Official sources told Business Recorder on Thursday that both the Central Board of Revenue (CBR) and Ministry of Commerce agreed to allow transit facility for cooking oil imported by Afghanistan through Pakistan.
The Economic Co-ordination Committee (ECC) of the cabinet will announce the decision in its next meeting on January 4, 2006.
Officials said that the presently the import of ''''cooking oil'''' is prohibited for transit to Afghanistan as per SRO 151(I)/2004 of March 10, 2004, whereas the import of vegetable ghee is allowed under the ATTA. This notification deals with the items on which transit facility is not available to Afghanistan through Pakistan.
There has always been a controversy between importers and customs authorities pertaining to the classification of vegetable oil/ghee. This controversy emanates from the words ''''cooking oil'''' specified in SRO 151((I)/2004 of March 10, 2005 without any reference to the Pakistan Customs Tariff (PCT) heading. The vegetable oils used for cooking and hydrogenated vegetable oils (commonly known as vanaspati ghee in Pakistan, India, Afghanistan) are classifiable under separate PCT headings. However, the description "cooking oil" has not been mentioned in the Pakistan Customs Tariff. This has created confusion whether the import of ''''cooking oil'''' is permissible under the ATTA or not.
The tax authorities opined that allowing of transit facility to the vegetable ghee and putting cooking oil on the negative list cause misinterpretation, which results in blockade of transit trade. This situation will also add to straining relation between the two countries presently on the track to bridge the gap of misunderstandings.
The CBR has recommended to the ECC that the ''''cooking oil'''' may be excluded from the negative list notified vide SRO 151((I)/2004 to resolve this controversy.
The ministry of commerce was of the view that the ministry has supported the proposal of CBR to remove cooking oil from the negative list of items under the Afghan Transit Trade.