The Federal Board of Revenue (FBR) has suggested accepting the importer’s revolving insurance guarantee balance or the Indemnity Bond and Post Dated Cheque for an amount equal to the expected duties and taxes on the imported goods.
On Monday, the FBR issued SRO (514) and presented a draught amendment to customs rules. The revolving insurance guarantee provided by the importer shall be credited by the system, or the indemnity bond and post-dated cheque shall be released, as applicable, upon certification from the authorized dealer that foreign exchange equivalent to the service charges as per contract has been repatriated in the exporter’s account.
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 also suggested that at the time of import, the system debit the resolving Indemnity Bond and Post Dated Cheque, as applicable, for an amount equal to the duties and taxes levied on the imported goods.
It also stated that after producing the output goods, the user must export the goods by submitting an E-Form equivalent to the service charges approved by the authorized dealer. When the authorized dealer receives the foreign exchange equivalent to the service changes specified in the contract, he will certify and report the same to the State Bank on R-Form.