ISLAMABAD: The Federal Board of Revenue (FBR) has taken decision on the issue of exemption of Light Emitting Diode (LED) and Surface-Mount Device (SMD) lights.
As per decision, LED lights up to 60 volts will be exempted from import duties for being categorized as the ones promoting primarily renewable energy technologies.
Sources told Customs Today that LED/SMD with or without ballast with fittings and fixtures for promotion of renewable energy technologies are exempted from levy of whole of customs under fifth schedule to the Customs Act 1969.
Under the fifth schedule to the customs act 1969, imports of plant, machinery, equipment and apparatus including capital goods various industries and sectors as well as the imported goods are not listed in the locally manufactured items.
Moreover, in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, lay out plan and drawings.
The LEDs/SMDs which qualify under the said serial number of schedule are also exempt from the levy of regulatory duty. Whereas LEDs/SMDs which don’t qualify funder the exemption under said serial of the schedule attract high rate of customs duty 20% and also subject to regulatory duty 15%.
However, the source said that taking a strong notice of misuse of the said schedule regarding exemption of directorate general of intelligence and investigation of FBR issued an intelligence alert requiring the field formations to ensure conditions of promotion of renewable energy technologies.
The abusers of this exemption took refuge behind the multiple explanations and interpretations said schedule. Therefore, Collectorate of Customs Islamabad requested FBR to for issuance of a clarification in this regard. In this connection, LED lights of 3W, 6W, 12W, 50-80HZ and 85-265V were presented before the FBR.
The source said that FBR examined the issue in consultation with stakeholders including directorate general intelligence and investigations, Alternate Energy Development Board (AEDB) and technical field experts having PhD in electronics.
After consultation, FBR constituted a committee comprising these stakeholders to prepare recommendations on this issue. The committee held detained discussions on this issue and then moved the recommendations to FBR. The source said that FBR in lieu with these recommendations made decision on this issue.
