SOHAIL SARFRAZ

ISLAMABAD: The Federal Board of Revenue (FBR) has abolished a major condition of supply of 20 percent of the total production to tariff areas for different export schemes including Export Processing Zone (EPZ) under SRO 492(I)/2009, Duty & Tax Remission for Exporters (DTRE) scheme, Manufacturing Bond scheme or Export Oriented Units schemes.

Sources said that amended Customs Rules 2001 notified through an SRO 831(I)/2018 have waived off the said condition for users of DTRE scheme, Manufacturing Bond scheme and Export Oriented Units schemes.

Presently, customs rules said that the units established in the export processing zones shall export only up to 20 percent of their total production to tariff areas in Pakistan while 80 percent shall be exported to other countries.

However, now the FBR has specified through an SRO that the condition of supply of 20 percent of the total production to tariff area shall not include the supplies made from the EPZ to tariff area under SRO 492(I)/2009 dated 13.06.2009 or DTRE scheme or Manufacturing Bond scheme or Export Oriented Units scheme, as the case may be, as the same are used for manufacture of goods which are eventually exported out of Pakistan.

Sources said that any goods removed from a zone for exportation shall be exported under the export procedure as laid down in the Customs Act and the rules made thereunder. Goods cleared for export shall be forwarded to the exporting station under customs supervision, a pass shall be sent with the goods, specifying the name of the exporter and the clearing agent, if any, number of vehicles, description and quantity of goods with the marks and numbers and, on receipt of the goods at the exporting station, the officer of customs allowing the export of goods shall retain the pass.

All customs formalities regarding removal of goods from the tariff area shall be completed at the main customs check post or any place within the zone approved for this purpose by the collector of customs. Export processing zones manufacturers shall be treated at par with the bonded manufacturers in tariff area, sources added.

Moreover, new customs rules said that any goods permitted by the aforesaid authority for entry into the tariff area may be taken out of the zone after fulfilling all the requirements prescribed under the act and the rules made there-under for the direct import from aboard into the tariff area. The investor shall file export GD against the goods being exported from zone to tariff area and the importer in the tariff area shall also file corresponding import GD, the customs rules added.