Customs concessionary regime only admissible on air-conditioners’ CKD

KARACHI: The Federal Board of Revenue (FBR) has directed all Collectors of Customs that concessionary rate of customs duty on raw material, components and sub-components for the manufacturing of air-conditioners is only admissible in CKD condition and not in SKD condition.
The directives came after it was noticed that SKD imports were also being made with claim of concession under the SRO No.565(I)/2006.
It further said that the imports of raw material, sub-components and components under concessionary regime of Sr. No. 2 of SRO 565(I)/2006 shall strictly be allowed to the units having sufficient in-house facilities while the importers would make all imports in separate and identifiable form (CKD).
The imports of components and sub-components not mentioned list described by concessionary regime shall be assessed in their own respective headings at the statutory rate of duty while the benefit of any FTA shall also be admissible subject to fulfillment of relevant legal formalities.
Moreover, all the components and sub-components of concessionary as well as tariff regime can be imported against one bill of lading but only in CKD form.
It is not mandatory for the importer cum manufacturer to import raw materials simultaneously with sub-components and components for availing the benefit of said SRO.
However, the issue regarding imports made in SKD condition with claim of concession against the said SRO is under examination by the committee constituted by FBR and would be dealt on receipt of its report.

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