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Business Standard
5 days ago
- Business
- Business Standard
Govt set to relax rules under Advance Authorisation scheme for exporters
Exporters may no longer be denied duty-free import benefits under the Advance Authorisation (AA) scheme simply because their goods were shipped before the licence was issued, according to sources familiar with the matter. The Advance Authorisation scheme allows exporters to import inputs—such as raw materials, components or chemicals—without paying customs duty, on the condition that these will be used to manufacture products for export. The scheme is a key tool to make Indian exports competitive by reducing input costs. 'Even if goods have already been shipped or have arrived in India, they can still be cleared under an Advance Authorisation granted later by DGFT—provided the importer files the Bill of Entry after the licence date. However, this relaxation won't apply to restricted goods or products that can only be imported through designated government agencies, unless DGFT gives special permission,' a senior government official said, requesting anonymity. Until recently, as per sources, field formations of customs, particularly following objections raised by the Directorate of Revenue Intelligence (DRI) in Ludhiana, had taken a strict view that if the shipment left the foreign port before the date on which the AA licence was granted, the benefit of duty exemption should not be available—even if the goods were cleared through customs later. However, after several industry bodies flagged concerns over unnecessary disputes and procedural delays, the authorities have decided that the relevant date for eligibility under the AA scheme is the date of filing the Bill of Entry—this is a legal customs document submitted to Indian Customs to get the goods cleared—that is, when the goods are cleared through Indian customs, not the date of shipment from the foreign country, another official added. An email sent to the Directorate General of Foreign Trade (DGFT), which administers the AA scheme, and the Central Board of Indirect Taxes and Customs (CBIC), remained unanswered till the publishing of this article.
Express Tribune
01-03-2025
- Automotive
- Express Tribune
Dealers reject Sindh's new vehicle registration law
Listen to article Dealers of motor vehicles and their association have urged the Sindh government and the Sindh Excise, Taxation, and Narcotics Control Department to review the newly amended law requiring vehicle registration within a month. They have also demanded a three-month delay in its implementation to allow them time to clear their existing stock. Reacting to the enforcement of the newly amended Section 23 of The Provincial Motor Vehicles Ordinance 1965, the dealers have rejected the amendment, calling it unacceptable. They argued that laws should be made in accordance with practicality, and such rigid regulations could harm both dealers and customers. Under the new law, they said, the government has reduced the registration period from six months to just one month for all motor vehicles, including motorbikes, rickshaws, and cars. Expressing concerns over its sudden implementation, dealers said the law would be difficult to comply with. According to the amended law, "23-A. Penalty in default of registration. (1) If a motor vehicle, imported into the country by any owner or showroom motor dealer, or a motor vehicle manufactured in the country, or invoiced by any authorised showroom dealer or manufacturer, such motor vehicle shall be liable to be registered under section 23, within 30 days from its date of Goods Declaration/Bill of Entry; in case of import, or from the date of invoice in case of local manufactured vehicles. (2) Any vehicle imported or locally manufactured, to be used in any other province, shall be transported through a carrier and shall not (be driven) in the province of Sindh in any case without registration. (3) If an owner or showroom/motor dealer, fails to register such motor vehicle within the specified period mentioned under sub-section (1). he/she shall, besides the registration fee prescribed under the rules, be liable to a penalty mentioned in the table hereunder; provided that if the motor vehicle, whether imported or manufactured in the country, is sold by the owner/showroom/motor dealer who shall be responsible for registration of such motor vehicle, before handing over to the buyers." The penalties for delayed registration include Rs5,000 for motorbikes, Rs10,000 for rickshaws, and Rs10,000 to Rs200,000 for four-wheelers, depending on the delay period, which can range from 30 to 180 days. Motorcycle dealer and auto sector expert Muhammad Sabir Shaikh has demanded that the law be reviewed by June 30 and that all stakeholders be consulted before finalising its implementation. He warned that if enforced without revision, the law would severely impact businesses and the already struggling auto industry. "Businesses are already suffering, and such laws will discourage economic growth. The vehicle registration timeline starts from the day a vehicle leaves the factory, and expecting dealers to sell all their stock within 30 days is unrealistic. Even within six months, not all showroom models get sold," he said. He further suggested that instead of imposing such strict deadlines, the Sindh government should adopt Punjab's system, where dealers can complete the registration process online without bureaucratic hurdles or kickbacks. Karachi Motorcycle Dealers Association Chairman Muhammad Ahsan Gujjar echoed similar concerns. "As law-abiding citizens and dealers, we respect all laws, but we urge the government to defer this amendment for at least three months so dealers can clear their existing vehicle stocks. We only became aware of this law a few days ago, and now we are expected to ensure registration within a month," he said. He explained that a motorcycle typically takes about a week to reach a showroom from the factory, leaving dealers with only about 20 days to sell it or face penalties. Gujjar further highlighted that a motorbike dealer's commission is around Rs2,000 per Chinese-made bike and 2% per Japanese-made bike. However, due to tough market competition, dealers often sell at even lower margins. An official from the Sindh Excise, Taxation, and Narcotics Control Department defended the law, stating that the Sindh Assembly passed the amendment to curb unregistered vehicles and vehicle theft. "The law will assist law enforcement agencies by pressuring vehicle owners and dealers to ensure timely registration," the official said.
