ISLAMABAD, Feb 1: The government has allowed duty drawback facility to manufacturers of core spun yarn with lycra.

The rate of duty drawback on core spun yarn with lycra would be Re0.09 per gram of lycra yarn used. The facility would be available to manufacturers from January 1, 2002.

To this effect, the Central Board of Revenue issued a notification here on Friday, amending the budgetary notification SRO412 dated June 18, 2001.

Similarly, through another three different notifications, the CBR allowed duty drawback facility to Nagina Cotton Mills Limited, Lahore; Indus Dyeing, Karachi; and Fazal Cloth Mills on manufacturing of core spun yarn with lycra.

According to the notifications, the duty drawback facility would be available on these goods exported between the period commencing from August 21, 2001 to December 31, 2001.

The manufacturers have to come up with the following condition in order to get the facility — the goods have been manufactured according to the formula duly furnished to the Central Board of Revenue showing the quantity of various imported raw materials specified in column (1) of the said table and used in the production or manufacture of the goods specified in column (2) thereof; the manufacturer maintains proper record of the goods manufactured in accordance with the formula referred to in sub-paragraph (i) and procedures, on demand, such records and other evidence at may be required by the CBR to satisfy itself that the imported raw materials have been used in accordance with the formula.

The manufactured goods are exported out of Pakistan and an application for repayment of customs duties is presented to the proper officer of customs within 210 days of such exportation or within 180 days from the date of such realization of foreign exchange as shown in bank credit advice issued in accordance with the regulation of the State Bank in force for the time being.

The exporter makes a declaration on the face of the original shipping bill or other export documents to the effect that he would claim repayment of the customs duties paid on the imported raw materials used in the production or manufacture of the goods being exported.

The repayment of customs duties at the rate specified shall be allowed provided that the goods exported are manufactured with the same constituents on which the rate of repayment is notified and the manufacturer-cum-exporter shall immediately intimate to the collector of customs concerned — any change in the price of the imported raw materials; any change in the composition of the manufactured goods to be exported and use of any indigenous raw material in place of the important raw materials.