The Central Board of Revenue (CBR) has allowed repayment of customs duty on the imported raw materials used in the manufacture of goods supplied against international tender by the International Committee of the Red Cross (ICRC) to the earthquake-hit areas. The CBR has amended SRO. 1211(I)/05 through an SRO(I)/2005 issued here on Tuesday.
The department has authorise repayment of customs duty paid on raw materials used in the manufacture of goods for supply in the quake affected areas for relief and reconstruction against international tenders by Unicef, UNDP, WHO, WFP, GOAL, CARE and Euron Aid.
Previously, ICRC was not included in the list specified as per the SRO. 1211(I)/05. Now, ICRC has also been notified for repayment of customs duty on the local supply in quake-hit areas against international tenders floated by this relief organisation.
According to the decision, the CBR will treat these supplies by the local manufacturers as exports. Such supplies would, therefore, be entitled to duty drawback at standard rates notified by the duty drawback SROs. The decision would encourage supply of goods to the NWFP and Azad Kashmir for relief, rehabilitation and reconstruction and enable the local industry to compete with the foreign suppliers against the international tenders floated by various governments/non-government organisations.
FOLLOWING IS THE TEXT OF THE NOTIFICATION ISSUED ON TUESDAY: S.R.O. (I)/2005.- "In exercise of the powers conferred by clause (c) of section 21 of the Customs Act, 1969 (IV of 1969), the Central Board of Revenue is pleased to direct that in its Notification No 1211(I)/05, dated the 10th December, 2005, the following amendment shall be made and shall be deemed always to have been so made, namely:-
"In the aforesaid Notification, in the preamble, for the letters "CRC" the letters "ICRC" shall be substituted."
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