To facilitate exporters of footwear products, the Federal Board of Revenue (FBR) has enhanced customs duty drawback rates on the export of leather, canvas, or textile footwear from Nov 26, 2020, onwards.
The FBR has amended the duty drawback notification S.R.O. 210(I)/2009 on Friday through the issuance of SRO.1268(I)/2020.
The duty drawback has been enhanced on the export of canvas or textile footwear with rubber sole (all varieties and sizes) from 1.00 percent of the Freight on Board (FOB) value to 4.11 percent of the FOB value.
The duty drawback has been raised on the export of leather footwear, including chappals and sandals with the leather upper and leather sole from 1.21 percent of the FOB value to 4.62 percent of the FOB value.
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Similarly, FBR has enhanced the duty drawback on the export of leather footwear with leather upper and PU or PVC or TPR or rubber or leather insert sole from 1.82 percent of the FOB value to 4.70 percent of the FOB value.
Under S.R.O. 210(I)/2009, the FBR has authorized repayment of customs–duties to the extent specified paid on the importation of the raw materials used in the production or manufacture of the goods and exported during the period specified.
The manufactured goods are exported out of Pakistan and an application for repayment of customs–duties is presented to the proper officer of Customs within two hundred and ten days of such exportation, or within one hundred and eighty days from the date of realization of foreign exchange as shown on Bank Credit Advice issued following the current directive of the State Bank of Pakistan, and the exporter makes a declaration on the goods declaration filed under section 131 of the Customs Act, 1969 (IV of 1969), and on other export documents for his claim for repayment of the customs–duties paid on the imported raw materials used in the production or manufacture of the goods being exported.
