RECORDER REPORT

ISLAMABAD: The government has levied/increased RD on 565 non-essential items by various rates ranging from 5 percent to 15 percent including the imposed 5 percent RD on the import of synthetic filament yarn (of polyesters) and 10 percent on animal protein meal, increased the 10 percent to 25 percent RD on betel nuts, @ Rs 200/kg levied on betel leaves.

According to the Finance Bill 2017 unveiled here on Friday, a big revenue generation measure on customs side proposes to increase the CD @ 11 percent and 16 percent exempted and instead RD at uniform rate of 9 percent levied on the telecom equipment. Concession in duty/taxes on Hybrid Electric Vehicles above 2500cc has been withdrawn.

Additional duty on cylinder head for motorcycles levied, extension of concession on 11 more components of trailers, increase of CD on aluminum beverage cans from 11% to 20%. The Finance Bill 2017 proposed to levied/increased regulatory duty (RD) on 565 non-essential items by various rates ranging from 5% to 15% including the imposed 5 percent regulatory duty (RD) on the import of synthetic filament yarn (of polyesters) and 10% on animal protein meal, increased the 10% to 25% RD on betel nuts, @ Rs 200/kg levied on betel leaves.

The government being a signatory to the HS Convention is obliged to adopt the HS 2017, incorporated its nomenclature/New HS Codes in Pakistan Customs Tariff with addition, creation and deletion of local PCT codes and also made relevant changes in the Fifth Schedule and SROs/Notifications where HS Codes have changed.

As per Finance Bill 2017, the FBR has proposed to rationalise the customs tariff introduced the separated CD rate on Bituminous coal and other coal equalized @ 5%, however, for the power projects in IPPs mode, CD on import of both types of coal reduced to 3%, separate PCT code for compressors of vehicle @ 35% CD created, separate PCT code for classification of electric cigarettes created at 20% CD.

Under the Finance Bill, tariff slabs reduced duty from 11% to 3% and removal of 5% RD on grandparent and parent stock of chicken, from 11% to 3% on import of hatching eggs 10% to 5% on aluminum waste or scrap, from 16% to 5% on fabric (non-woven) for pharmaceutical industry. Custom duty also reduced on uncoated polyester film and aluminum wire from 20% to 11% for manufacturers of metalized yarn 13. CD reduced from 20% to 16% and from 16% to 11%, on raw materials for manufacturers of baby diapers.

Under the Finance Bill 2017, some exemptions also introduced like, exemption of 3% CD on raw skins & hides, exemption of 16% CD on stamping foils, exemption of 3% CD on import of ostriches, exemption from CD extended on import of combined harvester's threshers up to 5 years old while 10% and 20% RD levied on five to ten years and more than ten years old respectively.

The Finance Bill 2017 also proposed extension of concession on 11 more components of trailers, concessionary rate of 11% available on Set top boxes, TV broadcast transmitter and reception apparatus etc. extended till 30.6.2018. Surcharge in excess of 0.25% for cargo in-bonded at Karachi for upcountry bonds exempted, expansion of scope of exemption on import/donation by allowing imports and donation of federal, provincial, AJ&K, Gilgit-Baltistan governments, NDMA, PDMA and government emergency/ rescue services. Import of solar panels and related components were exempted from the condition of 'local manufacturing' till 30th June 2017 which is extended till 30th June, 2018.

The Finance Bill 2017 proposed to insert the new definition and some new provisions in Customs Act, 1969 after clause (y), the controlled delivery means supervised and coordinated operational activities that allow suspected consignments of prohibited and restricted goods, including items mentioned in clause (s), to pass out of, through or into the territory of Pakistan, with a view to identifying persons involved in the commission of an offence cognizable under this Act.

After section 3AA, the following new section shall be inserted, namely 3AAA. The China-Pakistan Economic Corridor shall consist of a director general and as many directors, additional directors, deputy directors, assistant directors and such other officers as the board may, by notification in the official gazette, appoint.";

After Clause (1) of section 195, (1A) is also inserted as, where it is deemed necessary to pass fresh orders, in respect of proceedings referred to in sub-section (1), the Board or Collector of Customs or Collector of Customs (Adjudication) may pass the order itself or himself, as the case may be, or assign the case to an officer of equal or higher rank, who may have passed the earlier order, for passing such order as he may think fit.

After section 219, the following new section shall be inserted, namely, 219A. Power to enter into mutual legal assistance agreements on customs matters: (1) The Board may, of its own motion or upon request from an international organization, a foreign customs administration, or any other foreign competent authority, enter into memorandum of understanding pertaining to mutual legal assistance in customs matters, or in pursuance of any bilateral or a multilateral agreement, undertake activities, which, inter alia, include: (a) coordinated border management; (b) information and data sharing; (c) bilateral and multilateral international special operations, including, by the method of controlled delivery; (d) capacity building and technical assistance initiatives; and (e) any other matter to which both or all parties agree.

After section 221, following new section shall also be inserted, 221-A. All notifications and orders issued and notified in exercise of the powers conferred upon the federal government, before the commencement of Finance Act 2017, shall be deemed to have been validly issued and notified in exercise of those powers, notwithstanding anything contained in any judgment of the High Court or Supreme Court.

The bill also proposed to prescribe the rules for wearing of uniform by officers and staff of Customs Service of Pakistan in section 8A. A new clause (b) by existing clause (b) shall be renumbered as clause (c) in proviso of section 98 of the Customs Act, 1969 also inserted as, by the Chief Collector of Customs, for a period not exceeding one month in case of notified perishable goods and a period not exceeding three months in case of nonperishable goods.

The finance bill 2017 also proposed to insert the new clause 7A in section 156, (a) in the TABLE. If any agency or person including port authorities managing or owning a customs port, customs airport or a land customs station or a container freight station, fails to entertain a delay and detention certificate issued by the officer of customs, such agency or person or port authority shall be liable to a penalty not exceeding five hundred thousand rupees.