20000307

CBR withdraws

circular restricting

duty-free fabrics

import

RECORDER REPORT

KARACHI: The Central Board of Revenue has withdrawn the circular under which Customs was not to allow duty-free import of fabrics under SRO 818 as the identification of the same is not possible at the time of export.

The Secretary, CBR (Duty Drawback System-II) in a circular to collectors of Exports says that identifiability or otherwise is the key question for determination of admissibility of duty exemption. It has, therefore, been decided that fabrics which can be identified at the time of exports made therefrom in terms of condition V of SRO 818 (1)/89 dated 09-08-1989 may be released under the relevant SRO on case to case basis, the circular added.

Earlier, the CBR vide its letter of 29-01-2000 had advised the collectors not to allow duty and tax free import of fabrics under SRO 818 as its identification at the time of export was not possible.

The CBR's directive had drawn strong protests from the readymade garments exporters as the Customs Exports staff stopped duty free clearance of all imported fabrics on the basis of the said CBR directive. The directive had jeopardised exports orders worth millions of dollars which were booked on the basis of imported fabrics not manufactured locally.

Javed Chinoy, Chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (Central) has welcomed the withdrawal of CBR directive promptly which saved the exporters from the risk of cancellation of export orders.