ISLAMABAD: The Federal Board of Revenue (FBR) would allow the Risk Management System (RMS) of WeBOC to select Duty and Tax Remission for Exports (DTRE) applications, on the basis of applicant's profile, for automatic processing, and approval against securities submitted by the exporters.

The FBR has issued a notification to introduce draft amendments to the Customs Rules 2001 pertaining to the grant of the DTRE approvals to the exporters. According to the amendment, provided that notwithstanding the above provision, the Risk Management System of WeBOC may select DTRE application, on the basis of applicant's profile, for automatic processing and approval against securities specified in the sub-chapter.

Such DTRE applications shall be subjected to post-approval verification by the respective Collectorate. On the basis of the DTRE application, a regulatory authority, if he is satisfied with the bona fides of the DTRE applicant, shall grant DTRE approval, and each such approval shall be fed into the WeBOC over the web in the format as given in Appendix-II.

The amounts suspended by the regulatory authority in respect of leviable customs duties, excise duty, sales tax, and withholding tax shall be secured for a period of 18 months against indemnity bond along with the post-dated cheque from a direct and indirect exporter; bank guarantee from a commercial exporter; and corporate guarantee from exporters in the corporate sector.

The regulatory authority may, at the time of granting DTRE approval verify the manufacturing facility of the DTRE applicant through inspection and determine the production capacity of such facility by physical survey, in addition to verifying the business turnover from the sales tax profile or other available records of such DTRE applicant to ensure that quantity of the input goods applied for commensurate with the actual production and business capacity of such applicant and consult the records of Input-Output Coefficient Organization for identical or similar output goods, if available to ensure that the input-output ratios and wastages as claimed by the DTRE applicant are as per industry standards.

The regulatory authority shall endorse a copy of the DTRE Approval to the director, Input Output Coefficient Organization (IOCO), Karachi.

Copyright Business Recorder, 2020