KARACHI: The Federal Board of Revenue (FBR) has allowed exemption on the import of LED lights under Serial No 24(2) of Fifth Schedule of the Customs Act, 1969 so as to avoid delay and litigation in the said issues.
“I am directed to refer to Collectorate’s letter dated September 22, 2015, seeking clarification whether LEDs/SMDs with or without ballast with fittings and fixtures, having specification 3W, 6W, 7W, 12W etc, having 50/60 Hz, 85-265V, qualify for exemption from customs duty in terms of Sr No 24 (2) of Part-I of Fifth Schedule to the Customs Act, 1969.
The Directorate General of Intelligence and Investigation has also issued an alert on October 9, 2015 about the LED lights qualifying under the said provisions. Similarly, Model Customs Collectorate Appraisement-West, Karachi vide letter dated October 30, 2015 has circulated an assessment alert on this issue. “Hence, warranting a clarification on the subject,” according to a letter available with Customs Today.
“The varying practices being followed by the field formations on imports of LEDs/SMDs viz aforesaid exemption are causing hardships for the importers leading to concessionary controversy, delays and litigation”, the letter added..
“So far as consignments having AEDB certification is concerned, there is a dire consensus among the field formation in allowing the exemption. However, there appears to be a lack of consensus on extending the benefits in such LEDs/SMDs imported as standalone consignments. The issue has been examined in consultation with stakeholders i.e. AEDB, ENERCON and other experts in this field”.
“Keeping in view the existing formulation, there is a dire need to have an objective criterion/limiting benchmark for allowing exemptions in a uniform, transparent and smooth manner. Board is, therefore, pleased to clarify that only such consignments of LEDs/SMDs would be eligible for exemption of customs duty under Sr No 24(2), Part-I of the Fifth Schedule to the Customs Act, 1969, where the operable voltage of LEDs/SMDs does not exceed 60 Volts”, the letter concluded.
