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Duty drawback granted on 14 polyester staple fibre based items

ISLAMABAD (March 06 2003) : Extending duty drawback facility on export of 14 new polyester-based textile products, the Central Board of Revenue (CBR) has allowed the manufactures-cum-exporters of fabrics made of imported polyester staple fibre (PSF) to avail duty drawback.

This was one of the major demands of the textile sector.

The CBR has amended standard SRO. 412(I)/2001 through two notifications SRO. 229(I)/2003 and SRO. 238(I)/2003 issued here on Wednesday.

The exporters of polyester fusible interlining woven with LDPE or HDPE made from locally procured polyester would also be entitled to duty drawback.

However, the CBR has excluded the component of locally purchased polyester to ensure rebate only on the imported raw material.

Under Custom Act, 1969, the repayment of custom duty is only available on the export of goods made from the imported raw materials.

There is a huge duty drawback difference of Rs 5.24 per kg on the export of 100 per cent polyester (imported) fusible interlining woven with LDPE/ HDPE and that made from locally procured polyester.

The repayment of duty on the export of the imported polyester is Rs 8.66 per kg whereas it is Rs 3.42 per kg on the locally purchased polyester.

CBR officials said that duty drawback on the export of above-mentioned product made from locally purchased polyester is very less as compared to imported polyester.

The repayment of Rs 3.42 per kg is actually rebate on imported raw material excluding locally procured polyester.

Other raw materials include fluorescent or optical brightener, softener, LDPE or HDPE and polythene for packing, whereas, same raw materials utilised along with 100 percent imported polyester would avail duty drawback at the rate of Rs 8.66 per kg.

The authorities claimed that the duty drawback has only been extended on the overall product ie 100 percent polyester (local) fusible interlining woven with LDPE or HDPE excluding element of locally purchased polyester.

According to SRO 238(I)/2003, the duty drawback available on the following items exported during March 4 to June 30, 2003, would be Rs 10.25 per kilogram on the export of grey fabrics made of 100 percent polyester staple fibre (PSF), Rs 10.57 per kilogram on bleached fabrics made of 100 percent PSF and Rs 11.69 per kilogram on the export of dyed or printed fabrics made of 100 percent polyester staple fibre.

Similarly, the CBR has given duty drawback on the export of eleven textile products from March 4, 2003 onwards.

The repayment of duty would be Rs 1.91 per kilogram on the export of 100 percent cotton bleached fusible interlining woven with LDPE or HDPE; Rs 8.66 per kilogram on 100 percent polyester (imported) fusible interlining woven with LDPE or HDPE; Rs 3.42 on 100 percent polyester (local) fusible interlining woven with LDPE or HDPE; Rs 5.96 per kilogram on 50 percent polyester (imported) 50 percent cotton fusible interlining woven with LDPE or HDPE; Rs 2.64 per kilogram on 50 percent polyester (local) 50 percent cotton fusible interlining woven with LDPE or HDPE; Rs 8.65 per kilogram on 100 percent polyester (imported) fusible interlining non-woven with LDPE or HDPE; Rs 3.11 per kilogram on 100 percent polyester (local) fusible interlining non-woven with LDPE or HDPE; Rs 10.06 per kilogram on 100 percent polyester (imported) non-fusible interlining non-woven; Rs 1.69 per kilogram on 100 percent polyester (local) non-fusible interlining non-woven; Rs 8.96 per kilogram on 100 percent polypropylene fusible interlining non-woven with LDPE or HDPE and duty drawback would be Rs 14.56 per kilogram on 100 percent polypropylene non-fusible interlining non-woven.

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