ISLAMABAD, June 19: The government is likely to extend the temporary importation scheme allowed under SRO 410 till December 2004 on the persistent demand of importers, well-placed sources said on Saturday.

They told Dawn that the decision to extend the facility, due to expire by the June 30, is expected to be announced through a customs notification to be issued by end of the current month.

According to these sources, the Commerce Ministry has already recommended to Central Board of Revenue (CBR) to extend the scheme.

The government has already extended the facility four times, each time vowing not to extend anymore. The conditional exemption under the SRO was effective from August 7, 1998.

The government had already constituted committee for making amendments in the SRO before the same was extended.

According to the sources, the massive demand for extension in the SRO was also due to the fact that there was no concept of post-audit and check of goods to confirm whether goods were exported or not.

To make the SRO less lucrative, the CBR has proposed amendments before announcing any further extension in the facility, including a condition that imported input materials would not be sold in local markets and that no one would be allowed to claim duty drawback for value addition in imported input materials in the manufacturing of goods for its subsequent exports.

Under the SRO410, the government has allowed conditional exemption of customs duty and sales tax on temporarily imported goods meant for subsequent exports.