ISLAMABAD, June 14: The government has proposed amendments in the baggage rules to allow the returning overseas workers to bring along a number of additional electronic goods and jewellry.

Through the Customs Budgetary Notifications of 2004-05, the government amended the baggage rules to allow one VCD player, one watch, one mobile phone and personal jewellry.

The gift allowance limit for passengers with less than six months' stay abroad has been enhanced to $1,000. And in case of more than six months' stay abroad, the limit has been enhanced to $3,000.

In the case of passengers with more than six months' stay abroad, one VCD player, one watch, one mobile phone, one Hi-Fi sound system, one sewing machine and one exercise machine might be added to the list of duty-free items.

The value limit of personal jewellry for lady passenger and professional tools with less than six months' stay abroad has been extended to $1,500. In case of more than six months' stay abroad, it has been enhanced to $2000.

In addition to this, the limit for purchase of bona fide personal effects and household items free of customs duty and other taxes from Duty Free Shop outlets have also been proposed to enhance to $500 for passengers with less than six months' stay and $1,000 with more than six months' stay abroad.

The government reduced the customs duty from 25 per cent to 5 per cent on import of vehicle tracking system. The rate of 5 per cent customs duty has been extended to imports of locomotive and passenger wagons in CKD condition, including parts as well as railway track fixtures.

The tariff protection on the capital goods scaled down to 10 per cent and 5 per cent from 20 per cent and 25 per cent on the recommendation of the Engineering Development Board.

Duty structure on the import of mineral projects has also been rationalized and customs duty at the rate of 5 per cent has been levied at the mining stage with option of deferment for three years against 6 per cent per annum interest rate and 5 per cent levy at the extraction stage. However, there will be no customs duty at the exploration stage.

The customs duty on the import of polyester chips (yarn grade-PCT3907.6010) has been reduced from 20 per cent to 17.5 per cent. The raw material, sub-component and components imported for the local manufacturing of desalination plants have been exempted from whole customs duty.