ISLAMABAD: The Ministry of Commerce has issued Local Taxes and Levies Drawback (Non-Textile), Order, 2017 to promote exports by providing incentives in the shape of rebates.
The drawback order said that it will be available for the shipments made during July 01, 2017 to June 30, 2018, with the benefits as under:
- fifty percent of the rate of drawback shall be provided without condition of increment;
- remaining fifty percent of the rate of drawback shall be provided, if the exporter achieves an increase of ten percent or more in exports during the financial year 2017-2018, as compared to the financial year 2016-2017;
- the actual rate of drawback against clause (b) shall be determined on the basis of annual performance of the exporter, but in order to improve his cash flow, the disbursement against clause (b) shall be allowed on the performance during July – December, 2017, subject to submission of a bank guarantee that the exporter shall return excess amount, in case his annual exports are less than the eligibility criteria stipulated in clause (b); and
- an additional two percent drawback shall be allowed for exports to non-traditional markets i.e. Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania at the time of submission of claims at clause (a).
According to eligibility criteria the drawback would be provided to units on exports of products under specific tariff codes of the Pakistan Customs Tariff.
The order said that the export performance shall be analyzed separately for each category for eligible products.
Exports shall be calculated on the basis of shipment date.
Only those exports shall be eligible for the drawback claims, proceeds of which have been fully realized. However, the date of realization shall have no bearing in determining the year in which the transaction shall be accounted for.
The unit availing the drawback shall be a registered sole proprietor, partnership r a company, having a valid NTN and shall be a member of respective association or chamber registered with the DGTO.
The unit shall furnish data and any information related to its operations, domestic sales, accounts and exports as and when required by the ministry of commerce and textile.
