FBR proposes to withdraw DTRE facility for ghee exporters of KPK, Baluchistan

KARACHI: The Federal Board of Revenue (FBR) has proposed to withdraw Duty and Tax Remission for Exporters (DTRE) facility, earlier allowed to the manufacturers-cum-exporters of ghee located in the provinces of Khyber Pakhtunkhwa and Baluchistan.

DTRE is a government’s temporary importation scheme, which allows trader to import duty-free goods only if they re-export them.

FBR has proposed certain amendments in the Customs Rules, 2001 vide SRO 243(I)/2019. FBR has also proposed to add coke of coal or carbon blocks in the definition of input goods.

The proposed amendment provide that if there is no change in previously determined input and output ratio, then the Regulatory Collector will uphold the previously determined input-output ratios without sending it to IOCO for the purpose of approving DTRE facility.

Moreover, the Regulatory Collector may grant provisional DTRE approval pending receipt of response from IOCO or, as the case may be, EDB in this behalf.

Such provisional approval will not in any case be delayed beyond three days after expiry of the due date of receipt of response from IOCO or EDB.

The quantity equivalent to 100 percent of the producing or manufacturing unit may be approved provisionally by the Regulatory Collector, as applied by DTRE user, however up to 50 percent quantity may be allowed to be used by the time IOCO or EDB determined output and input ratios.

It may be mentioned here that the input goods acquired under the scheme will be utilized in the manufacture and export of output goods within 12 months from the date of approval of DTRE application. However, the utilization period of packaging materials for horticulture products will be 24 month. This period may be extended by the Chief Collector of respective jurisdiction in cases of exceptional circumstances.

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