950805

FPCCI calls for restoration of old procedure

Payment of drawback on

bank certificates in lieu

of credit advice stopped

RECORDER REPORT

KARACHI: Customs authorities all over Pakistan, have discontinued the payment of duty drawback claim on the basis of bank certificate in lieu of bank credit advice, with effect from April 1 this year.

Disclosing this Sheikh Iftikhar Ahmed, Chairman, FPCCI Export Committee in a statement to the Press on Saturday said that withdrawal of the facility to obtain duty drawback before the realization of proceeds of defferred payment exports has resulted in serious liquidity problems to the exporter firms due to inordinate delay in receipt of duty drawback.

He said that in today's highly competitive international business every penny saved helps to increase the exports and vice versa. He has pleaded that keeping in view the problems faced by exporters with regard to delay in receipt of duty drawback due to late receipt of BCA, the CBR may dispense with the requirement of BCA as per CGO No. 12/92 dated 14.11.1992 and the payment of duty drawback be allowed against submission of bank certificate for all export shipments made against firm contract on D.P. as well as defferred payment (D.A.) basis.

Sheikh Iftikhar Ahmed further said the FPCCI understands that the procedure devised for payment of duty drawback before realisation of export proceeds was probably discontinued due to non-submission of BCA by some exporters within the stipulated period of 120 days, but the entire exporter community should not be punished for the negligence of a few.

The Chairman FPCCI Export Committee said that since majority of exporters observe the laid down rules, therefore the facility for payment of duty drawback against submission of a bank certificate in lieu of BCA should be allowed again and the FPCCI is confident that in future all the exporters will submit the BCA within the stipulated period.

In particular, the Chairman pleaded the case of exports made against defferred payment L/C of B/G because in such cases the possibility of non-receipt of export proceeds is almost non-existent.