More Duty on Imported 14-Seater Electric Sightseeing Bus

ISLAMABAD: The Federal Board of Revenue (FBR) has announced a 30 percent customs duty on importing 14-seater electric sightseeing buses. This decision by the Customs Classification Committee means the vehicle will not qualify for the 20 percent duty rate under PCT heading 8702.4090.

More Duty on Imported 14-Seater Electric Sightseeing Bus

The committee has ruled that the 14-seater electric sightseeing bus falls under PCT heading 8703.1000. This category includes vehicles designed for snow travel, golf carts, and similar types.

Previously, the Collectorate of Customs Appraisement Port Muhammad Bin Qasim in Karachi requested clarity on the classification of the imported vehicle. The importer declared the vehicle under PCT heading 8702.4090, which attracts a 20 percent duty. They also sought a reduced 1 percent duty under a specific exemption for certain electric vehicles in the Customs Act, 1969.

However, the committee determined that the imported vehicle, despite being electric and transporting more than ten people, fits the description of “carts/golf carts.” The term “electric buses” in the exemption applies to heavy commercial vehicles used for public transport over longer distances.

The 14-seater electric bus is designed for short-distance transport within specific areas like airports, shopping malls, and tourist spots. The committee emphasized that its use and operation are akin to golf carts, thus falling under PCT heading 8703.1000. This classification means the vehicle is subject to a higher duty rate due to its limited area and short-distance transport purpose.

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