|
Scheme for Freight
Subsidy on Exports
(2006-07)
The Scheme
In the year 2002-03,
Government announced 25% freight subsidy on exports of new products and
to new markets, with the objective of achieving geographic and product
diversification in country’s exports. This subsidy scheme was extended
and included in the Trade Policies of 2003-04, 2004-05 and 2005-06. The
government has decided to continue freight subsidy for the year 2006-07
(1st August 2006 to 31st July 2007) with
the following modifications:-
Export of all items
except those which will be notified separately (Annex-I)
will now be able to avail a 25% freight subsidy, provided they are being
exported to Africa, Pacific Islands, Eastern European countries that are
not in the EU and Central Asian Republics (Annex-II).
Export of products
falling in the developmental category (Annex-III)
will be entitled to 25% freight subsidy even if they are going to one of
the top 20 export destinations (Annex-IV).
Any
individual exporter, firm or company will not be entitled to a freight
subsidy in excess of five million rupees in a single year.
Export shipments
from 1st August 2006 to 31st July 2007 will be eligible for freight
subsidy.
Freight subsidy will
be available on C&F/CIF shipments.
For exports by land
route, subsidy will be available on the basis of actual freight paid
from the exit point in Pakistan to the destination, as per the Truck
Receipt/Railway Receipt, limited to the benchmark freight rates to be
determined by the Technical Committee in the Trade Development Authority
of Pakistan (TDAP).
Procedural
Requirements
Exporter
will lodge his claim on prescribed application form (Annex-V)
with his bank within 30 days of export shipment.
Exporter
will attach copy of Bank Credit Advice (BCA), if available, with
his claim in addition to other documents as provided in this Public
Notice. If BCA is not available, exporter can file his claim without BCA.
The claim will be processed by the Auditors and intimation regarding the
acceptance of such claims or otherwise will be sent by the Auditors to
his bank within the given time frame, but payments for subsidy in such
cases will be released by the Auditors on receipt of copy of BCA duly
attested by the Manger of the bank of the exporter.
The bank will
process the claim and check that the documents required have been
submitted by the exporter and will forward the claim to National Bank of
Pakistan (FTC Branch Karachi) within 10 days of the receipt of
the claim application, along with Checklist of documents verified by the
Manager of the bank. The NBP will forward the claim to the Auditors
within 3 days after entering the claim in their record.
The Auditors, on
receipt of a claim, will allocate a unique identification number
to the claim and feed its data into their database. They will audit the
claim and send payment advice to the NBP within 7 days of the
receipt of claim from the bank, if the claim is in order; this would be
done strictly on first-come-first -served basis.
The
unique identification number allotted by the Auditors to the claim will
be prominently shown on all documents relevant to a claim and will be
quoted in all communications, including the Auditor’s approval,
objections and rejection of the claim and by the exporter while
resubmission of claim, tracing a claim or lodging a complaint/ appeal
with TDAP.
If
the claim is not found in order or incomplete, the Auditors will return
the claim to the concerned bank with their audit observations, with
request for resubmission within 30 days, which when received back
will be put in queue of resubmitted claims. These claims will be
disposed of by the Auditors within 7 days of receipt. The
Auditors will report to TDAP claims remaining un-disposed even after
resubmission.
If the Auditors find
that the claim is not amenable to rectification, they will return the
claim to the concerned bank with reasons for rejection, within 7 days
Document
Required
Freight
subsidy application
Summary
of claim (Annex-VI)
Copy of commercial invoice
Copy of Shipping Bill/Goods Declaration in original stamped with “
Under Freight Subsidy Scheme”
Copy
of Bill of Lading (B/L) or Airway Bill
Original
Freight Paid Receipt (truck receipt/railway receipt)
Copy of the Bank Credit Advice (BCA)
Check
list of required documents should be signed and stamped by the
Processing Bank (Annex-VII)
NOTE: Annexure can
be downloaded by clicking the link or from the website
http://www.epb.gov.pk/epb/jsp/scheme_freight_subsidy_exports.jsp |
