The Government should make a greater use of penalties covering ineligibility for duty drawbacks
to those exporters who indulge in overinvoicing.
Revision of Duty and Taxes Remission for Export (DTRE) Rules 2001 to minimise the period of payment of duty drawback
will go a long way in mitigating the problems of the exporters.
: The issue of duty drawback
and refund particularly SRO 417 has been a serious irritant for exporters.
One major initiative made in the previous budget was about the DTRE regime under which the exporters were to be freed from the hassle of paying any duties and taxes on import and to subsequently undergo the rigorous of claiming duty drawbacks
In Trade Policy announced in July '97, there was mention of allowing duty drawbacks
on export of cement.
About 50 per cent of the admissible duty drawbacks
will be paid within three days of the presentation of complete documents by the exporters to the Customs authorities, and the balance will be paid after the verification of the claim.
The Task Force has also pleaded for the representation of exporters on the Economic Committee of the Cabinet; appointment of an Ombudsman for quick adjudication of exporters' disputes with official agencies; timely payment of duty drawbacks
and the evolution of system with the objective of zero-rating.
The system of duty drawbacks
derives its authority from the said Act.
Custom duty drawbacks
also are available if a manufacturer returned imported merchandise because it did not conform to specification or manufacturer authorization.
CAFTA-DR also states that companies may use duty drawbacks
and other duty deferral regimes with respect to other trading partners outside of CAFTA-DR.
Other factors are increase in duty drawbacks
and refunds, cheap credit and commitment of the political government to pursue the economic policies of the previous regime.