1-Explain Custom Duty.

Customs Duty is a tax imposed on imports and exports of goods. Customs duty rates are
either fixed or they are based on the worth of the goods. The Custom duty on commodities
when they are carried across international boundaries is known as customs duty. In simple
terms, it is a tax levied on items imported and exported. This duty is used by the government
to increase revenue, protect domestic industries, and regulate commodities movement.

Customs duty rates differ based on where the goods were created and what materials they
were comprised of. Customs duties are calculated on a per-unit basis. In 2019, Pakistan's
average applicable tariff was 10.09 percent. Aside from customs duties, the government
levies a 17.0 percent sales tax on the duty-paid value of a wide range of items manufactured
in or imported into the country. Pakistani rupees are used to pay customs duty and other fees.

Export subsidies - Pakistan aims to boost exports by offering import duty, sales tax, and
income tax exemptions, as well as subsidized export financing.

2-How custom Duty is Calculated on Imports?

To begin, calculate the duty percentage rate on the items you're shipping. This fee changes
based on the destination country.

To find it, go to the government website of your destination country's customs or trade tariff
page. Using an HS code or a product description, you can typically find duty rates. A
woman's T-shirt entering the UK from the United States, for example, has a duty percentage
of 12 percent. You can calculate the duty on your shipment once you've discovered the rate.
To do so, add the worth of the items, freight, insurance, and any other costs together, then
multiply the amount by the tariff rate.

The result is the amount of duty you'll need to pay customs for your shipment. Some
countries use different rate calculation methods so remember to check this on the government
website or with your carrier. You can calculate the sales tax of the imported goods by adding
the calculated amounts of customs value, customs duty, and additional customs duty.

Customs Value in PKR = 2,937,254.

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Regulatory Duty in PKR = 587,451.

Customs Duty in PKR = 587,451.

Addition Customs duty in PKR = 29,373.

If goods are imported by mode other than air the maximum limit of 20 % of FOB is not
applicable. The assessable value (AV) of imports is Rs 100,000. The BCD (basic custom
duty) is @ 10 %. IGST is payable @ 12%.

3- What is WebOC?

WeBOC is a natively evolved, online modernized leeway framework, giving start to finish
mechanized traditions freedom of import and product merchandise. The framework was
grown mutually by the Pakistan Customs and PRAL, and was first carried out being
investigated premise at Port Muhammad Bin Qasim. Consequently, WeBOC was
additionally carried out at different terminals and customs stations.

By and by WEBOC has north of 45,000 enrolled clients for example organizations,
government offices (Anti-Narcotic Force, Engineering Development Board, State Bank of
Pakistan, Ministry of Climate Change, Railways, Income Tax Department, Provincial Motor
Registering Authorities, Commercial Banks and so on).

As of now, 30% import transfers are cleared right away (Green channel - with no mediation),
49% based on transferred reports (Yellow channel) and 21% (Red channel - considered high-
risk products). Significantly the framework has achieved consistency in customs clearances
the nation over. Its modules incorporate Goods Declaration, Warehousing and module to deal
with Break-mass, modules to deal with Commercial Transit freight for Afghanistan,
Manufacturing Bonds, Reverse Transit and Clearances from Border Customs Stations.
Essential elements of WeBOC include:

 Paperless system ---- On-line manifest filing and Online payments

 24/7 GD filing (web-based)
 Risk Management System (Green, Yellow, Red channels)

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 Transparency (No surprises for trade, Less interaction with the Customs)
 All customs processes performed online by customs staff
 Communication with the custodians of goods/port authorities through EDI
 Online communication with traders and clearing agents
 Examinations reduced from 100% to 30%
 Importer’s representative / clearing agent presence not required
 Assessment based on examination reports and images
 First-in, First-out (FIFO) based assessment scheme
 Online adjudication process
 Online decision support tools for customs and trade
 Stricter controls and checks (complete log of all activities)
 Less demurrages, less clearing/handling charges.

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