ISLAMABAD (November 18 2003): To attract maximum number of exporters towards the DTRE scheme, the Central Board of Revenue (CBR) has announced that persons approved for availing Duty and Tax Remission Export (DTRE) scheme can purchase duty-and-taxes-free input goods from an importer, who is not a DTRE registered person, and whose imported goods are stored in a public bonded warehouse.
The CBR on Monday directed all collectors of customs and Input Output Coefficient Organisation (IOCO), Karachi, to implement the decision.
The CBR observed that rule 297(5)(ii) covers sale or purchase of goods already imported free of duties and taxes under a DTRE approval, provided such transaction is taking place between two DTRE approved persons.
This provision does not create any obstacle in purchase of goods free of duties and taxes by a DTRE approved person, from a private bonded warehouse, in which case the licensee of the warehouse is the owner of the warehoused goods, and he need not be a DTRE approved person.
The CBR said that the provision, by implication, does not create any bar on the purchase of goods, free of duties and taxes, under a valid DTRE approval from a public bonded warehouse, where the owner (importer) of the goods is a different person from the licensee of the warehouse.
Therefore, the CBR has clarified that DTRE-approved person can purchase his approved input, free of duties and taxes, from an importer who may not be a DTRE registered person.