IMPORT & EXPORT MANAGEMENT

Elective of Supply Chain Management

Prepared By: Asif Iqbal
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CUSTOM TARIFF

The word Tariff is an derived form of the Arabic word Tarif which means notification. In its technical sense it means list of duties of customs to be paid on and collected under the Schedule to the Customs Act, 1969.

H.S. CODES

The Harmonized System Codes (HS) of Tariff Nomenclature is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council)

H.S. CODE EXAMPLE (CONTINUED)

2836.2000
Chapter / Section Sub Chapter / Sub Section Group of Commodity
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H.S. CODE EXAMPLE

H.S. Code No. 2836.2000 Chapter / Section = 28 Sub Chapter / Sub Section = 36 Group of Commodity = 2000 Commodity = Disodium Carbonate Duty Structure 1. Custom Duty = 10% 2. Sales Tax = 17% 3. Income Tax = 5% 4. Federal Excise Duty = 1%

CUSTOM DUTY

A tax collected on imports and some exports by the customs authorities of a country. This tax is used to raise state revenue. It is based on the value of goods or the weight, dimensions, or other criteria of the item such as its size, it is also referred to as customs duty, tariff, import tax and import tariff.

SALES TAX

Sales tax are levied when a commodity is sold to its final consumer.

FEDERAL EXCISE DUTY

The word Federal was used in place of Central. Therefore, now the term Federal Excise Duty is more appropriate as compared to old Central Excise Duty or Special Excise Duty for the duties of excise levied under the 2005 Act. Federal Excise duty is payable on the following Goods produced or manufactured in Pakistan Goods Imported into Pakistan Services provided or rendered in Pakistan
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INCOME TAX

Tax was imposed on Income in 1799 for the first time in Britain. Taxes on trade, land, property, or even tax on expenditure preceded tax on income. The reason for tax on income was to generate revenues to meet the expenses of Britains war against Napoleon. Hence, it is sometimes said that Napoleon is the Father of Income Tax

STATUTORY REGULATORY ORDER

Statutory Regulation order, when ever tax authorities issued any order which is not included in the Ordinance or Act at the time of passing that orders the document is used to regulized the Order is said to be as SRO or Special Regulation Order.

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DUTY CALCULATIONS STEPS & FORMULAS

CNF Value = Invoice Value + Freight Insurance = CNF Value x 1% or Insurance Premium Amount CIF Value = CNF Value + Insurance Landing Charges (only Sea) = CIF Value x 1% Import Value = CNF Value + Insurance + Landing Charges Custom Duty = Import Value x Custom Duty Rate Sales Tax = (Import Value + Custom Duty) x Sales Tax Rate Federal Excise Duty = (Import Value + Custom Duty) x FED Rate Income Tax = (Import Value + CD + ST + FED) x Income Tax Rate Total Custom Duties = (CD + ST + FED + IT)

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