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Ghee export to Afghanistan: Govt likely to allow manufacturing bond facility

Ghee export to Afghanistan: Govt likely to allow manufacturing bond facility

ISLAMABAD: The government is likely to allow export of vegetable ghee/cooking oil through land route to Afghanistan under the manufacturing bond facility of the Federal Board of Revenue.

Currently, the export of vegetable ghee/cooking oil is allowed under the Duty and Tax Remission for Export Scheme (DTRE), duty drawback regime except manufacturing bond facility through land route to Afghanistan which has resulted in discrimination due to restrictions on the export of the commodity to Afghanistan under manufacturing bond scheme.

In this regard, the FBR and Ministry of Commerce are working out modalities to do away with the restriction to allow export of vegetable ghee/cooking oil through land route under the manufacturing bond scheme. The department is likely to amend Schedule-II of the Export Policy Order for implementation of the decision.

It is to be noted that the officials of Commerce Ministry and tax authorities discussed the export of vegetable ghee/cooking oil to Afghanistan in a recent meeting. On the occasion, the Commerce Ministry officials were of the view that the issue related to export of vegetable ghee/cooking oil to Afghanistan via land route manufactured in manufacturing bonds. They stated that Para 7 Sr. No 9, Schedule-II of the Export Policy Order restricted the export of vegetable ghee/cooking oil manufactured in the manufacturing bond via land route to Afghanistan which needed deliberation to remove discrimination.

Additional Collector Model Customs Collectorate (MCC) Peshawar informed the participants that the export of vegetable ghee/cooking oil from manufacturing bonds via land route to Afghanistan should be allowed on two grounds:- Firstly, no shortfall is observed or expected in the availability of the product for local consumption. Secondly, smuggling of the product, back into Pakistan after exports to Afghanistan, is not anticipated owing to the fact that the exporters have to face robust competition from Iranian importers in Afghanistan who are price competitive.