Packets and packaging materials which are integral part of imported goods will face customs duty, according to a ruling of the National Board of Revenue.
Customs wing of the NBR on October 9 issued the ruling to its field level offices for calculating the prices of packets and packaging materials for determining the customs valuation of those imported goods which are sold to consumers intact.
The ruling also asked the customs houses and land customs stations for recognising the compliant businesses as trusted traders and completing customs procedures of their consignments within minimum time to facilitate honest traders.
The ruling will be applicable for those packaged products like cosmetics, perfume, shampoo, toys, auto parts, pencil, nail polish, chocolate, chips, biscuits, coffee and other goods which are placed to customs authorities as single item without separating the goods and packaging materials and sold to consumers in the same way.
Customs officials will now determine the dutiable value of the main goods calculating the weight-based prices of packing container or packing materials, it said.
Officials of the revenue board said that in some cases the prices of packet and packing materials of the goods remained included within the value declared by the importers.
But in many cases, the prices of packing materials are not included within the value of imported goods and importers also do not declare the prices separately, they said.
The differences in price declaration of such goods are creating confusion among the field level customs officials in determining the value of the products for customs duty, they added.
The decision will not be applicable for those packet or packing materials such as pallet, container, wood box and similar materials which are used for safe transportation of imported goods and the materials are not supplied to the clients with the main goods.
Packing materials of such products are considered as dutiable factor in neighboring India, Sri Lanka and Pakistan, it said.
The ruling signed by NBR’s customs policy member Md Lutfor Rahman was issued to remove the confusion, they said.
The decision will also extend trade facilitation through minimising customs intervention, reducing lead time, providing even handed opportunity to all traders and expediting customs procedures for releasing the imported goods, according to the ruling.
It also said that importers and exporters would be evaluated as trusted traders if they make correct declaration about the consignments and submit accurate bill of entry and other documents including invoice, packing list, letter of credit, contracts and purchase agreements.
Consignments of the trusted traders will be released within shortest possible time, it said.
The declaration must consist of accurate product specification, brand name, model, art no and part no, weight, amount in number and quantity, HS code, price and other information.
Officials said that the revenue board had decided to introduce trusted traders in the country to encourage importers and exporters to be compliant with customs laws in international trade.
Trusted traders or authorised economic operators are the terms of World Customs Organisation which are now being adopted globally as best practices, they said.
Currently, there are no prescribed benefits for the trusted traders in the customs laws or any other regulations of the revenue board.
But the NBR may specify some benefits for the groups while customs houses may also offer some benefits like minimum customs intervention and priority valuation of consignments imported by the trusted traders.
Imported consignments of trusted traders will also face fewer physical inspections instead of 100 per cent, they said.