ISLAMABAD: The Federal Board of Revenue has issued the SRO 1640(I)/2019 dated Islamabad, the 31st December, 2019 to implement the protocol agreed between China and Pakistan. The Board in order to implement the agreed protocol, after thorough deliberations in consultation with Ministry of Commerce, transposed the Offer List and developed a Statutory Regulatory Order, the FBR sources announced Wednesday.
The China Pakistan FTA Phase-II will operationalize vide SRO1640(I)/2019 dated Islamabad, the 31st December, 2019 from the start of the calendar year i.e. 01.01.2020 and shall supersede the old SRO 659(I)/2007 dated 30.06.2007.
The Tariff Elimination Schedule/ Offer List of Pakistan shared by Ministry is divided under the categories A0, A7, A15, MOP1, MOP2, C1 and C2. The Customs Duties in 3251 Tariff Lines in the A0 category will be eliminated entirely and such goods shall be free of customs duty from 01.01.2020.
In the category A07 the duty structure will be tapered towards elimination from Year 2 to year 7 and in Category A15 the duty structure will be tapered towards elimination from Year 4 to year 15.
In the Margin of Preference (MOP) there are two categories, in MOP1 the Customs Duties shall be reduced by 20% of the base rate on the date this protocol enters into force and in MOP2 the duty structure will be reduced 20% from the base rate in two years’ time. The Customs Duties on originating goods provided for in category C1 shall remain at base rates and in category C2 shall not be subject to any concession.