KARACHI: The MCC Appraisement-East has suggested that the minimum rate of customs duty should be 2 percent from the existing 1 percent on all PCT headings. It has also suggested increasing the duty on various other items.
The Appraisement-East in its proposals for the budget 2015-16 has suggested a number of measures in the customs tariff with a view to increasing the government’s revenue as well as discouraging mis-declaration and under-invoicing practices.
The Appraisement-East has proposed that the customs duty may be increased from 10 percent to 25 percent in the rate of coffee as this drink is not considered to be a common man’s one, and the elite class can afford higher prices.
Naphthalene having aromatic constituents exceeding from the weight of non-aromatic constituents is classifiable under PCT Heading 2707.4000 chargeable to customs duty at 5 percent. Whereas other than aforementioned naphthalene is classifiable under PCT Heading 2902.9010, chargeable to customs duty of 10 percent. To eliminate the chances of mis-declaration, duty slab on both the items may be rationalised to 10 percent.
It said that carbon black oil is classifiable under Heading 2707.9910 chargeable to customs duty at 5 percent. Whereas carbon of rubber grade is classifiable under Heading 2803.0010 chargeable at 25 percent. To eliminate the chances of mis-declaration, duty slab on both the items may be rationalised to 20 percent.
The Appraisement-East also suggested that the regulatory duty may be enhanced from 10 percent to 15 percent on betel nuts being a non-essential item having in-elastic demand, as it will boost revenue.
Piston type air compressors and screw compressors are subject to customs duty at 15 percent, while the rate of duty on air compressors mounted on wheeled chassis for towing is 5 percent, which should be made at par with that of piston type and screw type air compressors, ie 15 percent.
“All other bearings (ie tapered, spherical, needle, cylindrical etc) specified under PCT Heading 84.82 have the rate of customs duty at 10 percent. Therefore, it is proposed that duty on ball bearings should be raised from existing 5 percent to 10 percent.
The collectorate also suggested that the rate of duty on sealed lead acid batteries used in telephone exchanges should be increased from existing 10 percent to 20 percent. In order to avoid higher rate of duty ie 25 percent and regulatory duty of 5 percent, the importers prefer to import appliances under PCT Heading 8509 in parts in different consignments, therefore, the rate of duty on parts for food grinders, mixers and juice extractors etc should be increased from existing 10 percent to 20 percent.
It further proposed that the rate of duty on TV tuner should be increased from existing 5 percent to 20 percent, while duty on multi-core, flexible flat type copper insulated should be increased from existing 10 percent to 25 percent.
As per Sr.30 of Appendix-B-II, of IPO, 5 items namely X-Ray machines, dialysis machine, anaesthesia apparatus, reverse osmosis equipment and ophthalmic instrument and appliances, if imported in used condition, required inspection certification issued by internationally recognised inspection agency specialised in the field to the effect that the equipment is free from bacteria material injurious to health.
No specialised companies for above certification have been specified, which causes suspicions and delay in clearance for ascertainment to bona fide of the furnished certification. It is therefore suggested that a list of inspection/certification agencies should be made part of the import policy order (IPO) as an annexure like the one given for PSI agencies under Appendix-D.
