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The customs wing of the National Board of Revenue (NBR) has relaxed the rules of the holding period of raw materials imported duty free under the bonded warehouse facility.
It has also allowed fully export-oriented leather and footwear exporters to enjoy the bonded warehouse facility for multiple production units by obtaining a single bond licence.
A recent Statutory Regulatory Order (SRO) of the NBR said the duration of using raw materials can be extended on three conditions even after the fixed bonding period of 100 per cent export-oriented bonded institutions has expired.
One of the conditions is that the quality of the raw materials must remain intact. Besides, the quality of the raw materials must be such that the products manufactured using these should be of export quality.
The third condition is that the raw materials must have an updated audit and renewal.
The SRO also said if the conditions are met, the NBR may consider extending the bonding period of the products of 100 per cent export-oriented companies on a case-by-case basis upon the recommendation of the commissioner concerned.
It further said it has been observed in recent times that some 100 per cent export-oriented bonded industries are unable to complete their exports within the stipulated bonding period. Because of this, to earn foreign exchange and expand exports, conditional bonding has been given conditional extension.
The NBR found that a number of export-oriented industries were facing problems and could not export their products within the bonding period of 24 months.
