A file photo shows a man looking at shoes at a stall at a leather and leather goods fair in Dhaka. Exporters’ problem in getting duty drawback is set to be solved as the National Board of Revenue has decided to empower its Duty Exemption and Drawback Office in determining input-output coefficient for refunding the exporters. — New Age photo
Exporters’ problem in getting duty drawback is set to be solved as the National Board of Revenue has decided to empower its Duty Exemption and Drawback Office in determining input-output coefficient for refunding the exporters.
NBR in a recent meeting decided to amend the related rules so that DEDO can issue coefficient to exporters to facilitate giving refund and keep export activities uninterrupted, officials said.
The revenue board also asked DEDO to continue determining and issuance of coefficient under the Customs Act 1969.
DEDO lost the legal ground in determining the coefficient required for calculating the refundable duty exporters’ payment on import of raw materials with implementation of the new Value-Added Tax and Supplementary Duty Act 2012 from July 1.
Since then, a good number of applications made by exporters seeking coefficient for import of raw materials were filed up at DEDO office.
Exporters have also been facing problems in carrying out export related activities, including import of raw materials, due to the deadlock.
DEDO on several occasion also sought decision from the revenue board on the issue.
Input-output coefficient determines quantity of raw materials including depreciation required for production of a single unit of a product.
DEDO refunds the duty and VAT crosschecking whether the exporter had properly used the raw materials in production and exported the products.
Coefficient was also required for exporters with bonded warehouse facilities for getting import entitlement from customs bond commissionerates.
A senior customs official on Monday told New Age that the revenue board on August 7 in a meeting with Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh decided to amend the existing rules so that DEDO could issue coefficient to exporters.
DEDO will also give duty drawback of import duties and other taxes, excluding VAT and SD, under the Customs Act 1969, they said.
VAT and SD are adjustable through VAT returns as per new VAT act, they added.
NBR in the first week of September will finalise the amendment of the rules titled ‘Complete Export-oriented Industries (Temporary Importation) Rules 1993’ under which DEDO had been determining coefficient, they said.
The rules lost effectiveness after implementation of the new VAT law.
DEDO officials said that though NBR gave go ahead signal over determining coefficient and giving refund, they were waiting for amendment of the rules to avoid any legal questions.
The office has also started processing the applications of exporters so that they can issue coefficient immediately after amendment of the rules, they said.
DEDO usually gives refund on export of a number of goods including knitwear, specialised textile, jute goods, plastic goods, shopping bag, fuel, processed woods, insulator, leather, surgical goods, power transformer, metal zipper, MS products and urea.
It also provides refund of taxes on utility bills like electricity and gas.
Source: New Age.
