The local assemblers, manufacturers of automotive vehicles and components have been allowed to import duty free assembly kits corresponding to the hum bet of their exported units provided to
duty drawback was claimed by them at the time of exports.
An exporter is tempted to overinvoice exports (1) if (say) the
duty drawback (2) rate is higher than the premium on foreign currency that he has to purchase from the kerb market to meet the export-earning surrender requirement of the State Bank.
Senior officials of the Customs and Excise Department are of the view that the export incentive schemes such as
duty drawback tend to get exploited and cause leakage of revenue.
The government should also notify upward revision of
duty drawback rates on export of finished leather for goat and sheepskins and cow and buffalo hides to make it realistic.
The revised all industry rates of
duty drawback, which have been notified, will come into effect from September 21.
7 million of charges associated with
duty drawback, the adjusted operating loss for the quarter is $7.
The Government of Pakistan announced the scheme regarding
Duty Drawback of Local Taxes & Levies (DLTL) in 2009 for the exporters, in which 3% was share for the garment sector, besides additional 1% drawback was promised to exporters who will achieve an increase of 15% in exports, this was never announced.
A leading analyst said that after inclusion of polyester staple fibre as the basic raw material in Duty and Tax Remission on Export (DTRE) regime, the exporters could now claim
duty drawback on locally purchased raw material.
Customs' investigation of the Company's
duty drawback claims, the successful completion of our capital expansion projects, the current delay in construction of, and potential indefinite delay of the Company's sponge plant project, the impact of Boeing 787 production delays, and other risks and uncertainties included in the Company's filings with the Securities and Exchange Commission.
The representatives of trade bodies also demanded for the clearance of long standing
duty drawback claims to facilitate the business community of the country.
In India, Bangladesh, and China the
duty drawback and incentives allowed to leather sector are much higher than Pakistan.
She claimed the
duty drawback would allow South Korean manugfacturers to enjoy a Euro 300-to-500 per vehicle advantage over manufacturers of similar models in Europe.
