July 8, 2003	Tuesday	Jumadi-ul-Awwal 7,1424

ISLAMABAD, July 7: The government is considering a proposal to work out measures for reducing the misuse of duty drawback facility on exports of goods to Afghanistan and Central Asian Republics (CARs) via a land route.

Officials told Dawn on Monday the exporters were availing the facility of duty drawback on exporting goods. However, these goods were smuggled back into the country through Pakistan-Afghan porous border.

The present export policy allowed exports of all commodities except few items through land route under duty drawback facility with a view to maximizing Pakistan’s export to Afghanistan and CARs.

The proposal is under consideration following the recommendation of the collectorate of customs, Quetta, which submitted a report to the Ministry of Commerce that the facility of duty drawback was prone to misuse.

According to the officials, the Ministry of Commerce in collaboration with the Central Board of Revenue (CBR) was devising procedures, which was expected to be announced in the upcoming trade policy for reducing the menace causing losses to the national kitty.

The collectorate proposed to the government that long and porous border with Afghanistan made it difficult to keep effective vigilance and ensure that the goods did not travel back to Pakistan.

The collectorate was of the opinion that either the facility of duty drawback and zero-rating of sales tax and central excise and duty drawback for exports to Afghanistan via land route be withdrawn or a procedure might be devised to curb the menace of bringing back the exported goods.