An exporter is facing problems in obtaining permission for export of petroleum products to Afghanistan to claim rebate under the Export Policy Order and relevant customs procedure. Sources told Business Recorder here on Monday that the Federal Board of Revenue (FBR) and Ministry of Commerce are examining an application of an exporter of POL products to Afghanistan.
In a letter to the Ministry of Commerce, an exporter has explained the problems being faced by him for obtaining permission in this regard. It said that the export of fuel to Afghanistan is governed under paragraph No 7 of the export policy order 2009-2010 vide SRO 767(1)/2009.
The letter said that the unit wanted to export fuel from Pakistan to Afghanistan under the relevant export licence. The exporter wanted to purchase fuel from PSO which will agree to issue Sales Tax Invoice. Accordingly, the unit will prepare export invoice in the name of the company, the purpose of which is that to get rebate. The company has received foreign exchange in dollars in the relevant bank account for export. The unit will purchase fuel in the form of Pakistan rupee against this foreign exchange and export fuel to Afghanistan in the form of US$ for getting rebate, "but customs department did not allow us to export fuel in our (company) export invoice," the company observed. "Therefore, it is requested to allow the company to export fuel to Afghanistan," exporter said.
On the same issue, the MCC, Office of the Superintendent Customs Check Post Baleli responded that export to Afghanistan is governed under paragraph 7 of the Export Policy Order 2009-10 notified vide SRO.767(1)/2009. The admissible benefits could be claimed from the Collectorate of Registration on the instance of export made in accordance with the laid down procedures.
Responding to the application of exporter, the Ministry of Commerce has asked FBR to submit its views on the issue. The FBR has directed the Collector Model Customs Collectorate (MCC) Peshawar to submit comments on the issue of export of POL to Afghanistan.
It is important to mention that the Export Policy Order, 2009 deals with export of POL products to Afghanistan. The export of all goods shall be allowed except those specified in Schedule-I of the Order. The export of goods specified in Schedule II shall be subject to the conditions given therein. The Federal Government may issue authorisation for export, export-cum-import on re-expert in respect of any item for which relaxation is made or for which an authorisation is required under this Order. The authorisation so issued shall be on its letterhead, consecutively numbered and duly embossed which shall be valid for a period of six months unless otherwise specified. The re-export of frustrated cargo shall be allowed by the Customs authorities subject to the conditions contained in the Customs Rules, 2000.
Exports to Afghanistan and through Afghanistan to Central Asian Republics:- In Pak Rupees, export of all commodities produced or manufactured in Pakistan, excluding those manufactured in manufacturing bonds and export-oriented units, shall be allowed via land route, against Pak-rupee on filing of regular shipping bills without E Form. Such exports shall not be entitled to zero rating of sales tax on goods, rebate of central excise duty; and repayment or drawback of customs duty.
In convertible currency, all items and commodities produced or manufactured in Pakistan, exported via land route or by air against irrevocable letters of credit, confirmed orders on realisation of export proceeds through banking channel or advance payment in convertible foreign currency, shall be allowed zero-rating of sales tax on taxable goods, rebate of central excise duty and repayment or drawback of customs duty subject to the following conditions, namely. The proof that goods exported from Pakistan have reached Afghanistan shall be verified on the basis of copy of import clearance documents by Afghanistan Customs Authorities across the border.
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