KARACHI: The Federal Board of Revenue (FBR) has directed Collector of Customs Appraisement to recover the amount of duty/taxes short paid taking undue advantage of SRO 565(I)2006 on provisionally cleared import consignments.
The revenue body has made it clear that the concessionary imports must not be allowed to the assemblers of components.
It may be mentioned here that the assembling business has a high weightage in the overall industrial sector of the country.
The major players in the assembling business include auto sector and electronics appliances sector.
The Board has clarified that the above mentioned SRO extends the benefit of concessionary imports of permissible items (inputs) for the manufacture of specified goods to an importer-cum-manufacturer having suitable in-house facilities.
The condition (i) of the said SRO specifically mentions that the importer-cum-manufacturer shall have suitable in-house facilities, to avail the benefit.
The import authorization can not be issued to any applicant who does not have suitable in-house facility.
The purpose of the extending the benefit of concessionary imports is to encourage manufacturing of the products in the country rather than assembling of the components as if the same is allowed it would defeat the purpose of the SRO.