CBR reduces duty drawback on major sectors

ISLAMABAD (August 20 2006): The Central Board of Revenue (CBR) has reduced duty drawback rates for textile, leather, surgical, engineering and all other leading export sectors from August 17, 2006. The CBR on Saturday issued new standard duty drawback notifications.

Which including SRO.837(I)/2006, SRO.838(I)/2006, SRO.839(I)/2006 and SRO.840(I)/2006 in supersession of the SRO.784(I)/2005, SRO.785(I)/2005, SRO.786(I)/2005 and SRO.787(I)/2005.

The rates have been revised in view of massive tariff rationalisation in the budget 2006-2007 and subsequent changes in import duties. According to the CBR, the Input-Output Coefficient Organisation (IOCO), Karachi has carried out a comprehensive exercise to revise duty drawback rates on the export of textile products notified through SRO.784(I)/2005; leather and sports goods, SRO.785(I)/2005; engineering and metal products, SRO.786(I)/2005 and miscellaneous products were notified through SRO.787(I)/2005 due to tariff changes in the budget 2006-07.

Before finalising revision/rationalisation, the board thoroughly examined/scrutinised the recipe of each product to see whether there has been a change in inputs, which were previously being imported and are now being manufactured locally.

For the first time, the board has also incorporated the H.S. codes in the revised notifications. Keeping in view these parameters, rates of duty drawback have been revised through four new standard notifications.

According to revised notifications, the duty drawback on the export of vegetable ghee (all blends) will be Rs6.72 per kilogram; cooking oil (all blends), Rs0.01 per kilogram; cooking oil (all types and blends), Rs0.01 per kilogram and duty drawback on the export of sugar would be Rs34.05 per metric ton.

The duty drawback on the export of transformers of all ratings would be 5.33 percent of the fob value. Previously, duty drawback rates were restricted on the export of transformers of 25 to 1500 kVA.

Duty drawback on the export of refrigerators would be 1.71 percent of the fob value; gold jewellery, Rs25 per 10 grams (the repayment of customs duty is admissible to the extent of imported gold content used in the manufacture of jewellery to be exported).

SRO.837(I)/2006 (previously SRO.784(I)/2005) will now deal with the duty drawback rates of textile products. It encompasses grey fabrics, grey ready-made garments made of 100 percent cotton, bleached fabrics made of 100 percent cotton; dyed or printed fabrics; bleached blended garments; bleached fabrics made of 100 percent polyester staple fibre; woven or knitted man-made fabrics; hosiery articles of all sorts; towels including terry towels, terry woven bath-mats, terry ahram towels, terry hand towels, terry bar mops, bathrobe, terry face towels, terry shop towels, terry dish towels, terry kitchen towels, terry gloves, terry pillows covers, terry cover lets, terry garments and fabrics, terry over-locked towels, terry institutional towels, and terry massage towels; viscose staple fibre yarn, 100 percent acrylic staple fibre yarn; grey blended fabrics; bleached blended fabrics made of viscose; dyed or printed blended fabrics made of viscose fibre and cotton fibre; 100 percent polyester staple fibre yarn; metalled strip yarn or metallic yarn; nylon or rayon elastic tape; jute yarn; bleached white cotton thread, sewing thread, grey mercerised thread, dyed cotton sewing and embroidery thread, processed yarn in hanks or cones and 100 percent white or dyed polyester sewing thread all counts on spools or cones; cotton dyed flannel lined nylon jackets; sleeping bags; peak caps; bleached or unbleached, dyed or undyed cotton, waterproof or impregnated canvas, tarpaulin, tents, complete or in CKD condition with or without bamboo, kit bags and aprons; hand-knotted woollen new carpets, rugs and runners; machine-made woollen new carpets; wax-coated cotton or polyester-cotton yarn and other textile-related products specified in the SRO.837(I)/2006.

SRO.839(I)/2006 (previously SRO.786(I)/2005) would deal with the duty drawback rates applicable on the export of hand tools made of carbon steel, nickel or chrome plated, all sorts; safety blades made of steel; disposable razor; disposable cartridge; complete gas meters; ceiling, pedestal, cabin and exhaust fans of all sizes, including such fans in CKD condition; steel nuts, screws and bolts of all types; tacks; wire nails; switch gears (all types); brass hardware and moulded/machined items, including brass wire; handicrafts and musical instruments fully made of brass; deep freezers; quartz clocks (all sorts); surgical and veterinary instruments (all sorts); tin containers; electrical motors; condensers for air-conditioners; PVC insulated power cables (all types); diesel generating sets and other items specified in the SRO.839(I)/2006.

SRO.787(I)/2005 has been replaced with the new SRO.840(I)/2006, which would deal with tyres of trucks, buses, cars, jeeps or agricultural tractors (all sizes); bicycle tubes/tyres (all sizes); match boxes; PVC gloves (knit wrist style); audio cassettes; artificial leather (PVC binding material); toothbrushes; vacuum flasks; ballpoint pens; polyester chips; paints of all varieties, including gloss enamel, varnishes and primer; wedding cards, eid cards, greeting cards, visiting cards, Christmas cards and invitation cards (all sorts) and other items specified in the SRO.840(I)/2006.

SRO.838(I)/2006 has superseded SRO.785(I)/2005 to deal with finished leather of goat or sheep, kangaroo skin, cow or buffalo or camel hide or skins; boxing gloves; footballs; polo sticks, hockey sticks; cricket bats; cricket balls; rubber tennis balls and other items specified in the SRO.838(I)/2006.

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