Exemtption of cutoms duty for OEMs of Automotive sector.

巴基斯坦 FBR 海关法规 SRO 656(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. 656(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 components (which include sub-components, components, sub-

assemblies and assemblies but exclude consumables), imported in any kit form, 4[and direct materials]for assembly or

manufacture of vehicles falling under Chapter 87 of the First Schedule to the said Act, from so much of customs

duties, as specified in the said First Schedule, as are in excess of the rates specified in column (4) of the Table below,

subject to the following conditions, namely:-

(i) The importer is an assembler or manufacturer who has suitable in-house facilities as defined in

„Annex A‟ to this notification or the importer is in possession of a firm contract for the manufacture

of specified goods with any other manufacturer having suitable in-house facilities and registered

with Sales Tax Department for the manufacture of such goods, to manufacture road worthy vehicles

according to the laid down standards and this fact has been 5[certified] by the Engineering

Development Board (EDB) of Ministry of Industries 5[and Production] 9[:

Provided that the facility of assembly or manufacture under firm contract shall not be available to

importer, for auto rickshaw of heading 8703.2115, 3-Wheeler Cargo Loader of heading 8704.3150

and vehicles of heading 87.11]

4[(ia) the input output ratio of the items to be manufactured and total annual requirements of

materials shall be determined by the Engineering Development Board (EDB) or by any other

organization as the 5[Federal] Board of Revenue may authorize;”

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

the 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;]

(ii) the importer is registered under the Sales Tax Act, 1990 with the Sales Tax Department;

(iii) the importer-cum-assembler or manufacturer shall submit hard and soft copy of list of components

with parts numbers along with respective PCT headings intended to be imported by him to EDB as

per „Annex B‟. The description of components and their parts numbers shall be in accordance with

that given in the Service Manual 1[/Parts Catalogue] of the vehicles. The EDB shall verify the list of

components identified as aforesaid by the importer on the lists 4[and determine the CKD kit of each

vehicle in accordance with the terms set out in the First Schedule of the Customs Act,1969, and

update 6&9[Customs Computerized System]. The Customs department will release the consignments

of components for assembly or manufacture of vehicles on the basis of lists (Part number and

description) verified by EDB 9[Omitted];

(iv) the relevant customs authority shall check the declaration made by the importer-cum-assembler or

manufacturer, in order to check its conformity with the lists verified in terms of condition (iii). In

case there is any dispute or discrepancy, the importer shall be intimated forthwith and the matter

shall be resolved expeditiously. If the importer so desires, pending such resolution, the consignments

containing such disputed components shall be released against such “Corporate Guarantee”

acceptable to the Collector of Customs.5[omitted];

5[(iva) the importer-cum-assembler or manufacturer shall directly import the components as per the lists

duly approved by the EDB or shall procure them from a sales tax registered local vendor,

manufacturing such components and will maintain records accordingly;]

(v) the 5[importer-cum-assembler or manufacturer] shall maintain records as prescribed 5[under

Annexure B]. Such records along with reconciliation account of all inputs used in assembly or

manufacture of vehicles shall be submitted to the EDB on an annual basis 6[latest by 15th August,

each year , falling which, the manufacturing certificate of the firm shall not be revalidated];

(vi) in case, the importer-cum-assembler or manufacturer fails to provide information as per conditions

above to EDB or for any other reason to be recorded in writing, 5[the] EDB may get an audit

conducted either by themselves or through designated persons or agency for this purpose to see if all

the conditions of this notification are met. The findings of the Audit shall be communicated to the

respective Collector of Customs. 4[For any] reason to be recorded in writing, the Collector of

customs may get an audit conducted by any person or agency designated for this purpose to see if all

the conditions of this notification are met. Failure to comply with the conditions of this notification

will attract proceedings under relevant provisions of Customs Act, 1969 5[(IV of 1969)];

(vii) if upon Audit, the import or consumption of the components is not found in conformity with the

conditions of this notification or the importer-cum-manufacturer fails to comply with other

conditions of this notification, the Collector of Customs shall initiate proceedings for the recovery of

exempted duties and taxes besides initiating penal action under the relevant provisions of law;

(viii) the authorized officer of the Engineering Development Board shall furnish all relevant information

online to 6[Customs Computerized System 9[Omitted] as per „Form A‟ (appended to this

notification) against specific 5[omitted] ID and password obtained under section 155D of the

Customs Act, 1969 (IV of 1969);

(ix) the chief executive officer of the importing company or his duly authorized officer shall furnish all

relevant information online to EDB as per “Form B‟ (appended to this notification)

(x) 4&9[Omitted]

(xi) the manufacturer-cum-assembler of automotive vehicles enumerated at serial No. 6 of the Table

5[(except for Auto Rickshaw of heading 8703.2115)] shall sell the said vehicles to 8[a valid CNIC]

holder only and the record of the same shall be furnished to 5[FBR] or to any other designated person

on monthly basis 6[; and. ]

6(xii) in case of violation of any of the conditions of this notification, Engineering Development Board

may suspend or not revalidate certificate for assembly or manufacture of vehicles and lists of

importable components, pending removal of cause of suspension or finalization of audit, as the case

may be;]

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

Computerized System]

4[Explanation.- The expression “direct materials” means the material used in the direct consumption during the

assembly 5[omitted] duly approved by the EDB.]

1. 6[Omitted].

10[2A. In line with the new entrant policy for motorcycle manufacturing industry with new technology

notified by Ministry of Industries and Production vide notification No. 4-1/2013/LED-II-(Vol-III),

dated the 26th September, 2013, the incentive of importing CKD kit in any form @ 10% customs-

duty imported in terms of serial No. 11 of the following TABLE by the new entrant for assembly or

manufacturing of motorcycles shall be withdrawn on components localized by the new entrant each

year in accordance with the approved localization plan. The expressions „new entrant‟ and „new

technology‟ shall bear the same meaning as declared or notified by the Ministry of Industries and

Production in respect of motorcycle manufacturing industry.]

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

6[TABLE

Rate of

S.No. Description of vehicles Description of imported inputs

Duty

(1) (2) (3) (4)

1. Agriculture tractors of heading (i) Components for 0%

87.01. assembly/manufacture in any

kit form

(ii) Tyres / Tubes 20%

1. Road tractors for semi-trailers and (i) Components for 0%

trailers (prime movers) of 280 HP assembly/manufacture in any

and above falling under PCT kit form

heading 87.01. (ii) Tyres / Tubes 20%

1. Other tractors falling under PCT (i) Components for 10%

heading 87.01. assembly/manufacture in any

kit form

(ii) Tyres / Tubes 20%

1. Vehicles (Non-CNG) of heading (i) Components for 5%

87.02. assembly/manufacture in any

kit form

(ii) Tyres / Tubes 5%

1. Vehicles (CNG Dedicated) of (i) Components for 0%

heading 87.02. assembly/manufacture in any

kit form

(ii) Tyres / Tubes 5%

1. Motor cars and vehicles of (i) Components for 32.5%

heading 87.03 [excluding assembly/manufacture in any

specially designed twin cabin type kit form

taxi of heading 8703.3227 and 4- (ii) Tyres / Tubes 25%

Stroke Auto Rickshaw of heading

8703.2115].

1. Specially designed twin cabin (i) Components for 5%

type taxi of heading 8703.3227. assembly/manufacture in any

kit form

(ii) Tyres / Tubes 25%

1. 4-Stroke Auto Rickshaw of (i) Components for 20%

heading 8703.2115 assembly/manufacture in any

kit form

(ii) Tyres / Tubes 25%

1. Vehicles of g.v.w not exceeding 5 (i) Components for 20%

tons falling under PCT heading assembly/manufacture in any

87.04. kit form

(ii) Tyres / Tubes 20%

1. Vehicles of g.v.w exceeding 5 (i) Components for 10%

tons falling under PCT heading assembly/manufacture in any

87.04. kit form

(ii) Tyres / Tubes 5%

1. Vehicles of heading 87.11. (i) Components for 15% 7[but

assembly/manufacture in any 10% for

kit form motorcycles

for a period

of one year

10[and 10%

for

motorcycles

for new

entrant for a

period of

five years]

(ii) Tyres / Tubes 25%

1. Trailer of heading 87.16 The following component for 5%

assembly/manufacture of trailers:-

(i) Axle tube with brake without

Hub and Drum.

(ii) Pneumatic suspension.

(iii) ABS system.

(iv) King Pin.

(v) Fifth wheel.

(vi) Axle Complete

(vii) Mechanical Suspension.

(viii) ASR Brake system.

(ix) Pintle Hook.

(x) Wheel Rim (size 8.0x20).

1. Assembly kits of all the above - 0%

categories to the number of their

exported units subject to the

following conditions:-

(i) no duty drawback was

claimed at the time of

export;

(ii) The imported kits relate to

the vehicle of same engine

capacity as were exported;

and

(iii) the importer makes a

declaration in the bill of

entry or goods declaration

(GD) at the time of import

that he intends to avail this

facility and produces the

following evidence of

export; namely:-

(a) a copy of the bill of entry or

goods declaration (GD)

bearing examination report

of customs;

(b) bill of lading; and

(c) foreign exchange

repatriation certificate.

1. Materials for direct use, as are not - 0%]

manufactured locally, in the

manufacture of vehicles listed at

Sr. No. 1 to 12 above.

9[Annexure A

[See condition (i)]

MINIMUM IN-HOUSE ASSEMBLING/ MANUFACTURING FACILITIES REQUIRED FOR

ASSEMBLERS / MANUFACTURERS OF VEHICLES

A. CARS & LIGHT COMMERCIAL VEHICLES (LCVs)

1. Body welding shop

Following equipment / facilities should be available for sub-assembly/ Assembly covering Under

Body, Side Body / Side Panel, Main Body, Shell Body, Engine Compartment etc.

(a) Welding jigs; for sub assembly / assembly operations covering underbody, Engine

Compartment, Side Body / Side Panel, Main Body;

(b) Welding guns & Other Equipment; for above fixtures;

(c) Welding transformers;

(d) Hoists;

(e) Necessary tools;

(f) Body handling Equipment;

(g) Tools & gauges; for body parts fitting & body accuracy.

1. Body Paint shop

(a) Booth for:-

(i) Pretreatment including Cleaning, Degreasing, Metal preparation for Primer Coat;

(ii) Primer;

(iii) Under Coat;

(iv) Sealer;

(v) Top Coat.

(b) Dry Off / Baking ovens for:-

(i) Pretreatment;

(ii) Primer;

(iii) Under Coat;

(iv) Sealer;

(v) Top Coat.

1. Vehicles Final Assembly:-

(a) Trim Line with Multiple Stations:-

(i) Trim Line with Multiple Station;

(ii) Sealer Pumps;

(iii) Conveyors;

(iv) Pneumatic Tools;

(v) Torque Wrenches;

(vi) Other Hand Tools.

(b) Chassis Line with Multiple Stations Equipped with hoists and underground Pits:-

(i) Central Lifter;

(ii) Engine Docking Machine/ System;

(iii) Axle Lifting Machine/ System;

(iv) Wheel Sub-assembly/Balancing;

(v) Wheel Assembly;

(vi) Pneumatic Tools.

(c) Final Line:-

(i) Coolant Feeder;

(ii) Brake Bleeding Machine;

(iii) AC coolant filing, if applicable;

(iv) Fuel Filling.

1. Vehicles Performance Testing Facilities:-

(a) Toe in Tester;

(b) Side Slip Tester;

(c) Brake Tester;

(d) Drum Tester;

(e) Turning radius;

(f) Headlight aiming tester;

(g) Shower tester

(With at least sufficient number of nozzles to cover roof, side walls, doors, windows and

floor in a rain simulation).

1. Inspection Equipments;-

1. Storage:-

(a) Vendorized / In-house Parts;

(b) CKD Parts;

(c) Finished Goods.

B. HEAVY COMMERCIAL VEHICLES (HCVs)

1. Main Chassis-Frame Assembly &/ or Riveting Line:-

(a) Jigs and fixtures for Drilling, Riveting & Welding Jigs and fixtures suitable for main chassis

making (assembling);

(b) Riveting Guns;

(c) Overhead Cranes and Hoists;

(d) Riling Machines;

(e) Dollies;

(f) Suitable Welding Equipment.

1. Axle Assembly:-

(a) Tools for Axle Assembly;

(b) Hoist(s) / Crane(s);

(c) Press for fitting Hub Bearings;

(d) Stands;

(e) Toe in Toe Out Adjustment Tools;

(f) Torque Wrenches.

1. Welding Shop:-

(a) Welding Jigs;

(b) Spot Welding Guns;

(c) Welding Transformers;

(d) Hoists;

(e) Necessary Tools.

1. Paint Shop

(a) Booths for:-

(i) Cleaning, Degreasing, De-rusting etc;

(ii) E.D Painting facility for cabins;

(iii) Conventional system for body & Structural parts;

(iv) Pretreatment / Primer Coat;

(v) Top Coat.

(b) Chassis Paint / Touchup Area:-

(i) Spray Guns;

(ii) Paint Containers.

(c) Baking Ovens.

(d) Sealing equipments.

1. Vehicles Final Assembly

(a) Trim Line:-

(i) Cranes / Hoists;

(ii) Dollies for Bodies / cabins;

(iii) Pneumatic Tools;

(iv) Other Hand Tools.

(b) Chassis Line:-

(i) Cranes / Hoists;

(ii) Lifting Hangers equipment for dropping or docking the engines;

(iii) Torque Wrenches;

(iv) Wheels Sub assembly;

(v) Hanger for Cab Mounting;

(vi) Pneumatic Tools.

(c) Final Line:-

(i) Coolant Feeder;

(ii) Brake Bleeding Machines.

1. Vehicles Performance Testing Machines:-

(i) Toe in tester;

(ii) Side Slip Tester;

(iii) Brake Tester;

(iv) Speedometer Tester;

(v) Headlight aiming Tester;

(vi) Shower Tester.

1. Inspection Tools and equipments.

1. Storage:-

(a) Vendorised and In house Parts;

(b) CKD Parts;

(c) Finished Goods.

C. TRACTORS

1. ENGINE ASSEMBLY

Sub Assembly:-

(a) Engine assembly line with proper tooling, jigs and fixtures including Degreasing and

Washing Machines;

(b) Gear Box assembly line with proper tooling, jigs and fixtures;

(c) Rear Axles assembly line with proper tooling, jigs and fixtures;

(d) Front Axle assembly line;

(e) Steering assembly;

(f) Wheel sub assembly.

1. PAINT SHOP FOR SHEET METAL AND CHASSIS

(a) Booth for:-

(i) Cleaning, Washing, Degreasing, De-rusting, Metal preparation for Primer Coat;

(ii) Phosphating / pretreatment;

(iii) Primer Coat;

(iv) Top Coat.

(b) Baking Ovens;

(c) Paint mixing and spraying equipment;

(d) Overhead conveyors for Sheet Metal Parts.

1. VEHICLES FINAL ASSEMBLY:-

(a) Conveyors;

(b) Material Handling Equipment;

(c) Pneumatic Tools supported by pneumatic air supply infrastructure & balancers;

(d) Torque Wrenches and Calibrators;

(e) Engine Docking Equipment;

(f) Overhead Gantries & Jib Cranes for Electric Hoist.

1. PERFORMANCE TESTING FACILITIES:-

(a) Toe in Tester;

(b) Brake Tester;

(c) Turning Radius;

(d) Headlight aiming Tester;

(e) Roller Tester for Functional Inspection;

(f) Diesel Lab for calibration of Fuel Injection Equipment.

1. INSPECTION TOOLS/EQUIPMENTS:-

(a) Engine Dynamometer;

(b) Engine components contamination measuring equipment;

(c) Engine Noise Meter;

(d) Exhaust Gas Analyzer;

(e) Rear Axle Test rig;

(f) Hydraulic Test rig;

(g) Pre-loading equipment;

(h) Axle and play equipment;

(i) Paint-gloss and thickness testing equipment;

(j) Salt Spray testing equipment for paints;

(k) Material Testing Laboratory.

1. STORAGE:-

(a) Vendorised/In-house Parts;

(b) CKD Parts;

(c) Finished Goods.

1. Test Rigs for Endurance Testing of Safety / Critical items.

1. Availability of manufacturing drawings to include:-

(a) Dimensions;

(b) Materials;

(c) Mechanical and Physical properties;

(d) Assembly and Testing Procedures.

1. Availability of purchase orders on vendors / suppliers.

D. MOTORCYCLE/ MOTORCYCLE RICKSHAW

1. MOTORCYCLE FRAME WELDING SHOP

This shop will be completely equipped with the following:-

(a) Welding Jigs;

(b) Spot Welding Machine;

(c) MIG Welding Machine;

(d) Frame/Chassis Inspection Jigs;

(e) Boring Machine for the head pipe.

1. BODY PAINT SHOP

Booth for:-

(a) Cleaning, degreasing, de-rusting, metal preparation for phosphate;

(b) Spray Booths, including preparation area, spray, flash off;

(c) Finish Coat/ Final Coat;

(d) Baking Ovens.

1. ENGINE ASSEMBLY & TESTING

(a) Engine Assembly Line equips with fixtures for the following Sub-assemblies:-

(i) Crank Cases and Crank Case Covers;

(ii) ACG Flywheel;

(iii) Complete Cylinder with Crankshaft and Connecting Rod;

(iv) Spindle Kick Starter and Spindle Gear Change/ Shifting;

(v) Spark Plug, Rocker Arm and Tappet adjusting;

(vi) Cover Cylinder Head and Oil Filling;

(b) Engines Assembly Tools:-

(i) Pneumatic Tools;

(ii) Torque Wrenches;

(iii) Compressor;

(iv) Press of Pneumatic Jig (for Ball Bearing fitting);

(v) Engine number Punching Arrangement;

(vi) Parts/ Material Handling System;

(vii) Dust Free Environments.

(c) Engine Testing Tools:-

(i) Test Bench of Check Gears and Neutral Light Functioning;

(ii) Measured Oil Filling Arrangement;

(iii) Leakage Testing.

1. TESTING INSTRUMENTS/ EQUIPMENTS FOR INSPECTION OF COMPONENTS/

PARTS BEFORE ISSUANCE OF FINAL ASSEMBLY:-

(a) Surface Plate;

(b) Dimensional inspection instruments (e.g. verneercaliper, micrometer, dial

indicator & headlight gauge etc);

(c) Material hardness tester (metal & rubber);

(d) Destructive test arrangement (especially for chromed parts);

(e) Coating layer thickness meter;

(f) Functional tests;

(g) Peripheral/ run-out accuracy, etc., testing arrangement.

1. FINAL ASSEMBLY

(a) Frame Assembly Fixture:-

Fixture for complete motorcycle assembly to support/ hold the motorcycle height from the

first step of the assembly that/ is putting Engine or Frame Body up to the complete finished

product, including assembly of the motorcycle from the following:-

(i) Rear Fork (or swing arm);

(ii) Front and Rear Wheel;

(iii) Front and Rear Fenders;

(iv) Front and Rear Shock absorber;

(v) Steering Handle with Switch Assembly, Break Levers and Throttle;

(vi) Driver Chain and Chain Cases;

(vii) Fuel Tank Seat and Side Cover;

(viii) Wiring and Cables routing;

(ix) Speedometer, Head Ligh