How To Get DTRE Approval – What is DTRE Scheme and DTRE Rules – How to Get Approval of DTRE (Duty And Tax Remission Scheme)

Last Updated: April 23, 2015
Category: Car Import Schemes
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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,

Let Suppose:-

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 (from below given link) and fill this approval form very carefully, every column of this form should be filled, incomplete form will never accept. 

It will look like as a image below
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.

The Assistant/Deputy Collector will examine the application form and the supporting documents as follows:

  • To verify the nature of the application i.e. direct exporter (manufacturer commercial exporter) or indirect exporter.
  •  To verify the contents of the export contract for applications.
  • To verify compliance with pre-qualification requirements regarding export performance for application.
  • To take note of the relationship between the estimated input to output ratios declared in Section (f) of the application form and to verify their consistency directly in relation to the description of the production process (including estimated wastage elements) as set out in Section (e) of the same form. Where an application is made by an indirect exporter, the validation of Sections (f) and (e) of his application form should be undertaken independently of the corresponding section already submitted by the direct exporter in his own application.
  • To verify the PCT headings of the input goods along with the applicable tax and duty rate.
  • To verify all other documentary requirements as specified in the attached Approver’s Checklist.

4- All unacceptable application will be entered in a DTRE Application Register, specifying the date of receipt the exporter registration number and the PCT Chapter heading of the intended exports.

6- The Additional Collector may approve or reject the application.

7- On approval, the Assistant / Deputy Collector shall stamp the application forms accordingly with the approval number and issue the following to the applicant along with a copy of the application:

  • DTRE acceptance letter.
  • An account sheet for imports.
8- Rejected applicants shall be informed immediately in writing together with a detailed explanation. The applicant can refer rejected applications to the Approving Collector for review. The Collector shall decide the matter within three days of receipt of such a review application.
9- The Assistant Collector/Deputy Collector shall ensure that the approval code number is entered against the applicant’s export registration number in a separate DTRE Approvals Register. Along with of export PCT heading, the anticipated quantity and value and the total value of the duties and taxes requested for suspension and the type of the security required against liability for these duties and taxes.
10- The approval code number shall have 11 characters in the following order:

a) Three character geographical code of the Collectorate.
b) Two digit month number.
c) Two digit number
d) Four digit approval sequence number.
11- The Collector shall ensure that the final approval or rejection letter is issued to the applicant within ten calendar days after submission of the duly completed DTRE application forms.
12- The DTRE approval number, validity period, exporter name and registration number, the approved input quantity and type of security required against duty and tax liability shall be distributed to all Collectors of Customs, Central Excise and Sales Tax for information in the prescribed format (Annexure-6). The third copy of the approved application form along with a copy of the acceptance letter shall be forwarded to the Duty Suspension Audit Office (DSAO) which has been established to supervise the utilization of duty and tax suspension for all imported and domestic source inputs under the DTRE and other duty suspension rules.
13- The DSAO shall maintain a computerized record of all DTRE approvals.

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