SOHAIL SARFRAZ

ISLAMABAD: The Federal Board of Revenue (FBR) says it is ready to address the issues of exporters raised by different associations before finalisation of the proposed unified export promotion scheme.

It is learnt that a delegation of Pakistan Textile Exporters Association (PTEA) headed by its Chairman Muhammad Ahmad met the FBR officials, here on Thursday, at the FBR House to discuss the issues emerging out of the new export scheme.

The FBR team of customs officials patiently heard the viewpoint of the exporters and ready to address the legal and technical issues in the proposed scheme.

The FBR team assured the exporters that they would ensure to resolve all legal and technical issues under the proposed unified export promotion scheme.

Exporters have strongly contested the FBR’s new unified export promotion scheme, arguing every scheme has its own dynamics and procedures.

The main thing is, every export promotion schemes have its own dynamics and have own different procedure to be adopted, the exporters said.

All the export promotion schemes are not viable to be merged into one scheme, there is lot of problems created, the exporters said.

Sources told Business Recorder here on Thursday that the FBR has decided to club all export promotion schemes including manufacturing bonds scheme, Duties and Tax Remission for Export (DTRE) scheme, and Temporary Importation Scheme into a unified scheme from next fiscal year.

Muhammad Ahmad, chairman PTE informed that the meeting was very positive with the customs authorities.

However, the FBR has heard the viewpoint of exporters and is ready to resolve their issues under the new scheme.

Another meeting would be held next week in this regard, he added.

Presently, the online application shall be assigned to the Directorate General of IOCO for determination of the Input-Output ratios and assessment of production capacity of the applicant within 30 days of the receipt of application.

It has been proposed that the online Application to obtain DTRE approval on the basis of specific export or supply contract or order shall apply to the Regulatory Authority in the form set out in Appendix I over the web through WEBOC in whose jurisdiction the place of business or manufacturing unit of the DTRE applicant, duly registered under the Sales Tax Act, 1990, is located.

Exporters stated that the Regulatory Authority is the right person to give approval after due process of verification and detail analysis of the exporters and available in every major cities of in their MCC’s.

The Input Output Coefficients Organization (IOCO) was created just for technical arm of the FBR to assist in various important technical and industrial issues relating to input/output wastage.

The IOCO formatted to give and facilitate in sufficient technical support, additional cross check on huge amount of remission as a independent institution without compromising the exchequer but unfortunately IOCO could not perform his functions effectively.

Keeping in view that only two offices of IOCO are available across the Pakistan, the exporters will be shuttlecocks between the two powerful offices like IOCO and Collectorate and always on road from one city to Lahore or Karachi.

The proposed changes shall add administrative and regulatory problems for both the departments.

The same is also contrary to one-window operation policy in which the jurisdiction is being transferred to IOCO.

All legacy issues and under process cases pertaining to DTRE approvals granted by different Customs Collectorates, the legal, audit related and other should be dealt by the IOCO after promulgation of proposed notification, as was done in the legacy issues of exports pertaining to the Model Customs Collectorate of PaCCS vide SRO 581(I)/2013 dated 18.06.2013.

This will be necessary as every Collectorate in this case IOCO will require the profile and past performance of DTRE users to formulate its viewpoint and approach towards solving irritants arising during the course of finalization of DTRE and therefore, during the course of audit observations, if any.

Hence it is appropriate that all issues are dealt by one Collectorate to perform the function, exporters added.