The Federal Board of Revenue (FBR) will initiate strict action against transporters/carriers of petroleum products, showing variation in POL export quantity, meant for International Security Assistance Force (ISAF) or Defence Energy Support Centre (DESC) in Afghanistan.
The board has amended procedure of petroleum products exports to Afghanistan under Duty and Tax Remission for Export (DTRE) scheme through SRO 90(I)/2008 issued on Thursday.
In case there is any variation of more than one percent in the quantity of POL products declared in the "Permit" and the one endorsed or certified by the ISAF or DESC, customs authorities would initiate action against the carrier and those found involved in scam.
Moreover, the FBR has empowered the concerned collectors to take action under appropriate provisions of the Customs Act, 1969 (IV of 1969), the Sales Tax Act, 1990 and other laws applicable against the carrier. The new procedure would be enforced from February 2008.
The FBR has also made it mandatory for the ISAF/DESC representatives in Pakistan and Afghanistan to verify the POL products net quantity received in Afghanistan. They would also declare variation, if any, in quantity received vis-à-vis quantity declared (both in litres and in percentage).
Through this amendment, variation of more than one percent in POL products would be enough to take action against all those involved in transportation of the commodity to these forces in Afghanistan.
Previously, the FBR had imposed no punishment for the carriers involved in showing variation in POL products quantity destined for ISAF/DESC forces operating in Afghanistan.
Under the rules, the export of POL products to International Security Assistance Force or Defence Energy Support Centre in Afghanistan under DTRE shall be verified and accounted for on the basis of authenticity of the receipt of the quantity by ISAF or DESC, as the case may be, to be produced by the oil exporting company or refinery. The remittance of foreign exchange against export of POL products to ISAF shall be subject to the conditions specified in the Export Policy Order.
The triplicate, quadruplicate and quintuplicate copies of permit shall bear endorsement of the ISAF or the DESC regarding goods have been received in accordance with the declaration or otherwise and that the seals were found intact or otherwise. The triplicate copy shall be submitted to the concerned collector for his record.
The quadruplicate copy shall be retained by the oil exporting company/refinery. The quintuplicate copy shall be used for the purpose of claiming refund/adjustment of sales tax or federal excise duty as and if admissible.
The concerned collectorate may issue a duly certified copy on the basis of triplicate copy in case a further copy is required for any purpose, which will be specified on such copy. The FBR has also amended procedure and conditions for obtaining license by the carriers of POL products.
According to the amendment, the licence issued to a carrier by the concerned collector shall be valid throughout the country. One permit shall be valid for one vehicle only.
The carrier shall possess a fleet of minimum ten registered vehicles in his name. Before grant of licence, the customs staff shall verify registration particulars of all the vehicles with the respective motor registering authorities, road worthiness and safety particulars of such vehicles.