LAHORE: Federal Board of Revenue has been told to has recommended to revisit duty drawback rates to rationalise them in view of the decreasing customs duty rates on imports.
The Auditor General of Pakistan (AGP) has recommended that FBR should ensure that customs duty drawback should not be more than the actual duty paid by the exporter.
The AGP report timely issuance of duty drawback has been ensured through Rule 222 of the Customs Rules, 2001, which provides timeframe for processing and payment of duty drawback.
Three field formations of customs processed duty drawback claims with delay ranging from 30 days to 2,614 days. It was also observed that 296,388 cases involving an amount of Rs25,825.96 million remained unprocessed without recording any reasons. Uh
An analysis of duty drawback cases received during Audit, revealed that Model Customs Collectorate (MCC), Sialkot could process only 72 percent, MCC (A&F) Peshawar 50 percent and MCC, Allama Iqbal International Airport, Lahore 82 percent cases during the period under audit.
As per definition of duty drawback, it is the “repayment on whole or in part of the customs duties paid on the import of any goods”. It means that the duty drawback cannot be more than the duty paid at the import stage.
it is recommended that the rates of duty drawback may be revisited by the FBR in order to rationalise the rates of duty drawback in view of the decreasing duty rates, especially in the wake of Free Trade Agreements.