FBR introduces new policy for customs duty on imported goods Under Rs. 5,000
On Thursday, the Federal Board of Revenue (FBR) implemented the “De-minimis rules for imported goods”. The rule states:
Any product imported into Pakistan through postal or air courier services with a declared value up to Rs. 5,000 will be exempt from customs duty or any other types of taxes.
On the 17th of September, a draft S.R.O.886(I)2020 of the imported goods rule was issued. The FBR finalized the rule draft on Thursday and published the new rules under an SRO.1109(I)/2020.
According to the FBR, the “De-minimis rules for imported goods” state:
- The new rules shall apply to the goods imported through postal service and air couriers only.
- The “de minimis value” means the value of goods up to Rs. 5,000 in terms of the provisions of section 19C of the Customs Act, whereas “postal goods” means goods cleared in terms of the provisions of Landing and Clearing of Parcels Rules, as mentioned in Chapter XVI of the Customs Rules, 2001.
- The postal or courier authorities will not be obligated to file goods declaration or demand payment of duty and taxes for goods with a value up to Rs. 5,000.
- The postal or courier authorities shall submit a consolidated monthly e-statement of all such clearances along with copies of the invoice of the imported goods cleared under these rules to the concerned Customs authorities for reconciliation of the record in the prescribed manner.
- The value mentioned on the label of the postal good or the courier receipt shall be considered the declared value for applying the provisions of section 19C of the Customs Act 1969.
- The postal or courier authorities shall take the previous day’s official exchange rate for conversion of invoice value into Pakistani Rupees.
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