MCC Port Qasim proposes increase in rate of duty on several items

KARACHI: The MCC Port Qasim has proposed to increase rate of duty on several products to ensure uniform treatment of like goods as well as safeguard the revenue. It is proposed that rate of duty on concrete mixer lorries should be increased from 30 percent to 60 percent as budgetary measure/ revenue consideration as the import of said item is increasing and to avoid any potential misuse.

MCC Port Qasim in its proposals for Budget 2015-16 has proposed that the rate of duty on gas engines and parts of gas engines should be increased from existing 5.0 percent to 10 percent as statutory rate of duty on gas generators is 10 percent and importers are importing gas engine only at 5.0 percent duty which causes loss of revenue. This would safeguard the government revenue and ensure equal treatment to gas engines and its parts.

It is proposed that another subheading may be created under heading 8418.8110 for classification of compressors for automotive use as the auto parts attract 35 percent rate of duty across the tariff.

Geared Pumps are in fact rotary positive displacement pumps as elaborated in explanatory notes and both subject pumps are specified under PCT heading 8413.5000 and 8413.6000. Therefore, either PCT heading 8413.8110 may be omitted or rate of duty may be enhanced to 20 percent from existing 5.0 percent to remove ambiguity regarding assessment of geared pumps.

Domestic appliances attract custom duty of 20 percent while parts attract duty of 10 percent. These parts may also be subject to same rate of duty to ensure no complete unit is imported in garb of parts.  Speakers attract custom duty of 20 percent while parts attract 15 percent duty. These parts may also be subject to same rate of duty to ensure no complete unit is imported in garb of parts.

All parts under PCT heading 8429 attracts 20 percent rate of duty. Same treatment may be given to TV tuners, which attract 5.0 percent duty.

The rate of duty on sealed lead-acid batteries used in telephone exchanges may be enhanced from 10 percent to 20 percent at par with the rate of duty against PCT Heading 8507.2090 which covers Sealed Lead Acid Batteries other than meant for Telephone Exchanges.

The Collectorate has detected many cases of misuse of this PCT Heading by the Cellular Telecom Companies operating in the country. Even otherwise, the telecom industry is flourishing and has attracted massive investments over the last decade. Since it is leading consumer industry and earning huge profits, it does not require special treatment.

MCC Port Qasim has proposed blood refrigeration is required to get concessionary rate of Customs Duty, as the item is for Community Health Services.

Mis-classification of telecom equipments imported by Cellular Companies was detected by the Department and some other quarters involving huge amount of duty / taxes. Therefore, the rate of duty on other telecom equipment under PCT 8517.6990 should be increased from 10 percent to 20 percent.

At present there is no provision for vehicles if exported for repair. It is proposed that necessary amendment may be made under PCT 9918(a) to solve the issue.

The exemption on gifts/donation to charitable institutions may be subject to specific certification by the IOCO or other monitoring body or local district revenue officer in order to avoid misuse of facility.

Merchant Shipping Act, 1923 has been repealed therefore, relevant Act may be substituted in consultation with the ministry of Ports and Shipping.

In terms of PCT heading 9942 i.e. iron and Steel Re-rollable scrap is also classified under PCT heading 7204.4910. Prior to Budget, 2014-15, the rate of customs duty in both the PCT headings was 0 percent but in the budget, the rate of CD against PCT heading 7204.4910 was enhanced to 1.0 percent while rate of CD against 9942 is still 0 percent and it does not specify certain conditions/ restrictions for claiming, therefore, importers with an intent to be benefited with this anomaly and to avail undue benefit of duty/ taxes are seeking clearance of iron and steel re-rollable scrap against PCT heading 9942. Since all sorts of iron and steel scrap is released against customs duty of 1.0 percent therefore, alike other scraps, iron and steel re-rollable scrap should have also been cleared 1.0 percent. Therefore, PCT heading 9942 is proposed to be omitted.

 

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