The National Board of Revenue has relaxed the provision of physical inspection of export consignments till June 2018 due mainly to facilitate refunding of duty and taxes to exporters and expedite shipment of export goods.
The revenue board on October 9 issued an official order in this connection, saying that exporters would be able to get refund of customs duties paid during import of raw materials for manufacturing export goods without physical inspection report just showing documents as proof of export.
Exporters will avail the benefit for export of goods for the period started from March 30, 2011 to June 30, 2018, it said.
The NBR also issued a special order on the same day extending the time up to June 30, 2018 for providing duty drawback to jute and jute goods exporters without physical inspection.
Officials said that there was a provision of mandatory submission of physical inspection report, officially known as inspection act, of export consignment in the Asycuda World System of NBR for providing refund to exporters.
But different customs houses and customs land stations were not submitting the report causing difficulties for the exporters in getting refund from the Duty Exemption and Drawback Office (DEDO) of the NBR, they said.
A significant number of refund applications remained pending with the DEDO due to the lack of physical inspection report in the Asycuda World System, they added.
On the other hand, implementation of the decision of physical inspection of export consignments is delaying the shipment of export goods due to lack of manpower considering the volume of export consignments.
Though the NBR made the mandatory provision for submission of physical inspection report in the system in 2011, the customs authorities did not fully implement the provision for all consignments due to lack of manpower as well as considering the duty impact as there were no duties on export.
Most of the export procedures were completed at the privately run inland container depot, known as off-dock, where minimum numbers of customs officials are deployed, a high official of the NBR told New Age on Monday.
Recently, Chittagong customs house emphasised on carrying out physical inspection on export consignments in line with the rules and regulations.
Exporters and trade bodies expressed their concern saying that it would delay shipment, thus hampering export earnings.
The revenue board also could not fully implement the Asycuda World System, particularly for export purpose, to all customs houses and LCs.
On the other hand, the NBR also could not ensure the automated technology and uninterrupted internet connections to all customs houses and LCSs.
Considering the issues, particularly resolving the pending refund applications, the revenue board relaxed the provisions up to the end of the current fiscal year 2017-2018, he said.
According to the NBR notification, the DEDO office will be able to settle the refund applications without the inspection report being sure about export and realisation of export earnings through analysing the export documents including proceeds realisation certificate and electronic export procedures.
According to the existing VAT and customs laws, exporters who don’t have bond licences, have to pay duty on import of raw materials for producing goods for export.
Later, they get refund the paid duties and taxes from the NBR after completion of export and realisation of export proceeds.
According to NBR data, the DEDO gave refund worth Tk 96.72 crore including Tk 75.55 crore in VAT and Tk 21.17 crore in import duty in the fiscal year of 2015-2016.
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