06 March 2005	Sunday	24 Muharram 1426

ISLAMABAD, March 5: The customs authorities have constituted a committee to review the sub-classification of different customs tariff lines to make it compatible with those of developed countries particularly with the United States and European Union (EU) member countries.

Member Customs, Ramzan Bhatti told Dawn that total tariff lines in Pakistan's Customs Tariff was in the range of 6,200, which, he said, covers almost all tradable products. However, he said that in the current exercise, the committee would review the sub-classification of the existing tariff (items placed beyond 6 digit level in the tariff) to find out those items particularly the exportable products, which were not mentioned in the existing tariff lines. The exercise was aimed at facilitating the exporters and importers if possible.

The export collectorate of customs has already been directed to work in coordination with the Export Promotion Bureau (EPB), commerce ministry and trade bodies to identify those exportable items that were not mentioned in the sub-classification of tariff book.

He, however, said that the existing tariff covers almost all importable and exportable products. The new products would be given new HS codes. The member said that the tariff book for both exportable and importable products will remain the same.

Mr Bhatti said in the up-coming budget an amendment will be introduced in the Customs Act to make it mandatory for exporter to mention the exact HS code for their products.

Till now there was no legal provision for the purpose in Pakistan to bind exporters for mentioning HS codes for their products and only importers were bound to write the HS code of their importable products.

The World Customs Organization (WCO) based in Brussels has adopted the same harmonised system of codes for all the member countries including Pakistan up to six digit level. The member countries have a cushion to include products in the sub-classifications beyond six digit level. Pakistan has so far added around 13,00 items in the sub-classification of beyond six digit level.

A senior customs official who deals with the project told Dawn that during the exercise the emphasis would be to adopt the same HS code for exportable and importable products, which were adopted by the US and EU particularly in the sub-classification to facilitate trade with these countries.

He said that the comparison for HS code would be made in the sub-classification of products with these countries tariffs as up to six digit level the main classification of goods were similar of all the member countries.

The official said Pakistan's exports stood at around 70 per cent to the US and EU countries so the similar HS code system would facilitate the trade with these countries.