Government of Pakistan
Model Customs Collectorate Of Exports
3rd Floor, Custom House, Karachi.
No. SI/MISC 05/2009-DTRE-APP/EXP Dated: 17.03.2014
Office Order No. 06/2014-Esst. (Exp)
Sub: CALCULATION OF DUTY DRAWBACK AMOUNT IN CASE OF EXPORTS FROM MANUFACTURING BOND, EXPORT ORIENTED UNIT SRO 492(I)/2009 DATED 13.06.2009 AND DTRE SCHEME.
In order to obviate the chances of excess of under payment of duty drawback on exports of goods manufactured partially from duty paid input goods as well as duty free raw material imported under Manufacturing Bond Scheme vide Chapter XV of Custom Rules, 2001. Export Oriented Units and Small & Medium Enterprises Rules, 2008 notified vide SRO 327(I) 2008 dated 29-03-2008, temporary importation scheme governed by SRO 492(I)/2009 dated 13-06-2009 and DTRE Scheme vide Sub-Chapter 7 (Rules 296 – 307H) of Chapter XII of SRO 450(I)/2001 dated 18.06.2001, primary responsibility lies on exporters to correctly declared the inputs liable for duty drawback, however, the Custom Officers processing and sanctioning duty drawback claims are hereby advised to ensure that due and admissible amount of duty drawback has been correctly worked out on the basis of calculation method envisaged under the respective rules. The criteria for calculation of admissible amount of duty drawback prescribed under the aforesaid scheme or summarized below for guidance and reference;-
1- Manufacturing Bond.
As per rule 352 () of Customs Rules, 2001 notified vide SRO 450(I)/2001 dated 18.06.2001, the FOB value for claiming duty drawback shall be the value excluding value of the duty-free goods imported under Manufacturing Bond Scheme.
` 2- Export Oriented Unit
As per Rule 10(1)(a) of Export Oriented Units and Small & Medium Enterprises Rule, 2008 notified vide SRO 327(I)/2008 dated 29.03.2008, the FOB value for claiming drawback, shall be the value excluding the duty-free value of input goods imported under FOB Rules.
3- Temporary importation scheme.
As per condition (xiii) of SRO 492(I)/2009 dated 13.06.2009, the FOB value for claiming repayment of customs duty shall be the value excluding value of the goods temporarily imported under SRO 492(I)/2009 dated 13.06.2009.
2. In the light of above, the admissible amount of duty drawback shall be worked out as under:-
|
Calculation sheet for duty drawback claim |
Amount |
|
Total invoiced value (CTF) in foreign currency. |
US$, Euro etc. |
|
Less insurance amount |
US$, Euro, etc. |
|
Less freight amount |
US$ , Euro, etc. |
|
Less agents commission |
US$, Euro, etc. |
|
Less short realization in foreign exchange |
US$, Euro, etc. |
|
FOB value (Net) |
US$, Euro, etc. |
|
Applicable exchange rate |
|
|
FOB value (in Pak Rupees) |
|
|
Less C&F value of non-duty paid input goods imported by the licensee under EOU, MB scheme. |
|
|
Less C&F value of non-duty paid input goods imported by the licensee under SRO 492(I)/2009 |
|
|
Net FOB value for the purpose of duty drawback |
|
|
SRO, Schedule No. authorizing duty drawback |
|
|
Applicable rate of duty drawback as per SRO |
|
|
Payable amount of duty drawback |
|
3. DTRE Rules:-
As per Rule 303 of Customs Rules, 2001 notified vide SRO 450(I)/2001 dated 18.06.2001, a DTRE user is entitled to claim duty drawback on acquisition of duty paid input goods subject to the applicable duty drawback notification only after full discharge of the liabilities and obligations under DTRE Rules provided that in no case the quantity of input goods on which a DTRE, user is entitled to get drawback under this rule, shall exceed 20% of the value of his DTRE Approval For example:
PKR
|
FOB value of finished goods export goods under DTRE |
100.000 |
|
A. Less value of acquisition of input goods (imported & locally procured free of taxes) under DTRE. |
50.000 |
|
B. Value of duty paid input goods declared |
35.000 |
|
C. Value of addition expenses |
15.000 |
|
The value of duty paid input goods in this example is 70% of the value of DTRE input goods, whereas maximum DDB is admissible upto 20% amount thereof which works out to Rs.10.000/- |
10.000 |
|
Applicable rate of duty drawback as per SRO (10,000x1.05%) |
1.05% |
|
Amount of maximum DDB Payable |
105 |
3. All other deductions on account of short realization of sales proceeds, agent’s, bank’s commission, etc will also be applicable on these type of rebate claims. All concerned are advised to adhere to the above statutory provisions of law in letter and spirit during disposal of duty drawback claims.
Signed by
(Dr. Aftab Ahmad Bhatti)
Additional Collector
abcdabdcabccdabdcabcd