6% RESEARCH AND DEVELOPMENT SUPPORT TO THE GARMENTS INDUSTRY
|EPD Circular Letter No. 10/ EPP.1 (51) R&D/ 2006||July 03, 2006
The Head/Principal Offices of all Authorized Dealers in Foreign Exchange
Attention of Authorized Dealers is invited to FE Circular No. 06 dated June 18, 2005 on the subject in terms of which 6% R&D Support was allowed to the garment industry. Subsequently, in accordance with MoC’s decision in terms of FE Circular No. 04 dated April 14, 2006 R&D Support was also allowed on export of readymade textile garments from EPZ Units on the production of bank certificate certifying that the export proceeds of R&D Support claims have been received in Foreign Currency.
In this regard, Authorized Dealers are advised that they may credit PKR denominated R&D Support payments from SBP in the relevant Non-Resident PKR Accounts of EPZ’s Units, maintained with them and thereafter allow withdrawals/debits in PKR for equivalent utilization. Authorized Dealers must ensure at all times that total PKR withdrawals/debits to these accounts, do not exceed the total amount of R&D Support received from SBP and credited to Non-Resident PKR Accounts. The reporting of the above transactions will be made on Form A-7 (AppendixV-7) under the existing procedures.
Authorized Dealers are advised to bring the above to the notice of all their constituents.