Duty drawback rates on PTA: Commerce, Textile ministries told to finalise determination speedily

The Economic Co-ordination Committee (ECC) of the Cabinet has directed the Ministry of Commerce and Ministry of Textile to finalise determination of the duty drawback rates on the basis of 'deemed import duty' as far as Pure Terephthalic Acid (PTA) is concerned.
Sources told Business Recorder here on Tuesday that the ECC has directed to complete the process expeditiously, ensuring submission of report to ECC positively by March 31, 2011. The ECC has directed that to mitigate the impact of above tariffs on exports duty drawback rates, a Committee headed by Secretary Finance with Secretary Ministry Textile Industry and Chairman FBR will chalk out mechanism for the refund of duties against deemed duties.
Within a period of six months, the National Tariff Commission (NTC) will give recommendations whether deemed import drawbacks are warranted on account of losses suffered by industry due to escalation in cost of doing export business due to security situation.
A committee headed by Deputy Chairman of Planning Commission and comprising Chairman of Board of Investment, Secretaries of Commerce, Finance, Textiles Industry, Industries & Production, and Board of Investment and Chairman of NTC was constituted to review the tariff structure of the entire industry to determine optimal tariffs. The ECC in its meeting on December 7, 2010 had directed the Ministry of Commerce to finalise recommendations of the Committee based on the TORs, approved by Deputy Chairman of Planning Commission and submit the same in the next meeting of ECC.
Sources said that the ECC also directed Ministry of Textile Industry to immediately take up the matter with all stakeholders regarding the provision of required worksheets and data to FBR and NTC. The ECC in its meeting on January 13, 2010 directed Planning Commission and Ministry of Commerce to finalise the report at the earliest, but not later than March 31, 2011 and bring the same before it for an informed decision. The ECC also directed Ministry of Textile Industry and FBR to complete the data at the earliest and ECC be informed about the progress regularly.
It was reported that Planning Division is in process of finalising the report. They have hired the services of a consultant, who is visiting relevant stakeholders and will finalise the report by March 31, 2011. The FBR reported to ECC that it had issued reminders to Associations/units to forward worksheets of the applicant units for determination of duty drawback. However, no response has been received from the so far. As soon as the applicant units furnish their worksheets, the exercise pertaining to determination of duty drawback will be completed. FBR has also asked Ministry of Textile to take up this matter with stakeholders regarding the provision of their balance sheet.
The concerned directorate of FBR was also advised to inform about progress in the matter to the Board on every third day, keeping in view sensitivity and gravity of the matter. It was ensured that all efforts will be made to obtain the requisite information from concerned Associations/ units to settle the issue in light of the decision of the ECC. Ministry of Textile Industry informed ECC that it had held meeting with the relevant stakeholders to discuss the impact of deemed import duty and obtained data on costs, production and consumption. The meeting was also attended by the Chairman of National Tariff Commission, wherein it was decided that in case no meaningful response is provided, National Tariff Commission would use secondary data ie PRAL and international websites etc, sources added.