ISLAMABAD: The Federal Board of Revenue (FBR) has amended an SRO to allow import of steel products as raw material on reduced rate of customs duty.
The FBR issued SRO 641(I)/2018 by amending the notification SRO 565(I)/2006 dated June 05, 2006. Through SRO 565 the federal government exempted raw material, sub-components, components, sub-assemblies and assemblies as are not manufactured locally imported for the manufacturer of goods from so much of customs duty leviable under the First Schedule to the Customs Act, 1969.
As per the latest SRO 641(I)/2018, the raw material under Cold Rolled Coils (CRC) or Galvanized Iron (GI) Coils have been allowed five percent customs duty with the conditions below:
- If imported by sales tax registered manufacturers of CRC or GI coils;
- Composite units also having pipe manufacturing facility shall not be allowed concessionary import of HRC;
iii. The machines for pickling, cold rolling, annealing, skin passing and re-coiling shall be capable of handling more than 600 mm wide coils. The quota determination by IOCO shall not be done n the basis of stand alone operation of different machines. It shall be done only after verification of complete manufacturing cycle in respect of CRC or GI Coils; and
- Concession shall not be available if CRC or GI coils so manufactured are supplied for manufacturing of pipes.
