KARACHI: Federal Board of Revenue has now authorized and conferred Input-Output Co-efficient Organization (IOCO) of Pakistan Customs for the implementation of Statutory Regulatory Order (SRO) 565(I)/2006.
FBR has decided to confer powers relating to the SRO 565(I)/2006 to IOCO. Earlier, Model Customs Collectorate of Appraisement-West was dealing with the said SRO.
The SRO 565(I)/2006 deals with the prime obligations linked with reconciliation, audit, approval and survey.
The SRO 565(I)/2006 basically includes exemptions from customs duty on import of raw materials, sub-components, components, sub-assemblies and assemblies, for manufacture of specified goods including air-conditioners, deep freezers, refrigerators, washing machines, car air conditioners, chrysotile cement pipes, sheets, fittings and others equipments (survey based).
Through the SRO 565(I)/2006 an importer-cum-manufacturer having suitable in-house facilities and registered with the Sales Tax Department as manufacturer shall submit a complete list in the prescribed format [appended as Form-I] of his annual requirement of permissible items (inputs) he intends to import for the manufacture of goods mentioned in column (2) of the table to the Director Input Output Co-efficient Organization having jurisdiction or to any other organization or person as authorized by the Federal Board of Revenue.
The importer-cum-manufacturer shall file a request containing a declaration of input-output ratios to the Director of IOCO or the persons duly authorized by him.
The Director or the authorized person may accept the declaration of input-output ratio as declared by the applicant and determine the annual requirement of inputs.
In case the Director or authorized person is not satisfied with declared input-output ratios of the items to be manufactured because of their being prima-facie not in accordance with the prevalent average of the relevant industry or for any other reason, he may, after allowing a reasonable provisional quantity, verify input output-ratios or through Sector Specialist of IOCO or make a reference to any other recognized authority for determination thereof.
The Director or authorized person shall then determine the final annual quantitative entitlement of inputs and the applicant shall proceed to consume imported inputs in accordance with the input-output ratios and quantities so determined.
