September 28, 2020

Shabbar Zaidi Allows Amendments In Business Regulations To Facilitate Export Sector

According to a press release issued by FBR, Mr. Shabbar Zaidi has directed the Customs Department to update the previous rules related to Small to Medium Enterprises (SMEs) and make amendments to Export Oriented Units (EOU) regime. Through the notification No. SRO1002(1)/2019 dated 06/09/2019, the chairman introduced amendments in the original Notification of 327(1)/2008 dated March 28, 2008. The changes made are as follows:

  • Updating new units of measurement, in accordance with the World Customs Organization (WCO), previously notified in 2012.
  • Automating the previous processing procedures listed in EOU through the computerized clearance WeBOC.
  • Retention period of plant machinery and capital goods reduced from 10 years to 5 years. This will enable industries to sell, replace or update their machines after 5 years without any duties and taxes and hence acquire latest technologies for their operations.
  • Spares and replacement parts of machines can now be disposed off after 3 years.
  • Business owners and officials would now be allowed to approach the Chief Collector Customs directly for the resolution of their problems.
  • Administrative procedures have been decreased to simplify and reduce the processing of documents.
  • According to the new rules, the attainment of the analyses card, issued after the recommendations from Input Output Coefficient Organization (IOCO) and Engineering Development Board (EDB), can now be obtained without the IOCO and EDB recommendations, from the regulatory authority, if the ratio in the analyses certificate is similar to the ratio of the previous year.

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