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CBR to revise duty drawback rates on cement, clinker exports

SOHAIL SARFRAZ

ISLAMABAD: The Central Board of Revenue has decided to revise duty drawback rates on export of cement and clinker, it is learnt.

For this purpose the CBR has issued instructions to all the collectorates to furnish the survey report along with worksheets about the cement and clinker on top priority basis so that a new system of drawback be evolved with the approval from the Economic Coordination Committee of the Cabinet.

The CBR has also asked the survey report should indicate incidence of customs duty on imported raw materials which form essential ingredient of goods exported and items which are consumed during the manufacturing process separately.

The exporters of cement and clinker can claim rebate under amended notification SRO 518 (I)/99 that says that duty drawback of Rs. 900 per tonne for cement and Rs. 800 per tonne for clinker is allowed on export. However, procedures of rebate on both cement and clinker is explained in SRO 175(I)/99 of March 22, 1999.

Pakistan exports around one million tonnes of cement and clinker to Bangladesh, Indonesia, Thailand, etc.

These days a tussle is going on between the cement manufacturers and CBR on the payment of the duty drawback on the cement and clinker exported in the recent past and it seems the CBR has decided to evolve a new mechanism to meet the requirement of the industry.

Exporters have already informed the government and the CBR as well that they have huge orders for the export of cement and clinker but will not export until their pending rebate claims are paid to them.