Gold detectors are heavy equipment imported from all over the world and it involves a thorough import process. One of the main processes in import is a declaration of customs duties and taxes to the import authorities in Pakistan. Federal Board of Revenue or FBR classifies imported goods in several categories and assigns a unique HS Code to them so the customs procedure becomes more manageable. According to FBR, the assigned category of our imported goods is metal detectors which have an HS code of 8543.7090.
The dollar rate is an important factor determining the value of customs duties because according to the recent regulations, taxes will be applied on the dollar invoice value of the product at the time of clearance, rather than when the consignment was purchased.
Banks being the third parties charge some additional service charges to their buyers and sellers as being intermediaries in the import process. They issue a letter of credit, bill of exchange and other supporting documents guaranteeing the payment from the buyer to seller, in order to minimize the risk.
The charges incurred for logistics by third parties who transport the shipment from one country to another are called freight charges. Popular logistics companies providing shipments in Pakistan include DHL, FedEx, etc. The freight charges include the weight in kilograms of the consignment as well as cost per volumetric size of the consignment.
Custom duties (@5%)
Custom authorities in Pakistan use the HS code assigned to our specific product type which automatically calculates the amount of taxes associated with that type of import. Previously it was only based on the product’s market value in dollars and freight charges, but according to the recent regulations, the volumetric size of the consignment is now also added as an additional customs tax.
General Sales Tax (@17%)
The general sales tax liability according to FBR is now calculated at 17% of the purchasing value of products which is noted on the invoice in a dollar value.
Additional sales taxes (@3%)
The additional sales tax liability according to FBR is now calculated at 3% of the purchasing value of products which is noted on the invoice in a dollar value.
Income Tax (@6%)
Income tax is deducted from the company’s annual business expenses at the end of the year but also on the proceeds from sales of a consignment grossing up to a significant value at the rate of 6% of the market value of the product.
Warehousing charges (volumetric and daily)
The warehousing charges are accounted by the company where during the delay of customs clearance and other procedures till the products are finally shipped to the final customers, the products are kept in a safe location for the purpose of securing them and assigning them to a proper storage unit. This may or may not include insurance charges the warehousing units charge for additional damage protection, The charges are daily as well as volumetric depending upon the dimensions of the product or consignment being stored.
The airport custom authorities charge a certain amount to the buyer for importing goods to the home country which are identified by the HS Code of the product category as already mentioned above in detail..
Custom Clearance Charges
Third-party facilitators are often engaged in a process for clearing out the goods from customs facility in the airport. They have a variable rate for the services offered depending upon the type of shipment and overall custom duties and taxes.
Delivery Order (DO) charges
The charges which are required for confirmation of delivery order and responsible for safely moving the consignment to the exact location of the buyer’s office or warehouse requested.
Civil Aviation Authority Charges
A variable expense charged by the civil aviation authority for providing the airline services for commercial services to the organizations.
The expenses which determine secure handling and protection of fragile items in the consignment to make sure the items are delivered to the buyer in one piece.