KARACHI: The MCC Port Mohammad Bin Qasim, through the 2nd draft if Import Manual, has redefined the procedure of refunds to importers in order to streamline the system and facilitate trade.

Refund is the payback of over-paid, inadvertently paid, erroneously paid or paid through misconstruction arising out of classification dispute, SRO application dispute or valuation dispute. Refund is admissible within one year of the date of such payment of duty and taxes by the importer.

In the case where refund has become due in consequence of any decision or judgment by any judicial or legal platform, said period of one year will be reckoned from date of such decision or judgment.

According to the procedure defined by MCC Port Qasim Import Manual, the online refund request will be initiated from Group/section; a pre-refund request will be initiated by DC/AC Group/section to DC/AC Audit, which will carry out a pre-refund audit and forward it back.

Having satisfied of the correctness and genuineness of the particulars of refund, the case will be forwarded to DC/AC Refund, Additional Collector or Collector to sanction the same in accordance with the monetary limis.

Competent authority after sanctioning refund will forward the case to Chief Accounts Officer who will print the cheque.

It may be mentioned here that, no refund will be allowed without a written confirmation from the Inland Revenue Service (IRS) confirming that no adjustment of input/refund of the said amount has been claimed by the applicant or paid by the sales tax authorities to avoid double payment of the refund.

For importers not registered with Sales Tax, refund will be processed after confirmation of genuineness of the case.

The appraising officer will undertake scrutiny of online refund application with respect to date of payment, finalization or decision as the case may be; date of filing of refund claim, correctness of particulars of refund claim, admissibility of refund, nature viz-a-viz admissibility of refund and calculations.

Having checked above aspects, AO (Group) shall forwarded application to Principal Appraiser (Group) who will scrutinize the whole case and forward it to DC/AC Group / Section for approval.

DC/AC Group /Section or the appropriate officer depending upon the monetary limits or duly delegated in this regard in the following manner will approve / disapprove the refund claim on its merits while Chief Accounts Officer shall be the cheque issuance authority and shall maintain the register / records / files of refund cheques.

In order to mitigate chances of misuse of refund facIlIty it was notified that the refund cheques shall be issued by the Accounts Section of the Collectorate with signatures of Assistant Collector / Deputy Collector Refund.