Mr. Irfan Iqbal Sheikh, President FPCCI, has apprised that Mr. Ishaq Dar, federal minister for finance & revenue, has assured the apex body of his support vis-à-vis anomalies in the finance bill – and, discussed some of the most important customs anomalies with FPCCI delegation in presence of Mr. Tariq Bajwa, SAPM Finance; Mr. Ashfaq Tola, Chairman of the Reforms & Resource Mobilization Commission and top leadership of FBR.
Mr. Irfan Iqbal Sheikh highlighted the irrational rate of customs duty on non-woven fabric (finished product) as compared to its raw material; such as, Polypropylene in primary form and Polyester Staple Fiber. We requested to restore the earlier tariff in the first schedule of the customs act at the rate of 11 percent for the import of non-woven material.
FPCCI Chief highlighted paper & paper board HS Code 4802 & 4810 anomaly in the finance bill 2023-24; and, stressed that RD & Anti-Dumping Duty 10 percent Regulatory Duty (RD) on uncoated wood free paper (HS Code 4802) despite the fact that 11 percent to 39 percent Anti-dumping Duty already exists in said item. This is double jeopardy tax. In the presence of Anti-Dumping Duty, the Regulatory Duty (RD) may not be imposed.
On pharmaceuticals, Mr. Irfan Iqbal Sheikh said that the custom duty on HS. CODE 2933.4990 pertaining to pharmaceutical raw material has increased from 3 percent to 20 percent. Such increase will create the shortage of medicines and drugs in the market.
Mr. Sheikh pointed out that Sec 14-A of Custom Act 1969 says that if any agency or person including port authorities managing or owning a customs port, customs airport or a land customs station or a container freight station, fails to entertain a delay and detention certificate issued by the officer of customs.
Mr. Irfan Iqbal Sheikh explained that trade facilitations must be developed without impact on notification. in Case of Failure to Entertain the Delay in Detention Certificate Shipping Line or Shipping Agents must manage the return or re-export of Goods, Cargo or Container to the Destination Port as requested by Consignee without any payment of port authority, shipping line or Shipping Agents charges on account of Detention, Landing, Storage, Terminal Handling or Warehousing Cost of at the time of Imports
Mr. Irfan Iqbal Sheikh emphasized that tea is also imported in bulk packing of more than 5KG; and, there is no clarification in third schedule, which identifies tea as retail packing. Therefore, sales tax is being collected on price of bulk packed teas, unfairly & illogically.