Exemption of customs duty for vendors of Automotive sector.

巴基斯坦 FBR 海关法规 SRO 655 (I)/2006（2006-06-22）

GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS AND REVENUE

(REVENUE DIVISION)

***

Islamabad, the 22nd June, 2006.

NOTIFICATION

(CUSTOMS)

S.R.O. 655 (I)/2006. In exercise of the powers conferred by section 19 of the Customs Act,

1969 (IV of 1969), the Federal Government is pleased to exempt raw materials, sub-components 1[,

components]and sub-assemblies, as are not manufactured locally, imported for the manufacture of components

and assemblies as specified in Table-I below from so much of customs-duties leviable under the First Schedule

to the said Act as are in excess of the rates specified in Schedule to the Table- I thereto, subject to the following

conditions, namely: -

(i) the importer-cum-manufacturer has suitable in-house facilities and registration with the Sales

Tax Department for manufacture of such goods;

(ii) the manufacturer-cum-importer, at the time of import of approved items, shall make a

declaration on the bill of entry or Goods Declaration (GD) to the effect that the items have

been imported in accordance with his entitlement for the manufacture of specified items. The

manufacturer shall also declare that the imported items shall be consumed for the purpose of

manufacture of the items within a period of one year;

(iii) the input output ratios of items to be manufactured and total annual requirement of raw

materials, sub-components, sub-assemblies and components shall be defined and determined

by Engineering Development Board (EDB) or by any other organization as the 3[Federal

Board of Revenue] may, by notification in the official Gazette, authorize;

(iv) 2[Omitted]

(v) the authorized officer of Engineering Development Board or other authorized organization

shall furnish all relevant information 4[including approved quota of items to be imported]

online to 4[Customs Computerized System 6[Omitted] as per form `A‟ (appended to this

notification) against a specific user ID and password obtained under section 155D of the

Customs Act, 1969 4[, after reviewing or finalizing data required under condition (vi)];

2[(vi) the Chief officer of importing company or his authorized officer shall furnish all relevant

information online to EDB as per „Form B,

(vii) 6[Omitted]

(viii) the manufacturer-cum-importer shall maintain records of the inputs and the goods

manufactured from imported items in such form as may be prescribed by the 3[Federal Board

of Revenue] or required under any other law for the time being in force;

(ix) the manufacturer-cum-importer shall communicate to the concerned Collector of Customs in

writing about the consumption of imported items within sixty days of consumption of goods.

In case of non-consumption within one year from the date of import, the importer shall pay the

customs-duty and other taxes involved or obtain extension from the Collector of Customs

giving plausible reasons for a reasonable period; 1[omitted]

4[(ixa) the manufacturer-cum-importer shall provide information to the EDB within forty-five days of

the ending year 6[as per Form-C, to this notification] regarding,-

(a) the import, local procurement and consumption of all the input materials; and

(b) the production and supply of the components and assemblies.

The Input Output Ratio Certificate shall be revalidated only on receipt of aforesaid complete

information]

(x) in case the manufacturer-cum-importer does not provide information regarding consumption

or otherwise of the imported goods within a period of one year of import or such extended

period as allowed by the Collector or if otherwise deemed necessary, the records of

manufacturer-cum-importer shall be audited by any person or agency duly designated by the

Engineering Development Board and 3[Federal Board of Revenue]. If upon audit,

consumption of goods is not found satisfactory, the Collector of Customs shall initiate

proceedings for the recovery of leviable customs-duty and other taxes besides penal action

under the relevant provisions of the law in force 1[; and].

(xi) all those components or sub-assemblies as are chargeable to additional customs-duty in terms

of sub-section (5) of section 18 of the Customs Act,1969 , (IV of 1969), shall not be eligible

for the benefit of exemption under this notification, and

2&3[(xii) the importer-cum-manufacturer may also get manufactured any of the sub-component and

component, from the raw materials mentioned in the Input Output Ratio Certificate (IORC)

duly approved by EDB, for the vehicles mentioned in Column 2 of the Table I below, from

another manufacturer (sub-vendor), duly registered with Sales Tax department, having

suitable in-house facility. In such case,

(a) the sub-vendor shall have a firm contract with the importer-cum-manufacturer;

(b) the importer-cum-manufacturer may provide the imported raw materials to the sub-

vendor for the manufacture of sub-components and components for the vehicles

mentioned in Column 2 of the Table below, for which Input Output Ratio is duly

approved by EDB;

(c) the sub-vendor shall not be entitled to import any of the raw materials under this

SRO for manufacturing of sub-components and components to be supplied to the

importer-cum-assembler or manufacturer;

(d) the sub-vendor after manufacturing the sub-components and components supply

them only to the importer-cum-manufacturer with whom he held a firm contract; and

(e) the sub-vendor shall also maintain proper record of the raw materials consumed or

utilized and sub-components and components supplied to the importer-cum-

manufacturer]

6[xiii all the consignments imported under this notification shall only be cleared through Customs

Computerized System.]

Explanations: - For the purpose of this notification, -

(a) The expression “Sub-component” means an article manufactured by any process in which the

raw material singly, or in combination with other materials, is converted into another distinct article or product

for further use in the manufacture of a component or sub-assembly and includes castings and forgings (not

necessarily with runners or risers) which have not been further processed including tubes, rods, sheets etc. cut to

size and shape but not further worked;

(b) the expression “component” means an article machined, fabricated or manufactured by any

process in which the sub-component singly or in combination with other materials is so changed, transformed or

reshaped that it becomes capable of being put to use differently and distinctly; is normally not useful by itself

and is not amenable to further disassembly; and

(c) the expression “chief executive officer” means –

(a) owner of the firm, in case of sole proprietorship;

(b) partner of firm having major share, in case of partnership firm;

(c) Chief Executive Officer or the Managing Director in case of limited company

or multinational organization; or

(d) Principal Officer in case of a foreign company.

1. Mild steel bars, mild steel rods and mild steel wire rods shall not be entitled to exemption

under this notification.

1. 6[Omitted]

1. This notification shall take effect on the 1st day of July, 2006.

1[TABLE I

Description of goods

Sub-components, components and sub-assemblies of automotive vehicles, automotive climate control

equipment and automotive batteries meant for in-house use or supply to OEMs and assemblers or sale in the

open market.

S.No. Category Rate of duty Rate of Rate of duty Rate of duty

on raw duty on on sub- on

materials sub- assemblies components

components

(1) (2) (3) (4) (5) (6)

1 For Agricultural tractors 0 % 0 % 0 % 0%

of PCT 8701

2 Road tractors for Semi- 0 % 0 % 0 % 0%

trailers (Prime Movers) of

280 HP and above of PCT

Heading 8701

3 Road Tractors for semi- 0 % 0% 0% 0%

trailers(Prime Movers)

less than 280 HP of PCT

heading 8701

4 For fully CNG-dedicated 0 % 0 % 0 % 3[0%]

vehicles of PCT heading

87.02

5 For vehicle of PCT 87.03 0 % 5 % 20 % 10%

6 For vehicles falling under 0 % 5 % 15 % 10%

PCT heading 87.02(Non-

CNG) & 87.04

7 For vehicles of PCT 87.1 0 % 05 % 20% 5[but 15 10%5[but 7.5%

% for for

motorcycles motorcycles

for a period of for a period of

one year] one year]

1. For bicycles falling under 0% 5% 10% 10%

PCT heading 87.12

1. Other vehicles 0% 05% 15% 10%]

2[FORM-A

[See condition (v)]

(To be filled in by the authorized officer of Engineering Development Board

Header information

Name of NTN/STN of importer Approval No.

importer

Details of input goods (to be filled by the authorized officer of Engineering Development Board

HS Description Grade & Total UOM Custom Duty rate (applicable)

Code Specifications Quantity (Tariff)

allowed

(1) (2) (3) (4) (5) (6)

Signature __________________________

Designation __________________________

FORM-B

[See condition (vi)]

(To be filled in by the Chief Executive of the importing company)

Name & address of the Importer NTN/STN

S.No. H.S. Description Grade & Applicable Quantity Unit (Tariff) Total

Code Specifications rate of duty Per Nos. Total Value Unit of value in

Unit of measure Pak

Units Rupees

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

CERTIFICATE.

It is certified that the description and quantity mentioned above are commensurate with the inputs

requirement and that the same are not manufactured locally. It is further certified that the above items shall not

be used for any other purpose.

Signature of Chief Executive

Name of Chief Executive ___________________

N.I.C No. ________________________________]

Note.- In case of clearance through Customs Computerized System 6[(Omitted], the above information shall

be furnished on line against a specific user I.D. and password obtained under section 155D of the Customs Act,

1969.

6[FORM-C

[See condition (ixa)]

(To be filled in by the Chief Executive of the company)

Name of the Firm: ……………

EDB - IOR Certificate No: ………..…

Date: …………

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

A. Imported:-

Raw materials

Sub-components

Components

Sub-assemblies

B. Local:-

Raw materials

Sub-components

Components

Sub-assemblies

Statement of Purchase Orders and Delivery Challans

Name of Sales Tax Paid

S. Part Part Purchase Order Supply Invoice

Customer / Challan

No. Name Number

Dealer No. Date Qty. No. Date Qty. No. Date

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)]

[C.No.2(4)I.I & T-III/2006 (Pt)-42/2006]

(SHAHID AHMAD)

Additional Secretary

As amended:

1. S.R.O.1122(I)/2006, dated 10.11.2006
2. S.R.O.497(I)/2007 dated 09.06.2007
3. S.R.O.562(I)/2008 dated 12.06.2008 (w.e.f.12.06.2008)
4. S.R.O.489(I)/2009 dated 13.06.2009(w.e.f.14.06.2009)
5. S.R.O.1401(I)/2012 dated 30.11.2012
6. S.R.O.495(I)/2013 dated 12.06.2013