ISLAMABAD, June 9: The government has introduced a number of amendments in duty and tax remission for export (DTRE) scheme to make it more user-friendly.
According to customs export notifications released here on Monday, the government has allowed the import of polyester staple fibre (PSF) under the DTRE scheme, which was earlier banned so that maximum exporters could avail of this facility.
The government has also allowed exporters to claim duty drawback on locally purchased inputs used in the exportable products.
Similarly, the government extended the period of temporary importation scheme under SRO410 up to September 30, 2003. The SRO expired on December 31, 2002, however, without extending the time period, the customs officials allowed clearance of goods under the SRO to manufacturers.
The government has also extended the compensatory duty drawback facility on local purchase of PSF up to June 30, 2004, which was due to expire by the end of this month.
Under these amendments, the payment of refund amount was allowed to exporters in a single instalment within 10 days of filing claim instead of multiple instalments over 40 days.
Moreover, the exporters in the gold and silver categories would also be entitled to this facility. Exporters with annual exports of $5 million or more would be extended the facility of local purchase of raw materials from the registered person without any payment of sales tax against a bank guarantee or a certified post-dated cheque. With the facility, the government would undergo a cash flow constraint of approximately Rs6 billion.
The duty drawback would now be available under DTRE on duty paid inputs purchased domestically as well. Consequently, inputs purchased domestically under the DTRE would get a proportionate percentage of duty drawback admissible as per rates already notified under the DTRE scheme on locally manufactured PSF on deemed import.
The government has also allowed DTRE for the purpose of sales tax free inputs and would be entitled to full duty drawback on duty paid raw materials.
The initial utilization period is being extended from 12 months to 18 months and scope of DTRE is being extended to cover supplies against international tenders.