ISLAMABAD: The Federal Board of Revenue has allowed a Lahore-based exporter of iron and steel products to transfer raw materials from a public bonded warehouse to manufacture finished goods to be exported without payment of duties and taxes.
The FBR directed Collectors Customs that the issue of transfer of material as per rule 355/356 of the Customs Rules 2001 and problems with WeBOC may be settled as per existing rules and procedure. The board also sought a report in this regard at the earliest.
Under rule 355 of the Customs Rules, any manufacturer-cum-exporter having an export order or contract in his favour for the supply of goods to a foreign importer may procure duty and taxes free goods from bonded warehouse licensed under Customs Rules, for further manufacture of goods meant for export.
As per rule 356 (Bond to bond transfer), the bond to bond transfer of warehoused goods may be allowed by the Collector against an indemnity bond on submission of an application, by the licensee. The transfer, in respect of manufacturing bond, of input goods for getting the same processed in another manufacturing bond or in any other unit located in the Export Processing Zone may be allowed by the Collector.
The iron and steel unit submitted a complaint to the FBR, stating that it had applied for transfer of material from public bonded warehouse to manufacturer-cum-exporter as per rule 355/356 of the Customs Rules 2001, vide letter dated November 1, 2013 and numbers of subsequent visits to office concerned but to no avail. The complainant said that the offices of WeBOC Director and other officers were visited time and again but the situation remained so.
