Any product imported into Pakistan through postal or air courier services with a declared value up to Rs. 5,000 will be exempt from customs duty or any other types of taxes, states the Federal Board of Revenue’s (FBR) draft of the “De-minimis rules for imported goods” through the issuance of S.R.O.886(I)2020 for amendments in the Customs Rules 2001.
ProPakistani spoke to an FBR official who explained that this move has been taken as a relief for the end-users, most likely to be private individuals as opposed to corporate importers. “However, this exemption is only applicable on Postal and courier goods,” he added.
Other imported goods that arrive in the country from sources other than courier or postal services are not given the same liberty. In other words, this relief is likely to be used by only the private individual customers as opposed to the industrial or corporate importers.
This is a welcome move from the FBR considering that the previous limit of tax-exempt imports was Rs. 100, which translates to even less than $1. Now, this Rs. 5,000 limit will roughly allow for imported goods up to $30.
As per the present practice, the postal or courier service providing companies are bound to make a special list of the imported items having declared value up to Rs. 5,000 as per the label of the imported product.
The revenue board stated that the new rules shall apply to the goods imported through postal service and air couriers only. The “de minimis value” means the value of goods up to Rs. 5,000 in terms of the provisions of section 19C of the Customs Act whereas “postal goods” means goods cleared in terms of the provisions of Landing and Clearing of Parcels Rules as mentioned in Chapter XVI of the Customs Rules, 2001.
The postal or courier authorities will not be obligated to file goods declaration or demand payment of duty and taxes for goods with a value up to Rs. 5,000.
The postal or courier authorities shall submit a consolidated monthly e-statement of all such clearances along with copies of the invoice of the imported goods cleared under these rules to the concerned Customs authorities for reconciliation of the record in the prescribed manner.
For the purpose of application of the provisions of section 19C of the Customs Act 1969, the value mentioned on the label of the postal good or the courier receipt shall be considered as the declared value.
For conversion of invoice value into Pakistani Rupees, the postal or courier authorities shall take the official exchange rate of the previous day, FBR rules added. A final notification will be issued after approval and will come effective in the next month i.e. October 2020.