ISLAMABAD: The government may merge all temporary importation schemes including Duty and Tax Remission Scheme (DTRE), Manufacturing Bonds Scheme and others in budget (2014-15) to provide a uniform procedure for import of duty-free items to be used in the finished products meant for export by the manufacturers-cum-exporters.
As per details, the temporary importations schemes like DTRE are usually amended in the Trade Policy by the Ministry of Commerce or at the time of federal budget through Finance Bill.
The merger of all temporary importation schemes to be a key budget proposal for 2014-15. During the on-going budget preparation exercise at the Federal Board of Revenue (FBR), the authorities are reviewing the budget proposal in consultation with the Ministry of Commerce. However, the budget proposal has yet to be finalised in the light of input of stakeholders. If feasible, it will be made part of the Finance Bill 2014-15.
The idea is to merge all temporary importation schemes notified vide SRO 492(I)/2009 and other schemes like DTRE to facilitate the manufacturers-cum-exporters in the upcoming budget (2014-15). Different schemes have separate procedures for temporary importation of goods to be consumed in the production of export products. DTRE scheme has different procedure as compared to duty free imports made by the ”Manufacturing Bonds scheme” or ”temporary importation schemes” notified vide SRO 492(I)/2009.
Under the temporary importation scheme, the federal government has exempted whole of the customs duty and sales tax on temporary importation of goods for subsequent export as specified. This facility shall be available to exporters also registered as manufacturers; (ii) the importer shall make an application for grant of exemption to the Collector of Customs, giving full particulars of the goods and the purpose for which they are imported; (iii) the importer shall submit a bank guarantee or pay order or indemnity bond along with post-dated cheque equivalent to the amount of customs-duty and sales tax otherwise leviable thereon; (iv) the importer shall export temporarily imported goods after due processing thereof within eighteen months of their import.
