KARACHI, Jan 14: Exporters are allowed to import accessories under the Duty and Tax Remission Rules for Export (DTRE) up to 10 per cent of the total value of the export contract. The ceiling can, however, be enhanced on EPB's recommendation.

This was stated by Additional Collector of Export Dr Wasif Ali Memon at a workshop on DTRE organized by the Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea).

Introducing the subject Abdul Wahid Bandukda, convener Customs, DTRE and CBR affairs sub-committee said that the DTRE officials had been invited to answer queries on DTRE in order to help members register themselves in the scheme since the SRO 410 which allows duty free import of accessories had expired on December 31, 2003.

The Prgmea members objected to the relevant provision of the DTRE covering temporary imports and said that it would not only increase their cost of production but would also result in a long wait of 18 months to get duty drawback.

The DTRE officials were informed that under the DTRE, exporters would have to undergo the ordeal of valuation as there would always be a difference of opinion between the valuation staff and the importer of accessories.

Dr Wasif Ali Memon said that in the event of cancellation of an export order they would be allowed to re-export the raw material and accessories as the same was allowed by the rules. Exporters can also use the same material for a fresh order after seeking a new approval of the contract, which would have to be fulfilled within 18 months.