Rates of repayments to be worked out by IOCO

RECORDER REPORT

ISLAMABAD: The standard rates of duty drawback repayments to exporters would be worked out by the Input Output Coefficient Organization (IOCO) on the import of inputs used in the manufacturing of export goods.

According to the notification issued by the Federal Board of Revenue (FBR) here on Wednesday, in cases of standard rates of DDB, the concerned association shall apply to the director general IOCO through an application in the form as set out in Schedule of the Customs Rules.

In the presence of IOCO, the FBR Duty Drawback section is no more empowered to determine DDB rates of export goods, sources added.

The director may call for any further information or make any addition to the particulars of an application as he may deem fit.

At the time of submitting an application, the association shall specify the complete calculations in accordance with the method of calculation as the Board may notify separately and shall also furnish therewith the worksheets. However, when the new product is of such a nature that in respect of it the agreed method of calculation is not applicable, the association shall declare the details of the method of calculations on which the working is based. All applications made under this sub-rule shall be accompanied by separate work-sheets in case of the individual manufacturers or producers selected by the association as the representative manufactures or producers for the purposes of the rules. The manufacturers or producers or their duly authorized representatives shall duly sign all such individual work sheets.

The director shall, immediately on receipt of an application, send the same to the concerned sector specialist.

If the sector specialist, after making such inquiry as he thinks fit, is satisfied with the method of calculation and other particulars contained in an application, he shall accordingly inform the director within fifteen days from the date of submission of the application.

The director after receiving report of the sector specialist, if satisfied with the findings mentioned therein shall inform the association, in writing, specifying therein the proposed rates of repayment or drawback of customs duties, the input materials and the date fixed for meeting so as to afford an opportunity of hearing.

In case, the association has no objection regarding the determination of the input materials, the calculation of input to output ratio, and the proposed rates of drawback or repayment of customs duties, the director shall, within fifteen days from the date fixed for the meeting, send recommendations while providing supporting input output data for the rates so fixed to director general who shall forward it to the Board for issuance of a notification in the official gazette.

On receiving the report of the sector specialist, the director shall fix a date for a meeting and inform the association in writing communicating therein the reasons recorded by the sector specialist.

After hearing the association on the day fixed for the meeting, the director in consultation with the sector specialists shall decide the method of calculation where after, in accordance with the procedure provided, the director shall proceed to determine the input materials and send recommendations while providing supporting input output data for the rates so fixed to director general who shall forward it to the board for issuance of a notification in the official gazette, the FBR added.