FBR issues rules for processing duty drawback claims

FBR issues rules for processing duty drawback claims

ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued draft rules for processing duty drawback claims in order to speedy repayment of exporters.

The FBR issued SRO 561(I)/2020 to amend Customs Rules, 2001 for processing and sanctioning of duty drawback claims.

The FBR said that the claims of duty drawback shall be sanctioned by the Customs if the same are complete in all respect and on first in first out (FIFO) basis.

However, comprehensive audit of duty drawback would be carried out by the Directorate General of Post Clearance Audit (PCA) of the FBR.

Any recovery detected by the PCA may be deducted from the next duty drawback claim of the exporter besides initiating recovery proceedings under the recovery rules.

The duty drawback payment of such claims that are complete in all respects shall be made on FIFO basis taking into account the date of filing of claim.

A consolidated discrepancy report shall be sent by the collectorate to State Bank of Pakistan (SBP) on monthly basis. The SBP shall also send a scroll of all the duty drawback payments made to the exporters.

For calculating amount of customs duties paid at the time of import, past six months import data may be used taking the average quantity or value of each class or description of the materials, including packing materials, from which a particular class or description of goods is ordinarily produced or manufactured. Average exchange rates of the same period may be taken into consideration.

The average amount of customs duties paid on imported materials used in the manufacturing of components, intermediate or semi-finished products which are exported as such or further used for manufacture of goods shall be taken into account for the purpose of calculation of the duty drawback.

The average amount of customs duties paid at the effective rate on the imported input materials shall be calculated for the last six months import data.

The average FOB (freight on board) value of each class or description of the goods exported during the last six months may be taken into consideration for the class or description of goods for which export drawback rates are being determined.

On requisition by the relevant association, director general may furnish trade statistics pertaining to each class or description of imported or exported goods for the past six months on the basis of which export drawback rates need to be determined.

At the time of submitting an application, the association shall specify the complete calculation in accordance with the method of calculation as the FBR may notify and shall also furnish therewith the worksheets.

The Director General may initiate exercise for determination of duty drawback rates on its own motion where it is found that: duty drawback rates have not been determined; where already determination rates have changed due to amendments in tariffs.

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