ISLAMABAD: The Federal Board of Revenue (FBR) on Friday notified the updated units of measurements through Customs General Order (CGO) 15 of 2019 in a bid to facilitate legitimate trade while eliminating discretion and data distortion in application of units of measurements.

The board had notified standards units of measurements in 2012, however despite the issuance of updated recommendations by the World Customs Organisation (WCO), the FBR failed to update the units during the last seven years.

An official statement said the customs wing has updated and issued the units of measurements used in import and export documents. The action will help improve consistency, transparency and uniformity in data capturing as per international standards.

Moreover, the FBR has guided all field operation collectors to ensure implementation.

WCO recommends the use of standard units of quantity to facilitate collection, comparison and analysis of international statistics, based on the harmonised system of commodity description.

Standardisation and harmonisation of units of quantity also constitute effective measures for standardising and facilitating the transmission of data by means of electronic data interchange.

Updated units of measurements have been notified and will become binding for all field formations of customs as well as importers and exporters.

Subsequently, the announcement said the FBR would not accept documents including Goods Declaration after Sept 30 if the information regarding units of quantity declared were not in accordance with aforementioned CGO.

Special procedures for tax refunds

The FBR has also notified to allow adjustment and refunds of sales tax paid under special procedures on steel, oil and ghee mills.

A Sales Tax General Order no. 105 of 2019 issued on Friday set special procedures for availing the adjustment of tax and refunds.

Adjustment against goods declarations of re-meltable scrap imported prior to July 1, which remained in stocks or the finished goods made therefrom remained in stock on June 30 will be made available to the extent of that consumed in supplies made in July and August provided no adjustment of tax paid on such GDs was made against sales tax on electricity bill as was provided under the sales tax special procedures rules 2007.

However, such adjustment will be available on case-to-case basis.

For oil and ghee mills, adjustments will be available in respect of 16pc federal excise duty against imports made in June 2019 as available stock on June 30 in the same form of finished goods as consumed in sales made during July and August. The adjustment will be made to the extent of sales actually made in each month.

Similarly, the FBR also allowed the refund of 2pc extra sales tax.

Published in Dawn, September 14th, 2019