KARACHI: M/s Kamal Limited and several other importers approached the Sindh High Court (SHC) and filed a constitutional petition against levy of regulatory duty @5% imposed vide SRO 214(I)/2001 on the items pigment thickener and acrylic thickener imported between 29 March 2010 and 16 October 2017.
On 17 December 2019, counsel for the importers argued that in normal course of business they imported materials for use in manufacturing, weaving, spinning & finishing of textile goods, inter alia, including the commodities pigment thickener (PCT 3906.9030) and acrylic thickener (PCT 3906.9040) through Karachi Port/ Port Muhammad Bin Qasim.
They further submitted that on arrival of imported goods at Karachi Port. The consignments are examined and goods declaration for sale transportation filed by the petitioners are completed by the respective clearance Collectorate after examination, verification and assessment of the same, on receipt of goods at licensed manufacturing units/ private manufacturing bonded warehouse located in the vicinity of Faisalabad falling under the jurisdiction of M/s Dawood Experts Pvt Limited, are treated as into-bond goods declaration by the regulatory collectorate.
He stated that during March, 2010, regulatory duty of 5% was imposed on import of pigment thickener and acrylic thickener under sub-section (3) of section 18 of the customs act, 1969 vide SRO 214(I)2010 dated 29 March 2010 which subsequently, through various notifications issued from time to time, transformed into SRO 1035(I)/2017 and now into SRO 640(I)/ 2018, however, it is pertinent to mention that in all the schemes of temporary imports of goods for utilization in exported goods like manufacturing bond scheme, export oriented small & medium enterprises, temporary imports for exports, DTRE units & Export Processing Zone etc are exempt from whole of customs duties and other taxes.
Counsel further argued that FBR officials issued vide its letter C. No 3(3)Tar-I/2014 dated 28/01/2019 for levy of recovery of regulatory duty @5% imposed vide SRO 214(I)/2001 on the items pigment thickener and acrylic thickener imported between March 29, 2010 and 16/10/2017.
Citing chairman FBR, Collectorate of Customs Appraisement West, Port Muhammad Bin Qasim and Faisalabad as respondents, petitioner pleaded the court to declare that set aside impugned letter for levy of recovery of regulatory duty.
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