Additional duty raised to 25 percent on bike components
RECORDER REPORT
ISLAMABAD (August 10 2007): The Federal Board of Revenue (FBR) has increased additional customs duty from 20 to 25 percent on the components and equipment imported as part of any kit for the assembly or manufacturing of motorcycles. The board has amended SRO. 693(I)/2006 of July 1, 2006 through a notification issued on Thursday.
The new rate of duty would be applicable from June 10, 2007. According to the notification, 25 percent additional customs duty would be applicable on the import of components and sub-components used in the assembly or manufacture of motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars having reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50cc.
Through SRO.693, the board had levied additional customs duty at the rate of 15 percent of the customs value on goods classifiable under tariff headings of the First Schedule to the Customs Act, 1969.
Similarly, different rates of additional duty have been specified in the notification which would be applicable to the import of components used in assembly/manufacture of CNG dedicated buses and other categories of vehicles as per notification.
Provided that the additional customs duty of 35 percent shall not be collected till June 30, 2008 on the crown wheel/pinion imported for the industrial assembly/manufacture of agricultural tractors of capacity above 55 HP.
Copyright Business Recorder, 2007