Sales Tax Instructions

Sales Tax Instructions, 2009
The Collector of Customs (Exports), Karachi has raised certain DTRE-related
issues. He also sent his viewpoint on these issues. The issues were examined in CBR and
draft clarifications thereon were distributed amongst the said Collector (Exports),
Collector of Customs, Lahore and Director (IOCO). On receipt of feedback from these
quarters, CBR has finalized the clarifications. The issues and CBR‘s clarifications
thereon are tabulated below for information and use by all the concerned.
S.No. Issues CBR‘s Clarification
1. In many cases the DTRE
approved persons requested for
clearance of consignments under
DTRE approvals which have
arrived at ports and bill of entry
thereof have been filed machine
numbered prior to issuance of
DTRE approval.
goods from Customs.
2. Under rule 296(f) and 297(1)(I)
input goods under DTRE scheme
can only be procured for
manufacture of goods only.
Many exporters requested for
DTRE approvals for local
procurement of raw cotton to be
exported after its packing in
hessian cloth.
3. DTRE approvals granted for
import of packing material/
finished carton for food items etc.
involve very low value addition.
In the past, DSAO has raised
objections on low value addition
in DTRE approvals.
4. Whether or not goods can be
exported to tariff area from
Export Processing Zone under
DTRE approvals.
5. Rule 45(5) of CGO 12/2002
provides, ―The designated
Additional Collector should be
notified to all Collector
(Customs) and to the DSAO,
along with a specimen of his
signature and stamp‖. However,
rule 45(7) of the same CGO
provides that notification of
Goods may be allowed clearance
if application for DTRE is
received before filing of bills of
entry and benefit is claimed with
reference to application for DTRE
provided the DTRE approval is
produced before the release of
Packing and re-packing are
included in the definition of
‗manufacture‘ under both Sales
Tax and Central Excise laws.
However, the applicant has to
have such in house facility.
Value addition should be
reasonable and in line with the
average value addition of the
relevant industry.
Procurement of input goods from
EPZ is admissible under DTRE
scheme provided NOC is
produced from Ministry of
Commerce.
CGO 12 of 2003 dated
21.11.2003 has streamlined the
position. DTRE applications are
to be examined by the designated
Assistant / Deputy Collector who
shall submit his findings to the
Collector through the concerned
Additional Collector, who may
add his views, if any. The final