Pakistan has changed the duty drawback allowance for bearings and some other fabricated mechanical components, effective for claims on exports after June 18, 2001.

A Drawback is basically a refund of duties or fees. Companies which pay duties to import products or components, then later export those products are entitled to a refund of the original duties paid.

Most countries offer drawbacks to their domestic businesses. Some trade agreements, such as NAFTA, limit the amount of duty drawbacks allowed so that governments cannot use drawbacks to subsidize their domestic industries.

In the case of Pakistan, the government's Central Board of Review (CBR) sets a fixed drawback allowance based on the product.

The new Pakistani rate for plain bearings, housings, ball screws, roller screws and universal joints is 80.92 Rupees (USD $1.34) per piece, effective with exports after June 17, 2001. This drawback allowance is down sharply from the previous rate of 107.41 Rupees ($1.78) per piece, in effect for exports from February 3, 1998 through June 17, 2001.

In this particular case, drawback claims can only be made for duties paid on the raw materials used to manufacture the products. Finished bearings imported and then exported are not covered by this rate.