The Central Board of Revenue (CBR) has notified that the exporters operating under the Duty and Tax Remission for Export (DTRE) scheme and warehousing rules have to fulfil certain conditions for making local supply of tents, carpets and tarpaulin.
The CBR has issued SRO 1080(I)/2005 on Monday to communicate the decision to all regional collectors.
According to the notification, blankets, tents and tarpaulins, manufactured by the units operating under DTRE and warehousing rules, would be considered as exports, if supplied for the earthquake victims. This is subject to following conditions:
The supplies are made through the Federal Relief Commissioner or Provincial Relief Commissioners and a certificate to this effect is produced to the concerned collector of customs or the collector of sales tax.
The supplies of tents, carpets and tarpaulin are made on the basis of FOB prices.
FOLLOWING IS THE TEXT OF THE NOTIFICATION: In exercise of the power conferred by section 219 of the Customs Act, 1969 (IV of 1969), the Central Board of Revenue is pleased to direct that blankets, tents and tarpaulins, falling under PCT headings 63.01 and 63.06 respectively of the First Schedule to the said Act, manufactured by the units operating under sub-chapter 7 of chapter XII Duty and Tax Remission for Exports Rules and chapter XV Warehousing Rules of the Customs Rules, 2001, shall be deemed to have been exported if supplied for the earthquake victims subject to following conditions, namely:
The supplies are made through the Federal Relief Commissioner or Provincial Relief Commissioners and a certificate to this effect is produced to the concerned Collector of Customs or the Collector of Sales Tax, as the case may be; and.
The supplies are made on the basis of FOB prices.