Government withdraws RD exemption on cocoa powder, cotton yarn, iron & steel
KARACHI: The Federal Government has withdrawn regulatory duty (RD) exemption available on the import of cotton yarn, iron and alloy steel, which would now be subject to statutory rate of regulatory duty, Customnews.pk has learnt. These withdrawals would fetch around $15 million in a year
SRO 614(I)/2016 has withdrawn regulatory duty exemption on the import of cotton yarn, which would now be subject to 10 percent RD. Pakistan imported cotton yarn worth $27.35 million in the first half of this calendar year.
Semi-finished products of iron or non-alloy steel and various sections of steel beams would also be subject to 30 percent RD on import stage.
RD at the rate of 15 percent is applicable on import of alloy steel in ingots or other primary forms; semi-finished products of other alloy steel while semi-finished products of high speed steel will be subject to 25 percent RD.
RD exemption was available to bars and rods, angles, shapes and sections, hollow drill bars and rods of alloy or non-alloy steel; RD of 30 percent is now imposed on the import of these goods.
The import of above mentioned iron steel products during the first half of this calendar year stood at $60.141 million.
Import of unsweetened cocoa powder stood at $6.72 million and its henceforth import would attract RD of 10 percent.
Until July 14, 2016, all the importable goods mentioned in the Fifth schedule of Customs Act 1969 were exempted from the incidence of regulatory duty, but the abovementioned goods despite being part of Fifth Schedule are no more exempt.