EXEMPTION FOR STRANDED IMPORT CARGO
SRO 1953(I)/2022 DATED 24-10-2022
FBR exempts stranded import cargo from payment of Regulatory Duty. Exemption applies to uncleared cargo, which was previously banned by the MoC for import into the country vide SRO 598(I)/2022 dated 19-05-2022.
FBR has amended the previously promulgated SRO 966(I)/2022 dated 30-06-2022, the legal framework for the imposition of Regulatory Duty on imports into the country, vide SRO 1953(I)/2022 dated 24-10-2022. The rationale behind amending SRO 966(I)/2022 dated 30-06-2022 is to grant immediate relief to the stranded import cargo at the ports from the payment of Regulatory Duty, and therefore to minimize the cost of clearance associated with it.
It may be recalled that the Ministry of Commerce vide SRO No. 598(1)/2022 dated 19-05-2022 had imposed a ban on the import of the so-called ‘non-essential’ imports to reduce the import bill of the country. This ban was withdrawn recently, which paved the way for the clearance of the stranded cargo, which had reached the national seaports by the time the import ban had come into vogue.
It is important to note that exemption from the payment of Regulatory Duty is available in cases where Customs Goods Declarations have been filed on or after the 22nd day of August, 2022, and where the surcharge calculated as per Office Memoranda, dated 22-07-2022, 19-08-2022 and 23-08-2022, issued by Ministry of Commerce is higher than the cumulative revenue impact of Regulatory Duty and Additional Customs Duty levied vide SRO 1571(1)/2022 and SRO 1572(I)/2022, both dated the 22-08-2022, respectively.