20000130

'No duty-free cement for EPZ'

RECORDER REPORT

KARACHI: The Collectorate of Central Excise , Karachi, clarified on Saturday that no facility of duty-free export of cement to Export Processing Zone against bank guarantee has been granted by the Central Board of Revenue (CBR).

Responding to a press release issued by the Export Processing Zones Authority (EPZA) and published in newspapers here that the CBR has allowed the export of cement to the EPZ free of central excise duty against bank guarantee, the collectorate in a press release said, "In fact, the board had clarified to the Ministry of Industries as far back as 1993 that since cement is not being taken to EPZ as a raw material for manufacture of goods for export, it has not been exempted from central excise duty."

However, the press release said, the matter was again agitated by the cement exporters to EPZ. The issue was considered by the Central Board of Revenue, and various proposals were discussed with the cement exporters as well as Karachi EPZ. The board finally clarified and settled the issue on January 6, 2000, ruling that since the cement is not being taken to EPZ as a raw material for manufacture of goods for export, it has not been exempted from central excise duty.

The news item based on an EPZA press release that duty-free export to EPZ has been allowed by the board against bank guarantee is incorrect, the press release said.