Sources told Business Recorder here on Saturday that the FBR has issued a letter to the Engineering Development Board (EDB) on the validity status of the SROs 1401, 1402, 1403 & 1404 dated November 30, 2012. The withdrawal of customs duty concessions/reductions would not be applicable in case SROs of "new entrant policy" for motorcycle manufacturing industry notified vide amending SROs 939(I)/2013 and 940(I)/2013 dated 21st October, 2013. The FBR had announced time-bound concessions for the motorcycle industry for one year period which expired on November 30, 2013. Now, the customs duty rates has been restored on the import of components and kits by the motorcycle industry under SROs 1401, 1402, 1403 & 1404.
According to the FBR, refer to the Engineering Development Board's letter No EDB/TBS-II/13 dated 13.11.2013 and to say that notifications No SROs 1401, 1402, 1403 & 1404(I)/2012 dated November 30, 2012, had limited applicability of one year (ie up to 29.11.2013) from date of issuance and have ceased to exist on 30th November, 2013. Therefore, the goods imported on or after November 30, 2013 are chargeable to customs duty rates as applicable prior to issuance of said SROs, except in case of "new entrant policy" for motorcycle manufacturing industry notified vide amending SROs 939(I)/2013 and 940(I)/2013 dated 21st October, 2013, the FBR added.
Through time-bound SROs 1401, 1402, 1403 & 1404, the FBR has reduced customs duty for one-year on motorcycles and different categories of components used in motorcycle industry. It had also reduced additional customs duty on the import of motorcycle components from 32.5 percent to 28.75 percent.
According to expired SRO.1404(I)/2012, the FBR had exempted so much customs-duty, leviable in the First Schedule of the Customs Act, on import of completely built up (CBU) motorcycles and components thereof for assembly or manufacture of motorcycles in any kit form, classified under Pakistan Customs Tariff heading 87.11, as are in excess of 57.5 percent for a period of one year.
Through another expired SRO.1403(I)/2012, the FBR had reduced additional customs duty on sub-components and components imported as part of any kit form for the assembly or manufacturing of motorcycles classifiable under respective Pakistan Customs Tariff Headings mentioned in the SRO.693(I)/2006 dated July 1, 2006. The SRO.1403(I)/2012 had amended the SRO.693(I)/2006 which deals with the imposition of the additional customs-duty on the import of sub-components and components used in manufacturing of motorcars and motorcycles.