The government, on Wednesday, announced export facilitation schemes to boost exports and automate procedures for claiming duty and tax exemptions.
In this regard, a high-level meeting was convened under the chairmanship of FBR Chairman Syed Shabbar Zaidi in FBR House.
The meeting was told that the automated system for export facilitation schemes would decrease lead time, promote ease of doing business and minimize human interaction between exporters and departments. Which would make the overall environment business-friendly and increase the ranking of the country in the World Bank’s ease of doing business index.
It was told that all the current export schemes had been fully automated. All processes from the filing of application and approval to import of raw materials have been automated and businessmen are not required to visit offices.
Zaidi stressed, that awareness should be created among the business community about the benefits of these schemes to ensure that the maximum number of exporters use these schemes.
He further instructed that these schemes may be merged so that there is one comprehensive scheme that is simple, trade-friendly and easy to use.
Under the export-oriented unit scheme, duties and taxes on all the imported goods, including machinery, will be exempt, but under certain conditions.
In the Manufacturing Bond Scheme, a manufacturer-cum-exporter can establish a manufacturing bond and import raw material used in the manufacturing of finished goods without upfront payment of duty or taxes. This would save costs and eliminate the hassle of claiming refunds and drawbacks.
The Duty and Tax remission scheme (DTRE) for exports operates under the simple concept of no payment of duties or taxes and no duty drawbacks. The commercial exporters can also get DTRE approvals besides manufacturers from the automation facility.
The Temporary Import scheme involves suspension/exemption from duties/taxes against securities on import of accessories like buttons, zippers, and labels used for manufacturing and export of goods.
The FBR said:
This is the easiest scheme available for the exporters wherein the securities are released after the exportation of goods.