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Import of Chinese items: FBR revises duty concession on 28 items
 admin May 3, 2010, 06:35:31 AM 

ISLAMABAD: The Federal Board of Revenue (FBR) on Friday amended the budget decision and increased import duty on the import of 28 products from China. Import duty exemption in access of 35 percent was made available in the budget 2009-10 on import of 21 products; however, the government has reviewed its budget decision and has now allowed customs duty exemption in access of 37.5 percent on import of such products, projecting an increase of 2.5 percent, with effect from June 14, 2009. In budget the government had allowed under SRO 497 (i) 2009 customs duty exemption in access of 35 percent on import of 21 products like tiles, wash basin, other wash basin, dinner sets, dishes, plates, tea cups and saucers, other similar products, table-wares kitchen-wares, others of porcelain of China, window or wall type, self contained or split type comprising of inner and other unit whether or not import separately and others. According to the revised decision announced on Friday customs duty exemption in access of 37.5 percent would be available on import of these products from China with retrospective affect. Similarly, customs duty exemption in access of 35 percent on 7 products was announced in budget 2009-10 that has also been increased to 37.5 percent on import of incorporating a refrigerating unit and a value for reversal of the cooling/heat cycle (reversible heat), other, incorporating a refrigerating unit, not incorporating a refrigerating unit, combined refrigerator freezers fitted with separate external doors, compression types, freezers of chest type not exceeding 800 L capacity, other refrigerating or freezing chests, cabinets, display counters, showcases and similar refrigerating and freezing furniture. According to the new SRO 595 (i) 2009 the federal government is pleased to direct that in its notification SRO 497 (i) 2009 dated June 13, 2009, the following amendments shall be made and shall be deemed always to have been made, namely:- In the aforesaid notification, in table, against serial numbers 1 to 21 and 24 to 30 in column (1) in column (4) for the figure 35 percent the figure 37.5 percent shall be substituted. This duty concession is conditional in nature and requires importers that goods are manufactured or produced and imported in conformity with the provisions of the Ministry of Commerce notification SRO 1286 (i) 2005, dated December 24, 2005 read with Import Policy Order, 2008. Import duty rate on items mentioned in ‘no concession list’ of Pakistan-China FTA would not be higher than WTO bound rates, reveals the budget document available with Daily Times. Duty structure for items mentioned in ‘no concession list’ of Pakistan-China FTA: SRO 659 (i) 2008 provides concession, exemption to imports from China under Pakistan-China Free Trade Agreement. In case of items specified in the table of ‘no concession list’ of the FTA the customs duty cannot be charged higher than 50 percent of the World Trade Organisation (WTO) bound rates on the listed items. However, this obligation escaped sight while levying regulatory duty on 379 items in Pakistan in August 2008. It had been proposed in the budget that maximum duty incidence allowed under FTA arrangement on items mentioned in ‘no concession list’ may be notified whereby total duty on these items would not be charged above the specified rates therein, provided the imports are made from China as per provision of notification issued under Pakistan-China FTA.

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