Islamabad: The Federal Board of Revenue (FBR) has imposed several restrictions on the import of iron and steel scrap, introduced a new system of taking samples of products and declared the Collector of Customs as the regulatory authority.
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According to a notification issued by the FBR, important amendments have been made in the Customs Rules 2001 and these amendments are aimed at improving trade facilities, transparency and promoting industrial development.
In the amendments made in the Customs Rules, several provisions related to the approval of the Engineering Development Board (EDB) have been deleted, while certain restrictions have been imposed on the import of iron and steel scrap.
Under the amendments, a new definition of the regulatory authority has been given, according to which the concerned Collector of Customs within whose limits the business or production unit of the applicant is located will be recognized as the regulatory authority.
The notification states that if an applicant has multiple production units in different jurisdictions, the Collector under the jurisdiction of its head office or primary production unit will be the regulatory authority.
According to the FBR notification, immediate action will be taken on poor performance and under the amended rules, the permit of an applicant who has been found involved in any legal violations in the past or against whom any recovery or criminal proceedings are pending may be suspended immediately.
It was further said that the Regulatory Collector can not only initiate the process of cancellation of his permit but can also take other legal actions, similarly, the IOCO has also been made obliged to act on the application within 60 days.
According to the new amendments, after receiving the application, the relevant case will be immediately sent to the Collectorate of the Input Output Coefficient Organization (IOCO), which will determine the production capacity and input-output ratio within 60 days.
Similarly, if the IOCO is unable to take a decision within the stipulated period, the applicant will be allowed to import up to 25 percent of the input goods on a temporary basis, for which a bank guarantee will have to be submitted.
The FBR has also introduced a new system of taking samples of products to ensure the quality of the products, under which three samples will be taken at the time of import and export, one sample will be given to the consumer or his representative, the second will be kept safe in the concerned collectorate and the third will be sent to the regulatory collectorate.
The notification states that if any irregularity is found at any stage, the concerned agency will be informed.
According to the FBR, under the Export Facilitation Scheme, an applicant who wants to send raw materials to a vendor for the manufacture of his products will have to provide the details of the vendor in advance, during which it will be mandatory to upload the product delivery, vehicle registration number and other details in the online system.
According to the new rules, imported input goods will have to be used within a maximum of 9 months, if an extension is required in exceptional circumstances, it will be decided by a committee formed by the FBR.
Under the amended rules, if the production of B-grade products exceeds 5 percent, they will be considered as imported and the duties imposed on them will have to be paid.
According to the FBR, the aim of these amendments is to improve the business environment, reduce the difficulties faced by industries and provide maximum facilities to the export sector. After the implementation of these amendments, the business community will have access to a transparent and effective system, which will boost the country’s economy.
