The Ministry of Commerce has issued five SROs to launch export development initiatives announced in the Strategic Trade Policy Framework 2015- 18, to be effective from July 1, 2016. These include technology upgradation fund, support for branding, support for value addition, support for product diversification and drawback of local taxes. Ministry is expecting that new initiatives will have a significant impact on increasing country's export. The government has already allocated Rs 6 billion to finance these schemes.
According to SRO 582, the drawback shall be available on annual basis on FOB-realised value of enhanced exports for shipments if there is an increase over ten per cent on yearly basis so that the FOB realised value exports made during financial year, 2015-16 and 2016-17 should exceed ten per cent from FOB realised value of exports made during the financial year, 2014-15 and 2015-16 respectively. Only manufacturer-cum-exporters are eligible for the drawback under SRO 582.
The export performance shall be analysed separately for each category for eligible products. Only those exports shall be eligible for the Drawback of Local Taxes and Levies (DLTL) claim the proceeds of which have been fully realised. However, the date of realization shall have no bearing in determining the year in which the transaction shall be accounted. The manufacturer shall furnish date or any information related to his operations, domestic sales, accounts and exports as required by the relevant Association or chamber by BSC and SBP at any time.
The Technology Upgradation Fund Order, 2016 says that the manufacturing units, which currently benefit from any other scheme for investment in plant and machinery being administered by SBP such as long term financing facility etc, or any other similar scheme announced by federal, provincial or district governments shall not be eligible under Technology Upgradation Fund (TUF) concurrently. Further no such facility will be available to the beneficiary of TUF for the same machinery after five years of availing TUF. The concerned Association shall give a certificate that the applicant is not the beneficiary of any other financing scheme.
The facilities available under the fund will not be non-transferable and non-saleable for the following five years from the date of installation. The imported items shall be hypothecated with the nominated banks. SRO 579- Brand and Certification Development Support order 2016 will apply to Small and Medium Enterprises (SMEs) and export sector through intellectual property registration including trade and services marks certification and accreditation. It will come into force at once and will remain in force till June 30, 2018.
SRO 578- Product Development Incentive Order 2016 will provide incentive in shape of 50 per cent matching grant up to maximum of Rs 5 million for specified plant and machinery to improve product design and encourage innovation in SMEs and export sectors specified under this order.
According to the eligibility criteria, the manufacturing unit shall hold valid NTN number and should have filed tax returns for the preceding five years from the date of application. The manufacturing units which are currently benefiting from any other scheme for investment in plant and machinery being administered by SBP such as long term financing scheme etc, or any other similar scheme announced by the federal, provincial or district government will not be eligible for these new schemes.