KARACHI: The Model Customs Collectorate (MCC) of Exports, Collector Manzoor Hussain Memon, through a notice, has warned that false or misstated undertaking would not only result in the recovery of the duty drawback claim by exporters but also in the initiation of penal action against the claimant under Section 32(1) and (2) of the Customs Act, 1969.
According to a public notice issued by his office, all the claimants of duty drawback (rebate) with the customs would now have to submit an undertaking on the prescribed format, stating that they have not claimed any concessionary SRO in the exported goods. The undertaking will be submitted and scanned in the computerised system along with all other documents in standing order No 01/2014/Exp-HQ dated August 18, 2014.
The collector said that it has been observed that certain exporters had imported inputs under any Free Trade Agreement (FTA) on concessionary SRO; like SRO 565/91)/2006 dated June 5, 2006; SRO 655(1)/2006 etc., but even then they claimed duty drawback on export of the goods which is legally not permissible.
Moreover, duty drawback customs rebate is allowed on export of goods under section 21 of the Customs Act, 1969 at the rates specified through notifications issued from time to time by the Federal Board of revenue (FBR). While notifying the rate of duty drawback, the percentage is worked out keeping in view the statutory customs duty payable on imports consumed in goods to be exported.
To discourage a practice indulged in by certain exporters to get double monetary benefit, a claimant whose undertaking is found false or misstated at the time of sanction of rebate or at the time of post rebate audit would result in the recovery of the claim and also subject to penalty.