What is DTRE Scheme and DTRE Rules: In this video, I am going to share with you what is DTRE scheme and DTRE rules - how to get approval of DTRE (duty and tax remission scheme). Subscribe to our channel for more videos.
How to obtain DTRE Approval and What Documents are Required
We received many requests from our readers asking about DTRE scheme and the process to get its approval, after Googling it we found that there is no sufficient information available on the internet regarding this topic. therefore, we are going to discuss the complete procedure to get DTRE approval and What documents are required to obtain DTRE approval, We will also discuss here DTRE rules such as DTRE rules for Import Clearance, DTRE rules for Domestic Supplies, DTRE Rules for Export Clearance.
Here we are trying to make this process simple and easy for the people who is new in this import and export business so that they can easily understand this step by step guide for DTRE application
Let's start it!
What is DTRE Scheme?
DTRE (Duty & Tax Remission for Exporters) is a government`s temporary importation scheme, which allow trader to import duty free goods with intention to re-export it,
Mr. Ali is a garment exporter, He imported 10,000 kgs of dyes chemical from Canada in DTRE scheme (without paying any duty to customs), now he will use this chemical for dyeing (coloring) textile products like fibers, yarns, and fabrics, after stitching and coloring he will export these garments (Shirts, Jacket, etc.) out of the country.
(Note: In revised DTRE scheme following items shall not admissible: Pure Terephthalic Acid (PTA), Raw sugar and Cooking oil or Vegetable ghee or their raw materials; and the goods which are banned or restricted under the prevalent Import and Export Policy Orders on account of national security, public health and cultural, moral or religious considerations.)
Benefits & Drawbacks of DTRE Scheme ?
Advantage of DTRE Scheme:-
0% customs duty is the biggest advantage of this scheme, we no need to pay any duty on import goods.
Disadvantage of DTRE Scheme:-
We have to re-export that goods and we can`t use this imported goods for local market.
In DTRE Scheme, only big exporters and large scale manufacturers are availing full benefit of duty-free raw material due to its lengthy and complicated procedures.
Every Export container in DTRE, will 100% Examine by Customs department which create difficulty to catch planned vessel on time.
As audit of DTRE takes up to six months.
Limited time period for stocks utilization (In Revised DTRE Scheme it had been enhanced from 12 months to 18 months).
What is Duty DrawBack (Rebate) ?
As we know that when we import any goods so we have to pay customs duty first (if we not use any schemes).
The Duty Drawback Scheme enables exporters to obtain a refund of Customs duty paid on imported goods where those goods will be treated, processed, or incorporated in other goods for export;
Therefore, In DTRE`s Shipment we can`t claim duty drawback because we didn`t pay any duty at the time of import.
Procedure to Get DTRE Approval
1- Download DTRE Application Form (Appendix 1 SRO 450(I)/2001 dated 18.06.2001):-
First, download DTRE approval request form and fill this approval form very carefully, every column of this form should be filled, incomplete form will never accept.
2- Collect Required Documents for DTRE Approval :-
We need to attach the following documents along with the request form.
Copy of the company’s incorporation certificate
Copy of CCI&E (Chief Controller of Imports & Exports) Registration
Exporters national tax number certificate/evidence (NTN Certificate)
3- Submit Approval Form with Documents:-
Now we will submit these collected documents to the Assistant Collector/Deputy Collector of custom in Custom House DTRE approval department.
Duty and Tax remission scheme,
Duty & tax remission for export (Pakistan customs),