The Federal Board of Revenue (FBR) has denied the news reports that the board had extended the list of items that allow a concessionary rate (or zero percent) of customs duty on the import of items from China.
FBR, in its statement, rebutted the news items related to the revision of SRO.1640(I)/2019 relating to the China-Pakistan Free Trade Agreement(CPFTA). The board further stated that no new item has been included in the scope of CPFTA.
The board stated that the amendments introduced vide SRO.1181(I)/2022 in CPFTA are only the classification-related changes that are the result of the tariff transposition exercises conducted to incorporate the amendments introduced by the World Customs Organization (WCO) through Harmonized System HS- 2022 version.
FBR has also highlighted that transposition exercise always results in numerous structural changes in tariff lines owing to splitting, merging and deletion of several tariff lines.
FBR made it clear that the recent changes in Harmonized System (HS) by WCO have resulted in consequential alignments in multiple Statutory Regulatory Documents (SROs) as per the new version of HS nomenclature.