Karachi: The Federal Government has announced the imposition of additional customs duties on specific imported goods. The move aims to enhance revenue collection and regulate trade in accordance with the Customs Act of 1969.
Key Points:
Customs Duty Rates:
Goods falling under tariff slabs of 0%, 3%, and 11% will be subject to a 2% additional customs duty.
Goods falling under the 16% tariff slab (except for PCT codes 5516.9300 and 5516.9400) will face a 4% additional duty.
Goods falling under the 20% tariff slab will be subject to a 6% additional duty.
Goods falling under tariff slabs of 30% and higher, as well as specific rates, will incur a 7% additional duty.
Exceptions include certain goods charged at a 2% rate, such as specific seeds, spores, and motor vehicles.
Exemptions:
The additional customs duty will not apply to import of seeds and spores for sowing, motor spirit, high-speed diesel oil, liquefied natural gas (LNG), and specific polymers.
Plant and machinery used in manufacturing or production (classified under Chapters 84 and 85) are exempt.
Certain notifications and schedules also provide exemptions for specific categories of imports.
Electric Vehicles and CKD Imports:
Electric vehicles (2-3 wheelers) falling under specific PCT codes will be exempt from the additional duty until June 30, 2025.
Imports of cars, jeeps, and light commercial vehicles in CKD condition (up to 1,000cc) are allowed without the additional duty.
Vehicles in CBU condition (up to 850cc) are also exempt.
Solar Panels and Fertilizer:
Solar panels (PCT codes 8541.4100 and 8541.4200) and fertilizer (PCT Chapter 31) are subject to the additional duty.
Other Exclusions:
Various other exclusions apply, including specific serial numbers and conditions mentioned in the Customs Act and related notifications.
The government aims to strike a balance between revenue generation and facilitating trade while ensuring fair taxation. Importers and traders are advised to review the updated duty rates and exemptions to comply with the new regulations.