Amendments (Addition of new sub-chapter 5 in chapter XXXIV namely Special Technology Zones Rules) of the Customs Rules, 2001
GOVERNMENT OF PAKISTAN
(REVENUE DIVISION)
FEDERAL BOARD OF REVENUE
*****
NOTIFICATION
Islamabad, the 19th June, 2023.
'M
S.R.O. (1)12023.-In exercise of the powers conferred by section 219 of the Customs
Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, section 40 of the Federal Excise
Act, 2005 and section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board
of Revenue is pleased to direct that the following further amendments shall be made in the Customs
Rules, 2001, which, as required under sub-section (3A) of the said section 219, were previously
published vide Notification No.S.R.0 536(I)/2023, dated the 9th day of May, 2023, namely:-
In the aforesaid Rules, in Chapter )00(1X, after Sub-Chapter 4, the following new
Sub-Chapter 5 shall be added, namely,-
"Sub-Chapter 5
SPECIAL TECHNOLOGY ZONES RULES
870A. Definitions.- In these rules, unless there is anything repugnant in the subject or
context,-
"Act" means the Customs Act, 1969 (IV of 1969), the Federal Excise Act,
2005, Sales Tax Act, 1990 and Special Technology Zones Act, 2021;
"Ordinance" means the Income Tax Ordinance, 2001 (XLIX of 2001);
"Appendix" means an appendix to this sub-chapter;
"Authority" means the Special Technology Zones Authority established
under section 3 of the Special Technology Zone Authority Act, 2021 (XVII
of 2021);
"Collector of Customs", in relation to a Special Technology Zone, means
the Collector of Customs, in whose jurisdiction such zone is established;
(0 "Customs Computerized System" means the Customs Computerized
System as defined in clause (ia) of section 2 of the Customs Act, 1969 (IV
of 1969);
"development agreement" means a duly approved agreement between
Authority and a zone developer, agreed to and endorsed by the Approvals
Committee that authorizes zone developer to develop and establish a zone
or a part thereof, as provided under section 2(h) of the Special Technology
Zone Authority Act, 2021 (XVII of 2021);
"person" includes any person as specified in clause (pa) of section 2 of the
Customs Act, 1969 and provided in section 2(1) of the Special Technology
Zone Authority Act, 2021 (XVII of 2021);
"rules" means rules under PCT 9917 (4) (i) and (ii) of the 1" Schedule of
the Customs Act, 1969 (Pakistan Customs Tariff) framed by the Federal
Board of Revenue;
"zone developer" having same meaning as assigned to it in section 2(s) of
the Special Technology Zones Authority Act, 2021 (XVII of 2021);
I.
"zone enterprise" having same meaning as assigned to it in section 2(t) of
the Special Technology Zones Authority Act, 2021 (XVII of 2021); and
"zone" having same meaning as assigned to it in section 2(u) of the Special
Technology Zones Authority Act, 2021 (XVII of 2021).
870B. Registration to operate under Customs Computerized System. — (1) The
licensee of the Authority shall apply for a user ID to the registration authority after acquisition of
a valid license from the Authority.
The business facility of a licensee including manufacturing areas and stores shall
be verified by the Customs and upon such verification licensee shall be issued a user ID by the
registration authority to start operations through Customs Computerized System on the basis of
items allowed under respective tariff headings:
Provided that regulatory Collectorate may devise the procedure for registration with
necessary modifications in Sub-Chapter II of Chapter XXI of Customs Rules, 2001, if required.
Upon any violation under the Act or these rules, the registration authority may
block the user ID of a licensee of the Authority.
The registration authority upon establishment of any offence under the Act or
relevant rules may cancel the user ID, after issuance of show cause notice, besides any other action
which may be taken under the Act.
870C. Import of goods for Special Technology Zones.- (1) The benefits under
these rules shall be provided only if import thereof is made for a period of ten years commencing
from the date of signing of the development agreement, or issuance of license, as the case may be,
for consumption within zones by the eligible importers under these rules.
The goods on which duty or tax exemption has been availed shall be solely used
within the limits of a Special Technology Zone, unless otherwise approved by the Authority and
concurred by the Federal Board of Revenue on a case to case basis and shall not be disposed of
except with the prior approval of the Federal Board of Revenue.
No exemption shall be allowed to an enterprise which does not hold a valid license
issued by the Authority and which is not registered under the Customs Computerized System
through a unique user ID.
Upon the import of every consignment, the authorized officer of STZA shall certify
in the prescribed manner and format, as per Appendix-A, that the imported goods are bona fide
project requirements:
Provided that an eligible importer under these rules shall be allowed to import capital
goods through partial shipments provided the total period of import of these partial shipments shall
not exceed twenty-four months from the date of first import.
Whether or not capital goods are imported in one complete shipment or through
partial shipments, the importer shall furnish complete details and requirements of the machinery
to be imported in assembled or disassembled form, duly supported by the technical specifications
and documents justifying such imports as a business requirement of the licensee.
For clearance of the imported goods through Customs Computerized System, the
authorized officer of the STZA shall furnish all relevant information online as per said format
through a specific user ID and password obtained under section 155D of the Customs Act, 1969
(IV of 1969). Only those goods shall be considered for the benefits under these Rules and PCT
heading 9917 (4) of the First Schedule to the Customs Act, 1969 which are uploaded in the system
by the Authority so that automated quantity debiting is made by the computerized system against
each import by authorized importers.
A Goods Declaration in respect of goods imported for a Zone alongwith other
documents showing details of the goods as required under the Act and the rules made there under
shall be presented to the Customs authorities for clearance.
870D. Retention period.- (1) The goods falling under Chapters 84 and 85 of the
Pakistan Customs Tariff, imported under the scope of these Rules shall be retained for a period of
at least five years from the date of importation and shall not be sold or otherwise disposed of
without prior approval of the Federal Board of Revenue. Whereas, other goods imported under
these Rules shall be retained for a period of at least ten years from the date of importation.
Provided that the disposal of goods falling under Chapters 84 and 85 of Pakistan Customs
Tariff, before the expiration of five years shall be subject to following reduced rates of duty and
taxes levied at the time of importation, namely:-
S. Duty and
Disposal Period
No. taxes
If sold or otherwise disposed of before the expiration of three years
- Full
from the date of importation.
If sold or otherwise disposed of after three and before four years from
2 . 50%
the date of importation.
If sold or otherwise disposed of after four and before five years from
25%
the date of importation.
If sold or otherwise disposed of after five years from the date of
0%
importation.
Provided further that the disposal of other goods before the expiration of ten years shall be
subject to following rates of duty and taxes as applicable at the time of importation of these goods,
S. Duty and
Disposal Period
No. taxes
If sold or otherwise disposed of before the expiration of five years from
- Full
the date of importation.
If sold or otherwise disposed of after five years but before seven and a
50%
2 .
half years from the date of importation.
If sold or otherwise disposed of after seven and half years but before ten
25%
years from the date of importation.
If sold or otherwise disposed of after ten years from the date of
0%
importation.
(2) The Assistant or Deputy Collector of Customs or any other person authorized by
Collector of Customs or FBR shall conduct annual audit of the enterprises established in a Special
Technology Zone to verify the availability of imported goods on which benefits under these rules
have been availed.
(3) If any enterprise fails to give proper account of the imported goods to the
satisfaction of FBR or any other organization or person authorized by the FBR, as the case may
be, the enterprise shall pay on demand an amount equal to the duty and taxes leviable on such
goods at the time of original import, and shall also be liable to pay penalties imposed under the
Customs Act 1969 and the rules made there under.
Appendix-A
[See rule 870C(4)]
Header Information
NTN or FTN of importer Approval No.
(2)
Details of input goods (to be filled by the authorized officer of the
Regulatory Authority)
HS Description
Code
acifi
cepS
..
Custom- Sales Tax
duty rate rate (applic-
(appli- able)
cable)
T
HW
y
titnauQ
MOU
(1)
Certificate.- It is certified that the goods to be imported are genuine and bona fide requirement of
the project, and admissibility of the same, for benefit of concessions of duties and taxes shall be
determined by the concerned officer of Pakistan Customs in accordance with PCT heading 9917
(4) of the 1st Schedule to the Customs Act, 1969.
Signature:
Designation: ),
IC.No.2(3)L&P/20201
t
( Ri zti u ssain )
Secretary
(Law & Procedure)