ISLAMABAD (January 07 2003) : In addition to the extension in the SRO 410(I)/2001, the Ministry of Commerce has placed another major demand before the Central Board of Revenue (CBR) to waive one percent surcharge to be paid by manufacturers-cum-exporters who fail to export goods within the stipulated period of one year.
Under the expired SRO 410, the finished products made through imported raw materials were required to be exported within one year, and further extension of six months would be subject to one percent surcharge on C&F value of imported input materials per month, and utilisation period in no case be extended beyond 18 months.
The CBR has decided not to take any action on the proposal of abolishing one percent surcharge till the Ministry of Finance announced final decision on CBR's earlier presentation (SR0 410), strongly opposing any extension in the duty-free import facility.
A customs official told Business Recorder on Monday that the SRO 410 has not been extended yet for another year, as the CBR is not in favour of extending this time-bound notification.
In this regard, the CBR has also submitted a comprehensive report to the Ministry of Finance, highlighting major hurdles in extension.
Sources said that though the SRO expired on December 31, 2002, one percent surcharge is still applicable in cases where the duty-free raw materials were imported till Dec 31, 2002.
In these cases, if the goods were not exported within one year, the manufacturers-cum-exporters would pay this penalty for extension in the time period to export the goods.
However, the CBR has asked the collectorates of customs to release raw material against the indemnity bonds for smooth clearance of export consignments till the finalisation of the decision on the SRO 410.
CBR officials dispelled the impression created by certain quarters that SRO 410(I)/2001 has been extended by the government.
As a temporary arrangement, the collectorates have the authority to give permission to the exporters for temporary importation of raw materials used for exportable goods.
“Presently, temporary facility for release of consignments is given to export which will be finalised after amendment in the SRO 410, if necessary”, he added.
