The Federal Board of Revenue (FBR) has empowered the Directorate of Input-Output Coefficient Organisation (IOCO) to determine the final entitlement of inputs/raw materials in cases where the Collector of Customs had issued provisional entitlement on inputs certificates to the importers-cum-manufacturers.
Sources told Business Recorder here on Wednesday that the FBR has informed the Collectors of Customs about the new regulatory framework issued through Finance Act, 2014 where powers of the Directorate of Input-Output Coefficient Organisation (IOCO) have been enhanced.
According to the FBR, concessions and exemptions available under SRO565 (I)/2006 have also been revisited and the same have either been withdrawn or maintained by reducing the extent of concessions. Following changes have also been introduced through amendments in SRO565 (I)/2014: Firstly, 'Local Manufacturing' condition has been added to allow concession and exemption to only those goods which are not manufactured locally.
Secondly, a new regulatory framework has been introduced and the Directorate of Input-Output Coefficient Organisation (IOCO) or its authorised officer have been empowered to perform principal functions under the SRO ibid instead of the Collector of Customs for the determination of annual entitlement of inputs, issuance of input-output ratios (IORs), extensions in cases of non-consumption of imported material and audit of the importers-cum-manufacturers. To ensure smooth transition of the aforesaid regulatory framework, the Director of IOCO shall ensure the requisite action as envisaged in the amending notification through its Directors in North & South for respective imports.
The Directors are also advised to set up dedicated cells or sections under the supervision of Additional or Deputy Director to handle pending and emerging workload timely and properly. In cases where the Collector of Customs had issued provisional entitlement of inputs certificates, the final entitlement of inputs shall be determined by the IOCO, the FBR added.
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