KARACHI: Federal Board of Revenue (FBR) has proposed retaining period of machinery to five years imported by exporters for disposing of without duty and taxes.
The FBR through SRO 805(I)/2019 proposed amendments to Customs Rules, 2001 and proposed to enhance the retaining period of machinery for manufacturers having facility within Export Processing Zones to five years in order to dispose of without duty and taxes.
According to proposed amendments, the investors in EPZ shall retain machinery for a period of five years from the date of its import into the zone.
Further the investors in EPZ shall be allowed to dispose of machinery in the tariff are after filing goods declaration subject to fulfillment of conditions of Import Policy Order upon payment of duty and taxes on the following terms, namely:
01. If sold or otherwise disposed of before the expiration of three years from the date of import in EPZ, full duty and taxes would be applicable.
02. If sold or otherwise disposed of after three and before four years from the date of import in EPZ, about 75 percent of duty and taxes would be applicable.
03. If sold or otherwise disposed of after four and before five years from the date of import in EPZ, about 50 percent of duty and taxes would be applicable.
04. If sold or otherwise disposed of after five years from the date of import of EPZ the exporter/investor would enjoy free of duty and taxes.
The FBR also proposed amendment to the rules regarding licensing for operating a warehouse. As per the proposed amendments the documents and condition is as:
“The site plan of the proposed warehouse indicating the location of the premises and the details of the total area, covered area and the area proposed to be utilized for the manufacturing area of facility and for storing and bonded warehoused input goods and manufactured goods therefrom for exports, and spate other storage areas for duty paid input goods, manufactured goods there from, factory rejects and wastages, for domestic local sales, in case of a manufacturing bond.
Another amendment in this regard is as:
“In case of manufacturing bond, the applicant shall apply to the Regulatory Authority designated by the Collector of Customs having jurisdiction in which the unit is registered under the Sales Tax Act, 1990, and in case there are more than one unit of a proprietor, he shall apply to the Regulatory Authority designated by the Collector of Customs where the head office of the applicant is registered under Sales Tax Act, 1990.”