ISLAMABAD: The Federal Board of Revenue (FBR) increased regulatory tariffs on the importation of 80 non-essential / luxury items and reduced Additional Customs Duties (ACD) from seven to six percent on goods falling under 2,436 tariff lines.
Through the 2021 budget bill, the government removed anomalies in the cascading tariff structure in the 2021-22 budget, while promoting and protecting domestic industry by introducing targeted interventions.
Streamlining R&D on the import of mobile phones to promote local manufacturing and create jobs would generate Rs16 billion.
In addition, the government has improved import substitution by rationalizing tariffs on industrial raw materials / intermediate goods.
The government facilitated export-oriented manufacturing by revising existing exemption regimes and export programs.
The industrial relief measures revealed that the government’s announcement of the reduction / exemption of customs duties (CD), additional customs duties (ACD) and regulatory duties (RD) on the import of goods falling under Pakistan Customs Tariff Code (PCT) 589 is to induce the textile industry, as well as the reduction / exemption of CD, ACD and RD on the import of HRC flat rolled products and stainless steel.
The government further unveiled the CD and CDA reduction / exemption on raw materials and intermediate goods and point-of-sale machinery under 328 tariff lines as a result of tariff rationalization.
To incentivize the pharmaceutical sector and keep prices stable in the market, the government exempted CD and ACD on more than 350 APIs, factories, machinery and equipment subject to a five percent preferential rate and on raw materials for AD syringes and reduction. in price on the finished auto-blocking syringes.
The government further reduced / exempted inputs / raw materials for the agrifood industry.
The government further reduced CDs and ACDs on uncoated paper and board for the printing and graphic arts industry.
The government has reduced / exempted CD and ACD on vaccines for veterinary drugs and food additives to incentivize the dairy sector, as well as on products falling under more than 100 PCT codes relating to the tourism industry.
The government further reduced tariffs on raw materials / inputs to the footwear industry.
Other measures included the reduction / exemption of CD and ACD on inputs for the poultry industry and raw materials for the aseptic plastic packaging manufacturer.
The government has exempted the ACD on importing raw materials for cable / fiber optic manufacturers.
The government has also reduced / exempted CD and ACD on raw materials for the paint industry, raw materials for the chemical and artificial leather industry as well as inputs for the electronics manufacturing industry and raw materials / inputs of furniture, coatings, boiler manufacturing industry, coil manufacturing and cops industry etc …
While providing relief to the common man, the government reduced the ACD on goods under 2,436 tariff lines relating to a 20 percent slice of tariffs from seven to six percent.
The government has granted a six-month extension of the tariff exemption on the importation of items related to Covid-19.
The government exempted DCs and ACDs on Ready-to-Use Complementary Foods (RUSF) and Ready-to-Use Therapeutic Foods (RUTF) inputs as well as on six life-saving drugs.
The RBF increased the value of unsolicited gifts by post or courier from Rs 20,000 to Rs 30,000.
The government exempted CD and ACD on the import of airtight bags and grain storage cocoons.
The FBR has also rationalized the pricing structure of the automotive sector. In revising the Regulatory Fee (DR) regime, the FBR streamlined R&D on importing mobile phones to encourage import substitution.
In addition, the RBF has increased R&D rates on importing non-essential / luxury items to support local industry.
The government has also reduced R&D on imports of cocoa paste, butter and powder being industrial inputs.
While granting export facilitation measures, the government has proposed a new uniform export facilitation program to facilitate doing business.
However, the existing schemes will be phased out over the next two years.
The FBR also proposed a bond-to-commodity bond transfer via WeBOC without the prior approval of the collector. The RBF has reduced R&D on the export of molasses, hides and leathers to reinforce the country’s positive image with our major trading partners around the world.
As part of the budget bill, the FBR established border subsistence markets to alleviate the problems faced by people residing in border areas due to fencing and anti-smuggling measures.
As part of the legislative changes, the government introduced a concept of a common bonded warehouse to encourage small and medium-sized businesses.
And also, customs collector empowered to determine the customs value there by facilitating trade.
The government has authorized the Director General of Evaluation to make an appropriate decision on appeal and to cap the time limit for such proceedings.
Facilitation of exchanges by avoiding the time spent on unnecessary disputes.
The government also allowed importers to change the manifest until the berthing event without seeking approval from customs authorities and hence ease of doing business.
The government allowed customs authorities to authorize a good faith change in the declaration of in-bond goods and thereby facilitate trade.
The government allowed the collector to extend the storage period by six months. Reduce application processing time and promote ease of doing business.
The RBF has reduced the time limit for adjudicating cases in which the disputed goods are in seaports, airports or dry ports, thereby lowering the cost of doing business.
The government allowed the customs authorities to issue a correction / corrective certificate in the event of a real / obvious error and to facilitate trade.
The government has also included other law enforcement agencies in an attempt to reward and increase their motivation.
The government will give the possibility to registered users of WeBOC in accordance with the canons of natural justice.
The government has also increased the period of validity of advance rulings from one year currently to three years in accordance with international standards and their trade facilitation.
The RBF has a provision for the Classification Committee to avoid unnecessary litigation due to classification conflicts and, therefore, to reduce the cost of doing business.
The government has removed fines for delay in filing the declaration of goods, making it easier to do business.
As part of the enforcement measures, the government included the master bill of lading and certificate of origin in the existing definition of the document to deter origin fraud, retail in the definition of smuggling to deter smuggling retailers to sell contraband goods.
The government made shipping companies responsible for re-exporting prohibited items imported in commercial quantities.
The government has increased the amount of the fine for not placing the invoice and packing list in the container to instill compliance.
The government has discouraged smuggling by denying the release of vehicles repeatedly used for smuggling against a refund fine.
Copyright Business Recorder, 2021