ISLAMABAD, June 10: The Central Board of Revenue on Tuesday reduced limit of export performance to $0.1 million from $0.5 million to accommodate small and medium size manufacturers-cum- exporters under duty and tax remission for export (DTRE) scheme.
Member exports Mumtaz Haider Rizvi in an official announcement said the decision among others were taken in the budget to make DTRE more user friendly so that maximum number of exporters could avail the facility of ‘no duty and no drawback’.
He said an exporter could establish his performance by presenting EE form verified by the Sate Bank even if he did not have a complete record of shipping bills.
Elaborating further, he said the movement of duty and tax free input goods was permitted between approved persons, and DTRE manufacturer could get his export goods manufactured from anywhere as along as his vendor/agent was a sales tax registered person.
He said the admissibility of duty drawback up to 10 per cent of notified rate for specific items would release the exporters from the difficulty of having to obtain 100 per cent of his requirement under the DTRE regime.
The exporters could now procure goods up to 10 per cent of contract value from local market and get rebate, he said and added thus buttons, threads, beads, zips, eye-lets, collar bones, wrapping and packing materials, dyes, glues, buckle, etc., could be procured from non-DTRE resources.
The other major decisions taken includes: sales of admissible wastage was allowed under DTRE on payment of leviable sales tax; an exporter could opt for DTRE for sales tax alone in which case, he would be entitled to full duty drawback on duty paid inputs; permission to cover supplies against international tenders under DTRE enables the local manufacturers to bid on competitive basis; enhancement in the period of initial utilization of inputs from 12 months to 18 months to save the exporter from penal surcharge and computation of utilization period would be done from the date of procurement instead of the date of DTRE approval; ceiling for sale of B-grade material or factory-rejects enhanced to 20 per cent; penal surcharge limited to value of unutilized inputs instead of value of unfulfilled exports and penalty on over- stayed has been reduced and the input goods could now be procured under DTRE against an export purchase order and exporter need not necessarily have a confirmed contract.