ISLAMABAD: The Federal Board of Revenue (FBR) has adopted a mechanism for the release of consignments of residents of the erstwhile Federally Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (Pata) at Karachi ports.

In this regard, a circular No. 9/2021 was released on Tuesday to sort out the issues of imported goods of Fata/Pata residents in a meeting of Chairman FBR Javed Ghani with member operations of Inland Revenue and customs.

As per agreed procedures, the Customs authorities will release stuck containers against postdated cheques and send to their destination — Fata and Pata — under standard tracker mechanism.

The Collector Customs (Enforcement & Comp­liance) will issue detention orders for the raw materials effective from the day the consignment reaches the manufacturing premises of importers. The importer/manufacturer will be responsible to take the import documents along with the detention order to the concerned RTO Pesha­war and make arrangements to have the manufacturing premises/raw material/machinery/goods imported verified.

The concerned RTO Pesha­­war will be liable to verify/undertake physical visit as conducted by the importer/manufacturer to the manufacturing premises where the goods are kept under detention and allow the raw material to be consumed/utilises in writing.

Similarly, the RTO Peshawar will ensure monthly stock-taking of the raw materials to consume in the production of manufactured goods by these manufacturing units. This stock-taking will facilitate in issuance of the consumption certificate.

Moreover, the residents of Fata/Pata will apply for tax exemption certificates under Section 159 of the Income Tax Ordinance 2001 for the import of raw material/machinery in light of the Peshawar High Court, Mingora Bench (Dara-ul-Qaza) Swat’s decision on Nov 24, 2020.

Published in Dawn, March 3rd, 2021