The Federal Board of Revenue (FBR) has suggested accepting the revolving insurance guarantee balance of the importer or accepting the Indemnity Bond and Post Dated Cheque for an amount equivalent to the expected duties and taxes on the imported goods.
The FBR issued SRO (514) on Monday and presented a draft amendment to customs rules. The revolving insurance guarantee furnished by the importer shall be credited by the system or the indemnity bond and post-dated cheque shall be released, as the case may be, against certification from the authorized dealer to the effect that foreign exchange equivalent to the service charges as per contract has been repatriated in the account of the exporter.
According to the proposed amendments, “the user shall provide I-Form of nil remittance value for input goods duly approved by the concerned authorized dealer”. The FBR further proposed that at the time of import, the system shall debit the resolving Indemnity Bond and Post Dated Cheque, as the case may be, for an amount equivalent to the duties and taxes leviable on the imported goods.
It further said that after the production of the output goods, the user shall export the goods on submission of an E-Form equivalent to the service charges approved by the authorized dealer. On realization of the foreign exchange equivalent to the service changes as per contact, the authorized dealer will certify and report the same to the State Bank on R-Form.
