ANNOUNCEMENT 01 Jun 2021

Pakistan has increased the duty drawback on the exports of deep freezers.

NUMBER OF INTERVENTIONS

3

  • 2 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 01 Jun 2021 | Removal date: open ended

Tax-based export incentive

On 1 June 2021, Pakistan's Federal Board of Revenue through Notification SRO 644(I)/2021 increased the maximum duty drawback on the exports of deep freezers from 3.56% of the FOB value to 3.98% of the FOB value of exports. The duty drawback is provided to reimburse the customs duties paid on the imports of certain raw materials used in the manufacture of these export goods.

The drawback provided is limited to the extent of the customs duties paid on the imported goods, capped at 3.98%.

The Notification has also amended the list of materials covered for drawback (see related interventions).

 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 01 Jun 2021 | Removal date: open ended

Import tariff

On 1 June 2021, Pakistan's Federal Board of Revenue through Notification SRO 644(I)/2021 removed certain raw materials from the list of materials that could be imported and used to claim a duty drawback when used for the manufacture and exports of deep freezers. This removal will increase the effective customs duties on these goods when imported for the manufacture of deep freezers.

Pakistan provides a duty drawback on the manufacture and exports of several goods. The drawback is provided to reimburse the customs duties paid on the imports of certain raw materials used in the manufacturing process. The current notification has replaced the existing 18 raw materials covered for a drawback on exports of deep freezers with other goods. 

Inception date: 01 Jun 2021 | Removal date: open ended

Import tariff

On 1 June 2021, Pakistan's Federal Board of Revenue through Notification SRO 644(I)/2021 amended the list of raw materials that could be imported and used to claim a duty drawback when used for the manufacture and exports of deep freezers. The notification has replaced the existing 18 products with 24 different products that will henceforth be covered. The drawback reduces the effective import duty on these goods when imported for the manufacture of deep freezers.

Pakistan provides a duty drawback on the manufacture and exports of deep freezers. The drawback is provided to reimburse the customs duties paid on the imports of certain raw materials used in the manufacturing process.