Sales Tax Instructions

Sales Tax Instructions, 2009
any sudden departure from the practice followed in consequence of the application of the
DTRE scheme is likely to hurt its smooth application by the Collectorates and acceptance
by the exporters‘ community.
3. CBR is, therefore, pleased to allow the continuation of the said practice
provided that supply of molasses against zero-rated invoices to DTRE approved exporters
is allowed against bank guarantee or bank certified post dated cheque to the satisfaction
of the Collector of Sales Tax, which shall be released on furnishing of proof of export
and BCA and all other provisions of DTRE scheme vide Sub-Chapter VII of Chapter XII
of Customs Rule, 2001, are mutatis mutandis followed. However, input and output ratios
in case of molasses will remain equal with no allowance on account of any wastage,
whatsoever.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Iftikhar Qutub, Chief
(DDS), addressed to Collector of Customs (Appraisement/Preventive/Export), Customs House,
Karachi, the Collector, Collectorate of Customs, Port Bin Qasim, Karachi, the Collector,
Collectorate of Customs, Lahore/ Faisalabad/ Sambrial/ Dry Port, the Collector, Collectorate of
Customs, Sales Tax & Central Excise, Multan/ Hyderabad/ Quetta, the Collector, Collectorate of
Sales Tax & Central Excise, Peshawar/ Rawalpindi/ Gujranwala / Faisalababd/ Lahore, the
Collector, Collectorate of Sales Tax & Central Excise (Headquarters/ Audit/ Enforcement),
Karachi and the Director, Duty Suspension Audit/ Input Output Co-efficient Organization,
Customs House, Karachi.]
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C. NO. 4 (3) DTRE/ 2003 DATED 7 TH NOVEMBER, 2003
SUBJECT:- PURCHASE OF SEASONAL INPUTS UNDER DTRE RULES
I am directed to the subject noted above and to state that under the sub-rule (4) of
rule 297 of Sub-Chapter VII of Chapter XIII of the Customs Rules, 2001, a direct
exporter can obtain DTRE approval for acquisition of inputs on the basis of his past
export performance only to the extent of his six months production requirements. This
restriction is posing problems in case of seasonal inputs such as cotton/hides and skins,
which the manufacturer-cum-exporters have to stock to meet their production
requirements for the period, which usually extends beyond six months.
2. CBR has consequently received several requests for relaxation of this
restriction. CBR has examined these requests and is pleased to direct that Collectors may
entertain genuine requests in this regard and amend the DTRE approvals already issued
or issue supplementary DTRE approvals in such cases. DTRE registered persons may be
allowed to purchase/import cotton/hides and skins equal to the quantity exported during
the last 12 months or for orders in hand for one year by relaxing the condition of quantity
equal to 6 months performance under the 297(4), this will equate DTRE facility with
Sales Tax Refund Rules, 2002, which allow refunds on purchase of these materials
keeping in view the exports during last one year.