ISLAMABAD: The Federal Board of Revenue (FBR) has announced a new procedure for the manufacturing units operating in zones for extending sub-contracting facility to their vendors in tariff areas for assisting the manufacturing process.
The FBR has issued SRO 935(I)/2021 to amend Customs Rules 2001, here on Monday.
The FBR has also issued revised procedure for the units operating in the declared zones for availing the facility of subcontracting from the units located in the tariff area.
According to the revised rules, the manufacturing units operating in a zone and having in-house manufacturing facility but requiring some part of manufacturing process to be done in tariff area shall, subject to the law for the time being in force, be allowed to undertake sub-contracting from the units located in the tariff area with the prior permission of the Collector of Customs.
Provided that the manufacturer at the time of applying for subcontracting shall declare in his application about the process that he intends to get done from a vendor along with particulars of the vendor.
The vendor shall have a valid sales tax registration being a manufacturer and his name shall be appearing in the sales tax active taxpayers’ list.
The vendor shall have in-house manufacturing facility to perform the stated manufacturing process.
The vendor shall not be changed or added except with prior permission of the deputy collector or assistant collector concerned.
Two sealed and signed samples of the goods shall be retained at the time of the movement of the goods for vending and the same shall be handed over on arrival of the goods after the stated work has been carried on the goods, the FBR added.
The revised rules further stated that the duty drawback claims marked by the Risk Management System (RMS) for compliance check to the collector or designated officer shall be decided by the collector or designated officer within seven working days on FIFO basis.
Under the new rules, the bond-to-bond transfer of warehoused goods is allowed on filing of declaration of such transfers by the licensee (seller) and acceptance of the same through declaration by the licensee (buyer)in WeBOC, provided intimation regarding such transfers and indemnity bond as per Appendix-VD is also submitted to the collector or the regulatory authority.
The seller along with buyer shall be responsible to ensure that warehoused goods transferred have ultimately been exported.
Security so deposited shall only be released by the collector after the goods manufactured from transferred goods have been exported: Provided that incase the transferor (seller) intends to release his own indemnity bond, the same may be approved by the Collectorate, once properly executed indemnity bond is submitted by the buyer to assume responsibility for export of goods transferred under this section, which shall remain in possession of customs Collectorate till such goods are exported, the FBR maintained.
In respect of a manufacturing bond, a licensee (seller) is allowed to sell the warehoused goods to another licensee (buyer) or a licensee under DTRE rules or notification No SRO 327(1)/2008, dated 29th March 2008, on declaration of such transfers in WeBOC and acceptance of the same through declaration in WeBOC by the buyer (licensee), within the validity period of the seller subject to such extension as the Collector may allow from the date of importation or purchase, the FBR added.
Copyright Business Recorder, 2021
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