Government rationalizes additional customs duty
KARACHI: The federal government has announced to reduce additional customs duty to 11 percent from 16 percent earlier on import of a large number of goods.
According to SRO 484(I)/2016, additional customs duty will be applicable at the rate of 11 percent of the customs value on goods classifiable under tariff headings of the First Schedule to the Customs Act, 1969. Earlier, this rate was 16 percent.
The government has also rationalized additional customs duty on import of sub-components and components of various vehicles. The revised rates of additional customs duty on sub-components and components will be 35 percent on agricultural tractors; 31 percent on road tractors for semi-trailers (prime movers); 35 percent on buses (dedicated LNG/LPG or CNG); 31 percent on other buses etc.
However, in line with Auto Development Policy (ADP) 2016-21, the additional customs duty mentioned above will not be charged on sub-components and components, imported in any kit form, by an assembler or manufacturer declared to be an investor under Category - A “Greenfield Investment” for a period of five years and under Category - B “Brownfield Investment” for a period of three years, for assembly or manufacturing of the vehicles.