ISLAMABAD: Federal Board of Revenue (FBR) has included transit goods into list of auctionable items by amending the Customs Rules 2001 through SRO 564(I)/2017 issued on Monday.
The SRO deleted the clause iv in sub-rule 3 of rule 58 regarding the approval of goods for auction. The clause of sub-rule had restricted transit goods excluding confiscated goods from putting for auction and be sold or disposed of.
In rule 58, the proviso in sub-rule, has been substituted, namely: “Provided that depreciation in the value of goods, excluding vehicles (Chapter 87), construction machinery and Iron / Steel Products, will be allowed after one month from the date of importation, at the rate of one percent per month during the first year, and at the rate of 2 percent per month during the 2nd year onwards, up to a maximum of fifty percent, in case of imported goods. In case of seized goods the period shall be reckoned from the date of seizure;
Provided further that for construction machinery and iron and steel products, the mechanism of depreciation, provided in the first proviso shall be applicable after twelve months from the date of importation.
A new sub-clause 2A has been inserted to rule 58, namely: “(2A) Notwithstanding the mechanism contained in the proviso to sub-rule (2), where the Reserve Price is required to be further revised downwards, due to physical condition of the goods, the Reserve Price shall be determined by a committee constituted by the Collector and headed by an officer not below the rank of an Additional Collector, allowing extent of depreciation after taking into consideration, the physical condition of the goods.
Explanation.- The reserve price shall consist of the depreciated value, duties and taxes and other charges.”
