The Federal Board of Revenue (FBR) has imposed two percent additional customs duty on the import of cars, jeeps, and light and heavy commercial vehicles lying in completely knocked down (CKD) condition and components and those requiring subassemblies.
According to the FBR SRO. 1265(I)/2021, issued on Wednesday to amend the SRO. 856(I)2021, the two-percent additional customs duty would also be applicable to the import under Notification No. S.R.O. 655(1)/2006, dated June 5, 2006.
The SRO. 655 (I)/2006 is related to the exemption of raw materials, sub-components, components, and subassemblies, as are not manufactured locally, imported for the manufacture of components and assemblies.
The imports under the SRO. 655(1)/2006 included sub-components, components, and subassemblies of automotive vehicles, automotive climate control equipment, and automotive batteries meant for in-house use or supply to the origninal equipment manufacturers (OEMs) and assemblers or sale in the open market.
The said items are used in the assembling of agricultural tractors, road tractors for Semitrailers (Prime Movers) of 280 HP and above; road tractors for semitrailers (Prime Movers) less than 280 HP; fully CNG-dedicated vehicles and bicycles falling under different PCT headings.
As per SRO.1265(I)/2021, two percent on goods falling under tariff slab of 30% and higher slabs as well as slabs of specific rates, except the following which shall be charged at the rate of two percent:
- Goods falling under PCT codes 1507.1000, 1507.9000, 1511.1000, 1511.9010, 1511.9020, 1511.9030, 1512.1100, 1512.1900, 1512.2100, 1512.2900, 1514.1100, 1514.1900, 1514.9100 and 1514.9900;
- Cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000cc and heavy commercial vehicles in CKD condition; and
- Import under Notification No. S.R.O. 655(1)/2006, dated June 5, 2006.