GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCEAND ECONOMIC AFFAIRS

NOTIFICTION

Islamabad, the 4th June, 1995

CUSTOMS

S.R.O. 462 (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, not manufactured locally, shall be exempt from customs duty as is in excess of 10% ad valorem, leviable under the First Schedule to the Customs Act, 1969, if imported for transmission system projects and grid stations including under construction projects, subject to the following conditions, namely:-

(i) The importer shall, at the time of import submit a detailed packing list of machinery and equipment specified in clauses (a), (b), (c), (d) and (e) of explanation below and shall also make a writen declaration on the bill of entry to the effect that the machinery equipment and spares have been imported for the aforesaid projects;

(ii) the importer shall furnish an indemnity bond in the form set out below to the extent of customs-duty exempted under this notification, the said bond shall not be discharged till production of installation certificate from the Assistant Collector of Customs and Excise in whose jurisdiction the project is located, such certificate shall be produced within one year from the date of importation of machinery and equipment, and such certificate 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;

(iii) 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

(iv) 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 percent ad val.

Explanation.- (1) For the purposes of this Notification, "machinery and equipment" shall mean -

(a) machinery and equipment operated by power of any description, such as is used in the generation of power;

(b) apparatus and appliances including metering and testing apparatus and appliances specially adapted for use in conjunction with machinery and equipment specified in clause (a) above;

(d) all machinery and equipment imported temporarily for the construction, erection, installation and end-completion of the project including specific equipments for transmission system projects and grid stations and specialized vehicles ( 4 x 4 non-luxury ) but excluding passenger vehicles; and

(e) component parts of machinery and equipment as specified in clauses (a), (b), (c) and (d) above, identifiable 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 locallymanufactured goods, specified in the General Order, issued by the Central Board of Revenue.

INDEMNITY BOND

( 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 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, by its decision contained in Notification No.S.R.O._____(I)/95, dated the __________, 1995, 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 customs duty as is in excess of 10% ad valorem, if imported for transmission system projects and grid stations, in accordance with the said Notification;

AND WHEREAS, the importers have imported the machinery and equipment mentioned in the "Schedule to this Bond for the purposes of transmission system projects and grid stations 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 Federal Government 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 the date of the importation of the machinery and equipment to the effect that the machinery and equipment has been installed; 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 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 person )

Name and permanent address.

Witness __________________________________________

(Signature, name, designation and full address)

Witness __________________________________________

(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.

SCHEDULE

( machinery and equipment )

( RIAZ HUSAIN NAQVI )

Additional Secretary

(C.No.1(36)-Mach/95-55/95)As amended

S.R.O.391(I)/96, - dated 13.06.1996

S.R.O.707(I)/99, - dated 12.06.1999