GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE AND ECONOMIC
AFFAIRS
NOTIFICATION
Islamabad, the 30th May, 1995
(CUSTOMS)
S.R.O.429(I)/95.- 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 and equipment, if not manufactured locally, shall
be exempt from so much of the customs duty as is in excess of 10% ad valorem leviable under the First
Schedule to the Customs Act, 1969, if imported for setting up of hydel power
generation projects, including under construction projects subject to the
following conditions, namely:-
(1) The importer shall, at the time of import, submit a
detailed packing list of machinery and equipment specified in clauses (i),
(ii), (iii), (iv) and (v) of the Explanation to this notification 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 below to the extent of customs duty and
sales tax exempted under this notification, the said bond shall not be
discharged till production of installation certificate, which shall be produced
within one year from the date of importation of plant or machinery, from
Assistant Collector of Customs and Central Excise, in whose jurisdiction the
project is located and such certificate of verification would clearly state
that machinery and equipment imported for the purposes specified in the bills
of entry have been duly installed or the machinery and equipment imported
temporarily has been duly re-exported;
(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; and
(4) spares and maintenance parts not
locally manufactured required for the project after its commissioning would be
subject to customs-duty at the rate of twenty per cent ad valorem.
Explanation.- (1) For the purposes of this Notification,
"machinery and equipment" shall mean,-
(i) machinery and equipment operated by power
of any description used in the generation of hydel power;
(ii) apparatus and appliances, including metering
and testing apparatus and appliances specially adapted for use in conjunction
with machinery and equipment specified in clause (i) above;
(iii) mechanical and electrical controls and
transmission gear adapted for use in, or with, machinery specified in clause
(i) above;
(iv) all machinery and equipment imported
temporarily for the construction, erection, installation and completion of the
project including specific equipment for hydel power and specialized vehicles (
4 x 4 non-luxury ), but excluding passenger vehicles; and
(v) component parts of machinery and equipment
as specified in clauses (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.
(2) In 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.
{ 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 importers" which expression shall include their successor,
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, vide its Notification No.S.R.O._________, dated the
______________, and subject to the conditions specified in the said
Notification, been pleased to direct that such machinery and equipment as is
not manufactured locally, shall be exempt from so much of the customs duty as
is in excess of 10% ad valorem leviable thereon, if imported for hydel power
generation projects in accordance with the said Notification;
AND WHEREAS
M/s____________________________have imported the plant and machinery mentioned
in the Schedule to this bond for the purpose of setting up of hydel power
generation project in accordance with the conditions specified 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 and equipment,
if the importers fail -
(a) to produce a certificate from the Assistant Collector of
Customs and Central Excise, within one year from date of its import; and
(b) 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 tht the amount covered by this bond may be
recovdred as arrears of customs duty under section 202 of the Customs Act, 1969
and the rules made thereunder.
This bond shall
become void when the aforesaid certificate has been produced and the Collector
of Customs is satisified that the importers have fulfilled all the conditions
of this bond and the aforesaid Notification.
Signed by importers
on this __________________day of___________________________19
( Authorized Officr )
Name and permanent address
Collector of Customs
(On behalf of the President)
Witness__________________________________________
(Signature, name,
designation and full address)
Witmess_________________________________________
(Signature, name,
designation and full address)
_____________________________________________________________________________________________________
Note: This bond shall be witnessed
by a Government servant in BPS 17 or above or an officer of a scheduled bank.
(C.No.1(26)-Mach/95-52/95)
RIAZ HUSAIN NAQVI
Additional Secretary
As amended
S.R.O.390(I)/96, - dated 13.06.1996
S.R.O.706(I)/99, - dated 12.06.1999