GOVERNMENT OF PAKISTAN

CENTRAL BOARD OF REVENUE

NOTIFICATION

Islamabd, the August 12,1998

CUSTOMS/CENTRAL EXCISE

 

                S.R.O.905(I)/98.-  In exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), section 37 of the Central Excises Act, 1944 (I of 1944) and in supersession of all earlier instructions issued in this regard, the Central Board of Revenue is pleased to make the following, Rules:-

 

1.             Short title, application and commencement.-  (1)  These rules shall be called Duty Drawback (Claim Payment) Rules, 1998.

 

                (2)           These rules shall apply in respect of duty drawback claims filed by the exporters pertaining to their exports to any country including Export Processing Zones in Pakistan, except land route to Afghanistan and to Central Asian Republics through Afghanistan.

 

                (3)           They shall come into foce with immediate effect.

 

2.             Definitions.-  In these rules, unless there is anything repugnant in the subject or context -

 

                (a)            "Act" mean the Customs Act, 1969 (IV of 1969), and Central Excises Act, 1944 (I of 1944);

                (b)            "Complete claim documents" means required documents for processing and sanctioning of duty drawback claims, namely:-

 

                                (i)            Appliction for export duty drawback declaring their category;

                                (ii)           Calculation sheet;

                                (iii)          Bank Credit Advice - In case of non-submission of bank credit advice, a bank shall be submitted in lieu thereof.  In absence of either the bank credit advice or bank guarantee, attested copy of L C shall be submitted in case of exports made against letter of credit;

                                (iv)          Airways bill, Bill of Lading, Postal receipt or Cross Border Certificate;

                                (v)           Customs certified invoice;

                                (vi)          Packing lift (if any);

                                (vii)         Photostat copy of Exchange Bulletin, or its authenticated copy, showing rate or rates prevailing on the day prior to theregistration of the shipping bill;

                                 (viii)       Quadruplicate copy of bill of export shipping bill containing customs examination report and bearing complete postal address of exporter and National Tax Number;

                                (ix)          For payment through banks.  Pre-receipted duty drawback proforma and under taking, as per format Annex-A or Annex-B as laid down in State Bank's circular No. 76; and

                                (x)           For payments to be made through customs treasury.  Proformas of rebate payment orders shall be submitted.

 

                (c)            "Duty drawback" means a claim of refund of import duty, excise duty, as envisaged in clause (c) of section 21, sections 37, 39, 40 and 41 of the Customs Act, 1969, and Rule 12 and 12A of the Central Excise Rules, 1944;

                (d)            "Exporter" includes a person who exports goods to any country including Export Processing Zones in Pakistan and files duty drawback               claims, except for export to Afghanistan and through Afghanistan to Central Asian Republics;

                (e)            "Exported goods" means exported items to any foreign country including Export Processing Zones in Pakistan except to Afghanistan via land  route and through Afghanistan to Central Asian Republics; and

                (f)            The words and expressions used and not defined herein shall have the meanings assigned to them in the Acts.

 

3.             Processing and sanctioning of duty drawback claims.-  (1)  Claims of duty drawback shall be sanctioned by the Customs if the same are complete in all respect, on the basis of profiling of exporter as given below:-

 

                I.              Category "GOLD"

 

                                Following category of exporters shall be rated as category "gold";

 

                (i)            FOR LIMITED COMPANIES:

 

                                (a)            Common Criteria:

 

                                                (1)           Limited Companies having certified Books of Account for the last 18 months;

 

                                                (2)           either certified accounts showing amount of export or a separate statement by the concerned Chartered Accountant firm regarding amounts of export sales for the period in clause (1) above;

                                                (3)           bank certificate for the last three years regarding export performance; and

                                                (4)           payment of duty drawback through Bank or by crossed cheque encashable in any of the bank branches issuing the certificate at clause (3) above.

 

                                (b)            Specific Exporter Profile:

 

                                                Scrutiny of the past one year's duty drawback claim payments indicating ninety per cent claim acceptance in terms of value.

 

                (ii)           FOR EXPORTERS OTHER THAN LIMITED COMPANIES:

 

                                (a)            Common Criteria:

 

                                                (1)           export registration of 3 years or more;

 

                                                (2)           bank certificate confirming availability of loan credit limit equal to not less than four times the value of an individual claim to be sanctioned;

 

                                                (3)           bank certificate for the last 3 years regarding export perforamce; and

 

                                                (4)           payment of duty drawback through Bank or by crossed cheque encashable in any of the branches issuing the certificate at clause (2) or (3) above.

 

                                (b)            Specific Exporter Profile.-  Scrutiny or audit of the past one year's duty drawback claim payments indicating at least ninety percent claim acceptance in terms of value.

 

                II.            Category "SILVER"

 

                                Following category of exporters shall be rated as category "Silver":-

 

                                (a)            Common Criteria

 

                                                (1)           new Enterprises - Exporters having registration with Export Promotion Bureau of less than 3 years but with at leastone year's valid registration;

 

                                                (2)           bank certificate for export performance since the date of export registration;

 

                                                (3)           verification by the Collectorate (through Fax, E.Mail, post courier or person) of bank certificate mentioned at clause (2) above, within the period of fifteen days.  Collector shall ensure that verification from the bank is completed within fifteen days;

 

                                                (4)           bank certificate for loan limit indicating credit limit being not less than four times the amount of claim (certificate to be verified, by the Collectorate, from the respective bank branch within the said limitation period of fifteen days).  Collector shall ensure that bank confirmation is obtained within the said time frame of fifteen days; and

 

                                                (5)           payment of duty drawback through bank or by crossed cheque encashable in any of the branches issuing the certificate at clause (2) or (4) above.

 

                III.           Category "OTHRS".-  Following class of exporters shall be rated as category "OTHERS":

 

                                (1)           Persons not falling under categories "GOLD" and "SILVER";

 

(2)                 Person disqualified in category "GOLD" or category "SILVER" shall be downgraded to category "OTHER", directly if claims acceptance levels under audit are less than ninety per cent or forged document are submitted.  Once an exporter is down-graded,  he cannot be up-graded for at least eighteen months and will only be considered by the Collector, if he is satisfied that during this period, the exporter has met the requirements of respective category for continuous period of eighteen months;

 

                                (3)           persons involved in a prosecution case under the Cusotms Act, 1969 (IV of 1969), or Central

                                                Excise laws or any other tax law shall be rated in category "OTHER" even if they fulfull

                                                rating criteria for "GOLD" OR "SILVER"; and

 

                                (4)           if the Directorate General of Inspection and Internal Audit establishes claim payment below ninety per cent level in post-payment audit, the exporter shall be clasified in category "Others".

 

4.             Time frame for payment of duty drawback.-  (1)  All exporters falling under category "GOLD" shall be allowed duty drawback within seventy two hours from the date of receipt of requisite complete claim documents.

 

                (2)           Exportersfalling udner category "SILVER" shall be allowed duty drawback within fifteen days from the date of receipt of requisite complete claim documents.

 

                (3)           The refund claims of exporters falling under category "OTHER" shall be sanctioned only after thorough scrutiny and verification.

 

                (4)           Notwithstanding anything contained in sub rules (1), (2) and (3), if the exporter so opts, 70% of the sanctioned amount shall be paid within twnety-four hours subject to submission of complete claim documents as defined in clause (b) of rule 2 of the rules and the rest 30% shall be paid within thirty days after thorough scrutiny and verification.

 

5.             Review of category.-  (1)  If a person in a lower category improves whether on the basis of audit or on the basis of aging, or on the basis of other prescribed criteria, his category-rating shall be upgraded accordingly after a review by the Collector on the basis of recommendationof a Committee comprising of representative of Export Promotion Bureau, Collectorate in which the exporter is registered, Chamber of Jurisdiction of exporter's business and a representative of the relevant Export Association of which the exporter is a membeer:

 

                                                Provided that the review of category of an exporter for the purposes of up-gradtion shall be done only once in six months subject to completion of the period of eighteen months in a particular category.

 

                (2)           The Review Committee shall meet every month to review the category:-

 

                                (a)            on a reference fromany organization for downgrading of rating or category of any exporter; and

                                (b)            on a references from any exporter for up-gradtion of his rated category.

 

6.             Monthly reporting.-  The disposal of duty drawback claims shallbe reported by the Collector monthly to the Chief (Survey and Rebate) and Directorate General of Research and Statistics of the Central Board of Revenue, giving the details of disposal for each category and pendency, if any, alongwith reasons thereof, by the 5th of each month for each preceding month.

-------------------------------------------------------------------------------------------------------------------------------------------------------- [C.No.3(125)-Rebate/98]

As amended                                                                                                                                           Muhammad Nadir Khan Hoti

S.R.O.382(I)/2000, -              dated       17.06.2000                                                                              Chief (Survey & Rebate)