Exemption from customs duty and sales tax on import of machinery for setting up a manufacturing unit or for the expansion, balancing, modernization and replacement (BMR) of existing units.

巴基斯坦 FBR 海关法规 SRO 554(I)/1998（）

GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS

NOTIFICATION

Islamabad, the 12th June,1998.

(CUSTOMS)

S.R.O.554(I)/98.- In exercise of the powers conferred by section 19 of the Customs Act,1969(IV

of 1969), and clause (a) of sub-section (2) of section 13 of the Sales Tax Act,1990, and in supersession of

its Notification No.S.R.O.424(I)/97, dated the 13th June,1997, the Federal Government is pleased to

exempt such machinery 4[for which letters of credit are opened the 12th June,2004, and import is

made upto the 5&6[30TH June,2005] from the customs-duties leviable under the First Schedule to the

Customs Act, 1969 (IV of 1969), and sales tax chargeable thereon under the said Act as are not

manufactured locally, imported for setting up a manufacturing unit or for the expansion, balancing,

modernization and replacement of existing units in bond subject to the following conditions namely:-

(i) The importer shall at the time of importation, by documents in his possession, satisfy the

Collector of Customs that the machinery or spares have been imported for setting up a

manufacturing unit in bond and shall furnish an indemnity bond in the form set out below

to the extent of customs duty and sales tax exempted under this notification. The said

indemnity bond shall be discharged on production of a certificate from the Assistant

Collector, Customs and Central Excise, or in the case of a unit located in Azad Jammu

and Kashmir or Northern Areas, from the Secretary, Kashmir Affairs and Northern

Affairs Division or an officer authorized by him in this behalf to the effect that the

machinery or spares as declared to the customs has been duly installed or used in the

bonded premises and such other evidences as the Collector of Customs may require and

after such inquiry as he deems fit in order to establish such installation. Officers of

Customs having jurisdiction shall monitor the production and sales of output of the

manufacturing unit in the local market and abroad and shall ensure that the conditions of

the notification are duly complied with;

(ii) the importer shall, at the time of importation of the machinery, furnish an undertaking to

the Collector of Customs to abide by the conditions laid down in this notification failing

which he shall pay the amount of customs-duty and sales tax due and make payment of

any penalties that may be imposed in this behalf;

(iii) the certificate of installation referred to in condition (i) shall be submitted to the Collector

of Customs alongwith certificate from concerned Collectorate regarding realization of

customs-duty and sales tax as a result of default as per condition(v) of this notification

not later than one year from the date of filing of bill of entry for home consumption

relating to such machinery or spares;

(iv) the machinery or spares released under this notification shall not within a period of five

years from the date of filing of bill of entry for home consumption relating thereto be

used for any purpose or at any place other than for a manufacturing unit in bond. In case,

this condition is violated the amount of customs-duty and sales tax exempted under this

notification and such penalties as may be imposed in this behalf, shall be recovered under

section 202 of the Customs Act,1969(IV of 1969); and

(v) (a) export targets specified in the Table shall have to be achieved by industrial or

manufacturing unit from the date of installation of the machinery or equipment and

upto a period of five years, namely:-

goods. | First three years | 20% of the value of their

actual production. |

actual production. |

due to expansion. |

due to expansion. |

production. |

production. |

No. S.R.O.962(I)/90, dated the 12th

September, 1990, and Notification

S.R.O.No.424(I)/97 dated the 13th June,1997. | First tow years | 50% of the value of actual

production. |

years.actual production.] |

(d) component parts of machinery specified in sub-clauses (a) and (b), identifiable for use in

or with such machinery. ]

FORM

[ See condition (i) ]

( On appropriately stamped non-judicial paper )

THIS DEED OF INDEMNITY is made on the _________ date of __________BETWEEN

Messrs___________ having registered office at _________(hereinafter called "the importers" which means

and includes their successors, administrators, executors and assignees) of the one part, AND the President

of Pakistan through the Collector of Customs _________ (hereinafter called the "Collector of Customs", of

the other part.

WHEREAS the Federal Government, by its decision contained in Notification No. S.R.O._____-

dated the ______ and subject to the conditions given in the said Notification, has been pleased to direct that

such machinery or spares, as are not manufactured locally, shall be exempt from the whole of customs-duty

and sales tax leviable thereon, if imported for setting up of a manufacturing unit, or for the expansion,

balancing, modernization and replacement of existing units in accordance with the said notification.

AND WHEREAS M/S.____________ having registered office at __________ (hereinafter called

the importers) have imported the machinery mentioned in the Schedule to this Bond for purposes of

establishing a manufacturing unit in accordance with the conditions given in the said Notification;

NOW, THEREFOR, in consideration of the release of the machinery without recovery of leviable

duty and taxes, the importers bind themselves to pay on demand to the Government of Pakistan the sum of

Rs. __________ being the duty and taxes leviable on the machinery, if the importers fail -

(i) to produce a certificate from Assistant Collector of Customs and Central Excise,

Secretary, Kashmir Affairs Division or an officer authorized by him in this behalf, as the

case may be, within one year from the date of the importation of the machinery, to the

effect that the machinery has been installed in bond; and

(ii) to produce such other evidence as the Collector of Customs may require to satisfy himself

that the plant or machinery has been installed in accordance with the conditions of the

said Notification.

The importers further agree and bind themselves that the amount covered by this Bond shall be

recovered as arrears of customs duty under section 202 of the Customs Act,1969 .

This Bond shall become void when the aforesaid certificate has been produced and the Collector

of Customs is satisfied that the importers have fulfilled all the conditions of this Bond in the said

Notification.

Signed by importers on this ____________________ day of ___________________199______.

Managing Director

(Name and permanent address)

Collector of Customs

(On behalf of President)

Witness ______________________________________________________

(signature, name, designation and full address)

Witness _____________________________________________________

(signature, name, designation and full address).

Note: The bond shall be written on appropriate non-judicial stamp paper and shall be witnessed by a

Government servant in BPS 16 or above, an Oath Commissioner, a Notary Public or an officer of

a Scheduled Bank.

SCHEDULE OF MACHINERY

[C.No.6(25)/97-CB]

( KHALIL MASOOD )

Additional Secretary

As amended

1. S.R.O.732(I)/99, - dated 12.06.1999
2. S.R.O.354(I)/2002 - dated 15.06.2002
3. S.R.O.479(I)/2003 - dated 07.06.2003
4. S.R.O.452(I)/2004 - dated 12.06.2004
5. S.R.O.732(I)/2004 - dated 28.08.2004
6. S.R.O.573(I)/2005 - dated 06.06.2005
7. S.R.O.896(I0/2005 - dated 30.08.2005
8. S.R.O.897 (I)/2005 - dated 30.08.2005
9. S.R.O.579(I)/2006 - dated 05.06.2006
10. S.R.O.149(I)/2007 - dated 24.02.2007
11. S.R.O.493(I)/2007 - dated 09.06.2007