GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE, REVENUE AND ECONOMIC
AFFAIRS
(REVENUE DIVISION)
NOTIFICATION
Islamabad, the 2nd April, 1994
(CUSTOMS)
S.R.O. 279 (I)/94.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the machinery, equipment and construction materials, including coal mining equipment, shall be exempt from the whole of the customs duty leviable under the First Schedule to the Customs Act, 1969 chargeable thereon, if imported for setting up or for balancing, modernization, and extension of power generation i.e., oil, gas, coal wind and wave energy projects, including under construction projects, which entered into an implementation agreement with the Government of Pakistan, subject to the conditions set out below, namely:-
(1) The importer shall, at the time of import submit a detailed packing list of machinery and equipment specified below in Explanation (i), (ii), (iii), (iv) and (v) and shall also make a written declaration on the bill of entry to the effect that the machinery and equipment and spares have been imported for the aforesaid projects.
(2) the importer shall furnish an indemnity bond in the form set out herein below to the extent of customs duty exempted under this notification. and the said bond shall not be discharged till,-
(i) in case of temporary importation, the production of bill of export supported by related invoice and other shipping documents attested by the Collector of Customs (Exports), having jurisdiction, as a proof that the said machinery and equipment have been re-exported; and
(ii) in case of permanent importation, the production of installation or consumption certificate from Assistant Collector or Deputy Collector, within one year from the date of importation of plant and machinery, after due verification by the Assistant Collector or Deputy Collector of Customs and Central Excise in whose jurisdiction the project is located. Such certificate of verification shall clearly state that machinery and equipment imported for the purposes specified in the bills of entry have been duly instlled or consumed.
(3) In the event of non-production of such certificate by the importer the Collector of Customs shall enforce the indemnity bond and proceed to recover Government dues under section 202 of the Customs Act, 1969, and the rules made thereunder.
(4) Spares and maintenance parts required for the project after its commissioning would be subject to customs-duty at the rate of twenty per cent ad val..
Explanation.,
For the purpose of this Notification, "machinery and equipment" shall mean -
(i) machinery and equipment operated by power of any description, such as is used in the generation of power;
(ii) apparatus and appliances, including metering and testing apparatus and appliances specially adapted for use in conjunction with machinery and equipment specified in item (i) above;
(iii) mechanical and electrical controls and transmission gear adapted for use in or with item (i) above;
(iv) all machinery and equipment imported temporarily for the construction, erection, installation and end-completion of the project including specific equipment for thermal power and specialized vehicles (4 x 4 non-luxury), but excluding passenger vehicles; and
(v) component parts of machinery and equipment as specified in item (i), (ii), (iii) and (iv) above, identifiable as for use in or with such machinery imported for the project and equipment, including spares for purposes of the project.
[ See Condition (2) ]
(On appropriately stamped non-judicial
paper)
THIS DEED OF INDEMNITY is made on the __________________________day of _____________________BETWEEN___________ Messers______________________having registered office at __________________________(hereinafter called "the importer" 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 has, by its decision contained in Notification No. S.R.O.______________dated the ___________ and subject to the conditions given in the said Notification, been pleased to direct that such machinery and equipment as is not manufactured locally, shall be exempted from whole of the customs duty leviable thereon, if imported for the setting up, modernization, balancing or expansion of power generation projects in accordance with the said Notification;
AND WHEREAS M/s___________________________having registered office at _______________(hereinafter called the importers) have imported the plant and machinery mentioned in the *Schedule to this Bond for the purpose of the setting up, modernization, balancing or expansion of power generation project in accordance with the conditions given in the said Notification;
NOW, THEREFORE, in consideration of the release of the machinery and equipment without recovery of customs duty the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs._____________being the customs-duty leviable on the machinery, if the importers fail -
(i) to produce a certificate from the Assistant Collector of Customs and Central Excise, within one year from date of its import.
(ii) to produce such other evidence as the Collector of Customs may require to satisfy himself, that the machinery and equipment 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 may be recovered as arrears of customs duty under section 202 of the Customs Act, 1969, and the rules made thereunder.
The Bond shall be rendered as 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 and the aforesaid Notification.
Signed
by importers on this________________________day
of_______________________19 .
________________________________________
(Authorized
Officer)
Name
and permanent address
Withness ______________________________________________
(Signature,
name, designation and full address).
Withness ______________________________________________
(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 17 or above or an officer of a Schedule Bank.
* SCHEDULE OF MACHINERY and equipment attached.
( RIAZ HUSAIN NAQVI )
Additional Secretary
[As
amended]
S.R.O. 530(I)/94, - dated 09.06.1994.
S.R.O.1140(I)/94. - dated 24.11.1994.
S.R.O.416(I)/95. - dated 28.05.1995
S.R.O. 410(I)/95, - dated 23.05.1995.
S.R.O.431(I)/95, - dated 30.05.1995.
S.R.O.584(I)/95, - dated 01.07.1995
S.R.O.773(I)/95, - dated 01.08.1995
S.R.O.981(I)/95, - dated 04.10.1995
S.R.O.1125(I)/95, - dated 28.11.1995
S.R.O.426(I)/96, - dated 13.06.1996
S.R.O.689(I)/99, - dated 12.06.1999