GOVERNMENT OF PAKISTAN

GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE, REVENUE AND ECONOMIC AFFAIRS

(REVENUE DIVISION)

NOTIFICATION

Islamabad,the 9th May,1994

CUSTOMS

S.R.O.366(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 exempt 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), on such raw materials and components as are not produced or manufactured locally and are imported for use in the manufacture of machinery, equipment, materials, specialized vehciles, accessories, spares, chemicals and consumables to be supplied to the petroleum sector companies for the projects mentioned in the table of the Notification No.SRO 367(I)/94, dated 9th May,1994, subject to the following conditions, namely :-

(i) The importer-cum-manufacturer has suitable in-house facility to manufacture the articles or he has access to such manufacturing facility elsewhere (names and address to be specified) in respect of which he claims exemptions under this notification;

(ii) at the time of import, the importer makes a declaration on the bill of entry to the effect that the raw materials and components have been imported in accordance with his entitlement for manufacturing of machinery, equipment, materials, specialized vehciles, accessories, spares, chemicals and consumables to be supplied to the petroleum sector companies for the projects mentioned in the table of the Notification No.S.R.O.367(I)/94, dated 9th May,1994, duly supported by a certificate of entitlement from Chief, Survey and Rebate, Central Board of Revenue;

(iii) furnishes an indemnity bond in the form set out herein below to the Collector of Customs at the time of importation of the raw materials and components equal to the amount of customs duty and an undertaking to abide by the conditions laid down in this notification, failing which he shall pay the customs duty exempted under this notification and shall make payment of any penalties that may be imposed by the Collector of Customs in this behalf ; and

(iv) the manufacturer shall, during the validity period of the indemnity bond, apply to the Collector of Customs for discharging the indemnity bond, the application being supported by a certificate in the Form set out below issued by the Assistant Collector, Customs and Central Excise, within whose jurisdiction the manufacturing unit is located and a certificate from the incharge of the concerned project that the articles pertaining to the petroleum sector project have been supplied to it and duly installed, consumed or used as the case may be.

Explanation.- For the purposes of this notification the expression "not produced or manufactured locally" shall mean the goods which are not included in the list of locally manufactured goods, specified in the General Order, issued by the Central Board of Revenue.

[ See condition (iii) ]

(On appropriately stamped non-judicial paper )

INDEMNITY BOND

THIS DEED OF INDEMINITY 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 Government of Pakistan, by its decision contained in Notification No.S.R.O.366(I)/94, dated the 9th May,1994 and subject to the conditions given in the said Notification, has been pleased to direct that such raw materials and components which are not produced locally shall be exempted from so much of the customs duty as is in excess of 10% ad val. leviable thereon, if imported for the local manufacture of machinery, equipment, materials, specialized vehciles, accessories, spares, chemicals and consumables to be supplied to the petroleum sector companies for the projects mentioned in the table of Notification No.S.R.O.367(I)/94, dated 9th May,1994.

AND WHEREAS M/S. ___________________having registered office at _______________have imported the raw materials and components in accordance with the entitlement duly approved by Chief, Survey and Rebates, Central Board of Revenue for the purpose of local manufacture of the above referred machinery, equipment, materials, specialized vehciles, accessories, spares, chemicals and consumables.

NOW,THEREFORE, in consideration of the release of the raw materials and components, the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs._______being the customs duty leviable on the raw materials and components, if the importers fail –

(i) to produce a certificate from the Assistant Collector of Customs and Central Exicse, within one year after the date of filing of bill of entry for home consumption relating to the goods or within such extended period as approved or prescribed by the Collector of Customs as required under the said Notification; and

(ii) to produce such other evidence as the Collector of Customs may require to satisfy himself that the raw materials and components have been utilized in accordance with the conditions of the said Notification.

The importers further agree and bind themsleves that the amount covered by this Bond may be recovered as arrears of customs duty under section 202 of the Customs Act,1969 (IV of 1969) and the rules made thereunder.

The Bond shall be rendered 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 ___________1994.

(Authorized Officer)

Name and permanent address

Collector of Customs

(on behalf of the President)

Witness ___________________________________

(Signature, name,designation and full address)

Witness ____________________________________

(Signature, name, designation and full address)

Note: - The bond shall be witnessed by a Government servant in BPS-17 or above or an officer of a Schedule Bank.

FORM

Certificate No.____________dated____________, I Assistant Collector, Customs and Central Excise,__________, am satisfied that the raw materials and components imported by Messers________________under the provisions of Notification No..S.R.O._____________dated the_____ against the indemnity bond No._____________dated the __________ Bill of Entry No.___________dated the ____________have been used for the manufacture of _____________in accordance with the scale laid down by the Chief, Survey and Rebate, vide certificate No.____________dated the __________and the articles have been supplied against the order of the petroleum sector company M/s.____________and duly installed, consumed or used, as the case may be, in their project(give particulars of the project)

Stamp and Signature

(of Assistant Collector)

[C.No.1(7)Mach./94-48/94]

(Riaz Husain Naqvi)

Additioanl Secretary

[As amended]

S.R.O.509(I)/94, - dated 09.06.1994

S.R.O.381(I)/96, - dated 13.06.1996

S.R.O.691(I)/99, - dated 12.06.1999