Duty/tax concessions under baggage allowances have been enhanced under new rules, whereas allowances on purchases made from duty-free shops have also been increased.
CBR (member) customs Shahid Rahim Shaikh told reporters on Thursday, new rules would be applicable from July 1, 2006. The board has issued a notification to identify 753 items, which were frequently brought by incoming passengers. A consolidated amount of duties and taxes has been specified against each item to clearly spell out the amount to be paid by passengers.
This would not only end discretionary powers of customs officials at airports, but passengers would also know in advance about the exact amount of duties/taxes to be paid by them on any specific item. There would be no ambiguity about the calculation of duties and taxes on items brought under new baggage rules.
Under the totally revamped rules, the board has enhanced the duty and tax concession (allowances) on the baggage of overseas Pakistanis and foreign nationals working in the country.
Baggage allowances for overseas Pakistanis, holders of foreign exchange remittance card and foreign nationals, who would reside in Pakistan up to two years, would avail of enhanced allowances. Duty and tax concessions would be applicable on arrival into Pakistan from any country of the world.
A special allowance for the foreign exchange remittance cardholder Pakistanis under which they would be allowed to bring duty-free goods on the basis of foreign exchange they had remitted to Pakistan in one year.
He explained the board has increased categories of Foreign Exchange Remittance Card (FERC) holders from 3 to 5 for availing of special allowances by those overseas Pakistanis, who would bring remittances through normal banking channel. They would be entitled to avail of 'duty credit' in rupees against the amount remitted through normal banking channel.
The duty credit can be utilised for unaccompanied baggage or any purchase from one of the duty-free shops. However, the duty credit under this scheme would not be utilised on car imports.
As per five types of FERC holders, silver cardholders, who remitted $2500 would be allowed to bring duty-free goods of Rs 2500. Silver Plus cardholders, who remitted $5000 or more would get duty-free goods of Rs 5000. Golden cardholders, who had remitted $10,000 would be entitled to bring in duty-free goods of Rs 10,000. Golden Plus cardholders by remitting $25,000 could bring in goods of value Rs 25,000 duty-free. Moreover, the Platinum cardholders, who remitted $50,000 would be permitted to bring duty-free goods worth Rs 50,000.
Passengers returning to Pakistan under the Transfer of Residence (TR) scheme would be allowed to bring old and used furniture, fixture, crockery, cutlery, kitchen utensils, rugs, carpets, house hold linen, bedding including blankets and other household goods greatly used by a family during their stay abroad.
Professional tools or equipment of value not exceeding $5000. Medical equipment if in use of a Pakistani doctor registered with the PMDC.
One television, deep freezer, refrigerator, microwave oven, cooking range, washing machine and air conditioners could be imported by paying concessional rate of 50 percent of total duties/taxes. In case passengers opt to purchase such things from duty-free shops in the country they would be allowed to purchase goods amounting up to $1000.
He clarified persons coming under the TR scheme would also be entitled to avail duty-free allowances applicable for persons staying abroad for more than seven days and allowances given on the first visit in a year abroad.
Passengers, who would stay abroad for more than 7 days, would be allowed duty-free facility on their baggage of personal wearing, apparel and clothing accessories, personal adornment, toilet requisites and electric shaver, medals, trophies, prize bestowed upon passenger, one electric iron, one hair dryer and one hair dresser, 200 cigarettes or 50 cigars or half kilogram of manufactured tobacco, push cart, toys, goods of personal use of child passenger, one wheel chair for personal use, one mobile phone for personal use and one wrist watch.
Pakistanis working abroad and visiting annually in the country would be allowed to bring different goods in addition to items of their personal use. They could bring one radio or tape recorder excluding hi-fi systems and home theatre. One VCP or VCR or VCD or DVD player or a similar appliance having more than one of the playing, recording or display function. Now customs at the airport could not raise any objection whether the passenger has declared VCP/DVD or VCD, member, customs said.
They would also be entitled to bring one still and one video camera. This is for the first time that video camera has been allowed for passengers coming once in a year. They could also bring personal jewellery in reasonable quantity, professional tools of value not exceeding $500, tabarrakats, one desktop or laptop computer in personal use. They would also be entitled to further allowances of the value of goods not exceeding $500.
In this regard, he said television, deep freezer, refrigerator, microwave oven, cooking range, washing machine and air-conditioners could be imported by paying concessional rate of half of the customs duty. These passengers would be allowed to purchase goods valuing $500 from duty-free shop in the country if they don't bring such goods along with them within sixty days of their arrival in Pakistan.
CBR (member) customs said the board has given condonation powers to the field formation to condone time period for those persons coming under the TR scheme, whose time period of two years of staying abroad has not been completed.
If a family has not availed concession under the TR during the last two years, short visits to Pakistan up to a period of two months could be condoned by the assistant collector, customs. If the total period of short visits exceeds two months, the additional collector of customs may condone the same on sufficient justification given by the family up to a total period of four months.
He said the board was receiving queries from foreign embassies regarding admissibility of duty-free baggage for those foreign nationals, who intend to work in Pakistan for more than two years.
For example, foreigners working in the telecommunication sector, oil and gas projects and other projects in other sectors. These foreigners would be entitled to similar concessions in duties/taxes as available to overseas Pakistanis coming under the TR scheme.
Allowances for foreign nationals and tourists included personal wearing apparel and clothing accessories, personal adornment, toilet requisites and electric shaver, medals, trophies, prize bestowed upon passenger, one electric iron, one hair dryer and one hair dresser, 200 cigarettes or 50 cigars or half kilogram of manufactured tobacco, push cart, toys, goods of personal use of child passenger, one wheel chair for personal use, one mobile phone for personal use and one wrist watch and personal tools and equipment not exceeding $500.
He said the CBR will establish "passengers facilitation centres' at all airports to guide uneducated passengers including the labour class in proper filling form under new baggage rules.
He pointed out previously only women passengers were entitled to bring jewellery. In case any male passenger brings jewellery, the same was confiscated by the customs, which was unjustified. Now, male or female passenger would be entitled to bring personal jewellery in reasonable quantity during their first visit in a year.
Giving reasons for issuing new rules, Shahid Rahim Shahikh said the new procedure has been notified on the basis of complaints pertaining to clearance of baggage filed by overseas Pakistanis at different foreign missions abroad. New rules have been formulated in such a way that no Pakistani would face any difficulty in clearance of baggage.
The board has tried its level best to make rules simple for all categories of passengers. Previously, rules were complicated with self-contradictions. Now, sufficient copies of new transparent rules, in both Urdu and English languages, would be dispatched to all foreign missions abroad. The concept of six months stay abroad or more than this period for claiming baggage concessions has been abolished.
Under new rules, the CBR has issued the definition of commercial quantity to effectively check misuse of baggage rules. Commercial quantity means a quantity of goods imported for trading or pecuniary gain and not for personal us or gift.
The customs would not give concession in duties/taxes if goods are in commercial quantity, goods are not shipped from the country where the passenger has resided, goods not reached in Pakistan within sixty days of the passenger's arrival and a baggage of the passenger returning to Pakistan after staying abroad of less than seven days excluding articles of its personal use.
In this connection, passengers bringing goods in commercial quantity would pay 30 percent redemption fine along with applicable duties/taxes.
Explaining the new procedure, he said the board has minimised the role of clearing agents for the clearance of unaccompanied baggage. A simple form has been prescribed for passengers by taking away the condition of filing goods declaration (GD).
The amount of duty-free allowances on making purchase from the duty-free shops has been increased under new rules. Member, customs said there are instances where people prefer to purchase goods along with their family members from the duty-free shops instead of bringing goods from aboard.
To accommodate these Pakistanis, duty-free allowances for making purchases from duty-free shops have been enhanced.
The board has also exempted from taxes and duties the baggage of Pakistani who dies abroad, next to the kin of deceased would be allowed to avail of this concession.
Responding to a question on Post-Clearance Audit, he said that new department of Customs Valuation and Post-Clearance Audit is being established with the assistance of Japanese government to properly conduct audit from next financial year.
Answering another question, he said the phenomenon of "khapias" (suit case traffic) has been considerably reduced following massive tariff rationalisation for the last few years.
The customs has video recording of every incoming flight, which clearly reflects that very few persons are brining goods in commercial quantity under the garb of baggage. There are instances where few persons have brought liquor under the baggage, but the customs has been able to confiscate liquor in many cases as well.