The Federal Board of Revenue (FBR) has given unlimited powers to the Collectors of Customs for sanctioning the duty drawback or rebates of customs duty of any amount to the business community.
On Tuesday, FBR notified SRO.342(I)2023 to fix the maximum monetary limit of the Customs officials for issuance of the refunds. The SRO issued by the FBR revealed that the Collectors of Customs are legally authorized to issue refunds without any monetary limit.
The Additional Collectors of Customs would now have the authority to sanction refunds up to Rs. 2.5 million. The Deputy Collectors of Customs have been empowered to issue refunds up to Rs. 1 million. The Assistant Collectors of Customs have been given the power to issue refunds not exceeding Rs. 0.2 million.
Under the relevant section of the Customs Act 1969, no refund of any customs duties or charges claimed to have been paid or over-paid through inadvertence, error or misconstruction shall be allowed, unless such claim is made within one year of the date of payment.
In the case of provisional payments made under section 81 of the Customs Act, the said period of one year shall be reckoned from the date of the adjustment of duty after its final assessment.
In the case where a refund has become due in consequence of any decision or judgment by any appropriate officer of Customs or the Board or the Appellate Tribunal or the Court, the said period of one year shall be reckoned from the date of such decision or judgment, as the case may be, Customs Act added.