Ostensibly to solidify a personal relationship with the ruling elite of Qatar, Pakistan Muslim League-Nawaz (PML-N) government has granted duty exemption to the imports by the rulers of Qatar, UAE and Bahrain to Pakistan in the federal budget 2017-18.
According to finance bill, the federal government has given exemptions to the imports by dignitaries of UAE, Qatar, and Bahrain. The dignitaries; including 17 from UAE, two from Bahrain, and 11 from Qatar can import household articles and personal effects including vehicles and goods to Pakistan without paying any duty/levy during the financial year 2017-18. And, in order to avail the duty concession, an exemption certificate to this effect shall be issued by the ministry of foreign affairs, the government of Pakistan, while the list shall be updated every six months i-e on 31st July and 31st January to show the status as on 1st July and 1st January.
“A complete list of all vehicles showing names of the owner, details of imports and present custodian etc shall be provided by UAE/Qatar/Bahrain Ambassador,” said official documents.
As per documents, UAE/Qatar/Bahrain rulers must make and disclose alternate arrangements for the maintenance of their fleet by their employees and not by any Pakistani posing as their agents or authorised representatives. Similarly, UAE/Qatar/Bahrain Embassy should undertake that no Pakistani will be allowed the use of their duty-free vehicles and that they will abide by the true spirit in which this concession is available to the UAE/Qatar/Bahrain.
Similarly, goods imported under the President’s Salary, Allowance and Privileges Act, 1975, the Prime Minister’s Salary, Allowances and Privileges Order, 1975, the Governor’s Salary, Allowances and Privileges Order, 1975 and under the Acting Governor’s Salary, Allowances and Privileges Order, 1978 will not be liable to any duty. And, as a result, these dignitaries will also enjoy duty concessions on import of goods. Furthermore, goods imported by diplomats/embassies/consulates and various agencies of the United Nations under the United Nations (Privileges and Immunities) Act, 1948, as certified by the ministry of foreign affairs, the government of Pakistan will not be liable to any duty. Also, vehicles in CKD conditions, imported by recognised local manufacturer for supply to the diplomat, diplomatic mission, the privileged person (as per model rule) and organisations procedure laid down by the Board (FBR) will be duty exempted.
“Goods imported by privileged personnel or by organizations or by any persons authorized by the contracting parties under grant-in-aid agreements (including those agreement which cover off budget foreign contributions or funds brought by registered INGO’s without any financial liabilities to the government of Pakistan) signed by the Economic Affairs Division (EAD) and or by any ministry authorized by the government of Pakistan and duly concurred by the federal board of revenue (FBR),” said documents.
It is also learnt that in order to avail the duty concession, an exemption certificate to this effect shall be issued by the ministry of foreign affairs. Also, FBR may issue an exemption certificate to any dignitary on the recommendations of the ministry of foreign affairs, while the importer shall make a declaration on the bill of entry for the exemption claimed. Moreover, any article other than a motor vehicle sold or otherwise disposed off before the expiration of three years from its importation shall be liable to a payment of customs duties, which would have been leviable at the time of importation. Likewise, a motor vehicle shall not be sold or otherwise disposed off in Pakistan without payment of custom duties, which would have been leviable at the time of importation as provided under the procedure thereof by the board.
