ISLAMABAD (December 11 2003): To facilitate the exporters, the Central Board of Revenue (CBR) has clarified various issues relating to Duty and Tax Remission for Export (DTRE) scheme, making the procedure easier for business concerns.
The CBR on Wednesday issued a directive to all collectors of customs for immediate compliance.
The authorities have asked the collectors to interpret terms like 'exporter', 'international tender' and 'supplies' as explained in the clarification, for future use.
According to CBR, exporter as defined under rule 296(I) (c) of the Customs Rules, 2001 includes a registered person engaged in or intending to engage in the export of goods.
If box 3 of item (03) of the sales tax registration certificate (Annex-B of SRO.550(I)/96) of Siemens Pakistan is tick-marked, that means they are registered also for export purposes. Even if this box is not so tick-marked, they are registered person and can avail DTRE facility for making supplies against international tenders given to them by Wapda for supplying goods for Wapda's projects.
It is further clarified that international tenders are not the tenders acquired by Pakistani firms necessarily for foreign projects.
The national beneficiaries of foreign grants/loans are usually required to float international tenders as per guidelines given and procedures laid down by the foreign donor/funding agencies and Pakistani firms can participate and acquire such tenders.
The CBR further clarified that regarding presentation of shipping documents in case of supplies made against international tenders for projects launched and executed within Pakistan, the very use of the word 'supplies' in clause (iv) of rule 296(I)(g) indicates that zero rated invoices issued by Siemens Pakistan to Wapda under section 23 of the Sales Tax Act, 1990 for supply of goods against international tender to the concerned project in Pakistan and receipt of these goods by Wapda or the competent project authority shall be a sufficient proof to the effect that Siemens Pakistan have discharged their obligation under the DTRE scheme.
These documents shall, inter alia, be used for the purpose of audit under the said scheme in lieu of export/shipping documents, the CBR added.
