ISLAMABAD, Oct 13: The Duty and Tax Remission for Export (DTRE) scheme has failed to attract businessmen during the last three years to avail the facility of zero customs duty and sales tax on import of goods for its subsequent exports, officials admitted to Dawn on Monday.

They confirmed that following the three extension in the temporary importation scheme allowed under SRO410, which was earlier scheduled to expire in 2001, has further reduced the chances of more exporters opting for the DTRE scheme.

Officials said that the exporters were reluctant to register themselves under the facility of no-duty-no-drawback scheme announced in 2001 because, according to officials, they were enjoying more facilities under the DTRE scheme.

Under the DTRE scheme, so far only around 350 exporters have registered themselves with the tax authorities, officials added.

Elaborating the lukewarm response to this scheme, the officials said that under the scheme although the exporter would enjoy duty exemption from both customs and sales tax but they would have to keep record of every thing, which would be subjected to further audit.

The officials said that the massive demand for extension in the temporary importation scheme was due to the fact that there was no concept of further audit and check of goods to confirm whether the goods were exported.

The tax authorities have revised the DTRE scheme for exporters in the budget 2003-04 to make it more user-friendly following the proposals received from all chambers and associations across the country.

The CBR has even allowed exporters to claim duty drawback under DTRE on electricity and gas used in the manufacturing of goods on its exports. Furthermore, they were also allowed that if they could not export their goods under DTRE, on payment of penalty and full payment of duty, they could even sell it in the local markets.