Customs Act 1969 Proposed Amendments Federal Budget Pakistan 2023-24 Finance Bill 2023
CUSTOMS ACT 1969
GUIDING PRINCIPLES:
- No increase of duties on import of essential items
- Trade facilitation and ease of doing business
- Encourage the industrialization and investment
- Incentives for agriculture sector
- Promotion of Energy efficiency & Conservation
- Promotion of Information Technology (IT) and IT enabled services
RELIEF MEASURES:
- Exemption of Customs duties on specific papers and Art card and board for Printing of Holy
- Incentive for Pharma sector by including one more API and 03 drugs in the existing duty free
- Incentive for manufacturing of Solar Panels and allied equipment by exempting customs duties on import of machinery, equipment and inputs for manufacturing of solar panels, inverters and
- Incentive for exporters of Information Technology (IT) and IT enabled services by allowing duty free import of IT related equipment equivalent to 1% value of their export
- Reduction of Customs duties and additional Customs duties on import of intermediary/ industrial inputs falling under 10 PCT
- Exemption of Customs duties on raw materials of Diapers, Sanitary Napkins and Adhesive
- Concession of Customs duty on raw materials I inputs for manufacturers of
- Reduction of Customs duty from 10% to 5% on non-localized (CKD) of Heavy Commercial Vehicles (HCVs).
- Exemption of ACD on import of raw materials of Hemodialyzers fluid I
- Extension in exemption on machinery and equipment imported by erstwhile FATA areas till June,
- Continuation of concession on import of Flavouring powders for food preparation for manufacturers of snacks till June,
- Exemption of Customs duty on Organic Composite Solvent and Thinners for manufacturers of Butyl Acetate and Dibutyl
- Reduction of Customs duty on import of pet scrap for manufactures of polyester filament
- Exemption of Customs duties on Raw Materials for manufacturing of Moulds and
- Exemption of Customs duties on raw materials/ inputs for Mining
- Exemption of Customs duties on raw materials/ inputs for Rice mill
- Exemption of Customs duties on raw materials/ inputs for Machine
- Alignment of Part(V) of Fifth Schedule to the Customs Act with Auto Industry Development and Export Policy (AIDEP) 2021-26.
- Exemption of Customs duties on import of seeds for sowing to promote growth in agricultural
- Exemption of Customs duties on import of shrimps/prawns/juvenile for breeding in commercial fish farms and
- Exemption of Customs duties on roasted peanuts for manufacturing of ready to use supplementary foods (RUSF) by World Food Program certified
- Increase of Customs duty on Carbides of Calcium from 3% to 11% to protect the local
REVIEW OF REGULATORY REGIME:
- Removal of regulatory duty on second hand clothing to provide relief to the poor segment of the
- Reduction of regulatory duty on 151 PCT codes pertaining to second hand clothing, fish, tiles, sports
- Removal of regulatory duty on IT related equipment to encourage Information Technology
- Removal of Regulatory duty on Synthetic Filament Yarn of Polyester not manufactured
- Removal of Regulatory duty on parts for flat panels, monitors,
- Removal of Regulatory duty on Silicon Steel
- Exemption of RD on special steel round bars and rods of non-alloy steel exceeding diameter 50
- Increase / levy of regulatory duty on import of articles of glass to protect the local
- To discourage the use of inefficient Tungsten Filament Incandescent Bulbs, 20% RD imposed on these bulbs and their
- Export Regulatory Duty on the export of Molasses increased from 10% to 15%.
MISCELLANEOUS:
- Creation of separate PCT Code for Smart
- Creation of separate PCT Code for wooden splints for
- Change in Description of PCT CODE 0021.
- Change in Description of PCT CODE 6010.
- Changes in Descriptions of PCT codes of localized auto
- Conversion of Specific CD rate on Caustic Soda to Ad-Valorem
REVENUE MEASURES:
- Withdrawal of capping of the fixed duties and taxes on the import of old and used vehicles of Asian Makes above 1300 CC under SRO 577(1)/2005 by omitting serial number 4,5 and 6 of the said
LEGISLATIVE CHANGES:
- Definition of smuggling is being proposed to be rephrased to enable Customs to conduct anti-smuggling operations within the territorial limits of the
- Provincial Levies and Khasadar Force have been proposed to be added in the list of Government agencies mandated to assist Customs in anti-smuggling operations in Khyber Pakhtunkhwa and
- Penal provisions for offence of smuggling of essential commodities are proposed to be made more
- Penal provisions for the offence of smuggling of banned and contra-banned goods are being proposed to be made more
- To ease out congestion at border customs stations, the mandatory time for filing of goods declaration after arrival of goods in the border customs station is proposed to be
- In order to facilitate the trade, the warehousing period for perishable items has been proposed to be enhanced from one month to three
- The penalty on documents not found inside the consignment
- The pitch of penalty on documents not uploaded electronically with the goods declaration is being rationalized to facilitate
- In order to reduce the clearance time and to eliminate human interaction, option is being provided to the respondent to go for adjudication through Customs Computerized
- To facilitate the passengers travelling as a group who cannot file their own baggage declarations, the representative of the group of passengers is being allowed to file baggage declaration on behalf of the group
- To check revenue loss, penal provisions for any attempt to evade duty and taxes in breach of laws and procedures are being proposed to be made more