MULTAN: The Model of Customs Collectorate Multan has received the revised rebate tariff from the Federal Board of Revenue (FBR).
Sources told Customs Today that the FBR has revised the rebate payments schedule after comprehensive recommendations on expansion of local industry. The FBR has also increased the repayment rate of customs duty on imported raw materials, which are planned for manufacturing and export.
Sources further said that Model of Customs Collectorate Multan rebate branch has also disbursed rebate worth Rs 16 million to the exporters and manufacturers of leather industry.
The FBR issued the notification for the revised rebate to Customs Collectorate of Pakistan in which they increased the rate of imported raw material used for finished leather. Model of Customs Collectorate Multan rebate branch received the newly issued notification regarding the repayment of customs duty on import of raw material consumed in the manufacturing of finished goods. The rates increased with three different category one from 0.8% to 1.06%, second from 1.17% to 2.38% and third 2.12% to 2.43%.
MCC Multan allowed manufacture of finished goods leather including goat, sheep or kangaroo skin; cow, buffalo, camel hide, cow or buffalo hide or side in finished form for furniture or upholstery leather. FBR authorized the rebate for repayment of customs duty against the payment on the import of the raw materials used in the production or manufacturing of the goods, on specific regular conditions.
Federal Board of Revenue taken this decision in order to promote manufacturing industry of goods which are later exported from Pakistan. An exporter can apply for the repayment of its rebate amount after its calculation of Customs duty is presented to the Customs officer within 210 days of such exportation. An exporter can also apply within 180 days from the date of realization of foreign exchange as shown in bank.
In the revised tariff from Federal Board of Revenue exporter are also legally responsible to make a declaration on the goods declaration filed under the Customs laws and on other export documents for claim for the repayment of the Customs duty paid on the imported raw materials used in the production or manufacturing of the goods being exported.
