GOVERNMENT OF PAKISTAN

CENTRAL BOARD OF REVENUE

 

NOTIFICATION

 

Islamabad, the 15th January, 1994

 

CUSTOMS

 

                S.R.O. 36 (I)/94.-  In exercise of the powers conferred by Section 219 of the Customs Act, 1969 (IV of 1969), the Central Board of Revenue is pleased to make the following rules, namely:-

 

1.             Short title and commencement.-  (1)  These rules may be called the Deferment of Import Duties (Power, Gas and Energy Projects) Rules, 1994.

 

                (2)           These shall come into force at once.

 

2.             Definitions.-  In these rules, unless there is anything repugnant in the subject or context,-

 

                (i)            'Act' means the Customs Act, 1969 (IV of 1969);

                (ii)           'Board' means the Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 (IV of 1924);

                (iii)          'deferred amount' means the balance amount of import duties payment whereof has been deferred;

                (iv)          'duties' includes customs duty leviable under the First Schedule to the Act;               

                (v)           'duty'  means import duties leviable under the Act;

                (vi)          'initial payment'  means duties and surcharges paid in cash at the time of clearance of goods;

                (vii)         'power',  gas and energy projects' means:-

 

                                (a)   a facility at any notified port which provides berthing to oil products carrying vessels and includes pumping arrangements to shift such products to any on-shore storage, processing or refining facility;

 

                                (b)   any project set up for purification and compression of gas or for generation of electricity in excess of 100 (one hundred) megawatts.

 

3.             Goods eligible for deferment of duty.-  Any machinery or spare parts and all equipments meant for initial installation or balancing, modernization, replacement and extension (BMR) of any power, gas or energy projects shall be eligible for deferment of duties under these rules.

 

4.             Extent of deferment.-  The whole or any part of duties payable on the goods referred to in rule 3 may be deferred on the conditions, and in the manner laid down in these rules.

 

5.             Payment of deferred amount.-  The importer shall pay the deferred amount  in such installments as the Board may prescribe.

 

6.             Surcharge.-  Surcharge at the rate of eighteen percent per annum shall be payable on the deferred amount commencing from the date of initial payment.

 

7.             Request for deferment.-  (1)  Request for deferment of duties shall be made by an importer to the Board after the project for power or energy has been duly approved.

 

(2)     After the request of deferment has been accepted by the Board, the importer shall be required to furnish

to the concerned Collector the documents mentioned below, namely:-

 

                                (a)   bank guarantee in form 'A' on appropriately stamped non-judicial paper from a scheduled bank in Pakistan covering the deferred amount or any part thereof specified by the Board and surcharges payable thereon.

 

                                (b)   an undertaking in form 'B' by the importer or by any other person specified by the Board on appropriately stamped non-judicial paper for any of the deferred amount for which a bank guarantee is not required as per decision of the Board; and

 

                                (c)   Specimen signatures of the Directors authorized to sign the instruments duly attested.

 

8.             Recovery of deferred amount.-  If the importer fails to make payment of deferred amount or the surcharge payable by him, the same shall be recovered in accordance with section 202 of the Act.

 

 

 

BANK GUARANTEE

 

[See Rule 7(2)(b)]

 

The Collector of Customs

Custom House. . . . . . . . . .

 

Dear Sir,

 

                WHEREAS Messers . . . . . . . . .. . . . . . . . . . having their registered office at . . . . . . . . . . . . . . . . . . . . .(hereinafter called the importers) have imported from Messers . . . . . . . . . . . . . . . . . . . . . .  per s.s.. . . . . . . . . . . . . . . . IGM No. . . . . . . . .. . . . .dated. . .. . . . . . . . . . .Index No. . . . . . . . . . . . . . . . . dated . . . . . . . . . . . . . . . home consumption Bill of Entry No. . . . . . . . . . . . . . . . . . . . . . dated . . . . . . . . . . . . . machinery/spare parts of machinery detailed in the schedule here into annexed (hereinafter called the machinery). . . . . . . . . . . . . . . . . . . . . . for new installation/the balancing/the modernization/the replacement/the extending of its . . . . . . . . . . . . . . . factory/project, on which, in accordance with the procedure for the deferred payment of customs duty laid down in the Deferment of Import Duties (Power, Gas and Energy Projects) Rules, 1994, the importers have been allowed the concession of deferred payment of . . . . . . . . of the amount of duties levied on the machinery.

 

2.             AND WHEREAS an amount of Rs. . . . . . . . . . . .(Rupees . . . . . . . . . . . . . . . . . . . .) has been levied as duties in respect of the said machinery of which an amount of Rs. . . . . . . . . . . . . . . . . . . .(Rupees . . . . . . . . . . . . . . . . . . . . . ) (hereinafter called the deferred duties) has been allowed to be paid in . . . . . . . . .  installments, the first of which will be paid on . . . . . . . . . . . Surcharge on the deferred duties at the rate of eighteen percent per annum has been allowed to be paid alongwith the installments.

 

3.             AND WHEREAS the customs  have agreed to release the machinery on the payment of . . . . . . . . of the duties amounting to Rs.. . . .(Rupees . . . . . . . . . .) in cash alongwith furnishing by the importers of a bank guarantee covering . . . . . . . . . . portion of the deferred amount and surcharge thereon as aforesaid.

 

4.             NOW, THEREFORE, in consideration of the release of the machinery to the importers, we, Messers . . . . . . . . .  Bank Limited. . . . . do hereby bind ourselves to the President of Pakistan to pay to the Collector of Customs the deferred amount and the surcharge thereon at the rate of eighteen  per cent per annum for the whole period the deferred amount or any part thereof remaining un-paid from the date on which the machinery is released to the importers.

 

5.             NOW THE CONDITIONS OF THIS BANK GUARANTEE ARE AS UNDER:-

               

                (1)           That the importers shall pay to you the deferred amount in lump sum after three years from the date of initial payment of duties.

               

                (2)           That the importers shall also pay to you the surcharge due on the deferred amount at the rate of eleven per cent per annum in six half-yearly installments, the first of such installments being payable on the . . . . . . .day . . . . . . . . . . . 19      .

 

                (3)           That in the event of any default on the part of the importers to pay the deferred amount or of the surcharge due from them, we, Messers. . . . . . Bank Limited, shall pay to you any part of the deferred amount or of the surcharge due within ten days from the date of receipt of demand therefor from you which demand shall be considered by us as conclusive evidence of non payment of the instalment by the importers.

 

                (4)           That we do hereby agree to the payment of surcharge on the amount of surcharge if the installment of surcharge is  delayed for more than one month from the due date till the date the payment is made, provided that you agree, on the request of the importers, not to take action under condition (6) (a) of this bank guarantee.

 

                (5)           That we do hereby agree and declare that in the event of any default in the payment of any sum stated hereunder it may, without prejudice to any other remedy which may be available to you, be recovered by you under section 202 of the Customs Act, 1969.

 

         (6)           That, notwithstanding anything contained in the foregoing, the deferred amount or any part thereof and surcharge, as aforesaid, shall immediately become payable to you in any of the following events:-

 

                                (a)   if the importers make default for one month in the payment of any installment of the surcharge or of the deferred amount;

                                (b)   if the importers cease or threaten to cease to carry on their business;

                                (c)   if a distress or execution be levied upon or issued against any of the properties of the importers and not paid out by the importers within seven days; or

                                (d)   if any order be made or resolution be passed for winding up the importing company otherwise than in connection with a scheme of amalgamation or reconstruction.

                               

 

FURTHER CONDITIONS OF THIS BANK GUARANTEE ARE AS FOLLOWS:-

 

                (1)           Any notice may be given to the importers/bank by sending the same by registered post, which shall be deemed to have been served at the time when it would have been received by the addressee in the ordinary course of the post.

 

                (2)           The amount payable hereunder as principal or surcharge at the specified date may be declared and the same shall thereupon become due and payable immediately.

 

7.             That this bank guarantee is valid upto . . . . . . . . . . . . . . . . . . . . . . . .

 

8.             IN WITHNESS WHEREOF  we have . . . . . . . . . .  this . . . . . . . . . . .day of . . . . . . . . . . .19. . . . . . . . caused this guarantee to be signed under the official stamp in the presence of ..

 

                1.  . . . . . . . . . . . . . . . . . . . . . . . .                                            2. . . . . . . . . . . . . . . . . . . . . . . . . .

                                                Officer                                                                                     Manager

                   . . . . . . . . . . . . Bank Limited.                                               . . . . . . . . . . . . Bank Limited.

 

1.   . . . . . . . . . . . . . . . . . . . . .

 

2.  . . . . . . . . . . . . . . . . . . . .  .

 

UNDERTAKING

 

[  see rule 7(2) (b)  ]

 

The Collector of Customs,

Custom House . . . . . . . . . . . .

 

                WHEREAS M/s . . . . . . . . . . . . . . . . . . , a company incorporated under the Companies Ordinance, 1984 (XLVII of 1984), having its registered office at . . . . . . . . . . .(hereinafter referred to as the Company) has imported, vide Bill of Entry . . . . . . . .  machinery detailed in the schedule hereto annexed (hereinafter called the machinery) for new installation/the balancing/the modernizing/the replacing/the extending of its. . . . . . . . . . . . .  at . . . . . . . . . . . . . on which an amount of Rs. . . . . . . . . . . . . . . . (Rupees . . . . . . . . . . .  )  has been levied as customs duty payable by the Company;

 

                AND WHEREAS in accordance with the procedure for deferred payment of duties laid down in the Deferment of Import Duties (Power, Gas and Energy Projects) Rules, 1993, an amount of Rs. . . . . . . . . . . . (Rupees . . . . . . . . . ) has been paid by the Company in cash vide receipt No. . . . . . . . . . dated . . . . . . . . and the company has furnished bank guarantee of Rs. . . . . . . . . . . as security for the deferred amount of duties;

 

                AND WHEREAS it is necessary further to furnish to you assurances connected with the performance of the obligations of the Company;

 

                NOW, THEREFORE, we, Messers. . . . . . . . . . . . . . . . .  Directors of the Company, do hereby assure you on behalf of the Company that we shall conduct our business with due diligence, efficiency and in accordance with sound business practices and shall keep all its property and assets in proper order and AGREE AND UNDERTAKE as follows:-

 

                (1)           That your        authorized representatives will have authority to inspect during working hours all books of account and other registers maintained by the Company.

               

                (2)           That the Company shall submit to you a certified copy of its audited balance sheet and profit and loss account within three months of the closing of the financial year together with the Auditor's report.

 

                (3)           That the Company shall pay the deferred amount of Rs. . . . . . . .  (Rupees . . . . . . . . . . . . . . . ) in the manner specified by Central Board of Revenue or the Collector, as the case may and shall also pay the surcharge due on the said deferred amount at the rate of eighteen per cent per annum in like manner.

 

                (4)           That the Company shall pay to you all money due from it promptly and fully, it being understood and agreed by us that any money having become payable by the Company and not paid shall be recoverable from the Company under the provisions of  section 202 of the Customs Act, 1969, at the cost and risk of the Company, without prejudice to any other right of the Government to recover it and that no delay on your part in recovering any money due from the Company shall deprive you of your right in respect thereof or constitute any right on your part for the recovery thereof.

 

                IN WITTINESS WHEREOF we, . . . . . . . . . . . . and . . . . . . . . . . in our capacity as Directors of the company have caused this undertaking to be signed and sealed by and in the presence of our authorized representative on this . . . . . .  day of . . . . . . . . 19        .

 

                1. . . . . . . . . . . . . . . . . . . . . . . .                                                               2. . . . . . . . . . . . . . . . . . . . . . . . .

                Director of the Company                                                                         Director of the Company

 

Witness :

 

1.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Name, full address and stamp of the gazetted officer/Seal of the Court).

 

 

[C.No.1(10)-Mach/93]

                                                                                                                                                    A.M. KHALID

As amended                                                                                                                              Secretary (Machinery)

S.R.O.997(I)/94.      -      dated 06.10.1994

S.R.O.409(I)/96,      -      dated 13.06.1996.