The government has extended 'Temporary Importation Scheme' (SRO 410(I)/2001) up to December 31, 2004, to facilitate 13 leading value-added industries engaged in temporary import of raw materials/inputs for manufacture of export goods.
Making amendment in previous order, CBR issued SRO(I)/2004 on Wednesday permitting duties and taxes-free import of raw materials for manufacture of goods to be exported.
Official sources told Business Recorder that CBR has given further extension of six months after expiry of notification on June 30, 2004.
The government committee studying the impact of extension has convened several meetings to take input of all stakeholders, including export associations. Business community was demanding further extension in the notification, while CBR tied extension with further amendments.
Sources said that the CBR tried its level best to extend SRO 410(I)/2001 along with certain amendments taking away extraordinary incentives given to manufacturers-cum-exporters.
The CBR officials opined that if further extension is necessary lucrative incentives should be taken away to make the scheme less attractive in future.
Under the proposed amendments, the import consignments of duties and taxes-free raw materials/inputs would be released only against the bank guarantee to be submitted by the manufacturers-cum-exporters.
Similarly, the refund would be paid on the basis of calculation made by the Input Output Coefficient Organization, Karachi.
In this connection, the CBR has proposed that the Input Output Coefficient Organization (IOCO), Karachi should work out the actual consumption of raw materials imported under the 'Temporary Importation Scheme'. The IOCO working would form the basis of payment of refund on the actual consumption of inputs.
Following is the text of the notification issued here on Wednesday:
In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that in its notification No. SRO.410(I)/ 2001, dated the 18th June 2001, the following further amendment shall be made, namely:-
In the aforesaid notification, in the preamble, for the figures, letters, word and comma, "30th June 2004" the figure, letters, word and comma "31st December 2004" shall be substituted.
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