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Tuesday November 30, 2021

Confectionary items’ exports: FBR raises Customs duty drawback

April 28, 2021

ISLAMABAD: To facilitate the exporters of confectionery products, the Federal Board of Revenue (FBR) has substantially increased the customs duty drawback on the exports of confectionery items with effect from April 26, 2021.

The FBR has amended the standard duty drawback notification SRO. 212(I)/2009 through a notification issued here on Tuesday. According to an announcement of the FBR, “In line with Prime Minister’s Initiative of ‘ Make in Pakistan, FBR has issued SRO 520(I)/2021 dated 26.4,2021 revising duty drawback rates upwards for confectionery items to promote their exports”.

As per SRO 520(I)/2021, the extent of repayment of customs duty on the exports of biscuits has been increased to 0.54 percent of the Freight on Board (FOB) value. The repayment of customs duty would be 2.56 percent of the FOB value on the exports of hard boiled candies.

The extent of repayment of customs duty on the exports of toffees and chocolates without flour has been increased to 3.73 percent of the FOB value.

The repayment of customs duty would be 0.56 percent of the FOB value on the exports of jelly products. The repayment of customs duty would be 3.75 percent of the FOB value on the exports of bubble gums.

Following the vision of prime minister, FBR's Pakistan Customs Wing has resolved the long-standing demand of exporters by paying Rs8, 928 million duty drawback claims during Jan-April (2021). According to the FBR spokesperson, a total of Rs12, 367 million under fully automated rebate system has been sanctioned to exporters. This will go a long way in addressing the liquidity issue of the local industry and shall result in boosting export led economy.

Pakistan Customs takes pride in announcing that the fully automated rebate system is in addition to DLTL payments by Ministry of Commerce, FBR added.