FinanceNews

SRO 410 date extended

ISLAMABAD (October 12 2003): The government has extended exemption of general sale tax (GST) and custom duty on temporary import of inputs/goods used in the manufacture of finished products to be exported under 'Temporary Importation Scheme' (SRO.410(I)/2001) up to December 31, 2003.

The CBR on Saturday amended SRO.410(I)/2001 through an SRO.978(I)/2003 fulfilling a major demand of manufacturers-cum-exporter reluctant to operate under the Duty and Tax Remission for Export (DTRE) Rules.

Official sources told Business Recorder that CBR's intention was to make the 'Temporary Importation Scheme' less attractive for the exporters before its extension from September 30 to December 31, reducing facilities under SRO.410.

However, later it was decided that the scheme should be finally extended for another three months without amending the procedure notified under SRO.410 to facilitate exporters.

Sources said that the extension of the 'Temporary Importation Scheme' would be particularly helpful for the exporters, who had already imported consignments under SRO.410.

The exporters were reluctant to operate under the DTRE scheme due to the condition of proper documentation, which is certainty not necessary up to certain extent under SRO.410. Thus, they were pressing the authorities for another extension in the temporary importation scheme.

Sources admitted that the extensions in this scheme would certainly discourage exporters to operate under the DTRE Rules.

Now, over 30 value-added industries could temporarily import duty/GST free goods/raw materials to be used in the manufacturing, assembling and packing of goods for re-export.

Meanwhile, a press release of CBR says that the extension of SRO.410 has been allowed keeping in view the demand of export associations.

It is clarified that the DTRE rules were modified by a committee headed by the Chairman Export Promotion Bureau (EPB) to accommodate view of all the stakeholders.

This comprehensive exercise was finalised before budget 2003. However, if there are still any remaining issues, the concerned exporters should contact CBR Member Customs Muhammad Ramazan Bhatti for clarification.

It is expected that all exporters would complete their preparations for switching on to the DTRE regime before the expiry of the extended deadline of December 31, 2003, it added.

Following industries can now avail exemption of sales tax and custom duty under SRO.410(I)/2001 up to December 31, 2003: Material and components, sub-components including forging of surgical instruments for processing, assembly, manufacturing, repair or rebuilding; material for embellishing or decorating goods, packing material, price labels or tags, textile designs, artwork, transparencies (bearing design for textile) and fur lining, lining, pads and inter lining materials all sorts, velcro tapes and other fastening material, hangers, special labels, special buttons, rivets, eyelets, buckles, special brand tags, special thread and other items such as decorative fitting, zippers, locker loops etc required to be fixed on ready-made garments all sorts and textile made-ups, raw material ie plush fabrics, nylon, polyester fibre, eyes and nose used in stuff toys, polypropylene woven and jute bags, unit soles with heels, soles and heels for footwear and old hand knotted carpets.

The assembling of machinery components and parts, assembly of electrical and electronics equipment and parts, packing of goods, manufacturing of leather goods and garments from components, manufacturing of sports goods from components, manufacturing of garments and textile made ups from fabrics, incorporation of trimmings, buttons, belts and similar items in garments and textile made ups, manufacturing of aluminum-ware, steel ware, kitchen utensils and cutlery, manufacturing of bicycles, manufacturing of dolls, toys and games, manufacturing of vacuum flasks, manufacturing of furniture, wood ware and fittings, general superficial processes such as elementary repairs, cleaning, removal of damaged parts, sorting, straining, sifting, clarification, filtering, marking, sealing, labelling, re-packing, drying, preserving, refrigerating, chilling, fumigating, greasing, anti-rusting, protective coating, printing, etc, manufacturing of surgical instruments, manufacturing of foundation garments, and manufacturing of footwear.

Following is the text of the SRO.978(I)/2003 issued here Saturday:

In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that in its notification No. SRO.410(I)/2001, dated the 18th June 2001, the following further amendment shall be made and shall be deemed always to have been so made, namely:-

In the aforesaid notification, in the preamble, for the figures, word and comma “30th September, 2003” the figures, word and comma “31st December 2003” shall be substituted.

Related Articles

Back to top button
Stay up to date
Don't miss out on the latest industry news and articles
Stay up to date
Don't miss out on the latest industry news and articles
You are Subscribed!
Your subscriptions means a lot to us.
Don't miss out on the latest Industry news
You are Subscribed!