NBR allows partial exporters to import raw materials duty-free

NN ONLINE:

With a view to expanding export trade, the National Board of Revenue (NBR) issued a notification allowing partially exporting industrial enterprises to import raw materials duty-free against bank guarantees.

Through this notification, issued on September 25, those export-oriented industrial enterprises that are unable to obtain bonded warehouse licenses under the existing bond management system have been given the facility to import raw materials or products without paying duties and taxes, said an NBR press release today.

To avail of this duty-free benefit, the importing enterprise must submit a bank guarantee equivalent to the amount of duties and taxes assessed by the Customs authorities on the imported goods.

The NBR expects that allowing imports duty-free even without a bond license will enable maximum utilization of production capacity in exporting enterprises, diversify exportable products, and expand the country’s export trade.