ISLAMABAD (October 05 2004): To make the textile products more competitive in the international market, the Central Board of Revenue (CBR) has extraordinarily enhanced duty drawback rates on the export of polyester staple fibre (PSF) based products including blended garments, wearing apparel/made-ups, polyester-viscose staple fibre blended yarn and 100 percent polyester staple fibre yarn from July 1, 2004.
The CBR has replaced schedule-II, schedule-VI and schedule-XXXVI of the standard SRO 412(I)/2001 through a notification issued on Monday fulfilling a major demand of the textile sector.
Sources told Business Recorder that the duty drawback rates have been increased taking into account international prices of PSF during the preceding six months. The enhanced rates will not only boost the export of textile products, but would also restore the confidence of the sector, as far as duty drawback rates are concerned.
The details revealed that the tax authorities had made drastic reduction in the duty drawback rates on certain textile products through SRO 605(I)/2004 issued before the announcement of Trade Policy. Textile industry made hue and cry on the reduction and demanded increase in the rates.
Subsequently, the CBR enhanced the rates retrospectively on the export of textile products through SRO 638(I)/2004, but the enhanced rates were still lower than the rates specified prior to the issuance of SRO 605(I)/2004.
Now, the CBR has again revised the rates upward to bring them at par with the rates applicable before June 30, 2004 through SRO (I)/2004.
Following are the previous and new duty drawback rates as per notification issued on Monday, the duty drawback on the export of grey blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 15 percent polyester staple fibre and 85 percent cotton to 25 percent polyester staple fibre and 75 percent cotton) has been increased from Rs 1.79 per kilogram to Rs 2.75 per kilogram; grey blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 30 percent polyester staple fibre and 70 percent cotton to 45 percent polyester staple fibre and 55 percent cotton) has been enhanced from Rs 3.02 per kilogram to Rs 4.83 per kilogram; grey blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 50 percent polyester staple fibre and 50 percent cotton to 60 percent polyester staple fibre and 40 percent cotton) has been enhanced from Rs 4.26 per kilogram to Rs 6.91 per kilogram; grey blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 65 percent polyester staple fibre and 35 percent cotton to 80 percent polyester staple fibre and 20 percent cotton) has been increased from Rs 5.49 per kilogram to Rs 8.98 per kilogram; bleached blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 15 percent polyester staple fibre and 85 percent cotton to 25 percent polyester staple fibre and 75 percent cotton) has been increased from Rs 2.54 per kilogram to Rs 3.44 per kilogram; bleached blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 30 percent polyester staple fibre and 70 percent cotton to 45 percent polyester staple fibre and 55 percent cotton) has been raised from Rs 3.77 per kilogram to Rs 5.52 per kilogram; bleached blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 50 percent polyester staple fibre and 50 percent cotton to 60 percent polyester staple fibre and 40 percent cotton) has been increased from Rs 5.01 per kilogram to Rs 7.60 per kilogram; bleached blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 65 percent polyester staple fibre and 35 percent cotton to 80 percent polyester staple fibre and 20 percent cotton) has been enhanced from Rs 6.24 per kilogram to Rs 9.67 per kilogram; dyed or printed blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 15 percent polyester staple fibre and 85 percent cotton to 25 percent polyester staple fibre and 75 percent cotton) has been increased from Rs 5.11 per kilogram to Rs 5.70 per kilogram; dyed or printed blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 30 percent polyester staple fibre and 70 percent cotton to 45 percent polyester staple fibre and 55 percent cotton) has been increased from Rs 6.35 per kilogram to Rs 7.78 per kilogram; dyed or printed blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 50 percent polyester staple fibre and 50 percent cotton to 60 percent polyester staple fibre and 40 percent cotton) has been increased from Rs 7.66 per kilogram to Rs 9.91 per kilogram and duty drawback on the export of dyed or printed blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 65 percent polyester staple fibre and 35 percent cotton to 80 percent polyester staple fibre and 20 percent cotton) has been increased from Rs 8.75 per kilogram to Rs 11.82 per kilogram.
The duty drawback on the export of grey blended garments, wearing apparel and other made-ups (all blends of polyester staple fibre from 15 percent and cotton fibre) has been increased from 1.86 percent of the fob value to 2.39 percent of the fob value; bleached blended garments, wearing apparel and other made-ups (all blends of polyester staple fibre from 15 percent and cotton fibre) has been enhanced from 1.93 percent of the fob value to 2.42 percent of the fob value and duty drawback on the export of dyed or printed blended garments, wearing apparel and other made-ups (all blends of polyester staple fibre from 15 percent and cotton fibre) has been increased from 2.21 percent of the fob value to 2.58 percent of the fob value.
Similarly, the CBR has also increased duty drawback rates on the export of other types of grey and bleached blended made ups, dyed or printed blended made ups and napkins/aprons. The duty drawback on the export of grey blended made ups ie bedwear, curtain, table linen etc. (all blends of polyester staple fibre from 15 percent and cotton fibre) has been increased from 2.01 percent of the fob value to 2.91 percent of the fob value and duty drawback on the export of bleached blended made ups ie bedwear, curtain, table linen etc. (all blends of polyester staple fibre from 15 percent and cotton fibre) has been raised from 2.20 percent of the fob value to 3.09 percent of the fob value.
The duty drawback on the export of dyed or printed blended made ups ie bedwear, curtain, table linen etc. (all blends of polyester staple fibre from 15 percent and cotton fibre) has been increased from 3.19 percent of the fob value to 3.69 percent of the fob value.
The CBR has also increased duty drawback on the export of bleached napkins and aprons and dyed or printed napkins and aprons.
According to revised schedule-VI of the SRO 412(I)/2001, the duty drawback on the export of 100percent polyester staple fibre yarn has been increased from Rs 6.94 per kilogram to Rs 11.69 per kilogram; polyester staple fibre blended yarn (65 percent polyester staple fibre and 35 percent cotton) has been enhanced from Rs 4.51 per kilogram to Rs 7.59 per kilogram; polyester staple fibre blended yarn (50 percent polyester staple fibre 50 percent cotton) has been enhanced from Rs 3.47 per kilogram to Rs 4.51 per kilogram; polyester staple fibre blended yarn (30 percent polyester staple fibre 70 percent cotton) has been enhanced from Rs 2.08 per kilogram to Rs 3.50 per kilogram and duty drawback on the export of polyester staple fibre blended yarn (15 percent polyester staple fibre 85 percent cotton) has been enhanced from Rs 1.04 per kilogram to Rs 1.75 per kilogram.
The CBR has also enhanced duty drawback rates on the export of other types of polyester staple fibre blended yarn (48 percent polyester staple fibre 52 percent cotton). The new rate will be Rs 5.61 per kilogram.
The duty drawback on the export of polyester staple fibre blended yarn (40 percent polyester staple fibre 60 percent cotton) will be Rs 4.63 per kilogram.
The new schedule XXXVI has also given new duty drawback rates on the export of different types of polyester-viscose fibre blended yarn. The duty drawback on the export of polyester-viscose fibre blended yarn (containing 80 percent polyester and 20 percent viscose) has been increased from Rs 6.15 per kilogram to Rs 10.13 per kilogram; polyester-viscose fibre blended yarn (containing 65 percent polyester and 35 percent viscose) has been enhanced from Rs 5.73 per kilogram to Rs 8.96 per kilogram; polyester-viscose fibre blended yarn (containing 50 percent polyester and 50 percent viscose) has been enhanced from Rs 5.31 per kilogram to Rs 7.79 per kilogram; polyester-viscose fibre blended yarn (containing 30 percent polyester and 70 percent viscose) has been increased from Rs 4.74 per kilogram to Rs 6.24 per kilogram; polyester-viscose fibre blended yarn (containing 20 percent polyester and 80 percent viscose), has been increased from Rs 4.46 per kilogram to Rs 5.46 per kilogram; polyester-viscose fibre blended yarn (containing 35 percent polyester and 65 percent viscose) has been increased from Rs 4.88 per kilogram to Rs 6.63 per kilogram and duty drawback on the export of polyester-viscose fibre blended yarn (containing 70 percent polyester and 30 percent viscose) has been increased from Rs 5.87 per kilogram to Rs 9.35 per kilogram.
