Pkrevenue.com

Tag: import

  • Suzuki Motors warns plant shutdown in Pakistan

    Suzuki Motors warns plant shutdown in Pakistan

    KARACHI: Suzuki Motors Co. Ltd. on Thursday warned shutting down its production plant in Pakistan due to import restrictions.

    In a communication sent to Pakistan Stock Exchange (PSX), the auto manufacturer said that State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKD) vide circular No. 09 of 2022 dated May 20, 2022.

    READ MORE: Indus Motors rebuts plant shutdown reports

    “Restrictions had adversely impacted clearance of import consignments of the company from the ports which might result in shutdown of the plant in near future,” the company said, adding that Pak Suzuki has stopped bookings of its products since July 01, 2022.

    The company further clarified that at present it had not plan to shut down the plant. “The production schedule of the company and any non-production days remain contingent on a number of external factors,” it said.

    READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

    The company is actively monitoring its production and operations and is closely working with the government of Pakistan and the central bank to alleviate the present challenges.

    A day earlier, Indus Motors Company– the manufacturers of Toyota cars in Pakistan, also issued a statement in this regard.

    READ MORE: Toyota lowers July production in Japan

    The IMC said that the auto sector was facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

    “The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the IMC said.

    The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

    READ MORE: COVID-19 cases reported at Toyota work sites

  • 15% surcharge imposed for clearance of banned items

    15% surcharge imposed for clearance of banned items

    ISLAMABAD: Pakistan has imposed surcharge up to 15 per cent for clearance of consignments stuck up at ports and were banned for saving foreign exchange.

    The ministry of commerce issued an office memorandum dated July 22, 2022 pursuance to the federal cabinet decision to release the consignments of prohibited items.

    READ MORE: Pakistan allows release of banned items stuck up at ports

    The government through SRO 598(I)/2022 dated May 19, 2022 imposed a complete ban on the import of luxury and non-essential items.

    However, a large number of containers were stuck up at ports that were arrived after the imposition of ban.

    The Federal Cabinet on July 15, 2022 allowed the release of all those consignments/shipment which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and were pending customs clearance.

    READ MORE: KCCI demands release of stuck up containers

    However, this clearance was subject to condition that consignments had landed at any port including sea, air or dry port of the country on or before June 30, 2022 subject to payment of surcharge to be imposed on the cost and freight value of goods.

    According to the ministry of commerce, five per cent surcharge has been imposed on the shipment which had arrived within two weeks of issuance of the SRO 598(I)/2022.

    Further, 15 per cent surcharge has been imposed on shipment which had arrived after two weeks of issuance of SRO 598(I)/2022 till June 30, 2022.

    Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

    READ MORE: Committee recommends lifting import ban on luxury items

    Previously, the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

    Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

    In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

    READ MORE: Raw materials excluded from import banned items list

  • Minimum tax for commercial importers enhanced: FBR

    Minimum tax for commercial importers enhanced: FBR

    ISLAMABAD: The Federal Board of Revenue (FBR) said that withholding tax for commercial importers has been enhanced to 3.5 per cent from 2 per cent.

    The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments introduced through Finance Act, 2022 to the Income Tax Ordinance, 2001.

    READ MORE: Tax through electricity connections on retailers, service providers

    The FBR said that the rate of withholding tax on import of goods falling in Part II of Twelfth Schedule of the Ordinance has been enhanced from 2 per cent to 3.5 per cent for commercial importers, which shall be minimum tax.

    Following changes have been incorporated with regard to withholding tax on import under section 148 of the Income Tax Ordinance 2001.

    READ MORE: FBR explains income tax on export of services

    Withholding tax on imports collected at 1 per cent and 2 per cent on goods falling under Part I and II of Twelfth Schedule to the Ordinance respectively is adjustable for an industrial undertaking if goods have been imported for own use. In numerous circumstance, goods imported by an industrial undertaking for own use may fall under Part III of Twelfth Schedule to the Ordinance on which tax at 5.5 per cent is collectible at import stage. This resulted in a situation whereby tax collected at 5.5 per cent on import of goods by an industrial undertaking for its own use became minimum tax. For the purpose of streamlining, tax collectible from an industrial undertaking on import of all goods for own use has been made adjustable.

    READ MORE: FBR restores 100% depreciation deduction

    Tax collectible under section 148 on import of edible oil, packaging material, paper and paper board, and plastics has been made minimum tax whether imported by an industrial undertaking for own use or by a commercial importer.

    Certain goods have been shifted from Part II to Part I of the Twelfth Schedule. The goods included in Part I are subject to tax at 1 per cent irrespective of import by industrial undertaking or commercial importers.

    READ MORE: FBR notifies graduated tax rates on disposal of securities

  • Pakistan allows release of banned items stuck up at ports

    Pakistan allows release of banned items stuck up at ports

    ISLAMABAD: Pakistan Tuesday allowed one-time release of consignment carrying imported goods that were banned by the government on May 19, 2022 and stuck up at ports.

    The country through SRO 598(I)/2022 imposed a ban on import of luxury and non-essential items in order to discourage outflow of dollars and support balance of payment.

    Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

    READ MORE: SBP makes permission mandatory for motor car import

    In this regard the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

    Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

    In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

    Ministry of Commerce presented another summary on suspension of import conditions contained in import policy order 2022 with regard to import of timber/wood.

    In view of hardship case of timber importers as the consignments were supplied against contracts months ago and the shipments have already arrived, the ECC decided that date of implementation of Import Policy Order 2022 regarding import of timber and wood falling under HS Codes 4401 to 4409 may be suspended till August 31, 2022 i-e for the bills of Lading issued till August 31, 2022.

    The ECC also approved another summary of Ministry of Commerce to amend paragraph 3(1) of the Import policy Order 2022 to allow import of goods of Afghan origin against Pak Rupee and without the requirement of Electronic Import Form (EIF) for a period of one year, subject to the condition that Afghan exporters will provide a Certificate of Origin issued by Afghan Customs proving that the goods have originated from Afghanistan.

    Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

    READ MORE: CMOs worry over power outages, 100% cash margin on imports

    Federal Minister for Planning, Development and Special Initiatives Mr. Ahsan Iqbal, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Minister of State for Petroleum Division Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

    Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of second international wheat tender 2022 opened on 1st July, 2022 for 500,000 MT.

    The ECC considering the lower trend of wheat in the international market approved the lowest bid offer of M/s Cargill Int. PTE /Cargill Agro Foods Pakistan @ US$ 439.40/MT for 110,000 MT +/- 5% MOLSO to the extent of 500,000 MT.

    Ministry of National Food Security & Research submitted a summary on WPF operation- purchase/ reservation of 120,000 metric tons of wheat for Afghanistan in the year 2022-23.

    In view of the situation in Afghanistan and on humanitarian ground, the ECC approved the request of the WFP for purchase/ reservation of 120,000 MT of wheat from the imported wheat stock of PASSCO on the latest import price.

    The amount of supplied wheat along with cost and incidentals would be charged in US dollars. The wheat will be locally grinded into wheat flour and will be supplied to Afghanistan by WFP, subject to relaxation of ban on the export of flour to the extent of the instant proposal of 120,000 MT of wheat.

    READ MORE: KCCI demands release of stuck up containers

    Ministry of National Food Security & Research presented another summary on the declaration of “National Disease Emergency” on account of Emergence of Lumpy Skin disease in Pakistan. The ECC after detailed discussion directed Ministry of National Food Security & Research to prepare a cost sharing plan after convening a meeting with concerned provincial secretaries and NDMA.

    Ministry of Industries and Production submitted a summary on continuation of PM’s relief package, 2020, Sasta Atta initiative for KPK & expansion of Utility Stores network across Pakistan.

    The ECC decided to continue subsidy on five essential commodities with direction to M/o I & P to work out feasible proposal on subsidy programme keeping in mind the financial implications.

    The ECC also approved a summary submitted by Ministry of Information Technology and Telecommunication on constitution of Auction Advisory Committee to oversee spectrum auction(s) for next generation mobile services (NGMS) in Pakistan.

    The Committee will be headed by Federal Minister for Finance and Revenue. The ECC also approved supplementary grant in favor of Economic Affairs Division amounting to Rs. 193.006 Billion for foreign loan repayments.

  • Banned items: FBR deputes officers 24X7 to facilitate passengers

    Banned items: FBR deputes officers 24X7 to facilitate passengers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday deputed senior Customs officers at all the international airports of the country to facilitate passengers related to imported items that are banned by the government.

    The FBR through an order nominated focal persons at all the airports of the country. It said that in wake of the issuance of SRO 598(I)/2022, and to facilitate the genuine passengers arriving at all the international airports of the country, a list of officers has been issued regarding facilitation and compliant redressal.

    The list of officers and their contact number can be accessed here.

    The FBR directed that all the focal persons should ensure their availability over the respective telephone numbers round the clock.

    The government on May 19, 2022 imposed a complete ban on luxury and non-essential items in order to reduce import bill and to prevent rupee devaluation. In this regard, the ministry of commerce issued SRO 598(I)/2022 to impose the ban on imported items.

    READ MORE: Import ban not to apply on L/C issued before May 19, 2022

    The FBR on May 24, 2022 issued a press statement saying that Pakistan Customs has stepped up enforcement at all International Airports across Pakistan to prevent smuggling of items which have recently been banned by the Federal Government vide SRO No. 598(I)/2022, dated 19.05.2022 by amending Import Policy Order, 2022.

    This round-the-clock vigilance at International Terminals to prevent smuggling have already resulted in seizures of these items which were being brought in in the garb of bonafide passenger baggage.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    During scanning and checking at Jinnah International Airport (JIAP), Karachi on 23.05.2022, banned items such as food stuff, fruits, sanitary wares, used mobile phones, and branded shoes, in commercial quantities were recovered. The said items have been detained/seized under Section 168 of the Customs Act, 1969 for violation of SRO 598(I)/2022, dated 19.05.2022, (Import Policy Order, 2022) and Sections 16 and 139 of the Customs Act, 1969.

    While commending the efforts of Pakistan Customs, Chairman FBR has reiterated unflinching resolve of the FBR to further strengthen enforcement measures at all airports, seaports, and land border stations to ensure the prevention of smuggling of goods including newly banned items.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    However, Finance Minister and Chairman FBR have issued instructions not to bother bonafide passengers bringing in goods in noncommercial/small quantities for personal use and to facilitate such passengers at airports to the maximum extent possible as per legal provisions.

  • Import ban not to apply on L/C issued before May 19, 2022

    Import ban not to apply on L/C issued before May 19, 2022

    ISLAMABAD: The ministry of commerce on Saturday issued a clarification stating that the import ban will not be applicable on Bill of Lading (B/L) or Letter of Credit (L/C) issued prior to ban decision.

    In order to address the balance of payments (BOP) situation in the country resulting from the increase in current account deficit (CAD) during the first 10 month of the current fiscal year 2021/2022, import of certain luxury and non-essential items has been prohibited, vide SRO 598(1)/2022 dated May 19, 2022.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    However, to address the concerns of certain business quarters with regard to the implementation of the said SRO, it is clarified that in terms of proviso to the paragraph-4 of the Import Policy Order, 2022, the imports where Bill of Lading (B/L) or irrevocable Letter of Credit (L/C) was issued or established prior to the notification of the SRO 598(1)/2022 dated 19.05.2022 shall be exempt from the operation of the SRO.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    Hence, imported goods for which B/L or irrevocable L/C was established prior to May 19, 2022 shall not be subject to the prohibitions contained in the said SRO.

    Moreover, the business community and the general public are invited to share their concerns, proposals or any anomalies with respect to the said SRO at [email protected]. Ministry of Commerce would respond to them at the earliest.

    READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

    Previously, the ministry of commerce amended Import Policy Order, 2022 through SRO 587(I)/2022 to ban import of luxury and non-essential items.

    The government banned the import of items, included: aerated water and juices; automotive in Completely Built Unit (CBU); sanitary and bathroom wares; carpets (excluding from Afghanistan); Chandeliers and Lightening Devices or Equipment; Chocolates; cigarettes; corn flakes etc.; cosmetics and shaving items; tissue papers; crockery; decoration / ornamental articles; dog and cat food; doors and window frames; fish; footwear; fruits and dry fruits; furniture; home appliances CBU; ice cream; jams, jellies and preserved fruits; luxury leather jackets and apparels; matters and sleeping bags; frozen or processed meat; mobile phones CBU; musical instruments; pasta etc.; arms and ammunition; shampoos, sunglasses; tomato ketchup and sauces; and travelling bags and suitcases.

    READ MORE: Pakistan’s trade deficit widens by 92% in seven months

  • Iran, Afghan shipments to require certificate of origin

    Iran, Afghan shipments to require certificate of origin

    ISLAMABAD: Pakistan Customs has drafted law to make mandatory the certificate of origin on shipments originated from Iran and Afghanistan.

    According to information received on Saturday, Pakistan Customs has proposed amendments to Customs Rules, 2001 related to imports.

    It is proposed that it would be made mandatory for shipments originating from Iran and Afghanistan and arriving through land customs-station, the certificate of origin issued by the relevant Iranian Government agency and by Afghan Chamber of Commerce and Industry respectively.

    For shipments originating from UAE and China (excluding imports under PTA and FTA regime) certificate of origin shall be uploaded for shipments of fabric (all types i.e. finished, unfinished and grey etc.) and artificial jewellery originating from UAE and China (excluding import under PTA and FTA regime) certificate of origin issued by the manufacturer.

    It will be made mandatory for the importer, in terms of clause (aa) of section 79 of the Customs Act, 1969 (IV of 1969) to upload following documents with every declaration in relation to each consignments, namely:-

    — master bill of lading and house bill of lading or master airway bill and house airway bill as the case may be;

    — commercial invoice;

    — letter of credit or bank contract;

    — packing list — container-wise in case of containerized cargo and package wise in case of miscellaneous goods consignments;

    — previous chemical analysis and lab test report, if any;

    — mill test certificate issued by the manufacturer in case of prime quality steel product;

    — certification as per requirement of Import Policy Order;

    — PTA or FTA certificate of origin, if claimed;

    — and any other documents or requirements specified by the Board from time to time.

    Pakistan Customs seizes arms from Afghan vehicle
  • Import bill falls by over 10 percent in October; export witnesses 2.1 percent growth

    Import bill falls by over 10 percent in October; export witnesses 2.1 percent growth

    ISLAMABAD: The country’s import bill has witnessed decline by 10.3 percent to $4.07 billion in October 2020 as compared with $3.65 billion in the same month of the last year.

    Meanwhile, the exports have witnessed an increase of 2.1 percent to $2.06 billion in October 2020 as compared with $2.02 billion in October 2019.

    To review the current export trends, a meeting was held on Tuesday, in the Ministry of Commerce, under the Chairmanship of the Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood.

    The trade deficit shrank by 22.6 percent in October 2020 to $1.587 billion, showing an improvement of $463 million over October 2019.

    The advisor was also briefed that during July-October 2020 the exports decreased only marginally by 0.1 percent. The exports during this period stood at $7.54 billion as compared to $7.547 billion during the same period last year.

    He was informed that, during July-October 2020, the balance of trade has witnessed a decline of 4.5 percent to $7.424 billion as compared to $7.776 billion last year.

    The Advisor expressed his satisfaction at the export trends and praised Pakistan’s exporters who made it possible for bringing the exports to pre-COVID-19 levels despite uncertainty and contraction in Pakistan’s major markets.

    He was also briefed on the major export product trends and was informed that during July-October 2020, the export increases were mostly in the value added sectors.

    The increases were witnessed in Home Textiles (10.0 percent), Women’s Garments (20.8 percent), Jerseys & pullovers (35.3 percent), Made-up articles of textile (10.4 percent), Stockings & socks (19.2 percent), Cement (10.8 percent), Pharmaceutical products (26.8 percent), Tarpaulins (66.8 percent), and Made-up clothing accessories (245.2 percent) as compared to the same period last year.

    He was informed that, as compared to the same period last year, the export decreases during July-October 2020 were seen in mostly the non-value added sectors such as Cotton Fabric (-8.0 percent), Cotton yarn (-40.1 percent), Worn clothing (-63.6 percent), Raw Leather (-38.4 percent), Crude Petroleum (-53.7 percent), and Cotton (-95.7 percent). The Advisor was also briefed on the geographical spread and growth of exports.

    He was informed that, as compared to the same period last year, Pakistan’s top five growing markets during July-October 2020 are Indonesia (39.3 percent), Qatar (34.5 percent), Denmark (24.9 percent), S. Korea (22.5 percent) and Afghanistan (15.6 percent).

    The Advisor expressed his hope that Pakistan economy will continue on its upward recovery trend and he directed that the officials of Ministry continue to proactively facilitate exporters and businessmen.

    He further directed that no efforts should be spared to counter the effect of the second wave of COVID-19 in Pakistan’s major markets.

  • Finance Bill proposes significance amendments to income tax at import stage

    Finance Bill proposes significance amendments to income tax at import stage

    KARACHI: The Finance Bill 2020 has proposed significant amendments related to income tax at import stage in Section 148 of Income Tax Ordinance, 2001 as it was described by BDO Pakistan Audit Consultancy and Tax Advisory Firm.

    Following are the changes proposed by the Finance Bill, 2020 in Section 148:

    148(1): The bill seeks to add expression “in respect of goods classified in Parts I to III of the Twelfth Schedule” in sub-section (1) of the Section 148. The tax advisory firm interprets that earlier rates of advance tax at import stage were classified in the First Schedule now a separate Twelfth Schedule is constituted which specifies goods wise rates.

    148(1): The bill seeks to add a new proviso to initiate that the Board [Federal Board of Revenue] may, through a notification in the official Gazette, add a good in any Part or reclassify a good from one Part to another of the Twelfth Schedule. The firm commented that Board [FBR] reserves powers to enter any good in the Twelfth Schedule.

    148(7): The Finance Bill seeks to insert the expression “goods on which tax is required to be collected under this section at the rate of 1 percent or 2 percent by an industrial undertaking for its own use” to make tax adjustable. The firm commented that tax at the rate of 1 percent or 2 percent paid by an industrial undertaking for import of goods for its own use shall become adjustable tax.

    148(7): The bill seeks to omit the hyphen and clauses “(a), (c), (d). The tax advisory firm commented that the omission results in withdrawal of exemption from advance tax at import stage provided to motor vehicles in CBU condition by manufacturer of motor vehicles and large import houses.

    148(8) & 148(8A): The bill seeks to omit sub-section (8) and (8A) of section 148. The firm commented that this will result in end of minimum tax regime for edible oil, packing material and plastic raw material and ships breakers and now tax paid at import stage can be claimed as adjustable tax if industrial undertaking criteria are fulfilled.

    148(9): The bill seeks to amend the term “value of goods” by linking it with retail price under the Third Schedule of the Sales Tax Act, 1990, and other than Third Schedule items. The firm commented that for the purpose of collection of advance income tax at import stage, value of goods has been aligned with the enabling provision of the Sales Tax Act 1990, which specifies the value for the purpose of sale tax at import stage.

    148A: Tax on local purchase of cooking oil or vegetable ghee by certain persons. The firm commented that earlier this section resulted in manufacture of vegetable ghee or cooking oil to pay 2 percent final tax on local purchase of locally produced edible oil. The Bill seeks to omit this section, which would result such manufacturer and taxing real net income of the taxpayers.

  • Mobile phone import climbs up by 79.46% in seven months

    Mobile phone import climbs up by 79.46% in seven months

    KARACHI: The import of mobile phones has surged by 79.46 percent during first seven months (July – January) of current fiscal year owing to reduction in tax rate by the government to promote digital economy.

    The import of mobile phones increased to $760.58 million during first seven months of current fiscal year as compared with $423.82 million in the corresponding months of the last fiscal year, according to import data released by Pakistan Bureau of Statistics (PBS).

    The government announced Tax Laws (Second Amendment) Ordinance, 2019 on December 28, 2019 through presidential order.

    Prior to the promulgation of the Tax Laws (Second Amendment) Ordinance,2019 the rate of withholding income tax on the import of mobile phones was Rs.730 in case of a mobile phones having value exceeding 30 UD dollars and up to 100 US Dollars.

    In order to complement the efforts of the government towards promotion of financial inclusion, e-commerce etc, income tax at the import stage in respect of mobile phones having value exceeding 30US dollars and up to 100US dollars has been reduced from Rs.730 to Rs.100 per mobile phone.