KARACHI: The Federal Board of Revenue (FBR) has clarified that the provisions of (Sales Tax General Order) STGO 103 of 2019 shall be applicable in clearing of imported goods on which the printing of retail price is not possible.
The Federal Board of Revenue (FBR) advised Customs that items listed in the Third Schedule to the Sales Tax Act, 1990 (consumer goods) will be assessed w.e.f. 01 July, 2019 at the retail price at the import stage. Earlier, all assessment was made on the basis of Customs value, which is essentially the cost price as determined by the authorities.
FBR had received queries from various Customs clearing agents and Customs Collectorates regarding application of newly inserted Serial No. 26 in Section 33 of the Sales Tax Act, 1990.
In this regard, FBR clarified that at import stage the mechanism of clearing of goods already defined in STGO 103 of 2019 is to be followed.
The STGO recognizes that in some situations, the printing of retail price is not possible and allows clearance of goods on payment of Sales Tax in the manner as provided therein subject to furnishing of an undertaking that the retail price shall be duly printed.
Therefore, the provisions of the STGO should be followed by the Customs Authorities. However, the aforesaid undertaking shall mention that the importer shall print the retail price within ten days of release/clearance of the consignment and intimate the Commissioner concerned for inspection before further supply.
However, if inspection is not made within ten days after intimation the importer/manufacturer will be free to supply in the market. The newly inserted penal provisions shall be invoked if the manufacturer/importer violates the undertaking or is otherwise non-compliant with requirement of retail price taxation.