FBR hikes regulatory duty on import of 657 luxury items by 5-55pc

ISLAMABAD: The Federal Board of Revenue (FBR) has notified Additional Duty Customs (ADC) on import of 2,200 items and increased or imposed Regulatory Duty (RD) on import of 657 luxury items with effect from July 1, 2024 (today).

The FBR slapped two percent ADC on those items which were subject to zero percent duty. The ADC would be applicable at the rates of 2 percent; 4 percent; 6 percent and 7 percent on the import of goods as specified in the SRO 929(I)/2024.

The RD have been imposed within the range of 5 percent to 55 percent on the import of hundreds of items. From July 1, 2024, 7 percent ADC would be applicable on the import of cars, jeeps, light commercial vehicles in CKD (Completely Knocked Down) condition exceeding 1,000 cc and heavy commercial vehicles in CKD condition.

The FBR has issued SRO.928(I)/2024 in supersession of its notification No SRO 966(l)12022 to levy regulatory duty on import of specified goods.

The import of perfumes and sprays would be subjected to 20 percent RD; watches, 30 percent; sunglasses 30 percent; imported cycles 10 percent RD; imported dairy products 20-25 percent; natural honey 30 percent; imported dates and other fruit 25 percent; cosmetics 55 percent; imported shaving cream and soap 50 percent; gents caps, overcoats, jackets, trousers and shirts 10 percent; female overcoat, jackets, skirts/ trousers 10 percent RD, and imported jewellery 45 percent RD.

Preparations for oral or dental hygiene 50 percent RD; cheese and curd, 25 percent RD; potatoes/ other vegetables and mixture of vegetables 50-55 percent; sugar confectionery (including white chocolate) 40 percent; tobacco, partly or wholly stemmed/ stripped 50 percent; dog or cat food 50 percent; leather clothing, accessories 50 percent, and video game consoles and machines, table or parlour games would be subjected to 50 percent regulatory duty.

The regulatory duty shall not be levied on the import under Notification No SRO 678; import under Chapter 99 of First Schedule of the Customs Act; import under Temporary lmportation Scheme vide Notification No. S.R.O. 492(l)12009; import under Fifth Schedule to the Customs Act, 1969; import of special steel round bars and rods of non-alloy steel exceeding diameter 50mm and exceeding 5omm (PCT code 7214.9990) by the seamless pipes manufacturers registered under the Sales Tax Act, 1990; import of rubber apron and cots; import of vehicles (CBU) by new entrants; import of input materials used for manufacturing of auto parts by local vendors under Notification No SRO 655(l)/2006.

The rate of RD on import of CKD/SKD kits, of home appliances, mentioned in the table, and of which kits are not specified separately therein, shall be five per cent.

According to the SRO 929(i)/2024, two percent additional customs duty has been imposed on the import of sub-components, components and sub-assemblies of automotive vehicles, automotive climate control equipment and automotive batteries for in-house use or supply to OEMs and assemblers or sale in the open market. These equipment were used in the manufacturing of agricultural tractors; road tractors for semi-trailers of 280 HP and above; road tractors for semi-trailers less than 280 HP; fully CNG-dedicated vehicles.

Two percent additional customs duty has been imposed on the import of components for assembly/ manufacture in any kit form including tyres/ tubes for manufacturing of agriculture tractors.

Two percent Additional Customs Duty would be applicable on the import of components for assembly/ manufacturing of road tractors for semi-trailers and trailers of 280 HP.

Two percent ADC would be applicable on the import of components which include sub-components, components, sub-assemblies and assemblies but exclude consumables), imported in any kit form and direct materials for assembly or manufacture of vehicles falling under Chapter 87 of the First Schedule to the Customs Act.

The additional customs duty shall not be levied on the import of seeds and spores for sowing; motor spirit; high speed diesel oil; liquefied natural gas; polymers of ethylene in primary forms and polymers of propylene or of other olefins in primary forms; cotton; solar panels and fertiliser; import of plant and machinery used in manufacturing or production of goods as is classifiable under Chapter 84 and 85 to the First Schedule to the Customs Act 1969; import under Chapter 99 of the First Schedule to the Customs Act, 1969; import under the Fifth Schedule to the Customs Act 1969; import under the Baggage Rules 2006; import under Notification No SRO.577(l)/2005 dated June 6, 2005; import under notification No SRO.565(l)/2006; import under notification No SRO.693(l)/2006; import under temporary importation scheme; imports under SRO 678(l)/2004 by the exploration and production companies, their contractors and service companies for offshore projects; import of electric vehicles 2-3 wheelers (CBU) falling under PCT codes 8703.8030 (electric auto rickshaw), 8711.6040 (electric motor cycle), and (3-wheeler electric loader) till 30th June,2025; import of cars, jeeps and light commercial vehicles in CKD condition upto 1,000cc and import of vehicles in CBU condition upto 850cc.