KARACHI: The Federal Board of Revenue has withdrawn exemption of regulatory duty on personal baggage as SRO 1035(I)/2017 superseded SRO 568(I)/2014.
Imports under the Baggage Rules, 2006 were exempt from levy of regulatory duty vide para 2(d) of the SRO 568(I)/2014. “However, now the imports of items liable to payment of duty and taxes under the Baggage Rules, 2006 are also subjected to regulatory duty, as the said provision of exemption has been withdraw,” said an explanation on SRO 1035(I)/2017 issued by Customs Appraisement South.
The Collectorate issued salient features on the new regulatory regime on imports of different items.
It said that SRO 482(I)/2009 had excluded imports against FTA and PTA, whereas SRO 568(I)/2014 did not provide such exclusion on the ground that scope of FTA/PTA is restricted to customs duty, while regulatory duty is outside the ambit of such trade agreements, which was later upheld by the superior courts. Accordingly, SRO 1035(I)/2017 does not provide exemption/concession from regulatory duty to goods earlier covered under SRO 482(1)/2009 and SRO 497(I)/2009.
The Collectorate said that in order to realize the collection of regulatory duty on the items specified in the fifth schedule, condition 2(c) have been amended to exclude Sr. No. 1A of Table of Par-III (import of fresh and dry fruits from Afghanistan) and Sr. No. 2 of Table B of Part – VII (un-manufactured tobacco; tobacco refuse) in addition to the exclusion already available in various notification having been merged.
The regulatory duty was imposed on vehicles (8703) above 1800 at the rate of 50 percent on import of new vehicles and 60 percent on import of old and used. Now, the regulatory duty has been levied on new CBU vehicles (8703) up to 1800CC at the rate of 15 percent and at the rate of 30 percent levied/increased on those above 1800CC. However, there is no change in rate of regulatory duty on imports of old and used vehicles.
The Collectorate said that the clarification regarding the application of rule (2a) of GIR for import of CKD kits/parts by registered manufacturers issued by the Federal Board of Revenue (FBR) on October 08, 2015 shall remain applicable, mutatis mutandis being interpretative in nature.
The Collectorate directed that all concerned officers/officials to go through the said SRO carefully, so as to avoid any misinterpretation, misunderstanding or misapplication. Errors, omissions or lacunae should immediately be brought to the notice of the FBR for suitable corrective action, it added.
