The Federal Board of Revenue (FBR) has granted a tax exemption for Chinese products imported for use in Gilgit-Baltistan through the Customs Dry Port in Sost, eliminating the need for sales or income taxes as well as federal excise duty.

 

 

As per the details, the exemption, effective immediately, has been formalised through a notification, which details a unique procedure for clearing goods imported from China.

 

 

The notification includes over 2,403 Chinese products identified by particular Pakistan Customs Tariff (PCT) codes as eligible for this exemption.

 

 

According to the outlined procedure, eligible imports will not incur taxes, provided that an online consignment-wise authorisation is obtained through the Customs Computerized Clearance System. This authorisation must be issued by an authorised representative of the Government of Gilgit-Baltistan using the designated format in the system.

 

 

The notification states that the non-levy of taxes will be granted by the collector of Customs on a first-come, first-served basis within the specified quota. Any goods brought in for use in Gilgit-Baltistan that exceed the allocated quota will be liable for the applicable sales tax, income tax and federal excise duty.

 

 

The Government of Gilgit-Baltistan is responsible for ensuring that all goods imported under this notification are exclusively used within the region’s boundaries.

 

 

Additionally, the notification includes measures to prevent tax-exempt goods from being transported outside of Gilgit-Baltistan.

 

 

In situations where Customs operations are hindered by protests or road blockages, the collector of Customs, may, in collaboration with the Government of Gilgit-Baltistan, suspend the exemption from sales tax, income tax and federal excise duty as stated in the notification.

 

 

The collector of Customs also has the authority to deny tax exemptions in individual instances where there is significant misdeclaration that necessitates legal action under the Customs Act, 1969, or if goods cleared under this exemption are taken outside the jurisdiction of Gilgit-Baltistan.

 

 

The board will also establish a special procedure to differentiate, monitor and clear goods imported via Sost intended for consumption in other regions of the country from those cleared under the exemption for Gilgit-Baltistan.

 

 

All relevant laws and regulations under the Imports and Exports (Control) Act, 1950, the Import Policy Order and the Customs Act, 1969, will still apply to all goods imported through the Sost Dry Port, regardless of whether they are meant for use in Gilgit-Baltistan or other areas of the country.