24 - 30, 2002
EXPORT TARGET PERIOD EXTENDED
The government has extended the export target
period for the industrial units for availing exemption from whole of
customs duty and sales tax leviable at the time of importation of
Earlier, an industrial unit would have to achieve
50 per cent of the value of actual production in the first two years,
and then each year the unit would have to achieve the 60 per cent
export target of the value of actual production.
To give some more relaxation to these industrial
units, the government has extended the export target of 50 per cent to
be achieved within first three years, while the 60 per cent production
would be achieved after succeeding three years.
The government had exempted customs duty and sales
tax on machinery or spare parts thereof, as were not manufactured
locally, imported for setting up a manufacturing unit or for the
expansion, balancing, moderanization and replacement of existing
The notification reads as: "The Federal
Government is pleased to direct that in its Notification No. S.R.O.
554(I)/98, dated the 12th June, 1998, the following further amendment
shall be made and shall be deemed to have always been so made, namely:
- In the aforesaid Notification, in the TABLE, after Sr. No. C in
column (1), the following new serial number and the entries relating
thereto in columns (1), (2) and (3) shall be added, namely: - D.
Imports effected under Notification No. S.R.O. 962(I)/90, dated the
12th September, 1990, and Notification S.R.O. No.424 (I)/97, dated the
13th June, 1997. First two years. 50 per cent of the value of actual
production. After succeeding three years 60 per cent of the value of
REMOVAL OF DRAWBACKS TO HIT CARPET INDUSTRY
The Pakistan Carpet Manufacturers and Exporters
Association (PCMEA) has said the decision to abolish duty drawbacks
from June 30 will hit the carpet industry hard which is already in a
serious crisis because of the change in the par value of dollar and
continuing recession in the US and Europe.
Commenting on the federal budget for the next
fiscal, PCMEA chairman Abdul Latif Malik said in order to boost
exports and revive the economy, some of the proposals in the budget
would have to be revised and reformulated in order to provide special
protection to export industries like carpets facing a difficult
situation after 9/11 in the international market, especially in the US
DUTY ON TEXTILE ITEMS, STEEL PRODUCTS CUT
The federal government has reduced the customs duty
on stainless steel products, textile items, vehicles, while it has
levied 10 per cent duty on high speed diesel and 5 per cent on some
In the budget 2002-03, the government has lowered
the maximum rate of duty from 30 per cent to 25 per cent and
introduced four new duty slabs — 25 per cent, 20 per cent, 10 per
cent and 5 per cent.
Major items which have seen their duty lowered
included tea, tyres, iron and steel products, paper, plastic and
allied products, textile articles and auto parts.
The duty on stainless steel plates and alloy steel
has been reduced from 10 per cent to 5 per cent; on 12 textile items
from 20 per cent to 15 per cent; on 72 textile items from 20 per cent
to 10 per cent; on 90 textile items from 10 per cent to 5 per cent
ENGG GOODS: DUTY ON RAW MATERIALS EXEMPTED
The government has exempted the customs duty on raw
materials and components imported for the manufacturing of capital
goods or engineering goods in the budget 2002-03.
The CBR issued a notification amending the SRO435
issued on June 18, 2001, to this effect.
According to the notification, the exemption would
be available on the import of raw materials, which were not
manufactured locally and meant primarily for export.
Under this facility, the goods must be supplied to
the export sector or to exempt industrial units, projects and
PTA NOT SATISFIED WITH 5 PER CENT CUT IN DUTY
Pakistan Tea Association (PTA) has shown its
dissatisfaction over budgetary measure of slashing import duty by five
per cent as it feels that smugglers still have ample chance to dump
tea through various channels.
The five per cent cut in duties will have little
significance or impact on smuggling as import duty raised by five per
cent in 2001-02 budget has merely been cancelled out. In real terms
there has been no cut in import duty of tea, PTA said.
TEXTILE MACHINERY EXEMPTED FROM DUTY
The federal government has exempted textile
machinery from customs duty in the budget of 2002-03. Central Board of
Revenue (CBR) has issued a notification to this effect amending the
SRO 431 issued on June 13, 1997.
The exemption will be available on components, sub-
assemblies, assemblies and other items of machinery, as were not
manufactured locally if imported by a local manufacturer for the
manufacture and supply of complete unit or plant.
GWADAR WILL BE FREE PORT: SHAUKAT
Gwadar would be made a free port on the pattern of
Jable Ali port in Dubai or other such ports in Saudi Arabia and China,
Finance Minister Shaukat Aziz said.
"We have been promised by the UAE authorities
to have all possible technical support for building a duty-free port
at Gwadar," he said. Dredging work, he said, had already started
at Gwadar where three berths would be built to complete the project in