MULTAN: Model Customs Collectorate Multan has filed a reference to Federal Board of Revenue (FBR) regarding the Sales Tax exemptions on the import of Chemical Zinc Sulphate, used in production of poultry and cattle feed.
The import and supply of the ingredients of poultry and cattle feed has been exempted from the Sales Tax under vide SRO 1007(I)/2005.
The Chemical Zinc Sulphate of PCT heading 2833.2600 is exempted from the sales tax used in the production of feed grade under vide serial No .5 of the SRO 1007(I)/2005.
On the other hand, the Zinc Sulphate is not exempted from the sales tax under vide serial No.28 of the same SRO 1007(I)/2005 and the serial No.28 do not prescribe any regulatory mechanism to ensure its use in poultry and cattle feed industry.
The clearance record of Zinc Sulphate in the country reflects that large numbers of consignments were cleared under vide SRO 1007(I)/2005 during last three months which were imported by different importers for the formulation of feed grades.
Different laboratory tests were conducted to ensure its feed grade status to overcome its ambiguity.
The laboratory test of Zinc Sulphate on March 17, 2014 at Customs House Karachi stated that Zinc Sulphate Monohydrate consists of 33% feed grades which is in the form of white globules and may be used in the feed preparations.
The same chemical was examined by the Lahore dry port laboratory for further clarity of chemical and found 33 percent white granule and it mainly used as nutritional additive in animal feed and also used as a fertilizer in the agriculture. Zinc Sulphate is also used in synthetic fiber industry, pharmaceuticals and for fungicide etc.
However, the Zinc Sulphate is used for multiple purposes so it needs proper regulatory mechanism to get clearance under the prescribed SRO 1007(I)/2005 and to ensure its specific use in feed industry. Due to multiple uses of Zinc Sulphate specifically also used in feed grade needs to determine to allocate the quota of feed industry according to their requirements.
The Model Customs Collectorate Multan has asked Federal Board of Revenue to advice all collectorates regarding the assessment of Zinc Sulphate Monohydrate 33 percent. MCC Multan said that Zinc Sulphate Monohydrate 33 percent should be cleared provisionally under section81 of the Customs act 1969 securing differential amount until the announcement of a regulatory mechanism by the Federal Board of Revenue.
