KARACHI (June 18 2003) : Fazal Qadir Qalbani, Collector of Custom, has informed exporters that now they are allowed to dispose of unutilised input goods in local market under new 'Duty and Tax Remission for Exporters' (DTRE) rules.
Addressing a seminar on 'Understanding the DTRE Rules' organised jointly by Export Promotion Bureau (EPB), Central Board of Revenue (CBR) and Karachi Chamber of Commerce and Industry (KCCI) at the chamber auditorium, he said that under new rules exporters can dispose of unutilised input goods in local market on payment of surcharge on different rates on F.O.B. value of unutilised volume of exports.
He said under amended rules an exporter can transfer his duty and tax-free input goods to another DTRE approved exporter of same goods.
Qalbani said that the government has allowed an exporter to sell his wastage on payment of sales tax at any time before completion of export in local market.
He said that in order to make the rules rational another amendment has been made, under which an exporter can sell his B-grade products and factory rejects up to 10 percent of the export on payment of duties and tax liable on finished goods in local market.
He said that the government has also accepted the business community demand and allowed refund of sales tax paid on electricity and gas consumed in production of exported goods.
He said that exporters are new allowed to procure imported goods free of duties and taxes from a DTRE approved person on approval from the concerned collector of customs.
He said that the government has decided to establish a separate section in each customs Collectorate under an AC/ DC.
He said that on receipt of an application under DTRE, approval will be issued within ten calendar days and on rejection of case, the collector will decide the matter within three days of receipt of a revised application.
He said that a separate office has been established to monitor the compliance of the DTRE rules by the concerned exporter, which is called Duty Suspension Audit Office (DSAO) and it will maintain a computerised record of all DTRE approvals. The office will also maintain a profile of each DTRE exporter.
He said that in no case an exporter is required to visit the office of DSAO. All correspondence will be made through post or courier.
Welcoming the guests, Mohammed Salim Kapadia,, senior vice-president of KCCI, said the government has revised DTRE rules on the suggestion of the stakeholders and shown great flexibility for facilitation of exports.
Now duty drawback would also be available under DTRE on duty purchased inputs used in exportables.