20000119

Four slabs of CED on urea compound on import notified

RECORDER REPORT

ISLAMABAD: The Central Board of Revenue has notified four slabs of central excise duty (CED) on the import of urea formaldehyde-moulding compound.

These slabs will be in addition to already imposed 25 percent customs duty on the import of urea compound.

According to an amended notification, urea formaldehyde-moulding compound imported at C&F price, which exceeds US $ 750 per tonne but not more than $800 per tonne, will be subjected to five percent central excise duty.

Similarly 10 percent ad valorem CED will be charged in case the value of the item exceeds $700 per tonne but not more than $750 per tonne.

Twenty-five percent CED will be levied in case urea formaldehyde-moulding compound's value exceeds US $650 per tonne but does not exceed $700 per tonne.

Meanwhile, if the value of urea formaldehyde-moulding compound does not exceed $650 per tonne it will be subjected to 35 percent ad valorem CED, says notification SRO 962 (I)/ 99 of August 26, 1999, amended this week.

However, urea formaldehyde-moulding compound imported at C & F price which exceeds $800 per tonne has been exempted from central excise duty.

Earlier, local manufacturers of urea compound had filed a petition at the National Tariff Commission for tariff protection and the NTC decided the case in their favour. The Commission referred this matter to the Economic Coordination Committee of the Cabinet for further action and the ECC directed the CBR to issue this notification to protect the local industry.