GOVERNMENT OF PAKISTAN

GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE, REVENUE AND ECONOMIC AFFAIRS

(REVENUE DIVISION)

NOTIFICATION

Islamabad, the 5th March,1994.

(CUSTOMS )

S.R.O.224(I)/94.- In exercise of the powers conferred by clause (a) of section 21 of the Customs Act,1969 (IV of 1969), the Federal Government is pleased to authorize delivery without payment of customs duties, on constituent materials specified in Table 1 below for manufacture of goods and their subsequent exportation by manufacturers-cum-exporters registered as a member of an Association in Table-II, subject to the following conditions, namely:-

(1) The manufacturer-cum-exporter shall attach with each bill of entry a certificate issued by the concerned Association to the effect that the said manufacturer-cum-exporter is registered as exporter and makes a declaration on the bill of entry giving full particulars of the imported goods and their use;

(2) the manufacturer-cum-exporter shall furnish an indemnity bond in the form set out below to the extent of customs duties not realized under this notification, duly certified by the head or the Secretary of the concerned Association, to the effect that in case the manufacturer-cum-exporter fails to re-export the goods temporarily imported under this notification within a period not exceeding one year, the Association itself shall be responsible for payment of duty involved;

(3) if for any reason the manufacturer-cum-exporter is not in a position to submit indemnity bond specified in condition (2), a bank guarantee or a post-dated cheque duly certified by the bank concerned shall be furnished to the extent of duties not realized under this notification'

(4) any manufacturer-cum-exporter who intends to make regular imports under this notification may furnish a standing bank guarantee covering duties and taxes for imports to be effected during the whole financial year instead of indemnity bond in individual cases of imports;

(5) the Collector of Customs or Deputy Collector of Customs may refuse entry of any goods without payment of customs duties at import stage if prima facia it appears to him that any of the conditions of this Notification would be breached;

(6) the manufacturer-cum-exporter shall keep on account of goods imported, consumed and exported in the form set out in Annex-I;

(7) the manufacturer-cum-exporter shall intimate, in writing stating full particulars, to the concerned Assistant Collector of Customs of the Customs Station from where the goods were imported, within the stipulated period specified in condition (2) 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 and the copies of relevant shipping bills and bills of lading shall accompany such intimation;

(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 form set out in Annex-I and all imports shall be entered in that register;

(9) at the time of export, the manufacturer-cum-exporter shall declare on each bill of export, precise quantity of goods imported and import particulars thereof (B.E. No. and date, IGM No. date), imported under this notification and used in the finished goods being exported;

(10) wastage of goods imported under this notification as contained in Table-I will be admissible up to three percent of the quantity imported;

(11) the indemnity bond or other instrument shall be discharged on production of account specified in conditions(6) and (7) within the stipulated period to the concerned Collector of Customs;

(12) the importer-cum-manufacturer shall not be entitled for any rebate or duty drawback on export of the goods manufactured from the raw materials imported under this Notification; and

(13) in case of default, the importer-cum-manufacturer and the Association shall be proceeded against under the provision of Customs Act,1969,(IV of 1969), and amount of duty involved shall, in addition to any penal action taken under the Law be recovered under section 202 of the Customs Act,1969(IV of 1969).

TABLE - I

1. interlining materials, woven, non-woven, fusible and non-fusible, all sorts including umbrella interlining.

2. Furlining materials, real or artificial, all sorts.

3. Labels of textile and other materials, all sorts with or without precoated adhesive.

4. Rivets and eyelids, shanks and snap buttons.

5. Buckels, rings and decorative fittings, all sorts including plastic, press, metal, wooden, bronze, leather.

6. Velcro patties or velcro tapes and other fastening materials.

7. Synthetic linging, including artificial leather lining and fabric lining.

TABLE- II

Names of the Associations.

1. Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association.

2. Pakistan Readymade Garments Manufacturers and Exporters Association.

3. Pakistan Hosiery Manufacturers Association.

4. Pakistan Knitwear and Sweaters Exporters Association.

5. Pakistan Art Silk Fabrics and Garments Exporters Association.

FORM

[See condition (2)]

(On appropriately stamped non-judicial paper)

INDEMNITY BOND

THIS DEED OF INDEMNITY is made on the _____________day of ________________BETWEEN Messrs__________

have 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 condition given in the said notification, been pleased to direct that such goods specified in Table-I of the said notification as are imported for manufacture of finished goods and their subsequent exportation, shall be delivered without payment of customs-duty, if imported by the manufacturer-cum-exporters in accordance with the said notification;

AND WHEREAS the manufacturer-cum-exporter having registered office at __________have imported the goods mentioned in table I to this notification 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 without payment of customs-duty and sales tax the importer bind himself to pay on demand to the Collector of Customs 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 prescribed under the said notification, or to give intimation, as laid down under condition (6) and (7) of the said notification; and

(ii) to produce such other evidences as the Collector of Customs may require to satisfy him self that the declarations made or statement or information furnished is bonafide and the goods have been used in the manner laid down in the said notification.

The manufacturer-cum-exporter further binds himself that in case of failure 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).

I, President or Secretary of the Pakistan___________________Association do hereby undertake that the goods imported under the said notification shall be exported by the manufacturer-cum-exporter within the specified period and in the event of failure to export the said goods out of Pakistan, the Pakistan___________________ Association shall be liable to pay the customs duty leviable on such goods.

(President/Secretary of Pakistan__________

Association).

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 officer of a Scheduled Bank.

Annex-I

A-Imports.

--------------------------------------------------------------------------------------------------------------------------------------------------------Vessel's Name IGM No. & date. Index No..& Date. Bill of entry No. & Date Date of clearance Description og goods

from the customs

station.

-------------------------------------------------------------------------------------------------------------------------------------------------------- 1 2 3 4 5 6

--------------------------------------------------------------------------------------------------------------------------------------------------------

Quantity. No. of packages. Rates of duty and taxes Amount of duty and taxes not collected.

prevalent at the time of

importation.

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7 8 9 10

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

B-Exports

--------------------------------------------------------------------------------------------------------------------------------------------------------

Bill of Export No. Description of goods to Date of export or Mate Value of goods.

and date. be exported Receipt No. & date.

1 2 3 4

--------------------------------------------------------------------------------------------------------------------------------------------------------

Particulars of goods imported and used

Description Quantity Value Amount of duty and taxes Balance in hand.

-------------------------------------------------------------------------------------------------------------------------------------------------------- 5 6 7 8 9

--------------------------------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------------------------------- [C.No.1(8)Mach./93-27/94]

(Masud A. Daher)

Additional Secretary

As amended

S.R.O.380(I)/96, - dated 13.06.1996