KARACHI: The Sindh High Court (SHC) has ruled that hot rolled steel sheets in coils, containing 0.0008 percent or more chemical element ‘boron’ would be classified as alloy steel which would attract zero customs duty on its import.
Chief Justice Faisal Arab, who headed a division bench, gave this verdict on a petition filed by Muhammad Sabir, who moved the court against the customs authorities for charging 5 percent customs duty on alloy steel imported from China under Free Trade Agreement.
Addressing the concern of the custom authorities that non-alloy steel is being imported under the garb of alloy steel on reduced duty, the court said that if they are of the view that boron is not inherent part of hot rolled steel sheets and the consignment is declared as alloy steel to avoid custom duty, they would be at liberty to get the consignment re-examined from laboratory.
It ruled that the customs officials after examining this aspect in the light of test results would issue letters to the respective importers whose consignments of hot rolled steel sheets in coils contain more than 0.0008 percent or more boron for release of bank gurantee or pay order deposited with Nazir of the court against provisional release of their consignments. The Court directed the authorities to carry out examination and decide these matters within 90 days.
In the petition, Sabir submitted that he imported hot rolled alloy steel, containing 0.0009 percent boron according to the mill test certificate issued by the manufacturers, classifiable under HS Code 7225,3000. There is zero customs duty on its import under FTA. Nevertheless, the customs staff assessed duty on the consignment at 5 percent.
The court was requested to declare that hot rolled steel sheets containing 0.0008 percent or more boron would be classified as alloy steel and there is zero duty on its import.
