KARACHI: Federal Board of Revenue (FBR) has notified that temporary import of PU Leather (artificial leather) is allowed under SRO 492(I)/2009.

FBR clarified that the term leather refers to animal leather falling under PCT Heading 41.07, whereas PU is an artificial leather falling under HS Code 3921.1300, hence not attracted by exclusion under Serial No.01 of Table of SRO 492(I)/2009.

The SRO 492(I)/2021 provides exemption from the payment of duty and taxes on temporary imports. However, in terms of sub clause (iv) of the said SRO, the importer is statutorily bound to export such temporarily imported goods after due process within a period of 18 months of its importation.

Moreover, on the request of the importer, this 18-month period is extendable by the collector of Customs for further six months on the payment of 1 per cent surcharge/month on C&F value of goods for which the extension is sought.

Failure in exporting the equivalent quantity makes the importer liable to pay statutory rate of duty and taxes.