Under SRO.492(I)2009, the Federal Board of Revenue (FBR) has approved the duty- and tax-free temporary import of artificial leather used in the manufacturing of a broad variety of completed goods. On Thursday, the FBR published a legal clarification in this regard.
Because it has banned the import of fake leather (without payment of customs and taxes) for use in completed items to be exported, the FBR has issued a new explanation. A fresh explanation has brought the facility back to life.
The FBR had waived the whole customs duty and sales tax on temporary importation of items for eventual exporting under the SRO.492(I)2009.
Imported materials are used to make leather products, leather garments, and sports goods, as well as garments and textile made-ups, including foundation garments, furniture, woodware, fittings, and other things, according to SRO.
According to a letter sent to Customs Chief Collectors on Thursday, the term “leather” refers to animal leather that falls under PCT heading 41.07, whereas PU is an artificial leather that falls under HS code 3921.1300, and thus is not subject to the exclusion under serial number 1 of Table SRO.492(I)2009. As a result, the SRO.492(I)2009 allows for the temporary import of PU leather (fake leather).
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