FBR’s Customs Committee Reduces Wrongly Imposed 20% Duty on Computer System

The customs classification committee of the Federal Board of Revenue (FBR) has ruled that the Interactive Computer System would be subjected to a 3 percent customs duty instead of the 20 percent wrongly imposed by the Collectorate of Customs, Islamabad.

In this regard, the FBR’s classification committee issued a ruling on Friday. According to the ruling, the Collectorate of Customs, Islamabad forwarded a reference for the determination of classification of “All-in-One Interactive Computer System, Core i7 with 86-inch touch LCD”.

Brief facts of the case as reported by the referring Collectorate are that M/s Inovine filed through their Customs Clearing Agent, Islamabad imported a consignment of “All-in-One Interactive Computer System, Core i7 with 86-inch touch LCD” from UAE and sought clearance thereof under PCT heading 8471.3020 (Personal Computer).

However, during the assessment, the Collectorate classified the impugned goods under PCT heading 8528.4900 (Other monitor & projectors). The importer contested the classification determined by the Collectorate contending that the imported goods were classifiable under PCT heading 8471.3020, submitting many Goods Declarations in support of his contention and also presenting European Commission reference for classifying computer and software under heading 8471.

However, the referring Collectorate was of the opinion that the subject item contains a panel/screen, HDMI ports, along with remote control and was correctly classifiable under PCT heading 8528.4900, asserting further that the same item was cleared from Karachi under PCT heading 8528.4900.

The Classification Committee considered the arguments and stance of both sides and examined the documents put forth and perused the relevant provisions of law dealing with the HS classification. Classification of any imported goods under the Pakistan Customs Tariff is determined under the General Rules for the Interpretation (GIR) of the First Schedule to the Customs Act, 1969.

The Classification Committee observed that the goods in question are a composite unit, having a weight of more than 10 kg, has complete in-built features of an automatic data processing system, consisting of a flat panel LCD touch screen that performs as an input and output unit, equipped with a central processing unit core 17, 6GB RAM and 250GB hard drive.

The Classification Committee also perused CROSS Customs Ruling NY N280009 dated Oct 31, 2016, whereby a similar Clevertouch Screen imported from China was classified as an ADP machine as The applicable subheading for the CleverTouch flat panel display will be 8471.41.0150, HTSUS, which provides for “Automatic data processing machines and units thereof …: Other automatic data processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: Other.

The classification committee is of the considered view that in the light of G1R Rules 1 and 6, “Clevertouch Interactive Flat Panel Touch screen LCD (All-in-One Interactive Computer System, Core i7 with 86-inch touch LCD, Ram 6-GB/250-GB Hard Disk” having weight more than 10kgs is appropriately classified under PCT Heading 8471.4190.