Dated:2016-11-14

DLTL Notification 14th November, 2016

  

To be published in the next issue

of the Gazette of Pakistan Part-I

 

GOVERNMENT OF PAKISTAN

MINISTRY OF TEXTILE INDUSTRY

*****

 Islamabad the 14th November, 2016

NOTIFICATION

 

No.1(41)TID/14-RDA.         In pursuance of entry 7 of item 39 of Schedule II to the Rules of Business, 1973, and Textile Package announced in the Federal Budget 2016-17, the Federal Government is pleased to issue the following Order, namely:

 

1.            Short title, content and commencement.- (1) This may be called the “Drawback of Local Taxes and Levies 2016-17”.

 

(2)       It extends to the whole of Pakistan including Export Processing Zones.

 

(3)       It shall come into force at once. The drawback will be available on annual basis on FOB-realized values of enhanced exports for shipments made during 2015-16 if increased beyond 10% over last year’s exports i.e. 2014-15.

 

(4)       The export performance will be analyzed separately for each category of eligible products.

 

2.            Eligibility.- (1) The drawback shall be provided to manufacturing-cum exporting units on exports of products under specific Tariff Codes of the Pakistan Customs Tariff  at rates specified in Annexure I to this Order.

 

(2)       All units availing the drawback shall be registered with the Ministry of Textile Industry.   

 

(3)       The unit availing the drawback shall be a registered sole proprietor, partnership or a company, and shall be a member of a textiles association registered with the Directorate of Trade Organizations, Ministry of Commerce.

 

(4)       The units shall furnish data and any information related to its operations, domestic sales, accounts and exports as and when required by the Ministry of Textile Industry.

 

3.            Role of associations.- (1) Each textiles association shall be responsible for certifying the authenticity of information provided by the exporting units pertaining to the registration with the Ministry, and the application documents for claims under this Order. The Association concerned shall exercise due diligence to ensure authenticity of the documents.

 

(2)       Only notified executive members of the association shall be eligible for verifying the claim documents.

 

 

Cont. P. 02 .

 

Page: 02 :

 

 

4.            Procedure for Claims:- (1) The units shall file claims for the incentive in the Form as specified in Annexure II of this Order. The unit shall fill the Form online and state all export shipments, during FY 2014-15 and 2015-16, and get online verification on the Form from the respective association of which the unit holds valid membership.

(2) Yearly average of SBP DMMD WAR of the base year would be used for conversion of foreign currencies of both years (base and performance). All amounts will be converted to USD and increase will be calculated in USD. The DLTL at applicable rates on category wise enhanced (beyond 10%) will be calculated in PKR using the yearly average of SBP DMMD WAR of the performance year. The rates to be used for this purpose are Annexure-III.

 

(3)       The applicant will nominate one authorized bank to submit the claim to SBP BSC.

 

(4)       Submit the printouts of the Form duly certified by the Association and supporting documents as mentioned in Annex II, by 30th   April, 2017 to the field offices of the State Bank of Pakistan – Banking Services Corporations (SBP-BSC) – through nominated authorized bank. No new claims shall be accepted after
31st March, 2017 by the nominated banks.

 

(5)       Before submission through the nominated bank the relevant entries of the claim shall be scrutinized by each concerned bank which would provide attested photocopies of the required documents duly certified with an undertaking, in the format specified at Appendix I to the nominated authorized bank of the applicant. The nominated bank will submit the undertaking in the format specified at
Appendix II.

 

(6)       The admissible incentive payment as approved by the field office of the SBP-BSC shall be made by crediting the account of the authorized bank, which shall pay the amount to the unit within twenty-four hours thereafter.

 

(7)       In order to avoid delays or rejection of the incentive claim, the authorized banks, while certifying the documents shall ensure that the description of the commodity and Pakistan Custom Tariff code recorded in the form is correct and corresponds with the documents attached.

 

(8)       The applications will be entertained on first come first serve basis. The discrepant claims will be processed on the basis of the date they are re-submitted after corrections.

 

(9)       Applications containing discrepancies shall be returned by the State Bank of Pakistan to the authorized banks within thirty days from the date of submission of claims for re-submission after rectification of the discrepancies within thirty days. The discrepancy will be issued to the authorized banks along with a copy to the claimant. While re-submitting the applications, authorized banks shall quote the reference of the “Forwarding schedule” under which the application was originally submitted.

 

Cont. P.03 .

Page: 03 :

 

 

In case of non submission within thirty days the claims will be rejected without any further process.

 

5.            Periodical audit:- (1) The receipt of incentive payments shall be properly reflected in the book of accounts or balance sheets of the exporting unit.

 

(2)       The Federal Government reserves the right to conduct periodical, random, on-the-spot checks and audits to verify the claims filed and drawbacks received under this Order.

 

6.            Penalties for contravention:- (1) Any unit which in contravention of the provisions of this Order, through acts of omission or commission, files fraudulent or false claims shall be liable to penalty of 100% of the claim along with reversal of the claim amount. The association concerned may also become ineligible for future verification of documents.

 

7.            Appellate authority:- (1) The appellate authority for penalties on units shall be the SBP.

 

8.            Reports:- (1) Textiles associations verifying the drawback claims shall submit quarterly reports of verifications to the Ministry of Textile Industry with Chairman’s signature after taking printout from their online panel.

 

9.            Modifications:- (1) The Federal Government reserves the right to make any changes, additions, deletions and modifications in the Scheme under this Order which it may consider necessary.

 

10.         Interpretation:- (1) Any interpretation or clarification required regarding the application of this Order shall be made by the Ministry of Textile Industry.

 

 

    Sd/-

(Wajeeha Bashir)

Section Officer (RDA)

The Manager,

Printing Corporation of Pakistan Press,

KARACHI

           

 

            Copy to:-

1.    Secretary, Ministry of Textile Industry, Islamabad

2.    Secretary, Finance Division, Islamabad

3.    Governor, State Bank of Pakistan, Karachi

4.    Network Administrator, Ministry of Textile Industry, and Islamabad for uploading the Notification on official website of the Ministry

 

   Sd/-

(Wajeeha Bashir)

Section Officer (RDA)

 

  Annexure-I

 

  • Eligible Product Lines of Processed Fabrics Category @ 1%

52083100

52083200

52083300

52083900

52084100

52084200

52084300

52084900

52085100

52085200

52085300

52085900

52093100

52093200

52093900

52094100

52094200

52094300

52094900

52095100

52095200

52095900

52103100

52103200

52103900

52104100

52104900

52105100

52105900

52113100

52113200

52113900

52114100

52114200

52114300

52114900

52115100

52115200

52115900

52121300

52121400

52121500

52122300

52122400

52122500

53091900

53092900

53109010

53109090

54074200

54074300

54074400

54075200

54075300

54075400

54077200

54077300

54077400

54078200

54078300

54078400

54079200

54079300

54079400

54082200

54082300

54082400

54083200

54083300

54083400

55121900

55122900

55129990

55132100

55132300

55132900

55133100

55133900

55134100

55134900

55142100

55142200

55142300

55151190

55142900

55143010

55143090

55144100

55144200

55144300

55144900

55161200

55161300

55161400

55162200

55162300

55162400

55163200

55163300

55163400

55164200

55164300

55164400

55169200

55169300

55169400

60052200

60052300

60052400

60053200

60053300

60053400

60054200

60054300

60054400

60062200

60062300

60062400

60063200

60063300

60063400

60064200

60064300

60064400

5602

5603

5903

5906

5907

55151290

55151390

55151990

55152190

55152290

55152390

55152990

55159190

55159990

60011090

60012190

60012290

60012990

60019190

60019290

60019990

60031090

60032090

60033090

60034090

60039090

5806.40

 

 

 

 

 

 

  • Eligible Products of Made-Ups Category @ 2% HS Codes 9404.9000 and Chapters 57 and 63 excluding 6309 and 6310

·         Eligible Products of Garments Category @ 4%: Chapter 62 and 61


 


Annexure-II

SUBJECT: -   Application for Payment of Drawback of local taxes and levies on Export of Textile Fabrics/Home Textiles/Garments

Dear Sir, (Chief Manager Field Office SBP _________ (city)

I/We, M/s. _______________________________(Name & address of the manufacturing unit) having NTN No                                   and MINTEX special identification No ____________________   (Name & address of the manufacturing unit) hereby apply for payment of Incentive of Rs.________ through our Bank __________.

We further enclose the following documents in support of our claim: (All photocopies are to be attested by the submitting bank)

(a) Copy of Goods Declaration Form (in case of manual GD Form, containing examiner’s report and MR date) Prescribed under the Customs Act, 1969 (IV of 1969).

(b) Copy of Commercial/Custom Invoice for e-forms in case of having multiple categories

(c) Insurance Premium Paid Certificate (in case of CIF Exports) where applicable

(d) Freight Invoice where applicable

(e) Bank Verification Certificate (Appendix I)

(f) Undertaking by the Bank (Appendix II)

(g) Undertaking by the Claimant (Appendix III)

(h) Detail of Export Proceeds (attested by relevant banks)

(I) The claims may be submitted on provincial/expired registration certificate, however, payments may only be released by State Bank of Pakistan on approved valid certificate.

(j) Copy of Bill of Lading/Master Airway Bill along with House bill of Laing/(FCR along with Master Bill of Lading)/ House Airway Bill (where applicable)/Original Truck Receipt

(                                          To be filled by Applicant                                                                                             )   ( to be filled by banks  )

Sr. No

E-Form #

Amount of E Form (FCY)

Date of Shipment

(Shipping document as per point J)

HS Code

Description of Goods

Quantity

Date of Realization

Value Realized (FCY)

Rate of Exchange

Equivalent PKR

Freight, Commission, Insurance (PKR)

Net FOB Realized after deducting freight, insurance, commission etc.

Name of Bank

Month

Schedule

Page

Sr


Annexure-III

Yearly Average DMMD WAR Applicable on Incremental DLTL

 

Currency

Base year for conversion

(2014-15)

AED

27.59451

AUD

84.59293

CAD

86.54473

CHF

107.46744

EURO

121.60839

GBP

159.45649

JPY

0.88572

SAR

27.01867

USD

101.35877

Yearly Average DMMD WAR 2015-2016

USD

104.27743


Appendix I

Bank Certificate of Verification for Drawback on export of

Value added Dyed/ Printed Fabrics, Garments & Home Textiles

 

This is to certify that Messer’s _________________________________ bearing Mintex Registration No. __________________ and NTN _______ had exports realization on the shipments made during 2014-15 and 2015-16 as follows through our bank. 

                                                                        2014-15                                 2015-16

Garments

Made-ups

Processed Fabrics

Others

Total

The above information and form verified by the bank is genuine and complete in all respect as per conditions of the Government Order on Drawback of Local Taxes and Levies 2016-17. We undertake that in case any discrepancy is detected subsequently, the SBP debit the amount involved to our account along with penal interest @ 4% p.a. plus inter-bank rate on date of payment.

 

___________________________________

(Stamp & Signature of the Authorized Officials)

 

 

 


Appendix II

Subject:        Undertaking by the Nominated Bank

 

Dear Sir,

We _____________________ the banker of M/s.__________________________

_______________________________(Name & address of the manufacturing unit) having NTN No __________________ and MINTEX special identification No ____________________      with head office at ______________ hereby undertake that Drawback of Rs.________ claimed against FOB values of enhanced exports of the year 2015-16 increased beyond 10% over last year’s exports i.e. 2014-15 based on shipment date as detailed follows.

 

                                    Exports FY 2014-15            Exports FY 2015-16            Increment%          Drawback

Garments

Made-ups

Processed Fabrics

Others

Total

 

is genuine as per conditions of the Government Order on Drawback of Local Taxes and Levies 2016-17. We undertake that in case any discrepancy is detected subsequently, the SBP may debit the amount involved to our account along with penal interest @ 4% p.a. plus inter-bank rate on date of payment.

Yours faithfully,

 

________________________________

(Stamp and Signature of the authorized bank)

 

Appendix III

Subject:          Undertaking by the Claimant

 

Dear Sir,

I/We, M/s. _______________________________(Name & address of the manufacturing unit) having NTN No                                   STN No ______________and MINTEX special identification No ____________________       with head office at ______________ hereby undertake that Drawback of Rs.________ claimed against FOB values of enhanced exports of the year 2015-16 increased beyond 10% over last year’s exports i.e. 2014-15 based on shipment date as per following details:

 

                                    Exports FY 2014-15            Exports FY 2015-16            Increment%          Drawback

Garments

Made-ups

Processed Fabrics

Others

Total

 

is genuine as per conditions of the Government Order on Drawback of Local Taxes and Levies 2016-17. In case any discrepancy is detected subsequently, the State Bank of Pakistan may impose penalties including monetary penalty of 100% of the claim in addition to the refund of the amount of claim drawn.

Yours faithfully,

__________________________________

(Stamp and Signature of the Claimant)

 

Verification Signatures and Stamp of Association _______________________