GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE

NOTIFICATION

Islamabad, the 26th December, 1990.

CUSTOMS

                        S.R.O. 1332(I)/90.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to exempt goods, not manufactured locally specified in the Table, if imported into Pakistan by manufacturers-cum-exporters, for manufacture of leather made-ups and their subsequent exportation from so much of the customs duty as is in excess of 10% ad valorem specified in the First Schedule to the Customs Act, 1969 (IV of 1969), leviable or chargeable thereon, subject to the conditions set out below, namely:-

 

            1.     The manufacturer-cum-exporter shall declare on the Bill of Entry to the effect that he is an exporter of leather made-ups and give full particulars of the imported goods and their use.

            2.     The benefit of exemption shall also be admissible in respect of goods consigned by any overseas person without cover of letter of credit.

            3.     The manufacturer-cum-exporter shall furnish an indemnity bond in the Form set out below to the extent of customs-duty exempted         under this notificationto the effect that in case he fails to re-export the goods imported temporarily under this Notification within a period not exceeding one year or such further period not exceeding six months as may be allowed by the Collector of Customs for sufficient reasons to be recorded in writing.

            4.     If for any reason, the manufacturer-cum-exporter is not in a position to submit indemnity bond as laid down in condition 3 above, a bank guarantee shall be furnished to the extent of duties and taxes exempted under this notification.

 

            5.     Omitted.

 

 

            6.     The manufacturer-cum-exporter shall keep an account of goods imported, received, consumed and exported in the proforma set out in Annex-I.

            7.     The manufacturer-cum-exporter shall intimate, in writing stating full particulars, to the concerned Assistant Collector of Customs at the Customs station from where the goods were imported, within the period specified in condition 3 above,    regarding the export of the imported goods separately accounting for the goods not exported or used for the prescribed purpose or in the prescribed manner.

            8.     The Assistant Collector of Customs of the Customs station from where the goods were imported shall maintain an importer-wise account in a register in the proforma set out in Annex-II. All imports should be entered in this register and indemnity bond shall be discharged on production of the account referred to in condition 7.

            9.     At the time of export, the manufacturer-cum-exporter shall declare on each bill of export precise quantity of goods and import particulars thereof, imported under this notification and used in the leather made-ups being exported.

            10.   Wastage of goods imported under this notification as contained in Table will be admissible upto 3% of the quantity imported.

 

TABLE

 

                1.             Plain/quilted lining material all sorts.

 

                2.             Elastic webbing, knitted and woven, all sorts including knitting rib.

 

                3.             Thread, synthetic/nylon/polyester/braided/cotton or combination thereof.

 

                4.             Shoulder pads, all sorts.

 

                5.             Wadding materials, all sorts including acrylic wadding.

 

                6.             Interlining materials, woven/non-woven, fusible/non-fusible, all sorts including umbrella                                                                                                              interlining.

 

                7.             Furlining materials, real/artificial, all sorts.

 

                8.             Labels of textile and other materials, all sorts with/without precoated adhesive.

 

                9.             Zips/zip fasteners, metal/plastic/nylon, in pieces or rolls.

 

                10.           Buttons, plastic/press/metal/wooden/bronze all sorts including leather/textile covered.

 

                11.           Rivets and eyelids.

 

                12.           Buckles, rings and decorative fittings, all sorts including plastic/press/metal/wooden/bronze/leather.

 

                13.           Velcro patties/velcro tapes and other fastening materials.

 

                14.           Thermoplastic counter/toe puff material/stiffeners, cut or in sheets/rools.

 

                15.           Synthetic lining, including artificial leather lining and fabric lining.

 

                16.           Tapes, all sorts including re-inforcement made of cotton/nylon, woven/non-woven,  elastic/non-elastic.

 

                17.           Parts of footwear classifiable under H.S. heading No.64.06.

 

                18.           Thermoplastic rubber, natural rubber (RSS-4/5 and TPC-3 white) and synthetic rubber (SBR - 1502, Highstyrene, Chloroprene, Buryl-268/301, Chlorobutyl - 1066, polybutadiene and polyisoprene).

 

                19.           Release agents, rubber accelerators, rubber antioxidants and activators.

 

                20.           Shoe eyelets, machine tacks and fibre board.

 

 

 

 

 

 

 

 

FORM

[See condition (iv)]

(On appropriately stamped non-judicial paper)

INDEMNITY BOND

                                                                                               

               

                THIS DEED OF INDEMNITY is made on the ______________ day of ___________ BETWEEN Messrs ____________ having registered office at _____________ (hereinafter called "the manufacturer-cum-exporter" which 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 has, by its decision contained in Notification No._______________ dated the __________ and subject to the conditions given in the said notification, been pleased to direct that such goods specified in Table of the said notification as are imported for manufacture of leather made-ups and their subsequent exportation, shall be exempt from so much of the customs duty as is in excess of 10% ad valorem, leviable thereon, if imported by the manufacturers-cum-exporters of leather made-ups in accordance with the said notification;

 

                AND WHEREAS the manufacture-cum-exporter having registered office at _______________________ have imported the goods mentioned in the Schedule to this Bond for the prescribed purpose and the conditions given in the said notification, that the goods shall only be used for the prescribed purpose and in the prescribed manner;

 

            NOW, THEREFORE,  in  consideration of the release of aforesaid goods equivalent to the customs duty exempted,  the importer bind themseves to pay on demand to the Government of Pakistan the sum of Rs ______ being the customs duty, leviable if he fails:-

 

         (i)    to use the said goods for the purpose specified in the notification, or in the manner and period pescribed under the said notification, or to give intimation, as laid down under condition (7) of the said notification; and

 

            (ii)   to produce such other evidence as the Collector of Customs may require to satisfy himself that the declarations made or state-ment or information furnished is bonafide and the goods have been used in the manner laid down in the said notifcation.

 

                               

                The manufacturer-cum-exporter further binds himself that in case of further to make the payment of the aforementioned account, 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 goods are re-exported or used for the specified purpose and the Collector of Customs is satisfied that the importers have fulfilled all the conditions of this Bond and the said Notification.

 

 

                                Signed by manufacturer-cum-exporter on this   _____________ day of ________ 19____

 

 

 

                                                                                                                                ___________________________

                                                                                                                                          (Managing Director)

                                                                                                                                 (Name and permanent address)

 

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 Grade 16 or above, an Oath Commissioner, a Notary Public or an officer of a Scheduled Bank.

 

 

 

 

 

                                                                                                                                                                ANNEX-I

 

_____________________________________________________________________________________________________

                RECORD OF GOODS RECEIVED                                                            RECORD OF EXPORTS

_____________________________________________________________________________________________________

 

IGM &     Description  Quantity          Date of      Shipping bill       Remarks of           Period of                      Remarks on  

date        of                                           clearance                 No.& Date for     customs officer   Consumption   any customs

                goods                                    items of                                                 about goods of    i.e. date in       officer

                                                                column 8                                               column 6                               column 9                      inspecting

                                                                                                                                                date on         the record

                                                                                                                                                column 4

_____________________________________________________________________________________________________

1                        2         3                              4                       5                              6                             7                               8

_____________________________________________________________________________________________________

 

                               

                                                                                                                                                                                ANNEX-II

 

                                                                (Register of imports, consumption and exports of goods

                                                                under SRO ___(I)/90 dated ________

 

 

A. Imports.

 

_________________________________________________________________________________________________________________________________________________

Vessel's                IGM No.    Index    Bill           Date of   Description      Quantity      No of  Value          Rates of   Amount

name      & date      No.&      of            clearance              of goods                                        packages.     duty            of duty

                                   date.    Entry       from the                                                                                prevalent                  forgone.

                                                No.&        custom                                                                  at the        

                                                Date        station.                                                                  time of

                                                                                                                                                importation

____________________________________________________________________________________________________

 

 

 

 

B. Exports

 

_____________________________________________________________________________________________________

Bill of                      Description     Date of                         Value                      Particulars  of goods imported and used

Export No.              of goods to    Export or                                       of                           Description           Quantity    Value        Amount of    Balance

and date.                               be exported    Met Receipt                                goods                                                    duty           in hand

                                No. and date.                                                                                        

_____________________________________________________________________________________________________

 

 

                                                                                                                                                M. MUBEEN AHSAN

                                                                                                                                                Additional Secretary

 

C.No.79-80-Mach.1(44).

 

 

As amended:

 

S.R.O. 410(I)/91.     -    dated  06.05.1991.

S.R.O. 430(I)/92.     -    dated  14.05.1992.

S.R.O.488(I)/94,      -    dated 09.06.1994.

S.R.O.988(I)/94.      -    dated 06.10.1994

S.R.O.1096(I)/95,    -    dated 13.11.1995

S.R.O.432(I)/96,      -    dated 13.06.1996

S.R.O.200(I)/97,      -    dated 28.03.1997

S.R.O.1130(I)/97     -    dated 03.11.1997