GOVERNMENT OF PAKISTAN
REVENUE DIVISION
FEDERAL BOARD OF REVENUE
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C. No. 1(56)Mach./95./20835-R Islamabad, the 12th February, 2016.
The Collector,
Model Customs Collectorate,
Custom House,
Islamabad.
SUB : EXEMPTION ON THE IMPORT OF LED LIGHTS UNDER SERIAL NO.24 (2) OF FIFTH SCHEDULE TO THE CUSTOMS ACT,1969.
I am directed to refer to Collectorates letter No. SI/Misc./IDP/82/2015/9422, dated 22nd September, 2015 seeking clarification whether LEDs/SMDs with or without ballast with fittings and fixtures, having specification 3W, 6W, 7W, 12W etc., having 50/60 Hz, 85-265V, qualify for exemption from customs duty in terms of Sr. No. 24 (2) of Part-I of Fifth Schedule to the Customs Act, 1969. The Directorate General of I&I, FBR Islamabad, has also issued an alert dated 9.10.2015 about the LED lights qualifying under said provisions. Similarly, Collectorate of Appraisement (West), Karachi, vide letter dated 30.10.2015 has circulated an assessment alert on this issue. Hence, warranting a clarification on the subject.
2. The varying practices being followed by the field formations on imports of LEDs/SMDs viz. aforesaid exemption are causing hardships for the importers leading to unnecessary controversy, delays and litigation. So far as consignments having AEDB commensuration/certification are concerned, there is a consensus amongst field formations in allowing the exemption. However, there appears to be a lack of consensus on extending the benefit to such LEDs/SMDs imported as standalone consignment. The issue has been examined in consultation with stakeholders i.e. AEDB, ENERCON and other experts in this field. Keeping in view the existing formulation, there is a need to have an objective criterion / limiting benchmark for allowing exemptions in a uniform, transparent and smooth manner. Board is, therefore, pleased to clarify that only such consignments of LEDs/SMDs would be eligible for exemption of customs duty under Sr. No. 24 (2), Par-I of Fifth Schedule to the Customs Act, 1969, where the operable voltage of LEDs/SMDs does not exceed 60 Volts.
Collectorates are advised to proceed in the matter accordingly.
Signed by
(Faisal Khan)
Secretary (Tariff-II)
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