GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE, REVENUE AND ECONOMIC AFFAIRS
(REVENUE DIVISION)
Islamabad, the 9th June,1994
(CUSTOMS)
S.R.O.502(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 components as are not manufactured locally imported for the manufacture of vehicles, machinery and equipment specified in column (2) of the Table below
from so much of customs-duties leviable under the First Schedule to the said
Act as are in excess of the rates specified in column (3) thereof, subject to
the following conditions, namely :-
(i) The components are in such knocked
down condition as in approved by the Government in case of each specified
vehicles, machinery and equipment;
(ii) the manufacturer has suitable
in-house facilities for progressive
manufacture of vehicles, machinery and equipment inrespect of which he claims
exemption under this notification;
(iii) the manufacturer shall furnish to
Chief, Survey and Rebate, Central Board of Revenue, or any officer authorized
in this behalf, in the prescribed form, the list of vehicles, machinery and
equipment that he is manufacturing or intends to manufacture alongwith the
details of components required and the Chief or such authorized officer in
consultation with the Collector of Customs, Central Excise and or Sales Tax
will certify the annual capacity of the unit for the manufacture of such
vehicles, machinery and equipment and total requirements of various types of
components alongwith the quantity required for the manufacture of each vehcile,
machinery and equipment;
(iv) the manufacturer shall chalk out
deletion program spreading over a maximum period of five years within which
period he shall achieve a minimum deletion in the manufacture of vehicles,
machinery and equipment to the extent of 75% of the C&F value of the inputs
of the manufactured items and continued availability of the exemption under this
Notification shall be contingent upon the achievement progressive annual
deletion as approved by the Central Board of Revenue and Ministry of
Industries; and
(v) the manufacturer shall, at the time
of import of components make a written declaration on the bill of entry to the
effect that the components have been imported in accordance with his
entitlement in terms of conditions (iii).
(vi) at the time of import the manufacturer
shall furnish to the Collector of Customs an indemnity bond and post-dated
cheque of the amount equivalent to the customs duties exempted to abide by the
conditions laid down in the notifications
failing which he would pay the customs duties leviable on each
consignment in excess of any other penalties that may be imposed by the Collector of Customs in this
behalf;
(vii) the manufacturer shall maintain record
f the components and vehicles, machinery and equipment manufactured out of
them in such Form as may be prescribed
by the Central Board of Revenue;
(viii) the manufacturer shall, within one year
of the date of filing of bill of entry for home-consumption or ex-bond bill of
entry relating to the components, apply
to the Collector of Customs for discharging the 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 units is located; and
(ix) in case Assistant Collector, Central
Excise and Customs, is not satisfied regarding the consumption of imported components or use of locally produced
deleted components, he shall report his findings to the Collector of
Customs concerned who shall initiate
proceedings for encashment of post-dated cheque and penal action for giving
false declaration.
Explanation.- For the purposes of this notification
the expression "not 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
TABLE
--------------------------------------------------------------------------------------------------------------------------------------------------------S.No. Description
of Vehicle Rate
of customs-duty on CKD Kits
-------------------------------------------------------------------------------------------------------------------------------------------------------- (1) (2)
(3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Tractors falling under PCT heading 87.01:
(a) agricultural
tractors 0%
(b) others 10%
2. Motor cars of cylinder capacity upto 1600CC falling
under PCT heading 87.03 35%
3. Diesel cars falling under PCT heading 8703.3222 35%
4. Vehicles falling under PCT heading 87.03 excluding those
specified at S.No. 2 above. 35%
5. Vehicles falling under PCT headings:-
(a) 87.02:
(i) for
buses and coaches 15%
(ii) Others 35%
87.04(excluding 8704.2120,8704.2220,
8704.3120 and 8704.3220) 35%
87.05 35%
87.12 35%
87.16 35%
(b) 8704.2120 30%
8704.2220
8704.3120
8704.3220
(c) 87.11 30%
6. Combine harvester - threshers falling under PCT heading
8433.5100 0%
6A. Bulldozers for agriculture purposes falling under heading
84.29. 0%
7. Assembly kits of all the above categories corresponding
to the number of their exported units 0%
ad val.
subject to the following conditions, namely:-
(i) No
duty drawback was claimed at the time of export;
(ii) the
imported kits relate to the vehicle of same engine capacity as was exported;
and
(iii) the
importer makes a declaration in the bill of entry at the time of import that he
intends
to avail this facility and produces
the evidence of export, namely:-
(a) Copy
of the bill of export bearing examination report of Customs;
(b) Bill
of lading; and
(c) Foreign
exchange repatriation certificate
FORM
Certificate No.________________ Dated________________________
It is certified that the components imported in CKD
kits by _______________________________________under notification
(Name of manufacturer)
No.S.R.O._________dated
________and released vide bill of entry No.________dated__________have
been used for the manufacture of_________________in accordance with the scale
laid down by the Chief, Survey and Rebate vide his certificate
No.______________dated__________.
I am also satisfied that all the deleted
components have been manufactured locally.
Assistant
Collector
Name
and official stamp.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[C.No.6(17)/93-CB]
(Riaz Husain Naqvi)
Additional Secretary
As amended
S.R.O.644(I)/94, - dated 30.06.1994. S.R.O.40(I)/98, - dated 21.01.1998
S.R.O.890(I)/94, - dated 13.09.1994 S.R.O.214(I)/98, - dated 31.03.1998
S.R.O.502(I)/95, - dated 14.06.1995 S.R.O.544(I)/98, - dated 12.06.1998
S.R.O.900(I)/95, - dated 05.09.1995 S.R.O.1047(I)/98, - dated 13.10.1998
S.R.O.1306(I)/96, - dated 18.11.1996 S.R.O.294(I)/99, - dated 27.03.1999
S.R.O.225(I)/97, - dated 28.03.1997 S.R.O.695(I)/99, - dated 12.06.1999
S.R.O.322(I)/97, - dated 09.05.1997
S.R.O.586(I)/97, - dated 07.08.1997