Ghee export to Afghanistan: exporters may get manufacturing bond facility

The government is likely to allow export of vegetable ghee/cooking oil through land route to Afghanistan under the manufacturing bond facility of the Federal Board of Revenue. Sources told Business Recorder on Wednesday that at present export of vegetable ghee/cooking oil is allowed under the Duty and Tax Remission for Export Scheme (DTRE), duty drawback regime except manufacturing bond facility through land route to Afghanistan.
This has resulted in discrimination among the exporters due to restrictions on the export of the commodity to Afghanistan under manufacturing bond scheme. In this regard, the FBR and Ministry of Commerce are working out modalities to allow export of vegetable ghee/cooking oil through land route to Afghanistan under the manufacturing bond scheme. Amendment is expected in the Schedule-II of the Export Policy Order for implementation of the decision.
Sources said that recently a meeting was convened between the officials of Commerce Ministry and tax authorities to discuss the issue of export of vegetable ghee/cooking oil to Afghanistan. Commerce Ministry officials were of the view that the issue relates to export of vegetable ghee/cooking oil to Afghanistan via land route manufactured in manufacturing bonds. They further stated that under Para 7 Sr. No 9, Schedule-II of the Export Policy Order, the export of vegetable ghee/cooking oil manufactured in the manufacturing bond is restricted via land route to Afghanistan only, which needs deliberation to remove discrimination.
Additional Collector of Custom, Model Customs Collectorate (MCC) Peshawar informed that the export of vegetable ghee/cooking oil from manufacturing bonds via land route to Afghanistan needs to be allowed on the following grounds:- Firstly, no shortfall is observed or expected in the availability of the product for local consumption. Secondly, smuggling of the product, back into Pakistan after exports to Afghanistan, is not anticipated owing to the fact that the exporters have to face robust competition from Iranian importers in Afghanistan who are price competitive.