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Importer moves SHC seeking exemption of CD, RD, ST & FED on import of classic cars

Importer moves SHC seeking exemption of CD, RD, ST & FED on import of classic cars

KARACHI: Importer approached the Sindh High Court (SHC) and filed a constitutional petition seeking exemption of custom-duty, regulatory duty,  federal excise duty, sales tax and withholding tax on import of vintage/ classic cars.

On 24 September 2020, counsel for the importer Farrukh Hussain Usmani, submitted through instant petition, the petitioner impugns the failure of the respondents to release their four vintage cars, a 1958 Bentley, two 1967 Porsche 911 and one 1967 Rolls Royce which were proceeded the import on the basis of a notification bearing No SRO 833(1)/2018.

He argued that notification was issued by the customs officials on July 03, 2018 wherein it is mentioned that “the federal government is pleased to exempt vintage or classic cars and jeeps meant for transport of persons on the import thereof imposition of custom-duty, regulatory duty, federal excise duty, sales tax and withholding tax as are in excess of the cumulative amount of US dollar five thousand per unit”.

Counsel argues that consignment arrived at Karachi Port, however, much to his shock, when the petitioner contacted the customs authorities for the issuance and process of the goods declaration, respondents refused to release the same on the purported pretext that WeBOC system does not allow/ does not include the category of vintage/ classic cars thereby making it impossible for the petitioner to file his GDs.

Citing secretary revenue division, additional secretary finance, collector of customs West and Deputy Collector of Customs Import as respondents, petitioner pleaded the court to declare that the actions of the respondents for not clearing the petitioner’s consignment in accordance with the provision of the SRO No 833(10/2018 are illegal, unlawful, unconstitutional and of no legal effect.

He futher pleaded the court to declare that the vintage cars imported by the petitioner are to be released subject of the fulfilling of formalities contained in the notification.