KARACHI: The Federal Board of Revenue (FBR) has now authorized the Input-Output Co-efficient Organization (IOCO) of the Pakistan Customs to implement Statutory Regulatory Order (SRO) 608(I)/2014.
The SRO 608(I)/2014 basically includes exemptions from customs duty on import of raw materials, assemblies, sub assemblies, consumer goods etc.
Through the SRO 608 (I)/2014, a registered manufacturer of the goods shall submit an application to the Commissioner Inland Revenue having jurisdiction along with the complete list of his annual requirement of inputs he intends to import or purchase for the manufacture of such goods.
The Commissioner may approve the declaration of input-output ratio of the applicant without physical verification in case the input- output ratio of the applicant has already been determined by IOCO under an earlier notification issued for such goods or the declared input-output ratio and input requirements are in accordance with prevailing industry averages;
In case the Commissioner is not satisfied with the declared input-output ratios because of their being prima facie not in accordance with prevailing industry averages and the input- output ratios of the applicant have not already been determined by IOCO, he may, after provisionally allowing quantity required for six months, make a reference to IOCO for final determination thereof.
After receipt of report from IOCO the Commissioner shall then determine the annual quantitative entitlement of inputs and grant final approval for zero-rated purchases or imports. In case of non-receipt of report from IOCO within four months of the application being forwarded by the Commissioner, he may provisionally allow another six months quantity to the applicant, provided he is satisfied from the records that the previously imported or purchased inputs are being properly consumed in the manufacture of goods specified against S. No. 12 of the Fifth Schedule.
