Aiming to check misuse of bond facilities, the customs authorities of the National Board of Revenue (NBR) have imposed a cap on the annual entitlement for duty-free import volume of raw materials under the home consumption of the bond facility.
As per the fresh order, a bond licence holder will now be allowed to import raw materials up to 80 per cent of its annual production capacity, NBR sources said.
Earlier, there was no specific limit on the import of raw materials.
According to the NBR, from now on, the licence holder will have to get permission from the revenue board to obtain annual import entitlement beyond the limit.
The customs wing has also tightened the condition for collection of dues from the home consumption bond licence holders.
The customs export and bond wing under the National Board of Revenue (NBR) has imposed the conditions so that the industries, which manufacture goods for local consumption, cannot misuse the facility.
It issued a gazette titled 'Orders for fixation of annual import entitlement for home consumption bond licence holder companies and realization of arrears, 2021' on Tuesday.
Officials said the new conditions would help avert the misuse of the facility.
It has been alleged that some home consumption licence holders were importing an increased volume of raw materials than their entitlement, taking advantage of the absence of any specific guidelines.
Local manufacturers, having licences, can import products for domestic consumption with deferred payment of duties and taxes.
An importer can pay the duties and taxes while releasing the goods from the bonded warehouse within six months of import.
The local industries would not get import entitlement from the bond commissionerates in case of having arrears due to import of higher volume of raw materials than entitlement, illegal release of goods from warehouse and other irregularities.
Despite having unpaid tax claims, the customs authority would even allow the licence holders to import raw materials and release those subject to submission of unconditional and continued bank guarantee equivalent to the duties and taxes.