KARACHI: The Customs Classification Committee headed by Zeba Bashir Ahmed has withdrawn the Classification Ruling No.31/90, and now hydraulic pumps used with agriculture tractors are eligible for concessions under SRO 655(I)/2006.
MCC (Appraisement) Lahore sent a reference that “Agriculture tractors cannot operate and perform functions of agricultural activities such as ploughing etc. without Hydraulic Pump, which is thus an integral part of Agriculture Tractor.
Hence the parts imported for the manufacture of Hydraulic pumps are entitled to benefit of SRO 655(1) 2006. The EDB, has confirmed to the Lahore Collectorate that “Hydraulic Pump is an integral part of Agriculture Tractor”.
The MCC (Appraisement-West) has agreed to the viewpoint of MCC Appraisement Lahore and opined that the Classification Ruling issued under the Public Notice 31/90 is restricted to classification of the description of goods i.e. “Hydraulic Pump” under HS Code 8413.6000.
Notification SRO 655(1)/2006 allows concession of Custom duty of zero percent on import of raw materials, sub-components, sub-assemblies and components imported for manufacture of components and assemblies for further utilization in the manufacturing of Agricultural Tractors. SRO does not specify the HS code of these inputs. Therefore, it does not limit the concession to the extent of “auto parts” only. Hence, the Classification Ruling No.31/90 has been withdrawn.
Sources said that Zeba Bashir Ahmed has been quite efficient and streamlined the classifications of a number of importable items in a record time, which not only plugged revenue leakage, and also facilitated importers.