KARACHI (October 09 2004): The Central Board of Revenue (CBR) has allowed export of 100 percent finished goods from the Karachi Export Processing Zone (KEPZ) to the tariff area under SRO 410 for re-export, KEPZ Customs sources revealed on Friday.
The relief has been provided to the manufacturing units in the zone which supply finished goods to the exporters in tariff area by the CBR, which had earlier restricted the exports to the tariff area in the budget.
Under a budgetary provision, the KEPZ units were allowed only 20 percent export to the tariff area and were directed to export the balance abroad. The condition adversely affected the majority of manufacturing units in the zone, making the exports to the tariff area and they faced closure.
On strong representation from the KEPZ units, the CBR relaxed the condition for the units, supplying finished goods to the tariff area exporters for re-export.
The CBR, however, announced that 100 percent production could be exported to the tariff area by the zone units as temporary imports under SRO 410 for re-export.
The relaxation would apply to all KEPZ units manufacturing goods meant for re-export from the tariff area.
The Rice Exporters Association of Pakistan (Reap) has welcomed the relaxation, particularly the permission to the manufacturers of polypropylene sacks, who supply bags to the rice exporters in the tariff area.
Reap's former Chairman Rahim Janoo said the CBR decision would help in smooth flow of rice exports during the forthcoming season beginning from December.