FBR Limits The Scope of Duties and Tax Concessions on the Import of Old and Used Items

The Federal Board of Revenue (FBR) has limited the scope of duties and tax concessions on the import of old and used items allowed for mutilation or scrapping for charging lower rates of duties and taxes on such imported items.

The FBR has issued SRO.1045(I)/2020 here on Thursday to issue draft amendments in the Customs Rules 2001.

New goods are subjected to a higher rate of duties and taxes as compared to old and used imported items allowed for mutilation or scrapping. Under section 27A of the Customs Act, at the request of the owner the mutilation or scrapping of goods as are notified by the Board, may be allowed, in the manner as prescribed by the rules and where such goods are so mutilated or scrapped they shall be chargeable to duty at such rates as may be applicable to the goods as if they had been imported in the mutilated form or as scrapped.


ALSO READ

Asad For Enhancing Business-to-Business Linkages with China


Provided that the goods imported in new condition shall not be allowed scrapping and mutilation and shall be classified and chargeable to leviable duty and taxes as new goods, it added.

Through SRO.1045(I)/2020, the FBR has excluded pipes or tubes; bars or rods and sheets or strips, slab, plates from the old and used items, if imported in serviceable condition along with the scrap consignments, may be allowed mutilation or scrapping, as the case may be.

However, items like beams, sections, channels or girders, used and pitted railway tracks; ship plates cutting of various sizes with rough edges and having welded joints; foils or films and tyres or tubes will continue to be allowed mutilation or scrapping.

The rule 592 (Goods allowed for mutilation or scrapping) of the Customs Rules deals with the old and used items, if imported in serviceable condition along with the scrap consignments or imported separately as scrap and found serviceable, may be allowed mutilation or scrapping.


ALSO READ

Zulfi Presents Tourism Development Plan to PM


According to the SRO.1045(I)/2020, the rerollable material in the reusable condition in excess of 2.5 percent shall not be allowed scrapping, mutilation or cutting and shall be classified and chargeable to duties and taxes as new goods.



close
>