earlier this month, allowing Pakistani manufacturers and traders to export more than 300 new products to the Chinese market for zero duty charges.
The two neighboring countries have already completed all legal procedures and formalities to start implementation of the agreement.
Pakistan and China signed a protocol for implementation of the agreement during the last visit of Prime Minister Imran Khan to China.
Pakistan is already enjoying zero duty on export of 724 products to China under the first FTA signed between the two countries in 2006.
The major products on which tariff has been eliminated are textiles, garments, seafood, meat, other animal products, prepared food, leather, chemicals, plastics, oilseeds, footwear as well as engineering goods including tractors, auto parts, and home appliance machinery.
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Locally manufactured two-, three electric wheelers proposed 1pc sales tax for seven years
ISLAMABAD: All two and three wheelers manufactured under Electric Vehicle Policy will sold at less than one percent sales tax for next seven years to bring the purchase price of EVs down, according to the policy.
However, all two and three-wheeler EV’s imported shall be sold at one percent sales tax for the next five years.
EVs will be exempted from registration fees and annual token tax to encourage prospective buyers and the FBR shall evolve a policy to evolve tax incentives for prospective buyers of the two-wheeler and three wheelers.
All existing incentives of the Auto Development Policy 2016-2021 will remain intact, according to EV Policy 2019.
The policy said that Pakistan had a large market of two and three wheelers. More than twenty million such vehicles are already on roads in Pakistan.
Their local production has reached indigenization of more than 90 percent. Therefore, the need is to incentivize the already available manufacturing expertise for converting to e-bikes and e-rickshaws.
Moreover, a new category of low speed electric vehicles have emerged that is added into this category.
The policy said that EV specific parts and components, not being manufactured locally compliant to UNECE 1958 Agreement ‘WP.29’ standards as well as equivalent international standard applied by the United States, European Union and other major EV manufacturers, will be allowed import at one percent customs duty and one percent sales tax for the next two years.
Registration number plates of EVs will have a distinct color/design to create EV specific zones in high density areas. The registration number plates will be different from other typical vehicles to distinguish between two, three and low speed four wheel electric vehicles and other vehicles segments.
A special provision for import of swappable battery-based three wheelers is being introduced to help both introduction of such vehicles and charging infrastructure.
Those manufacturers or consortia who demonstrate setup of manufacturing of these units and battery swapping infrastructure of running of these vehicles will be allowed to import a cumulative number of 20,000 completely built units (CBU) along with the charging infrastructure at one percent customs duty and can sell these units at one percent sales tax.
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FBR imposes up to 7 percent additional customs duty
ISLAMABAD: Federal Board of Revenue (FBR) has imposed up to seven percent additional customs duty on items falling under tariff slab of 20 percent and higher slabs.
The FBR issued SRO 670(1)/2019 on Saturday stated that in supersession of its Notification No. SRO 630(1)/2018, dated the May 24, 2018, the federal government approved to levy additional customs duty on import of goods specified in the First Schedule to the said Act, at the rate of-
(i) two per cent on goods falling under tariff slabs of 0 percent, 3 percent and 11 percent;
(ii) four per cent on goods falling under tariff slab of 16 percent; and
(iii) Seven per cent on goods falling under tariff slab of 20 percent and higher slabs including slabs of specific rates.
The FBR said that the value of goods for purpose of this levy shall be the value as determined under section 25 or section 25A of the said Act.
The additional customs duty shall not be levied on the following, namely: –
(i) import of seeds and spores for sowing (PCT 0904.2120, 1006.1010,
1209.0000);(ii) import under Chapter 31 of First Schedule of the Customs Act,1969
(IV of 1969);(iii) import of goods classifiable under PCT codes, 52.01, 52.03, 9501.3000, 5503.1100, 5503.1900, 5503.3000, 5503.4000, 5503.9000, 5504.1000, 5504.9000, 5506.1000, 5506.3000, 5506.4000, 5506.9000 and 5507.0000;
(iv) import of goods classifiable under PCT codes 2902.3000, 2914.1200, 2915.1290, 2933.9990, 3202.1000, 3202.9010, 3202.9090, 3204.1100, 3204.1300, 3207.1090, 3208.1090, 3208.9090, 3403.9910, 3506.9110, 3506.9190, 3812.3900, 3906.9020, 4005.1090, 4005.9900, 8453.2000, 9606.2920 and 9606.2990;
(v) plant and machinery used in manufacturing or production of goods as is classifiable under Chapter 84 and 85 of the First Schedule to the Customs Act, 1969 (IV of 1969);
(vi) import under PCTs 8517.1211 and 8517.1219
(vii) import under Chapter 99 of First Schedule of the Customs Act, 1969
(IV of 1969);
(viii) import under Fifth Schedule to the Customs Act, 1969 (IV of 1969)
excluding;(a) serial numbers 30, 32, 33 and 35 of table of Part-l,
(b) serial numbers 20 to 28, 30, 60, 96, 102, 108 to 118 of Table of Part Ill; and
(c) Serial numbers 29 to 51, 66 to 85, 109 to 115, 117 to 126, 128 to 155 and 157 to 169 of Table-A, Sr. No. 4 to 9, 11 to 14, 19 to 21 of Table-B and Sr. No.1 to 47 of Table-C of Part VII
(ix) import under the Baggage Rules, 2006;
(x) import under sub-chapters 3 and 7 of chapter XII and chapter XV of Customs Rules, 2001;
(xi) import under Notification No.SRO.577(I)/2005 dated 6th June, 2005;
(xii) import under Notification No.SRO.565(1)/2006 dated 5th June, 2006;
(xiii) import under Notification No.SRO.693(I)/2006 dated 1st July, 2006;
(xiv) import under Small and Medium Enterprises and Export Oriented Units Rules, 2008;
(xv) import under temporary importation scheme vide S.R.O. 492(1)/2009, dated the 13th June, 2009; and
(xvi) imports under condition (vii) of SRO 678(1)/2004, dated the 7th August, 2004, by the Exploration and Production Companies, their contractors and service companies for offshore projects only.
The FBR said that this notification shall take effect from July 1, 2019.