ISLAMABAD (May 05 2004): The government has constituted a committee to study the need for extension of SRO 410 (I)/2001 (Temporary Importation Scheme), from July 1, 2004, in the budget 2004-05 which facilitates 13 leading value-added industries engaged in temporary import of raw materials for manufacture of export goods.
Sources told Business Recorder here on Tuesday that the committee, comprising CBR Member Export Zafar-ul-Majid, Chairman, Export Promotion Bureau (EPB) Tariq Ikram and representatives of export associations, would examine the budget proposals of business community regarding SRO 410 for possible extension in the coming budget.
Business community is demanding further extension, while CBR is ready to extend the SRO 410 with some further amendments.
The last extension for SRO 410, up to June 30, 2004, was given at a meeting attended by Finance Minister Shaukat Aziz, Commerce Minister Humayun Akhtar and CBR officials on January 15, 2004. At that time, the government had categorically told the exporters that this would be the fourth and final extension for SRO 410(I)/2001, and exporters should not expect any further concessions in SRO 410 in 2004-05 budget.
The CBR had redrafted SRO 410(I)/2001 to plug the loopholes making it less lucrative for the business community, but extension up to June 30, 2004, was without incorporating these amendments.
Sources said that the CBR has no objection in extending SRO 410(I)/2001, with certain amendments taking away extraordinary incentives for the manufacturers-cum-exporters.
If it is necessary to further extend SRO 410, then unessential incentives would be taken away to make the scheme less attractive in future.
Under the proposed amendments, free of duties and taxes import consignments of raw materials/inputs should be released only against bank guarantee to be submitted by the manufacturers-cum-exporters.
Similarly, the refund would be paid on the basis of calculation made by the Input Output Coefficient Organisation, Karachi.
In this connection, the CBR has proposed that the Input Output Coefficient Organization (IOCO), Karachi, should be working out the actual consumption of raw materials imported under the 'Temporary Importation Scheme'. The IOCO working would form the basis of payment of refund on the actual consumption of inputs.