The Central Board of Revenue (CBR) has allowed repayment of customs duty on imported raw materials used in the manufacture of goods supplied against international tenders to quake-hit areas. The CBR has issued an SRO.1211(I)/05 on Saturday to facilitate the supply of goods to affected areas.
According to the decision, the department has allowed duty drawback facility on the local supply made to earthquake-affected areas against international tenders by Unicef, UNDP, WHO, WFP, CRC, GOAL, CARE and Euro Aid.
The CBR will treat these local supplies by local manufacturers as exports. Such supplies shall, therefore, be entitled to duty drawback at standard rates notified as per relevant SROs.
The decision would encourage supply of goods to NWFP and Azad Kashmir for relief, rehabilitation and reconstruction and enable the local industry to compete with foreign suppliers against international tenders floated by various government/non-government organisations.
The supplier shall present a Goods Declaration under claim of duty drawback to the assistant collector designated for the purpose in the collectorate in whose jurisdiction goods are delivered for relief along with necessary documents.
These included copy of the contract duly attested by the agency to whom goods are to be supplied; copy of the invoice duly attested by the chamber of commerce and industry of the area and certificate from the concerned chamber of commerce and industry in token of confirmation of contracted price.
According to the procedure, goods declaration (GD) shall be machine-numbered and processed in the same way as the normal goods declaration; goods shall be examined at the premises indicated by the supplier and samples shall be drawn in the same way as it is done for goods meant to be exported.
The receiving agency and designated customs officer of the area shall certify the fourth copy of the goods declaration to the effect that goods were received in full with the actual date of receipt.
The crucial date for the rate of exchange and the rate of duty drawback shall be the date of filing of goods declaration, in case goods are delivered within seven days of its filing, otherwise, it shall be the date of actual delivery of goods.
The duty drawback claim shall be filed in the same collectorate where goods declaration was filed within 120 days of the delivery of goods and the supplier shall, for the processing of the duty drawback claim, furnish following documents: a copy of the contract duly certified by the concerned chamber of commerce and industry; a certificate from the embassy of the concerned country awarding the contract duly attested by the Federal Relief Commissioner stating full particulars of consignments supplied for earthquake relief; a certificate from the bank or authorised dealer in foreign exchange stating that the payment was made in foreign currency and the foreign currency so received has been duly surrendered to the State Bank of Pakistan and where goods are excisable, the relevant excise application for removal form number and date shall be indicated on goods declaration.
The duty drawback shall be granted in accordance with rates and conditions laid down in the notifications no. 784(I)/05, 785(I)/05, 786(I)/05, 787(I)/05 all dated June 8, 2005 issued under the Customs Act, 1969.