ISLAMABAD, Jan 2: The Central Board of Revenue (CBR) has turned down a request from exporters seeking extension in exemption of duty on imported goods for re-export.

The government had allowed the registered exporters to import duty free goods for consumption in the manufacturing of goods for their subsequent exportation up to December 31, 2001.

After expiry of the date, the CBR seemed reluctant to extend the exemption.

The International Monetary Fund (IMF) has already asked the government not to make any further extension in the time-bound exemptions.

When contacted, the chairman CBR, Riaz Ahmed Malik said that the decision was taken as a part of the government policy of reforms in tax machinery.

Justifying his decision, Mr Riaz said that this would help more exporters to opt for almost similar scheme of duty and tax remission for export (DTRE), recently implemented by the government.

He, however, said that the Export Promotion Bureau also favoured extension in the facility, but, he said, exporters demand for extension came too late to be considered.

The chairman said that currently 120 exporters were availing the DTRE scheme, which, according to him, would enhance to 400 by the end of the current fiscal.

The exporters, however, said that they were not used to the new system, therefore, extension should be made in the SRO410, a temporary importation scheme.

They said that they were already facing financial crunch due to prevailing tension in the region and cancellation of orders by the US and European importers.

The goods which were allowed to be imported by exporters without paying custom duty and sale tax are: material and components; sub-components including forgings of surgical instruments, for processing, assembly, manufacturing, repair or rebuilding; material for embellishing or decorating goods produced in Pakistan, for exportation; packing material (excluding straw, paper, paper cones, glass wool and like material); price labels or tags; textile designs, artwork, transparencies (bearing design for textiles); fur lining, lining, pads and inter lining material all sorts; velcro tapes and other fastening material; hangers, special labels, special buttons, rivets, eyelets, buckles, special brand tags special thread and other items such as decorative fittings, zippers, lockerloops, etc., required to be fixed on ready made garments all sorts and textile made-ups; raw materials- plush fabrics, nylon, polyester fibre, eyes and nose used in stuffed toys; polypropylene woven and jute bags subject to the condition that such bags bear the particulars of the Pakistani exporters in permanent print on each bag; unit soles with heels, soles and heels for footwear and Old and used hand knotted carpets.