MCC Preventive issues SOP for duty-free re-import by exporters

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KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi has issued Standard Operating Procedure (SOP) for re-import of goods by exporters without payment of duty and taxes.
MCC Preventive said that Section 22 of the Customs Act, 1969 allows re-import of goods produced or manufactured in Pakistan without payment of duty and taxes subject to certain conditions. One of the main conditions to avail exemption is that the importer has not obtained rebate or refund on the goods exported by him.
Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) in a meeting held at the office of Chief Collector of Customs Enforcement South stated that the clearance of re-imported goods take long time because of the reason that the staff of Air Freight Unit, JIAP Karachi sends letters to Collectors of Export and Regional Tax Office (RTO) Karachi to confirm as to whether or not rebate or sales tax refund has been sought by the importer on the goods exported by him.
The association further said that despite lapse of considerable time, no response is received from collectorates of exports of RTOs and the goods are ultimately cleared by granting exemption under Section 22 of the Customs Act, 1969. The association requested to issue an SOP for handling of such consignments to avoid delay; as they have re-export the goods immediately after removing the defects / making corrections as per order.
The collectorate said that the matter had been examined in detail. It is highlighted that Form-E as well as Bank Credit Advice (BCA) has been digitalized under WeBOC computerized system wherein Form-E and BCA are now fed up in the system by the concerned bank, hence issue of fake Form-E or BCA has been eliminated. Moreover, there is no possibility of double claim of rebate; as no two Form-E can be fed up by the bank in computerized system against one order. There is also no possibility of getting adjustment of input tax or of obtaining refund of sales tax twice as no sales tax is paid on re-imported consignment.
Therefore, considering the factual position the following procedure is prescribed subject to fulfillment of the remaining conditions of the section:
i. The importer shall submit copy of Goods Declaration (GD) of earlier export/airway bill, Form-E pertaining to the said consignment alongwith undertaking that he had not received any refund or rebate of any amount paid to the federal and provincial government on earlier export after its exportation.
ii. He shall specify the reason(s) for return of goods by the buyer.
iii. He shall submit Post Dated Cheque (PDC) of the amount of duty and taxes leviable on the imported goods on which exemption under Section 22 of the Customs Act, 1969 is claimed.
iv. He shall also submit undertaking from the concerned association of the exporters that the case of the claimant for exemption is genuine and the association would ensure that the amount of duty and taxes shall be paid if the goods are not re-exported within time.

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