ISLAMABAD: Ministry of Textiles on Friday notified further relaxations in Prime Minister’s Package of incentive to exporters.

According to Duty Drawback of Taxes Order 2017-18, fifty per cent of the rate of drawback will be provided to exporters without condition of increment.

While remaining 50 per cent of the rate of drawback shall be provided, if the exporter achieves an increase of 10 per cent or more in exports during performance year (FY2017-18), as compared to the base year (FY2016-17).

In the actual package announced on January 23, 2017, the duty drawback was offered to exporters, who would achieve an increase of 10 per cent or more in exports over last year (2016-17).

According to officials the exporters submitted that by the time they will file their returns for 2017-18, the government would have been changed. Since the package is Prime Minister’s Package so the present government should provide relief to exporters in its current tenure as agreed and promised.

On exporters pressure the government issued this new notification allowing half of the promised drawback without any condition, while for remaining half the exporters should exceed their exports from the base year.

The actual rate of drawback will be determined on the basis of annual performance of the exporter, but in order to improve the cash flow, the disbursement will 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, the new notification said.

It further promised an additional two per cent drawback for exports to non-traditional markets, including Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania.

The duty drawback will be applicable to manufacturing-cum exporting units on export of products under specific tariff codes of the Pakistan Customs Tariff at rates specified along the notification.

The export performance will be analysed separately for each category of eligible products.

The units availing the drawback shall be registered with the Textile Division and use Textile Division’s online portal to follow subsequent Circular issued by State Bank of Pakistan.

The unit availing the drawback shall be a registered sole proprietor, partnership or a company, and shall be a member of a textiles association registered with the Directorate of Trade Organisations, Ministry of Commerce and Textile.

Each textiles association shall be responsible for certifying the authenticity of information provided by the exporting units pertaining to application documents for claims under the order.

State Bank of Pakistan in consultation with Textile Division and stakeholders shall devise mechanism to ensure prompt clearance of drawback claims in compliance of this order. Procedure as devise by State Bank of Pakistan shall be communicated to Ministry of Commerce and Textile, Textile Division for onward communication to all stakeholders.

The appellate authority for penalties on units shall be the State Bank.

The new notification binds textiles associations verifying the duty drawback claims to submit quarterly reports of verifications to the Textile Division.

Under this notification the drawback will be allowed for the GDs from July 1, 2017, to June 30, 2018.