KARACHI: The Federal Board of Revenue (FBR) has limited Customs duty exemption to such LED/SMD lights only where the operable voltage does not exceed 60 volts.
MCC Islamabad had sought clarification whether LEDs/SMDs with or without ballast with fittings and fixtures having specification 3W, 6W, 7W, 12W etc., having 50/60 Hz, 85-265V qualify for exemption from customs duty in term of Sr. No. 24 (2) of Pan-I of Fifth Schedule to the Customs Act, 1969.
The Directorate General of I&I-FBR also issued an alert about the LED lights qualifying under said provisions. Similarly, MCC Appraisement West circulated an assessment alert on this issue.
The varying practices being followed by the field formations on imports of LEDs/SMDs with aforesaid exemption are causing hardships for the importers leading to unnecessary controversy, delays and litigation.
So far as consignments having AEDB commensuration/certification are concerned, there is a consensus amongst field formations in allowing the exemption.
However, there appears to be a lack of consensus on extending the benefit to such LEDs/SMDs imported as standalone consignment.
The issue has been examined in consultation with stakeholders i.e. AEDB, ENERCON and other experts in this field.
The Board has clarified that only such consignments of LEDs/SMDs would be eligible for exemption of customs duty under Sr. No. 24 (2), Part-I of the Fifth Schedule to the Customs Act 1969, where the operable voltage of LEDs/SMDs does not exceed 60 Volts.