FBR withdraws condition of bank guarantee, pay order on temporary import

KARACHI: The tax authorities have withdrawn the condition of bank guarantee and pay order for importers availing of the facility of temporary importation of goods for subsequent exportation.

The Federal Board of Revenue (FBR) on Wednesday issued SRO 847(I)/2021 to withdraw the condition of bank guarantee and pay order. This condition was imposed to prevent the misuse of the facility of temporary importation at exempted Customs duty and sales tax.
After the withdrawal of the condition, the importer will be required to submit an indemnity bond along with the post-dated cheque equivalent to the amount of the Customs duty and sales tax, otherwise leviable.

The government on June 12, 2009, announced to exempt the Customs duty and sales tax on temporary importation of goods for subsequent exportation.

Through an instant notification, the FBR also imposed a condition that exports against the temporary importation would be processed subject to profiling by the Risk Management System, and the relevant Customs officials would examine the goods to prevent any misuse of the facility.

It is also amended that immediately after re-export of goods, persons availing of the facility would provide evidence to the Customs authorities that goods had been re-exported within the stipulated time.

“On [the] production of such evidence or declaration, the indemnity bond and [the] post-dated cheque submitted at the time of import shall be released,” it added.