ISLAMABAD: The Federal Board of Revenue (FBR) Friday issued Export Facilitation Scheme-2021 for all categories of exporters including manufacturers-cum-exporters and commercial exporters, merging all schemes into a single unified procedure.
The FBR has issued SRO 902(I)/2021, here on Friday to issue draft of certain further amendments to the Customs Rules, 2001.
The user of the Export Facilitation Scheme-2021 shall be allowed to sell up to 20 percent of the output goods manufactured from input goods in the domestic market on payment of leviable duty and taxes on filing of a Goods Declaration, which shall be assessed as if goods are imported into Pakistan in that condition, subject to satisfaction of the Regulatory Collector regarding reasons for domestic sale. The new scheme shall be available to the following persons subject to authorisation of import, warehouse and purchase of input goods under these rules and registration in the WeBOC or PSW: Persons registered under the Sales Tax Act, 1990, as manufacturer cum exporter, who make value-addition in the manufacture and export of goods, which shall not be less than ten per cent; manufacturers who act or intend to act as contracted vendors of foreign principal as toll manufacturers; Commercial exporters; persons registered under the Sales Tax Act, 1990, as manufacturer and operating as indirect exporters; manufacturers including manufacturers of engineering goods who intend to supply against international tenders; and Common Export House.
Under the new scheme, the acquisition of input goods without payment of duty and taxes shall be granted based on: export performance for last two financial years; and firm contract of export.
The FBR has been divided into different categories: (i) Category A: Manufacturers cum exporters with 60 percent or above exports of their total annual production in last two years. (ii) Category B: Manufacturers/exporters with less than 60 percent total annual production being exported. (iii) Category C: Indirect exporter, commercial exporters, and international toll manufacturers.
The categories B and C have also been divided into subcategories.
All existing users of any of export schemes issued under SRO 4500) 2001 dated 18.06.2001 Chapter XV, DTRE, SRO 327(1)2008 dated 29.03.2008, before issuance of these rules shall be eligible to be classified under Category A and Cl as the case may be, provided they have a good compliance record.
The application for authorisation to operate under this scheme shall be submitted online to the Regulatory Collector.
The online application along with approved Analysis Certificate, of all existing users of export promotion schemes under SRO 450(I) 2001 dated 18.06.2001 Chapter XV, DTRE, SRO 327(1)2008 dated 29.03.2008, shall be processed by the Regulatory Collector by uploading the approved value of the input goods along with the details of the security instrument as applicable in the WeBOC/PSW system and IOCO database after satisfying himself regarding the compliance profile of the applicant and the value of the input goods being commensurate with performance and production capacity of the applicant, within seven days of its receipt.
The Directorate of Post Clearance Audit shall conduct an audit of the users as under Category A; once in five years; Category B; once in four years; Category C; once in three years; and contract based: once in three years, the FBR added.
Copyright Business Recorder, 2021