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FBR for swift customs clearance of gems, jewellery export consignments

FBR for swift customs clearance of gems, jewellery export consignments

ISLAMABAD: Collectors of Customs are directed to provide easy customs clearance of export consignments of gems and jewellery for promoting exports of precious metals.

According to FBR instructions to all Model Customs Collectorates (MCCs), the decision may please be implemented in letter and spirit.

Sources said that Chief Executive Officer, Pakistan Gems and Jewellery Development Company (PGJDC) briefed the committee on the proposed strategy for promotion of exports of gems & jewellery in a meeting at the Ministry of Industries.

The CEO PGJDC and his team gave a presentation highlighting the roadmap of PGJDC whereby following interventions by the federal government were proposed: fiscal and policy rationalisation; marketing promotion plan; financing and revolving funds; strengthening mining clusters and special industrial parks.

After the presentation, the authorities enquired of the CEO PGJDC to highlight specific issues which PGJDC desires to place before the committee. The CEO PGJDC stated that to achieve the targets, PGJDC needs support and intervention by FBR and Ministries of Commerce, Finance and Industries & Production.

Sources said that the Ministry of Commerce shall be contacted to review/consider the issues i.e. import of jewellery manufacturing machinery, equipment, tools and consumables shall be included in SRO 575(1)/2006. The condition of attestation/notarisation of the contract signed between exporter and importer under entrustment scheme as mentioned in SRO 760 (1)/2013 shall be revisited. In order to encourage exporters, export rebates in line with the other export sectors will also be allowed for gems and jewellery sector. Pakistan Reinsurance Corporation and National Insurance Corporation Limited will be advised to handle insurance of gems and jewellery.

To facilitate the SMEs of the gems and jewellery sector, the management of PGJDC shall submit a detailed plan for the proposed revolving seed fund with initial amount of Rs 900 million. The proposed plan will be forwarded to Ministry of Finance for consideration, sources said.

It was proposed that the Board shall be requested to consider that the withholding tax on gold for commercial purposes shall be reduced from 1 percent to ad valorem Rs 15/gm. To reduce the rate of advance income tax on pearls, synthetic stones, precious/semi-precious stones and diamonds from 5 percent to 1 percent.

It has been decided that to address the issue of sustainability, the management of PGJDC will prepare a PC1 in light of ECNEC decision as mentioned in umbrella PC1. Ministry of Industries & Production would forward the PC1 of PGJDC regarding marketing and promotion for funding from Export Development Fund to Ministry of Commerce.

It was agreed that the Ministry of Commerce would consider zero-rated import of machinery related to jewellery sector in line with gemstone and processing machines. The management of PGJDC would submit a revised PC1, combining their earlier proposal of funding for their Northern Area project and new proposal of KP. The management of PGJDC would develop a detailed plan for proposed revolving fund for its submission to Ministry of Finance through MoI&P.