ISLAMABAD: The Federal Board of Revenue (FBR), in the response an alert by the Director Post Clearance Audit (PCA) regarding clearance of construction machinery, has written to all chief collectors and director generals vide OM on May 5, 2015 , informing them that the Ministry of Commerce has already clarified determination of HP of used and second hand prime movers (HS 87. 01) by PSI companies.
Since the issue was clarified by the governing ministry and its instructions were circulated by the board, thereafter, issuance of any ‘alert’ and equivocal correspondence on the subject by the PCA Headquarters director only added avoidable confusion.
The letter states, “The board is, therefore, pleased to advise the subordinate formations to make a reference to the board before issuing any alert concerning confusion or reservations in implementation of instructions issued by the relevant ministry and circulated by the board.”
This letter has been issued by the Secretary (Tar-III) Nisar Ahmad on behalf of the board and in his letter to all chief collectors, he also request for necessary action in this regard.
It may be mentioned here that Director Dr. Kamal Azhar Minhas has alerted all chief collectors of Customs Central, North and South Regions to the clearance of used transport equipment, cement bulkers and prime movers in Terms of IPO 2013.
He requested all chief collectors and director generals to take immediate cognizance of the issue to thwart attempts of clearance of prime movers below 380 HP in the guise of MOC office memorandum dated May 5, 2016.
