Govt announces relief cut in duty drawback for exporters

09 Aug '05

4 min read

In a major effort to boost exports, the Government announced about 50 percent cut on duty drawback rates for exporters.

Industries, particularly textile, leather and allied exports will be benifited from the move, said a Central Bureau of Revenue (CBR) official.

According to the new notification on textiles, manufactured goods exported out of Pakistan are to be followed by an application for repayment of customs duties to the customs officer within 210 days or within 180 days from the date of realization of foreign exchange as shown on Bank Credit Advice issued in accordance with the current directive of the State Bank of Pakistan.

Revision in various categories is given below:

According to a notification, the items and their rates are: finished leather of goat or sheep or kangaroo skin; 1.56 percent of the f.o.b. (freight on board) value; cow or buffalo or camel hide, 2.50 percent of the f.o.b. value; buffalo hide in finished form for furniture or upholstry leather (2.5mm up to 5mm), 4.13 percent of the f.o.b. value; lamb or sheep skin finished leather with hair on double face, 2.27 percent of the f.o.b. value; lamb or sheep skin crust or dyed crust leather with hair on suede; 1.60 percent of the f.o.b. value; wet blue sheep or goat skin, 0.23 percent of the f.o.b. value; leather articles and made ups, namely, saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), gloves of all sorts, with or without cloth back (including sports gloves); leather garments, articles of leather of a kind used in machinery of mechanical appliances or for other technical or industrial uses, 2.37 percent of the f.o.b. value, 5.24 percent of the f.o.b. value, and 1.97 percent of the f.o.b. value, respectively; finished leather wherein imported wet blue hides and skins have been used, namely, (a) goat or sheep or kangaroo skin, 1.17 percent of the f.o.b. value, cow or buffalo or camel hide, 1.71 percent of the f.o.b. value, buffalo hide in finished form for furniture or upholstery leather (2.5mm up to 5mm), 3.04 percent of the f.o.b. value; leather articles and made ups wherein imported wet blue hides and skins, and accessories imported under manufacturing bond, have been used, namely, (a) saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), (b) leather garments, and (c) cut leather components for shoes, garments, gloves and upholstery; leather patchwork sheets, aprons and other protective clothing braces,1.05 percent of the f.o.b. value, 1.59 percent of the f.o.b. value and 0.87 percent of the f.o.b. value; leather articles and made ups wherein imported wet blue hides and skins have been used, namely, (a) saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), (b) leather garments, and (c) cut leather components for shoes, garments, gloves and upholstery, 1 percent of the f.o.b. value, 4.28 percent of the f.o.b. value, and 0.83 percent of the f.o.b. value, respectively; leather articles and made ups wherein only imported finished leather have been used, namely, (a) saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), (b) leather garments, and (c) cut leather components for shoes, garments, gloves and upholstery, 0.15 percent of the f.o.b. value, 2.43 percent of the f.o.b. value and 0.12 percent of the f.o.b. value, respectively; mini or miniature boxing gloves with or without key chains used as decoration pieces for promotional purposes (all sizes), 1.29 percent of the f.o.b. value; boxing gloves and others including hockey, football, goalkeepers, driving and ski gloves, all sizes and other artificial leather (rexine) made ups, 3.70 percent of the f.o.b. value; head guards or head protectors (for boxing), 2.97 percent of the f.o.b. value; footballs, complete football panel kits (unstitched), indoor balls, soccer balls, volley balls, medicine balls, hand balls, punching balls, water polo balls, rugby balls, basket balls, KORB balls, mini footballs, mini volley balls, mini rugby balls, mini basket balls, all sorts of mini balls, jumbo footballs made from artificial leather with synthetic cloth or cotton cloth with or without either rubber latex bladders or butyl bladders (all sizes), 5.25 percent of the f.o.b. value; footballs, complete football panel kits (unstitched), indoor balls, soccer balls, volley balls, medicine balls, hand balls, punching balls, water polo balls, rugby balls, basket balls, KORB balls, mini footballs, mini volley balls, mini rugby balls, mini basket balls, all sorts of mini balls, jumbo footballs made from artificial leather imported duty-free with synthetic cloth or cotton cloth with or without either rubber latex bladders or butyl bladders (a

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