The FBR has also amended form I and form II as mentioned in SRO. 811(I)/2009 to allow exemption of customs duty on import and supply of the said items. This is subject to the condition that the manufacturer is duly registered and has in-house manufacturing facility and supplies net cloth to green house farming at sales tax zero-rating. According to the notification, the importer-cum-manufacturer shall file Goods Declaration in the prescribed format and manner with complete details of authorisation of imported inputs for clearance.
The Collector of Customs on satisfaction of correct declaration shall allow clearance of imported inputs after obtaining post-dated cheque for the differential amount of statutory and concessionary customs duty and sales tax.
The notification said of a sales tax registered importer-cum-manufacturer having suitable in-house facilities shall submit a complete requirement in the prescribed format appended as Form-I of is annual consumption of permissible items (inputs) he is entitled to import for the manufacture of mono filament yarn and net cloth, to the Collector of Sales Tax and Federal Excise having jurisdiction or to any other organisation or person as authorised by the FBR.
The importer-cum-manufacturer shall file a request containing a declaration of input/ output ratios to the Collector of Sales Tax and Federal Excise or the authorised person. The Collector or the authorised person may accept the declaration of input output ratio as declared by the applicant and determine the annual requirement of inputs.
In case the Collector or authorised person is not satisfied with declared input output ratios of the items to be manufactured because of their being prima facie not in accordance with the prevalent average of the relevant industry or for any other reason, he may, after allowing a reasonable provisional quantity, make a reference to the Engineering Development Board or IOCO or to any other recognised authority for final determination thereof.
The collector or authorised person shall then determine the final annual quantitative entitlement of inputs and the applicant shall proceed to consume imported inputs in accordance with the input output ratios and quantities so determined. The clearance of inputs shall be allowed through one port or dry port only and maintenance of centralised record of quota debiting at the port for which the Provisional or Final Certificate is issued shall be maintained.
The notification added that the importer-cum-manufacturer shall communicate to the concerned Collector of Sales Tax and Collector of Customs in writing about the consumption of imported items within sixty days of consumption of goods. The post-dated cheque shall be released or cancelled on receipt of written confirmation regarding consumption of goods by the importer-cum-manufacturer.
In case of non-consumption within one year from the date of import, the importer shall pay the sales tax involved or obtain extension from the Collector of Sales Tax and Federal Excise under intimation to Collector of Customs giving plausible reasons for a reasonable period not exceeding ninety days.