The National Board of Revenue (NBR) has changed the regulations for granting extended time to access bonded warehouse facilities for 6 months to tackle the problem of importers having their imported raw materials getting stuck.
The facility is offered under Section-119A and Section-219B of the Customs Act 1969 which offers facility for bonding period for keeping duty-free products in warehouses up to 24 months for apparel units on a case by case basis.
Exporters requested for an extended period of one year for this facility and removed the conditions tagged to the package. The latest regulation offers extended bonding time with the approval from the revenue board for all export-oriented industries including EPZs, Economic Zone, and Hi-tech Park.
However, local sale of such duty-free products is prohibited-and punishable as per the customs law to ensure a level playing field for other businesses not enjoying the bonded-warehouse facility of duty waiver.