June 08, 2006	Thursday	Jumadi-ul-Awwal 11, 1427

ISLAMABAD, June 7: The Central Board of Revenue (CBR) on Monday released new tariffs for the import of completely built-up units (CBUs) and completely knocked-down units (CKD) effective from July 1, 2006.

According to the new Tariff Based System (TBS), import duty of 50 per cent would be applicable to such components/parts which were manufactured locally and were imported for the assembly by the original equipment manufacturer (OEM) or by the commercial importers as a replacement parts for vehicle plying in the country including such motor vehicles, which were not manufactured locally.

Similarly, 35 per cent duty would be levied on all other indigenised replacement parts, irrespective of the type and category of the vehicle, and for such indigenised parts identified separately as were meant for vehicles (CBU) having less than 35pc of duty.

The existing rate of duty for vendors on import of raw materials and components of cars, buses, trucks and motorcycles was 5pc and 10pc, which was proposed to be reduced to zero per cent and 5pc, respectively.

However, the existing rates on components for assembly, manufacture of vehicles in any kit form, imported by the local manufacturers of automobiles, which have not been indigenised to continue through an exemption notification.

According to the CBR documents, the rate of customs duty on prime mover from multi axle trucks having 280 HP and above in both CKD and CBU condition had been reduced from existing 10pc and 30pc to zero per cent and 15pc, respectively.

The duty structure on off highway dumpers and other trucks of 5 tons and above capacity had been rationalised. The existing CKD and CBU rates on these trucks, which were 20pc and 60pc, have reduced to 10pc and 30pc, respectively.

The duty on CKD on trailers had been reduced to 10pc on CKD from 60pc and 30pc on CBU.