For the revision of rates, the Director/Sector
Specialist of the IOCO shall inform the respective Association/Exporter/Chamber/FPCCI
of the method of calculation adopted for determining the Custom-duty repayment or
drawback rates for their comments and active participation. If the respective Association
do not cooperate in providing timely and verifiable data or information or agreement
to the Director, he may decide the method of calculation in consultation with the
concerned Sector Specialist and proceed to determine the input materials and propose
the revision of rates of repayment of custom duties through a Notification to be
issued by FBR after
mutual agreement and incase of dispute the duty drawback may be notified by FBR as deemed appropriate.
The IOCO generally reviews all the rates notified under these
rules during the last month of each calendar year and complete the exercise after the announcment
of budget or due to structure in the exchange rate or Change
in the Custom duty.
It is the duty of all the Associations/Exporter/Chamber/FPCCI
and Individuals to whom duty drawback notifications have been issued to supply
to the Director/Sector Specialist of IOCO by the thirteenth of November every year
the details of any changes to the input output worksheets on which the current rates
are calculated. In case no change has occurred in such data, the Association/Exporter/Chamber/FPCCI
or Individual shall inform the Director that no change has occurred in the worksheet
particulars. The Director/Sector Specialist shall on the basis of the method of calculation shall review the rates or otherwise
If at any time the Director/Sector Specialist of IOCO believes that there has been a
material change affecting the notified rates by 15% or more, he shall immediately
communicate the reasons to the Association/Exporter/Chamber/FPCCI or Individual.
After hearing the Association/Exporter/Chamber/FPCCI in this regard,the Director
IOCO Shall forward a draft Notification to be issued by FBR
in the official Gazette fixing the rates and providing supporting input output data.
In the same manner if at any time an Association/Exporter/Chamber/FPCCI or an individual
Manufacturer thinks that any change has occurred in the factor which affects
the rates to the extent of 15% or more, they shall inform the Director/Sector Specialist
of
IOCO in this regard.
If the Sector Specialist is of opinion that the rates require changes
he shall inform the Director IOCO about the reasons in writing. If the DirectorI OCO is satisfied with reasons provided by the Sector Specialist, he shall specify
a date for the respective Association/Exporter/Chamber/FPCCI
or Individual exporter for hearing. After hearing them
and recording the reasons in writing the Director forward a draft
Notification to be issued by FBR in the official Gazette fixing the proposed rates.
Criteria for revision
of duty DrawBack rate:
1.Change in Custom
Duty Tariff
2.Change in Exchange
Rate
3.Change in C & F price of input material.
4.Change in FOB price of product to be Exported
5.Change in method of production
6.Change in Formulation of product.