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ISLAMABAD: The Directorate of Reforms and Automation-Customs, Karachi has not yet updated the “DTRE Module-Weboc System” to incorporate the utilization period of 24 months for packing material used in exports of horticultural products under Duties and Taxes Remission for Exports (DTRE) scheme.

Experts told Business Recorder here on Sunday that the law was amended two years back, but the system has not been updated.

The FBR re-instated the utilization period of 24 months in its original shape under Duties and Taxes Remission for Exports (DTRE), the Board vide clause(d) of notification No.445(I)/2019 dated 09.04.2019 has been substituted, the proviso to DTRE rule 305 notified vide SRO450(I)/2001 dated 18.06.2001. The amendment said:

“Provided that utilization period of packing material for horticulture products shall be twenty-four months.”

Experts said that the utilization period is restricted to 12 months only in DTRE Module for all products, whereas in law the utilization period of DTRE for packing material used in respect of horticultures products is 24 months. The horticulture products are seasonal in nature and thus have limited time period items for exports. In the absence of 24 months utilization period for horticulture products in WEBOC.

DTRE Module, the exporters are facing problems for exporting their products during the utilization period available to them under the law.

The Collectorate of Custom, (Appraisement and Facilitation), Faisalabad also sent the 'change request form' vide letter C.No.V-CUS/DTRE/01/2019/819 dated 18.02.2021 followed by the earlier letter C.No. V-Cus/DTRE/40/2019/4884 dated 10.12.2020 regarding correction of utilization period of DTRE for packing material used in respect of horticultures products but did not yet correct in Weboc module of various DTRE approvals.

The Collectorate has also requested the Directorate of Reforms and Automation to 0allow the Collectorate of Custom, (Appraisement and Facilitation), Faisalabad to change the utilization period of DTRE for packing material used in respect of horticultures products only into DTRE Module-Weboc System. The changes will be made by the concerned Collectorate itself after due process verification according to DTRE rules. But there is not yet change of utilization period of twenty four months into DTRE Module-Weboc system.

The exporters were of the view that the kinnow exporters are facing a very serious problems as the season is in full swing, whereas the DTRE Approvals are going to be expired on 28.02.2021 into DTRE Module-Weboc System, despite the utilization period of twenty four months are available as per approval notifications issued by the concerned Collectorates. Since it has changed by the Board for 24 months due to seasonal item of 3-4 months only, because It is practically not possible to consume all the input goods for export of perishable seasonal item within a year under the amended procedure laid down in the DTRE Scheme.

As system change has not been made in the DTRE Module-Weboc System, all the exporters are facing the problems of unconsumed packing material, specifically purchased for Kinnow exports.

Exporters are worried about the pending issue since the last two year, as it is a simple process to change the utilization period into WEBOC System. However, till now the step has not been taken by the concerned authorities. The exporters of horticulture product will lose one year utilization period of DTRE and will not be able to export their products and this may face the legal complication during the audit as well.

The exporters also stressed the need for measures to enhance exporters' confidence and provide facilities for onward reconciliation of exports and consumption of the goods to achieve the revenue target. They expressed confidence that Member-Operation (Customs) and Chairman, FBR will have to intervene into this serious issue to avoid anti-export measures.

It is learnt that the Fruit and Vegetable Exporters Associations have also requested to Member-(Operation), Customs and Chairman, FBR to issue direction to Reforms and Automation, Custom House, Karachi to reinstate the existing utilization period of 24 months from 12 months under DTRE scheme.

Copyright Business Recorder, 2021

FBR

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