Exporters of polyester staple fibre (PSF) based textile products can not claim duty drawback on exports in the new fiscal year as the rates applicable under the concerned notification would not remain valid from July 1, 2004.
It is learnt that the government is likely to announce some decision within one or two days regarding duty drawback rates on the import of raw material used in the manufacture of PSF-based textile products to be exported.
Sources told Business Recorder here on Sunday that non-availability of duty drawback rates has created an uncertain situation among the exporters because PSF-based textile products are among the major export items on which rebate is being claimed.
However, after invalidity of the rates under SRO 412, the Central Board of Revenue (CBR) has not yet taken any decision to deal with the situation. It is not clear what rates would be applicable from new financial year.
The exporters of PSF-based products made from PTA and other raw materials used to claim duty drawback under different schedules of standard SRO 412(I)/2001.
The rebate facility was extended from June 30, 2003 to June 30, 2004 through SRO 489(I)/2003 on the directive of Economic Co-ordination Committee (ECC) of the Cabinet.
However, as the facility has expired on June 30, no duty drawback would be available on the import of raw material used in the manufacture of textile products.
It is leant that CBR has issued a directive to collectors of customs that export of PSF-based textile products may be allowed till the issue of new duty drawback rates.
Sources said that the CBR is likely to take some decision regarding duty drawback rates given in Schedule-II, Schedule-VI and Schedule-36 of the SRO 412.