KARACHI: The Federal Board of Revenue (FBR) has allowed export-oriented units (EOU) to divest or transfer plant and machinery to another exporter.
According to the Customs sources, this kind of equipment is subject to concessions or exemption under the export-oriented Small and Medium Enterprises Rules 2008. However, before the government had disallowed transfer or resale of such duty exempted plant and machinery.
Customs officials revealed imported plant and machinery would remain subject to duty concessions even after a change in ownership from one export unit to another under revised rules.
A manufacturer submits a security at the customs against the import of machinery at concessionary rates. “Any sale or transfer shall be subject to replacement of security and indemnity bond for the remaining period for which the earlier security was submitted,” a customs official said. The FBR also amended rule related to the disposal of goods in local market by the EOUs.
Under the amended rules, the local sale of goods may be allowed on the payment of duties and taxes applicable at the time of import along with payment of surcharge against Karachi interbank offered rate plus three percent per annum to be calculated from the date of import of input goods.
The FBR, however, said the quantity of input goods for local sale should not be more than 10 percent of the total imports during a year. The FBR also introduced penalty in case of shortfall in export limit under concessionary regime.
