Warehousing surcharge not to be levied on machinery

ISLAMABAD (April 27 2003) : To give a major relief to the importers, the Central Board of Revenue (CBR) has decided not to charge warehousing surcharge on the import of machinery and equipment under SRO 554(I)/98.

The CBR on Saturday issued instructions to all collectors of customs to forthwith implement the decision at ports, warehouses and airports.

One percent warehousing charge would not be applicable on the goods including machinery and spare parts imported as per said notification, though installed/consumed in bonded premises, are cleared against home-consumption bill of entry and not ex-bonded at any stage.

The CBR was responding to the queries raised by certain collectorates pertaining to the surcharge on warehousing of goods stored in manufacturing bonds.

The CBR has informed the collectors that one percent warehousing surcharge had been imposed through section 10 of the Finance Act, 1991.

The surcharge is leviable only on the goods which are warehoused and subsequently cleared under section 104 of the Custom Act, 1969 for home consumption.

On the other hand, the machinery/parts brought into Pakistan vis-a-vis SRO 554(I)/98, although placed in the premises of manufacturing bonds, are cleared against home-consumption bill of entry and not bonded at any stage.

Therefore, such goods are exempted from the levy of one percent surcharge, CBR added.

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