FBR Baramdat Asaan Schemes
Government of Pakistan has taken a number of steps to boost Pakistan’s exports. In order to facilitate exporters and increase competitiveness of country’s exports in the international market, the Federal Board of Revenue has simplified and automated various export facilitation regimes called FBR Baramdat Asaan Schemes.
The schemes that currently exist give wide-ranging choices to the exporters, which they can avail depending upon the nature of their businesses and convenience.
These regimes facilitate our main export sectors like textile, leather goods, sports goods, surgical goods, carpets, footwear, engineering goods, metal products etc, in particular. End to end automation of these schemes have been ensured. Exporters can file their applications sitting in their offices. The processing of application, imports, exports, and all related functions are available online.
FBR Baramdat Asaan Schemes
This FBR Baramdat Asaan Schemes has resulted in very quick processing and promoted ease of doing business and minimized the human interaction between exporters and the government functionaries.
In all these schemes, duties and taxes on imported goods which are used for goods to be exported are exempted from payment of duties and taxes against certain conditions. Manufacturers-cum-exporters as well as commercial exporters can avail these schemes.
In these FBR Baramdat Asaan Schemes, all processes from filing of export application to the stage of final export, have been automated and businessman is not required to visit any office. A brief of the available facilitations schemes is as follows:
Manufacturing Bonds Scheme – Chapter XV of SRO 450(1)/2001 dated 18.06.2001
The scheme allows manufacturer-cum-exporters to import duty free inputs for subsequent export of value added products. They are required to operate in a licensed customs bonded area. The licensee is required to obtain a certificate called “Analysis Certificate” which allows him to import duty free inputs as per Analysis Certificate.
Application of this certificate is also filed online and approval granted online. To further facilitate exporters under this scheme, up to 40 percent of manufactured goods can be sold in the local market after payment of duty and taxes.
Manufacturer has the facility to check any time the status of his imported materials, balance quantities and the quantity of goods already exported.
Export Oriented Units (EOU) and Small and Medium Enterprises Rules – SRO 327(1)/2008 dated 29.03.2008
In the exports facilitation regimes, this scheme is the most frequently used by manufacturers cum exporters. This scheme, not only allows import of duty and tax free input materials but at the same time allows duty and tax free import of plant, machinery, equipment, apparatus, including capital goods.
Besides raw materials, accessories, sub-components, components, assemblies, sub-assemblies, this scheme also allows duty and tax free import of coal, diesel, gas, furnace oil, coke of coal and carbon blocks used in the manufacture of output goods.
All types of input and output ratios are made available on the system, resultantly credit and debit of material is also done online which greatly facilitates exporters at the time of import as well as export. Exporters can engage the services of vendors.
Moreover, exporters in this schemes can supply their goods to other exporters availing such facilities like Export Oriented Unit, Manufacturing Bond and Duty and Tax Remission for Export. Exporters in this scheme are allowed to sell up to 20 percent of their goods in the local market on payment of duty and taxes.
Duty & Tax Remission for Exports (DTRE) Scheme – Sub-Chapter 7 of Chapter XII of SRO 450(1)/2001 dated 18.06.2001
The salient features of this scheme are that since no payment of duties / taxes are charged at import stage, thus there is no duty drawbacks/refund at export stage. This facility is available on imported inputs, locally purchased duty / tax-paid goods and taxable/excisable services including gas, electricity, diesel, furnace oil, coal and cock of coal.
This FBR Baramdat Asaan Scheme can be availed by wide number of businessmen i.e. Sales Tax registered exporters, commercial exporters, contracted vendors of foreign manufacturers and persons engaged in value-addition in export goods and also covers supplies made against international tenders, Export Processing
Zones, projects entitled to duty/tax-free inputs and supplies made by indirect to direct exporters. All functionalities have been made available online.
Temporary Importation Scheme – SRO 492(1)/2009 dated 13.06.2009
This scheme entails suspension / exemption from duties/taxes for import of accessories used for manufacturing of exportable goods. This facility is also available to duty-free imports of components / sub-components for assembly of machinery, electrical / electronic equipment, bicycles, aluminium ware, steel ware, kitchen utensils, surgical instruments, toys, decorative items, stationery items, etc. meant for exports. This scheme is the easiest as compared to other facilitation schemes. At import stage an Indemnity Bond and Post Dated Cheque is submitted which are released after exports.
Establishment of Export Processing Zones – Sub-Chapter 3 of Chapter XII of SRO 450(1)/2001 dated 18.06.2001
The Export Processing Zones are established with the objective of boosting industrialization and augmenting country’s exports by creating facilities for investors in order to enable them to set up export oriented units which would, as a consequence, create job opportunities, bring in new technology and know-how and attract foreign investment.
All types of goods including machinery, equipment, materials can be imported duty and tax free. Local sales of upto 20 percent has also been allowed. Investors at Export Processing Zones can avail facilities of vendors in the Customs tariff area.