The Federal Board of Revenue (FBR) has introduced a mandatory requirement of six documents for the claim of duty drawbacks on local supplies, free of duty imports, and taxes to avoid any misuse of the facility.

The FBR issued an amendment draft in Customs act to make the process of the claim of duty drawback foolproof.

In the amendment draft, it has been suggested that almost six documents will be required to claim duty drawback. The draft states, “Documents required for claims of duty drawback on local supplies made against the international tender or for supply to industrial units, projects, institutions, agencies and organizations, entitled to import free of duty and taxes shall include a copy of advertisement calling for international tenders, copy of contract, sales tax invoice, freight or carriage bill like bilty; certificate of receipt of goods by the buyer agency or institution and proof of receipt of sales proceeds or funds in foreign exchange into SBP in case of supplies involving foreign exchange component in procurement or bank statement showing receipt of funds (local currency) from the buyer.”

It is pertinent to mention that several cases of fake duty drawback claims have been observed by FBR.

The draft further states, “Exported goods mean exported item to any foreign country including Export Processing Zone in Pakistan or for supplies against international tenders, or for supply to industrial units, projects, institutions, agencies and organizations, entitled to import at concessionary rates.”

The Collector of Customs with jurisdiction on the area where the unit is registered shall process such Duty Draw Back Claims.

Source: Pro Pakistani