ISLAMABAD, Dec 27: The Central Board of Revenue (CBR) has proposed amendments for the consideration of the commerce ministry in the rules pertaining to the temporary importation scheme scheduled to expire by December 31.

Official sources told Dawn on Saturday that the CBR proposed these amendments to the ministry following the persistent demand of the importers for seeking extension in the scheme.

The government had already extended the temporary importation scheme under SRO410 four times, each time vowing that it would not be extended anymore.

According to the proposed amendments, CBR has recommended that a condition be included in the rules that imported input materials would not be sold in the local markets.

It was also proposed that no one would be allowed to claim duty drawback for value addition in the imported input materials in the manufacturing of goods for its subsequent exports.

The SRO had earlier expired on December 31, 2002 but the tax officials kept clearing raw materials under the same SRO without re-validating it formally. The conditional exemption under the SRO was effective from August 7, 1998.

It was in the budget 2003-04, that government had extended formally the SRO up to September 30 this year with the hope that it would not be extended further so that maximum number of exporters opted for the no duty no drawback system.

Under the SRO 410, the government has allowed conditional exemption of customs duty, sales tax on temporarily imported goods for its subsequent exportation.