Repayment of drawback of export on imported goods explained

KARACHI: Federal Board of Revenue (FBR) has explained repayment of drawback of the export on imported goods under Customs Act 1969.

The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019.

Following are the provisions explaining the repayment of drawback:

Section 35: Drawback of the export on imported goods

Subject to the subsequent provisions of this Chapter and the rules, when any goods, capable of being easily identified, which have been imported into Pakistan and upon which customs-duties have been paid on importation, are exported to any place outside Pakistan or as provisions or stores for use on board a conveyance proceeding to a foreign territory, seven-eight of such duties shall be repaid as drawback, subject to the following conditions, namely:-

(1) the goods are identified to the satisfaction of an officer of customs not below the rank of Assistant Collector of Customs at the customs-station, to be the same as had been imported, and

(2) the goods are entered for export within two years of the date of their importation, as shown by the records of the custom-house or if such time is extended by the Board or the Collector of Customs for sufficient cause within such extended time:

Provided that the Collector of Customs shall not extend the time beyond three years of the importation of such goods.

Explanation.- For the purposes of this section, the goods shall be deemed to have been entered for export on the date on which the 3 [goods declaration] is delivered to the appropriate officer under section 131.

Section 36: Drawback on goods taken into use between importation and exportation

Notwithstanding anything contained in section 35, the repayment of duty as drawback in respect of goods which have been taken into use between their importation and subsequent exportation shall be made in accordance with the provisions of the rules made in that behalf.

Section 37: Drawback on goods used in the manufacture of goods which are exported

Where it appears to the Board that in respect of goods of any class or description manufactured in Pakistan and exported to any place outside Pakistan, a drawback of customs-duties should be allowed on any imported goods of a class or description used in the manufacture of such exported goods, the Board may, by notification in the official Gazette, direct that drawback shall be allowed in respect of such imported goods to such extent and subject to such condition as may be provided in the rules.

Section 38: Power to declare what goods are identifiable and to prohibit draw-back in case of specified foreign territory

(1) The Board may, from time to time, by notification in the official Gazette, declare what goods shall, for the purposes of this Chapter, be deemed to be not capable of being easily identified.

(2) The 5[Federal Government ] may, from time to time, by notification in the official Gazette, prohibit the payment of drawback upon the exportation of goods or any specified goods or class of goods to any specified foreign port or territory.

Section 39: When no drawback allowed

Notwithstanding anything hereinbefore contained, no drawback shall be allowed-

(a) upon goods which are required to be included in the export manifest and are not so included, or

(b) when the claim is for drawback amounting, in respect of any single shipment, to less than or equal to hundred rupees, or

(c) unless the claim for drawback has been made and established at the time of export.

Section 40: Time of payment of drawback

No such payment of drawback shall be made until the vessel carrying the goods has put out to sea or other conveyance has left Pakistan.

Section 41: Declaration by parties claiming drawback

Every person, or his duly authorized agent, claiming drawback on any goods duly exported, shall make and subscribe a declaration that such goods have been actually exported and have not been relanded and are not intended to be relanded at any place in Pakistan and that such person was at the time of entry outwards and export and continues to be entitled to drawback thereon.

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