April 8, 2003	Tuesday	Safar 5, 1424

ISLAMABAD, April 7: The Central Board of Revenue (CBR) has removed further irritants from the Duty and Tax Remission for Export (DTRE) Rules, 2001 to make it user friendly.

Official circular, issued here on Monday, it was clarified that under rule 297(8), purchases of input goods from domestic supplier by an exporter, being zero rated would be free from sales tax.

It was further notified that being zero-rated, input tax credits/refunds were also available to exporters.

According to the circular, there was no restriction under DTRE rules, 2001 on availing two or more schemes.

An exporter could avail other schemes besides DTRE regime simultaneously, provided separate records/accounts were maintained for each scheme.

Under DTRE rules, there was no condition of any kind of verification of export contract/order from abroad. Moreover, under the provisions of sub-rule (4) of rule 297, a direct exporter could get DTRE approvals on the basis of past export performance without showing an export contract/order.

It said that under the provision of sub-rules (2) of rule 300 of DTRE Rules, 2001 an exporter might transfer his duty and tax free input goods to another DTRE approved exporter of the same goods. The input goods so obtained should be utilized as per rule 298.

There was no bar on procurement of approved input goods from Bonded Warehouse under DTRE rules, 2001.

The circular said that the DTRE manufacturer/exporter could give approximate description, quantities and values of input goods. A variation up to 10 per cent was acceptable as normal.

The DTRE manufacturers/ exporters were allowed to give approximate input/output ratios and anticipated wastage. The same was, however, accountable in the reconciliation statement. The existing rules allow submission of export contracts under intimation to the collector of customs.

It was already available under DTRE rules, 2001. The definition of “exporter” covered “indirect exporter” as well, added the circular.