DG IOCO given powers of fixation of duty drawback rates

The Federal Board of Revenue (FBR) has taken away powers of FBR Duty Drawback Section for fixation/calculation of standard duty drawback rates and revision of rates of repayment or drawback of customs duties and handed over such powers to the Directorate General of Input Output Coefficient Organization (IOCO).
According to the draft amendments to the Customs Rules 2001, Director General IOCO will forward working on the determination of the duty drawback rates to the Board for issuance of a notification in the official gazette.
Standard rate for purposes of Standard Notification: As per FBR the "Standard Notification" means a notification relating to the standard determination of imported input materials and fixation of Custom Duty Repayment or drawback rates in case of goods of a class or description which is not limited or restricted to an individual manufacture but is applicable in general cases.
The concerned association shall apply to the Director General through an application in the form as set out in Schedule. The director may call for any further information or make any addition to the particulars of an application as he may deem fit. At the time of submitting an application, the association shall specify the complete calculations in accordance with the method of calculation as the Board may notify separately and shall also furnish therewith the worksheets. However, when the new product is of such a nature that in respect of which the agreed method of calculation is not applicable, the association shall declare the details of the method of calculations on which the working is based. All applications made under this sub-rule shall be accompanied by separate work-sheets in case of the individual manufacturers or producers selected by the association as the representative manufactures or producers for the purposes of the rules under this sub-chapter. The manufacturers or producers or their duly authorized representatives shall duly sign all such individual work sheets.
Revision of rates of repayment or drawback of customs duties: For the revision of rates, in case of all products specified in sub-clause (a) of clause (i) of rule 308 notified, by the Board prior to the date of commencement of these rules, the Director shall inform the respective association of the method of calculation adopted for determining the custom duty repayment or drawback rates for their comments and active participation before finalization of the process: provided that in case any association which in the opinion of the director was required to have been consulted and which was not so consulted regarding the method of calculation, he shall after the date of commencement of these rules, as soon as may be possible, consult such association in this regard; provided further that if the respective association does not cooperate in providing timely and verifiable data or information, the director may, in consultation with the sector specialists, decide the method of calculation and proceed to determine the input materials and recommend the revision of the rates of repayment or drawback of customs duties thereon and send recommendation while providing supporting input output data for the rates so fixed to the director general who shall forward it to the Board for issuance of a notification in the official gazette.
The Directorate General of IOCO shall generally review all the rates notified under this sub-chapter in the last month of each calendar year and complete the exercise by the thirtieth day of January in the following year. It shall be the responsibility of all Associations and individuals, as the case may be, for whom duty repayment or drawback notifications have been issued to supply, by November 30 every year to the director, details of any change to the input output worksheets on which the current rate are calculated, in particular, changes in material used, their quantities and values. In case no change has occurred in such data, the association or individual, as the case may be, shall inform the director that no change has occurred in the work sheet particulars.
The director shall on the basis of the method of calculation decided or as otherwise notified under this sub-chapter, from time to time, review the rates so notified: provided that if at any time the director has reasons to believe that there has been a material change affecting the notified rates to the extent of fifteen percent or more whether upwards or downwards, he shall immediately communicate the reasons thereof to the concerned association or the individual manufacturer or producer, as the case may be and, after affording a reasonable opportunity of hearing, send recommendation while providing supporting input output data for the rates so fixed to the director general who shall forward it to the Board for issuance of a notification in the official gazette: provided further that if at any time it comes to the notice, in case of standard notification, of the association or any of its member, and, in case of an individual notification, to an individual manufacturer or producer, that any change has taken place in any factor whatsoever which affects the notified rates to the extent of fifteen percent or more, whether upwards or downwards, the association, member or the individual manufacturer or producer, as the case may be shall immediately inform the director in this regard.