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Home Islamabad

FBR recommends increase in custom duty on communication equipments

byM. Faizan
31/05/2016
in Islamabad, Latest News
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ISLAMABAD: The Federal Board of Revenue (FBR) has proposed increase in customs duty on communication machinery and equipment (PCT Code 8517.0000) from 10 to 15 percent in budget 2016-17.

Sources said that the FBR suggested this change should be made through tariff. It will reduce the cases of classification disputes and will bring transparency in the clearance of communication equipment.

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According to the proposal HS Code covers communication equipment; however, the duty structure varies from 2 percent to 10 to 15 percent under various sub-headings. The variation in tariff rates under various sub-headings is always a cause of classification disputes between the importers particularly cellular companies and the department therefore it is proposed that tariff rates may be uniformed under all the sub-headings covering communication equipment imported under PCT Heading 8517 other than cellular mobile phones falling under PCT Heading 8517.1210 where a fixed customs duty of Rs 250 set is applicable.

It is pertinent to mention that under PCT Heading 8517.6290, the rate of customs duty drops from 15 to 0 percent if benefit of FTA is extended. Whereas under PCT Heading 8517.7000 the rate of customs duty fall from 10 to 5 percent on claiming the benefit of FTA.

The telecommunication sector while importing the parts for their use declares them as telecom equipment and claims the benefit of FTA under PCT Heading 8517.6290 instead of 8517.7000.

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