The clearance of textile raw material (pigments) has been virtually suspended due to non-feeding of the amendments made to Pakistan’s HS codes in the federal budget 2018-19.
The federal government in the recent budget 2018-19 had split HS codes of textile raw material (pigments) into three PCT headings, creating problems for the importers to avail of the tax benefit of SRO 1125(I)/2011.

The customs department has so far not fed the said PCT headings – 3204.1790, 3204.1720, 3204.1710 in the WeBOC system. Resultantly, importers are being denied SRO 1125(I)/2011 benefits by the system, which has led virtually to a suspension of clearance of subject goods.

In this regard, the Karachi Customs Agents Association (KCAA) in its letter cited that in the recent budget the HS code 3204.1700 of pigment has been substituted with the HS code 3204.1710 and 3204.1720 but the exemption under SRO 1125(I)/2011 has not been updated in the system, creating difficulties for importers and clearing agents to claim the benefit of sales tax under the said SRO, which was integrated with the PCT headings 3204.1700.

Following the said reasons, unnecessary delay in the clearance of consignments, which were presently lying at ports, was costing heavy demurrages to the trade.