ISLAMABAD (November 20 2005): The Central Board of Revenue (CBR) has restored duties- and taxes-free import of 'PU leather' (PCT heading 3921.1300) under 'Temporary Importation Scheme', notified through SRO 1065(I)/2005. In this connection, the CBR issued a clarification to the collector of customs, Sialkot on Saturday.
Official sources told Business Recorder that CBR had imposed ban on duty-free import of fabrics/leather under the new 'Temporary Importation Scheme', restricting it to the import of accessories. The CBR has superseded SRO 410(I)/2001 through issuance of a new notification for manufacturers-cum-exporters engaged in duty-free import of inputs/raw materials used in the manufacture of goods to be exported.
However, the serial number 1 of the Table of SRO 1065(I)/2005 had specified that the import of materials, excluding fabrics and leather, used in the manufacture of leather goods and leather garments would be permitted under this notification.
Interpreting the notification, customs at ports stopped duty- and taxes-free import of all kinds of leather including both animal and artificial leathers under 'Temporary Importation Scheme'. Recently a delegation of exporters of Sialkot met CBR Member Export Zafar Majeed to discuss the issues relating to the revised scheme. Exporters informed the CBR about the problems being faced by the business community due to issuance of revised notification and exclusion of leather from its purview.
The issue was examined in the Board and it has been clarified that the restriction of leather would only be applicable to the extent of animal leather. The importers can continue to import leather made of polyurethanes falling under PCT heading 3921.1300 under SRO 1065(I)/2005. The issuance of clarification would also help in clearance of consignments of the above said item.