GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

CENTRAL BOARD OF REVENUE

 

Islamabad,the 15th November,2002

 

NOTIFICATION

(CUSTOMS/CENTRAL EXCISES/SALES TAX/INCOME TAX)

 

 

            S.R.O.801(I)/2002.- In exercise of the powers conferred by section 219 of the Customs Act,1969(IV of 1969), the Central Board of revenue is pleased to direct that the following further amendments shall be made in the Customs Rules, 2001, namely:-

 

            In the aforesaid Rules, in Chapter XII, in sub-chapter 7:-

 

(a)     in clause (f), after the word “locally” the words “including electricity and gas” shall be inserted;

 

(b)     in clause (g),

 

(i)                   in sub-clause (i) the word “and” at the end shall be omitted;

(ii)                 in sub-clause (ii) for the full stop at the end, the semicolon and word “and” shall be substituted;

(iii)                after sub-clause (ii) amended as aforesaid, the following new clause shall be added, namely:-

(iii)        Electricity and Gas on which sales tax has been paid “;

 

(2)        in rule 297,

 

(a)                 in sub-rule (1), in clause (i), for the semicolon at the end, a full stop shall be substituted and therefore the words, figure an commas “However, DTRE exporter whose performance corresponds to the performance criterion as per sub-rule (4), shall be required to give description and value of goods in application form set out in appendix-1, shall be added;

(b)                 in sub-rule (2), after the comma the words, letters and figure “submitted along with the application for DTRE approval and Appendix-1” shall be inserted;

(c)                 in sub-rule (3), after the comma the words, letters and figure “submitted along with application for DTRE approval and Appendix-1 shall be inserted;

(d)                 in sub-rule (4), after the word “guarantee” the words and comma “or bank guarantee, submitted at the time of seeking approval “ shall be inserted;

(e)                 for sub- rule (5) the following shall be substituted, namely:-

 

“(5)       (i)         An indirect exporter, making an application under this Chapter in the form as set out in Appendix 1, shall enter the approval number of application of a direct exporter with whom he must have a valid contract. On approval , the indirect exporter shall have the same duty suspension privileges as the direct exporter within the duty suspension allowance of the direct exporter. The direct exporter, entitlement to duty suspension shall be reduced to the extent of the entitlement of the indirect exporter.

 

(ii)                 A DTRE approved exporter may procure imported input goods free of duties and taxes from a DTRE approved person on approval from the Collector of Customs granting DTRE approval to the exporter”.

 

(f)                   in sub-rule (6) after the word “manufactured” the comma, words and figure “from any person registered under the Sales Tax Act,1990” shall be inserted; and

(g)                 after sub-rule (8), the following new sub-rules shall be added, namely:-

 

“(9)       An approved exporter may apply to Collector of Customs for amendment in the previous approval for its cancellation which shall be allowed within ten days of receipt of such request or application.

 

(10)       At the time of applying for DTRE approval, the exporter already having with him duties and taxes paid raw materials and finished goods inventories at their premises, shall declare the dame to the DTRE approving authority”.

 

(3)        in rule 298, after the full stop, occurring for the second time, the words and figure “Inputs whether imported or locally purchased not consumed within eighteen months shall be subjected to payment @ 2% per month of the value of unfulfilled exports”. 

 

(4)        for rule 300, the following shall be substituted, namely:-

 

“300. Unaccounted or unexported goods.- (1) If any exporter fails to give proper and documented account of the duty and tax free input goods or of the unexported finished goods manufactured there from to the auditors at the time of audit, the exporter shall be required to pay the duties, taxes and penalties leviable on such goods.

(2)        An exporter may transfer his duty and tax free input goods to another DTRE approved exporter of the same goods. The input goods so obtained shall be utilized as per rule 298.

 

(3)        An exporter may dispose of unutilized input goods other than then banned items, in local market, on payment of surcharge as per table given below in addition to the liable duties, taxes and payment under rule 298.

TABLE

 

S.No.

Quantity of unutilized input goods

Surcharge

 

1.

Less than 10% of unutilized input goods

Nil

2.

From 10% to less than 20% of unutilized input goods.

1% of f.o.b value of unutilized exports.

3.

From 20% to less than 30% of unutilized input goods.

2% of f.o.b. value of unutilized exports.

4.

More than 30% of unutilized input goods.

3% of f.o.b. value of unutilized exports.

 

 

(4)        An exporter may dispose of the banned unutilized input goods subject to the approval of the Ministry of Commerce, on payment of surcharge as per table given above in addition to the leviable duties, taxes and payment under rule 298 and on conditions prescribed by the Ministry of Commerce in this regard.

 

(5)                 An exporter may sell his admissible wastages in the local market on payment of sales tax leviable thereon.

(6)                 An exporter may sell his B-grade products and factory rejects only upto 10% of the exports as per contract under rule 297 on payment of duties and taxes levaible on the finished goods in addition to the surcharge as per rule 298 subject to the provisions of the Import

 

(5)        After rule 302, the following new rule shall be inserted, namely:-

 

 

            “302A Refund or adjustment of sales tax:- Refund or input adjustment of sales tax paid on electricity and gas shall be allowed to the DTRE approved exporter to the extent of proportionate consumption thereof in the production of exported goods”.

 

(6)        in rule 303, sub-rule (1), for the word “three” the word “five” shall be substituted;

 

(7)        in rule 305, for the word “three “ the words “twelve” shall be substituted; and

 

(8)        after rule 305, the following new rule shall be inserted, namely:-

 

            “305A. Power to adjudicate:- As a result of post-exportation-audit, if there arises any discrepancy, irregularity or any violation of the rules by the DTRE approved exporter, the same shall be reported to the adjudicating officer empowered by the Central Board of Revenue, for adjudication, in this regard.”.

[(C.No.5(29)TEPI/2000]

 

(MUMTAZ HAIDER RIZVI)

Member(Exports)