TRANSFER OF DUTY AND TAX FREE INPUT UNUTILIZED GOODS FROM ONE DTRE APPROVAL TO ANOTHER GRANTED TO SAME EXPORTER

TRANSFER OF DUTY AND TAX FREE INPUT UNUTILIZED GOODS FROM ONE DTRE APPROVAL TO ANOTHER GRANTED TO SAME EXPORTER <!--[if gte mso 10]> TRANSFER OF DUTY AND TAX FREE INPUT UNUTILIZED GOODS FROM ONE DTRE APPROVAL TO ANOTHER GRANTED TO SAME EXPORTER By Mr. Javed Akhtar, Advocate, Lahore Messrs Sohail Vegetable Ghee Mills Ltd, Peshawar have been granted two DTRF, approvals to procure input goods free of duty and taxes for the manufacture of vegetable ghee meant for export. The unit intends to consume the unutilized quantity of duty and tax free input goods of previous DTRE approval into the approval granted subsequently. The Collectorate of Customs, Peshawar made a reference to C.B.R. with the opinion that an exporter may transfer his unutilized duty and tax free input goods of one DTRE approval to another obtained by him for the same type and description of goods. 2. Central Board of Revenue vide its Letter C.No. 4(7)DTRE/2003 dated 17-12-2003 has been pleased to clarify that: (i) DTRE approved exporter may be allowed to use his duty and tax free imported inputs for his new DTRE approval, if his previous approval has been terminated due to cancellation of export order. (ii) He can also be allowed to use his such inputs for new DTRE approval if such inputs have been rendered surplus for any valid reasons like quantitative reduction in export order, or partial non-performance of the contract due to factors beyond human control, etc. 3. C.B.R. has been further pleased to direct that in case where waiver of surcharge payable under DTRE scheme is warranted, the Collectorate should refer such cases to C.B.R. stating all the relevant facts of the case and the Collector's specific recommendations. Copy of C.B.R's. aforesaid letter dated 17-12-2003 is being enclosed for your record. ANNEXURE C.B.R. LETTER C.NO. 4(7)DTRE/2003 DATED 17th DECEMBER, 2003 SUBJECT: REQUEST FOR TRANSFER OF DUTY AND TAXES FREE INPUT UNUTILIZED GOODS FROM DTRE APPROVAL OF THE SAME EXPORTER Please refer to your Letter No. Cus/DP/DTRE-3/S.V.G.M/03/1889, dated 7th November, 2003, on the subject. The issue has been examined in C.B.R. and it is clarified that: (i) DTRE approved exporter may be allowed to use his duty and tax free imported inputs for his new DTRE approval, if his previous approval has been terminated due to cancellation of export order. (ii) He can also be allowed to use his such inputs for new DTRE approval if such inputs have been rendered surplus for any valid reasons like quantitative reduction in export order, or partial non-performance of the contract due to factors beyond human control, etc. 2. Should there be any case where waiver of surcharge payable under DTRE scheme is warranted, the Collectorate will refer such case to C.B.R. stating all the relevant facts of the case and Collector's specific recommendations. [Issued by C.B.R., under the signature of Mr. Iftikhar Qutab, Chief (DDS/DTRE), addressed to the Collector, Collectorate of Customs, Peshawar, with reference to his Letter No. Cus/DP/DTRE-3/S.V.G.M/03/1889, dated 7th November, 2003 and also copy endorsed to all the Collectors with a copy of the Collector, Collectorate of Customs, Peshawar's above quoted letter.]