ISLAMABAD: The Federal Board of Revenue (FBR) has imposed 10 percent processing fee on five major categories of Afghan transit commercial goods covering confectionaries/ chocolates, footwear, machinery (mechanical/ electrical), blankets/ home textiles and garments imported into Afghanistan in transit via Pakistan.
The FBR has issued an SRO.1380(I)/2023 here on Tuesday for imposition of the said processing fee on five major categories of Afghan transit commercial goods.
The FBR has received proposals of the Ministry of Commerce that as Customs duty in Afghanistan is extremely low as compared to Pakistan, and this facility is being misused with the connivance of businessmen from both sides.
It suggested that the FBR should to take the following measures to curb the misuse of Afghan Transit Trade: (i) the requirement of Revolving Insurance Guarantee for all Afghan Transit goods has to be substituted by the FBR with bank guarantee at 100% of the assessed value; and (ii) processing fee at 10% ad valorem shall be imposed on the Afghan Transit goods showing unjustified increase in forward transit cargo Afghanistan’s Customs duties on these goods are negligible.
The SIFC Executive Committee has directed secretary Commerce and chairman FBR to propose a mechanism for curbing smuggling of following identified smuggling-prone items including the financial impact for adopting such a mechanism: (i) fabric of all sorts (respective all headings); (ii) machinery (chapter 84 & 85); (iii) tyres (PCT 40,11); and (iv) black tea (0902.3000-4090).
According to the notification issued on Tuesday by the FBR, in exercise of the powers conferred by section 18D of the Customs Act, 1969, the federal government has imposed processing fee at the rate of 10% ad valorem on the following Afghan transit Commercial goods imported into Afghanistan in transit via Pakistan: Major categories, subjected to 10 percent fee, included confectionaries and chocolates covered under the Pakistan Customs Tariff headings (HS Codes) 1704.1000, 1704.9010, 1704.9090, 1804.0000, 1805.0000, 1806.2010, 1806.2090, 1806.3100, 1806.3200 and HS code 1806.9000.
Footwear category covered under the HS codes of 6401.9200, 6401.9900, 6402.1900, 6402.2000, 6402.9900, 6403.1900, 6403.4000, 6403.5900, 6403.9100, 6403.9900, 6404.1100, 6404.1900, 6404.2000, 6405.1000, 6405.2000, 6405.9010, 6405.9090, 6406.1000, 6406.2010, 6406.2090 and 6406.9000.
A wide range of machinery (Mechanical and Electrical) of chapter 84 & 85 are subjected to 10 percent fee excluding Home Appliances (CBUs).
The electrical machinery covers related equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.
Blankets and Home Textiles covered under the HS Codes, i.e., 6301, 6302, 6303, 6304, 6305, 6306, 6307, 6308 and 6310 are subjected to 10 percent fee.
Garments, subjected to 10 percent fee, covered under HS codes of 6101, 6102, 6103, 6104, 6105, 6106, 6107, 6108, 6109, 6110, 6111, 6112, 6114, 6115, 6116, 6117, 6201, 6202, 6203, 6204, 6205, 6206, 6207, 6208, 6209, 6210, 6211, 6212, 6213, 6214, 6215, 6216 and 6217.
The provisions of this notification shall not be applicable on the Afghan Transit Goods Declarations (AT-GDs) filed prior to issuance of this notification, it added.
