The government has decided to add Russia in the Commonwealth of Independent States list and through a modified notification has allowed exporters to get an additional two percent duty drawback on exports to Russia under the PM Package, said Spokesperson Textile Division Kanwar Usman while talking to Business Recorder. Both Commerce and Textile Divisions have added Russia in their modified lists/notification.
The notification No 1(42-A)TID/17-TR-II states that in partial modification of this Division''s notification of even number dated December 12, 2017, the competent authority has been pleased to approve that; under para 1 (d) Annexure-I (amended) is enclosed. Under para 3 (2) (e), the word "para 2(a)" may be substituted with "para 1 (4) (a)" and the word "para 2 (d)" may be substituted with "para 1(4) (d)."
The textile spokesperson said it has been notified that duty drawbacks under this order shall be allowed for exports goods declaration (GDs) filed on or after July 1st, 2017 to 30th June, 2018 at seven percent for garments, six percent for made-ups, five percent for processed fabrics and four percent for greige fabric and yarn. Further, the duty drawbacks under this order shall be allowed for exports GDs filed on or after July 1st, 2017 to 30th June, 2018 as; (a) 50 percent of the rate of drawback shall be provided without condition of increment; (b) remaining 50 percent of the rate of drawback shall be provided if the exporter achieves an increase of 10 percent or more in exports during performance year (fiscal year 2017-18), as compared to the base year (fiscal year 2016-17); (c) the actual rate of drawback against (b) above shall be determined on the basis of annual performance of the exporter, but in order to improve her/his cash flow, the disbursement against (b) above shall be allowed on the performance during July-December, 2017, subject to submission of a bank guarantee that the exporter will return the excess amount, in case his/her annual exports are less than the amount of drawback paid to him/her. An additional two percent drawback shall be allowed for exports to non-traditional markets ie Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania.
Usman said the exporters can exploit this opportunity and increase their exports to Russia, which would help increase the overall exports of the country. Currently, Pakistan''s major export items to Russia include woven cotton fabrics, fruit and fruit preparations, synthetic fabrics, all sorts of rice, articles of apparel other than textile material, vegetables, medical and surgical instruments.
Copyright Business Recorder, 2017