GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE AND ECONOMIC AFFAIRS
NOTIFICATION
Islamabad,
the 1st July, 1995
CUSTOMS
S.R.O. 585(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, including coal mining equipment, not manufactured locally, shall be exempt from customs duty in excess of 10% leviable under the First Schedule to the same Act, if imported for setting up or for balancing, modernization, and extension of power generation through oil, gas, coal wind and wave energy projects, including under construction projects, subject to following conditions, namely:-
(1) The importer shall, at the time of import submit a detailed packing list of machinery and equipment specified below in Explanation (i), (ii), (iii), (iv) and (v) 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 herein below to the extent of customs-duty exempted under this Notification. The said bond shall not be discharged till the production of installation certificate from the Assistant Collector which shall be produced within one year from the date of importation of plant and machinery and after due verification by the Assistant Collector of Customs and Central Excise in whose jurisdiction the project is located. 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 part not locally manufactured required for the project after its commissioning would be subject to customs-duty at the rate of twenty per cent ad val.
Explanation (1) For the
purpose of the Notification, "machinery and equipment" shall mean -
(i) machinery and equipment operated by power of any description, such as is used in the generation of power;
(ii) apparatus and appliances, including metering and testing apparatus and appliances specially adapted for use in conjunction with machinery and equipment specified in Explanation (i) above;
(iii) mechanical and electrical controls and transmission gear adapted for use in or with Explanation (i) above.
(iv) all machinery and equipment imported temprarily for the construction, erection, installation and end-completion of the project including specific equipments for thermal power and specialized vehicles ( 4 x 4 non - luxury ), but excluding passenger vehicles; and
(v) component parts of machinery and equipment as specified in Explanation (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.
FORM
( See condition (2) )
( On appropriately stamped non-judicial
paper )
INDEMNITY
BOND
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.________, dated the _________and subject to the
conditions given in the said Notification, been pleased to direct that such
machinery and equipment shall be exempted from customs duty in excess of 10% ad
valorem leviable thereon, if imported for the setting up, modernization,
balacning or expansion of power generation projects, in accordance with the
said Notification;
AND WHEREAS M/s ______________having registered office at_______________(hereinafter called the importers) have imported the plant and machinery mentioned in the "Schedule to this Bond for the purpose of the setting up, modernization, balancing or expansion of power generation project 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 in excess of 10% ad valorem 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, 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;
(b) to produce such other evidence as the Collector of Customs may required 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 recoverred 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 importrs have fulfilled all the conditions of this Bond and the aforesaid Notification.
Signed by importers on this _______________day of ______________19 .
-----------------------------------------
( Authorized Officer )
Name and Permanent address
Withness _____________________________________________
(Signature, name, designation and full address)
Withness _____________________________________________
(Signature, name, designation and full address)
Note: This bond shall be written on appropriate non-judicial stamp paper and shall be witnessed by a Government servant in Basic Pay Scale 17 or above or an officer of a schedule bank.
SCHEDULE OF MACHINERY and equipment attached.
(C.No.1(45)-Mach/95-105/95)
( RIAZ HUSAIN NAQVI )
Additional Secretary
As amended
S.R.O.710(I)/99, - dated 12.06.1999