ISLAMABAD, Jan. 2 (INP): Federal Board of Revenue (FBR) issued Statutory Regulatory Order (SRO) to implement the second phase of China-Pakistan Free Trade Agreement. The SRO paved the way to implement the protocol agreed between China and Pakistan, reports Gwadar Pro Net.

The Board, after thorough deliberations and in consultation with Ministry of Commerce developed a Statutory Regulatory Order.

The China Pakistan FTA Phase-II came into effect with the beginning of new year.

According to the SRO, the exemption of Customs duties has been provided in 3251 catogories of goods that will be free of customs duty from January 1.

The duty structure will be tapered towards elimination from Year 2 to year 7 and in Category A15 the duty structure will be tapered towards elimination from Year 4 to year 15.

In the Margin of Preference (MOP) there are two categories, in MOP1 the Customs Duties shall be reduced by 20% of the base rate on the date this protocol enters into force and in MOP2 the duty structure will be reduced 20% from the base rate in two years’ time.

The Customs Duties on originating goods provided for in category C1 shall remain at base rates and in category C2 shall not be subject to any concession.

Inp/javed