Explaining the classification of hybrid vehicles vehicles, the customs classification committee of the federal board of Revenue comes with a fresh verdict narrating that vehicles not having electric motors don’t comes under the banner of hybrid cars. Therefore, to avert the tax concessions, the committee decided to impose 50% customs duty on the import of mild hybrid vehicles.
As per the classification committee’s declaration, an electric power source, such as an integrated alternator/starter, that is used only for non-propulsion functions are not classified as HEVs. Such vehicles can be considered “micro-hybrid” vehicles but lack electric motor for propulsion.
Features of hybrid technology are used to avail the features like stop-start systems and charge management system, the committee observed. However, these vehicles don’t have an electric motor which makes their functionality different from hybrid cars.
Pakistan Customs Tariff (PCT)
In light of the above arguments and facts, these vehicles come under Pakistan Customs Tariff (PCT) heading 8703.2119.
Brief facts as reported are that complainant imported “Used Nisan Dayz Hybrid Car”, “Used Suzuki Wagon-R Hybrid Car” and “Used Suzuki Hustler Hybrid Car” and claimed benefit of concessionary rates of duties and taxes under SRO 499(1)/2013 dated 12.06.2013 which was not allowed in the light of Circular dated 05.10.2018 issued by the Collectorate of Customs, Appraisement-West, Karachi, treating the vehicles as HEV like Mild Hybrid Vehicles.
The importers/com-plainants filed subject complaints which were disposed of by the FTO vide aforementioned order for referring the matter before the Classification Centre.
On the other hand, the representative of the importers/complainants contended that Circular dated 05.10.2018 has already been declared illegal/void by different fora
