KARACHI: Model Customs Collectorate Appraisement West in its proposals for Federal Budget 2017-18 has recommended several amendments in the tariff structure to rationalize the duty and avoid unnecessary disputes.
There is no specific distinguishing characteristic between Mineral Oil and White Oil. The Mineral Oil classifiable under PCT 2710.1991 Customs Duty of 3.0% and White Oil Classifiable under PCT 2710.1996 Custom Duty of 11%.
Some unscrupulous importers take the advantage of this by declaring White Oil as Mineral Oil, TR of both items are same. Therefore it is proposed that rate of Customs Duty of Mineral Oil from 3.0% to 11% may be changed.
The appraisement has proposed imposition of 20 regulatory duty (RD) on the import of gas engines. Gas Engines are different from Gasoline Engine only with one Additional Feature that is venturi system. Gasoline Engines are Classified under HS Code 8407.9090 where rate of duty 20% and FTA 16%. Application of RD on Gas Engines will rationalize duty and control misuse of classification.
Appraisement West has proposed RD of 35 percent on parts of various types of engines and parts through SRO 568(I)/2014 as it is difficult to differentiate parts of various engines at the time of examination, therefore uniform rate of duty on all engine parts is proposed to avoid mis-declaration.
To bring at par duty structure as 8503.0020 attracts CD 11% since parts of the two PCT Headings 8503.0010 and 8503.0020 cannot be differentiated, hence same rate i.e. 11% is also proposed for 8503.0010.
Domestic appliances attracts custom duty of 20%. Parts of these domestic appliances may also be subject to same rate of duty to ensure no complete unit is imported in garb of parts.
Speakers attract Custom duty of 20%. Parts of speakers may also subject to same rate of duty 20% as that of speaker.
All parts under PCT heading 8529 attract 20% rate of duty. Commercial importers try to clear TV Boxes as TV Tuner in this heading. It is proposed that duty may be enhanced to 20% to streamline the import of parts of 8529.
The appraisement has proposed imposition of RD of 20 percent through SRO 568(I)/2014 on import of shavers, Hair-Clippers, Hair-Removing Appliances and Parts while RD of 15 percent is proposed on Dubbing System of a kind used in Film studios and production houses and their parts.
The Federal Government levied Regulatory Duty 50% on new vehicles above 1800cc engine capacity (excluding Hybrid Electric Vehicles) vide amending SRO 1190(I)/2015 whereas the old & used vehicles of same engine capacity are subject to levy of RD of 60%.
After the High Court vide order to declare recently vehicle of some cases, as new, keeping in view the increasing trend of import of new vehicles, it is proposed that the rate of Regulatory Duty on new vehicles may be brought at par with the existing rate of 60% applicable on old & used vehicles. This will not only eliminate the disparity but also yield additional revenue for the National Exchequer.
