Customs to start one-window facility for exporters

KARACHI: Pakistan Customs will start a one-window facility to facilitate exporters in importing raw materials and capital goods from next week, a senior official said on Saturday.

The official told The News that the Directorate of Reforms and Automation (Customs) will roll out electronic licencing facility for export-oriented units (EOU) from February 28. The new licences will be issued through Web-Based One Custom system and the applicants are required to apply online with all the necessary information and documents, the official said. 

“The system will create linkages among all the concerned stakeholders in Pakistan,” the official added. Different government departments and ministries can have an access to the data for mandatory verification of exporters and extend due relief in duty and taxes.

EOUs include small and medium enterprises or any manufacturer with in-house manufacturing facility, exporting at least 80 percent of its production. An EOU applicant must have been established before 2007. However, if a manufacturer exports 100 percent of its output, there is a relaxation that the establishment date could be after 2007.  

The customs authorities said an EOU is a major breakthrough to increase exports. Genuine exporters are facing several hurdles in importing raw materials as they have to bear up with multiple approvals from different government departments.

An aspiring manufacturer is required to provide site plan, national tax number, computerised national identity card, banker’s certificate, certificate from suppliers and insurance policy to apply for the EOU status.

The customs official said the licensee manufacturer could import goods without payment of customs duty, sales tax, federal excise duty and income tax by declaring that goods would be used only for manufacturing of products for export. Local supplies would also be sales tax zero-rated, the official added.

The official said a SRO 326(I)/2008 allows exemption from customs duty, sales tax and federal excise duty on import of plant, machinery, equipment and apparatus, including capital goods.

An EOU is entitled to avail remission of customs duty, sales tax and federal excise duty in case goods are damaged or destroyed during the clearance process.

The official said the directorate issued instructions about the new facility to all the stakeholders, including exporters and customs collectorates.