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Customs duty concession: FBR weighs up pros, cons of SROs

Customs duty concession: FBR weighs up pros, cons of SROs

ISLAMABAD: The Federal Board of Revenue (FBR) has completed review of a number of concessionary SROs for amendment and revision to withdraw concessions in customs duty at the import stage in the new budget 2014-15.

The FBR has analysed the SROs on certain principles for review of customs concessions. The customs related SROs have been considered by FBR for simplification/phasing out under the exercise in consultation with the relevant government department. Under the exercise, the FBR has analysed SRO 567(1)/2006; rationalisation of customs duty on Pathalic Anhydride (PA) industry; SRO 575(1)/2006; SRO 809(1)/2009; SRO 678(1)/2004; SRO 565(1)/2004; retaining entries under SRO 565(1)/2006; explanation to be added under SRO 565(1)/2006 and other proposals related to SRO 565(1)/2006.

The FBR’s exercise has also analysed amendment to SRO 565(1)/2006 (S No 2) – change in description of components; amend to SRO 565(1)/2006 (S No 3) – change in description of manufactured goods; amend to SRO 565(1)/2006 (S No 4) – to exclude “Fin-Type Evaporator” for the manufacture of refrigerators /

visicoolers; amend to SRO 565(1)/2006 (S No 5) – to add “retarder / speed reducer without motor” for the manufacturing of semi-automatic washing machines; amend to SRO 565(1)/2006 (S No 6) – to incorporate detailed description of input materials used in the manufacturing of car air conditioners; amendment in SRO 565(I)/2006 (S No 9) – change in description of manufactured goods; amend to SRO 565(1)/2006 (S No 20) – addition of raw material; amend to SRO 565(1)/2006 (S. No 64) – PVC manufacturing industry interpretation and application of SRO; amend to SRO 565(1)/2006 (S. No 74) – to add and correct certain entries; amendment in SRO 565(1)/2006 (S.No 88) – to delete CRC steel coils from welded steel pipes / tubes; amendment in SRO 565(1)/2006 – add special condition for the manufacturers of CRC steel coils from HRC steel coils (S.No 91); amendment in SRO 565(1)/2006 (S. No 106) – to delete locally manufactured raw materials.

 

The FBR has analysed SROs to encourage local manufacturing of automatic washing machines (new addition); local manufacturing of multipurpose engine above 36 hp (new addition); review of tariff structure on abrasive cloth sheet, belts/roll, sand paper, fibre disc and buffing paper manufacturing industry (new entry); duty tax exemption on local manufacturing of lead lamps (new entry); rectification of tariff anomaly faced by sodium laryl ether sulphate manufacturers (new entry); reduction in duty on import of inputs used for the manufacture of agricultural machinery & implements.

The FBR has also analysed amendment in SRO 655(1)/2006 – export of automotive components & assemblies; amendment in SRO 656(1)/2006 – revision of minimum in-house facilities; amendment in SRO 656(1)/2006 – reduction in duty on tyres for vehicles of heading 87.01 under HS code 4011.2090 to 5%; amendment in SRO 499(1)/2009 – imports vs local assembly of HEVS; amendment in SRO 693(1)/2006 & customs tariff to add the parts in respect of the new vehicles; amendment in SRO 693(1)/2006 & customs tariff – levy of additional duty on the import of localised parts / components of cars, motorcycles & tractors; amendment in SRO 693(1)/2006 and customs tariff – protection to locally manufactured road wheels; amendment in SRO 693(1)/2006 and customs tariff – re-classification of automotive whether strips (seals); amendment in customs tariff – reclassification of air and fuel filters to cover all types of locally manufactured filters; amendment in customs tariff – rationalising tariff for pneumatic tyres of rubber; amendment in customs tariff – removing anomaly on unit of measurement and valuation-of auto parts; amendment in customs tariff – recommendations for insulators industry; amendment in customs tariff- rationalisation of customs duty on import of welded steel pipes; amendment in customs tariff – definition of secondary quality steel products; amendment in customs tariff – reduction in duty on ferrite core transformers and inductors.