The State Bank of Pakistan (SBP) has asked banks for implementation on the procedure, issued by Ministry of Commerce and Textile, for payment of claims of duty drawback of taxes on export of textile products. The scheme was announced by the federal government for those textile exporters, which will achieve some 10 percent surge during the fiscal year 2017-18 over 2016-17.
According to the PD Circular Letter No. 10, the procedure for submission of claims for implementation of Para 1 (4) (b) & (c) of Textile Division, Ministry of Commerce and Textile''s Notification No. 1 (42-A) TID /17-TR-II dated December 12, 2017 is being forwarded to Authorized Dealers (ADs) in foreign exchange for necessary action and strict compliance.
As per procedure, the exporters not submitting claims under 1 (4) (b) by July 31, 2019, will be considered to have not achieved 10 percent increase in 2017-18 over 2016-17. Any payment made under 1 (4) (c) to such exporters will be got refunded by invoking provided guarantee.
Similar refund will be affected for exporters who submit the claim under 1 (4) (b), but their increase is less than 10 percent in any one or more categories. Such refund will be considered category wise. For example, if the exporter achieves 10 percent increase in garments but not in Made-Ups, only the payment obtained under 1 (4) (c) for Made-Up claims will be got refunded. However, net receivable or payable claim amount against all categories will be calculated before finalization of claim.
For calculating export performance, the established practice of using net FOB values will be followed. Further, the increase will be calculated separately for each category i.e. claim under 1 (4) (b) will be evaluated separately for each category.
Claim under 1 (4) (b) and 1 (4) (c) will be lodged in consolidated form from a single Authorized Dealer (AD), even if the exporter has claimed drawback under 1 (4) (a) through multiple ADs.
The claimant will obtain a certificate of payment from all concerned ADs. In case of loss of certificate, the word ''Duplicate'' will be prominently marked in indelible ink at the top of duplicate certificate. Only claims already paid/ready for payment (submitted to SBP BSC) till the date of claim will be included. Pending/discrepant claims, if any, will not be included.
The claim amount will not include the incentive for non-traditional markets as the same has already been paid in full. The exporter will also provide a bank guarantee to the effect that amount paid to it under 1 (4) (c) will be refunded immediately upon demand by the AD in case it fails to achieve 10 percent or more increase in exports in any eligible category in FY 2017-18 over FY 2016-17
Upon verification of claim, SBP BSC will pay the total amount of claim to the nominated AD for onward credit to the claimant within 24 hours of the credit.
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