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Revised import tariff

For the first time a coordinated effort has been made to rationalise the duty structure

Sep 18 - 24, 2000

The federal government has revised the import duty rates of scores of item in the light of joint recommendations of various concerned Ministries with a view to removing the anomalies and protecting the local textile plastic electronics, steel and other industries.

The revision in the duty rates has been announced through a Presidential ordinance as it amounts to amending the finance bill relating to budget 2000-2001. The Ordinance notified on Saturday is based on the joint recommendations of the Ministry of Finance, Commerce, Industry, Central Board of Revenue (CBR) National Tariff Commission and Engineering Development Board. Perhaps for the first time a coordinated effort has been made to rationalise the duty structure. The committee representing these ministries, before finalising their recommendations, consulted the concerned industries and had lengthy discussion with their representatives to know their point of view. In most cases the rate of duty has been increased to meet the demand of the local industry to provide them protection as they were not in a position to compete with imported items for a number of reasons mainly the high cost of inputs.

The duty on pearl quality caustic soda has been increased from 10% to 35%. Duty on electric fan capacitors has also been increased from zero to 35%. Rates on these items had been made after presentations gives by manufacturing sectors.

Duty on crude oil and palm kernel oil has been reduced from 35% to 10% on caustic soda, caustic potash, peroxides of sodium or potassium (solid) it has been increased to the maximum tariff rate of 35%.

The anomalies in the duty structure pertaining to the garment industry have also been removed from the budget. Previously, the imported garments accessories were subject to 25% to 35% duty.

Import duty zero-rated on elastics, woven labels, velcro, zippers, rivets, dyelets and other accessories mentioned the federal budget, has been revised. Now 35% duty would have to be paid on these items and the following elastic webbing, knitted and woven, all sorts, including knitted rib shoulder pads, all sorts; labels of textiles and other materials, all sorts with without pre-coated adhesive; zips, zip fasteners, metal/plastics/ nylon, in pieces or rolls. rivets and eyelets; decorative fittings, all sorts, including those made of plastic, press metal, wood, bronze, and leather; velcro patties/ velcro tapes and other fastening materials; tapes of all sorts including reinforcement made of cotton, nylon, woven/non-woven, elastic, non-elastic; price tickets polypropylene strings, elasticised draw strings, rubber patches/leather patches; locker loops; eyelet grommets; draw cord tunnel stoppers; swill tape and hangers with zip tab.

Duty rates have also been revised on the following items, which in future would not attract the rates specified in the Federal Budget; caustic soda, caustic potash, peroxide of sodium and potassium (solid) at 35 per cent; gum case of a kind used for manufacturing chewing gum from 25% to 35% self-adhesive tape-plates, sheets, film, foil, strip and other shapes of plastics whether or not in rolls, from 15% to 25%.

Import duty on paper and paper-board item of Pakistan Customs Tariff heading No.4811.2900 and 4811.9090 has been increased from 15% to 25; on high-speed steel it has been introduced at 10% ad val, by inserting a PCT heading No. 7225.2000 into the chapter of flat-rolled products of high speed steel.