GOVERNMENT OF PAKISTAN
CENTRAL BOARD OF REVENUE
NOTIFICATION
Islamabad, the 24th November, 1996
CUSTOMS
S.R.O.1319(I)/96.- In
exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of
1969), and in suppression of its Notification No. S.R.O.790(I)/906, dated the
15th September, 1996, the Central Board of Revenue is pleased to make the
following rules relating to the clearance of the following dutiable imported
goods, without payment of duty, for the manufacture of goods meant wholly for
export, namely:-
(i) Raw and pickled hides and skins;
(ii) wet blue hides and skins;
(iii) finished leather; and
(iv) accessories, components and trimmings for leather
manufacturers.
1. The Collector of Customs may, on
the application of an importer of dutiable goods, hereinafter referred to as
raw materials, who intends to use the raw materials in the manufacture of goods
which are wholly meant for export and makes a declaration to that effect, allow
the importer to clear the raw materials, without payment of duty, under bond to
a factory which is a private warehouse licensed under the Customs Act, 1969 )IV
of 1969).
2. (1) Before removal of raw materials for manufacture, the
importer shall apply to the Collector within whose jurisdiction the
manufacturing bond is located with Master Specimen Card which should show
specimens of all the imported items with complete details of the bill of
entry: Before exporting the finished
product the same importer shall lapply and get a copy of certified Analysis
Card which shall show the quantity of raw materials required for the
manufacture of a unit of the goods meant for export; Input, output ratio and wastages, however, shall be
mentioned on the analysis card.
(2) The Collector concerned shall retain one copy of the
certified analysis card and hand over one such copy to the importer to be
produced by him at the time of export clearance of finished goods, and one such
copy of certified analysis card is also to be given to:-
(a) the export station for retention in
the export section thereof for the purpose of comparison with the manufactured
goods at the time of their export; and
(b) the officer-in-charge of the
warehouse on the factory premises.
3. The raw materials cleared under
rule 1 shall be used only for the manufacture of goods for export in bond under
Customs supervision.
4 (1) An
importer who desires to clear any raw material under rule 1 shall apply to the
Collector within whose jurisdiction the manufacturing unit is located, and the
quantitative control ensuring re-export be carried out in terms of value-added
goods such as finished leather or leather manufactures, as the case may be.
(2) The
importer shall declare separately in the customs into-bond bill of entry the
exact quantity and value of the raw materials specifically imported or
allocated for the manufacture of goods in bond under Customs supervision.
(3) The
importer shall consume the raw materials imported under rule 1, within a period
of two years and those supplied free of cost or imported on credit shall be
consumed within three years from the date of admission of such raw materials in
the factory.
5. Before allowing clearance of any
raw material under rule 1, the Customs authorities shall take a note of the raw
materials declared under sub-rule (2) of rule 4 and endorse the relative
invoices and the bill of entry with the words, "FOR MANUFACTURE IN
BOND" in capital letters.
6. After the requirement of rules 2, 4
and 5 have been duly complied with and the importer has executed a bond of an
amount equal to twice the amount of the duty and taxes chargeable on the raw
materials imported by him on such terms and conditions as may be specified by
the Collector of Customs, the Collector shall allow clearance of the raw
materials and their removal under Customs supervision to the importer's factory
which is a private warehouse licensed under the Customs Act, 1969 (IV of 1969).
7. (1) Any
wastage or defective goods shall, at the option of the importer, be removed to
a place set apart or destroyed
under
Customs supervision or cleared for home-consumption on payment of the duties
and taxes payable in respect of the raw materials.
(2) An
importer who desires to re-export raw materials imported for manufacture of
goods under these rules shall re-export the same within the period specified in
sub-rule (3) of rule 4.
8. The importer shall maintain proper
accounts of the imports, production, export and wastages of the raw materials
and finished goods to the satisfaction of the Collector of Customs in separate
parts of register in the following form or in such other form as the Central
Board of Revenue may direct, namely:-
PART - I
( Materials in bond )
(i)
Vessel's name.
(ii) IGM No. and date.
(iii) No. of bill of entry and date.
(iv) Description of materials.
(v) Quantity received.
(vi) Value and amount of duties and taxes.
(vii) No. of packages received.
(viii)
Date of receipt.
(ix) Officer's signature and date.
PART II
( In production )
(i) Quantity issued for manufacture.
(ii) Quantity of the goods manufactured.
(iii) Quantity of goods manufactured for export.
(iv) No. of cases packed, sealed and stored in the finished
goods in bond for export.
(v) Quantity of each case for export and case No.
(vi) Quantity of goods found defective.
(vii) Quantity of wastage fit to be
destroyed.
(viii) Officer's signature and date.
PART III
(
Finished goods in bond )
(i) No. of cases transferred in the finished goods in bond.
(ii) Quantity of goods in each case and case No.
(iii) Quantity of goods shipped.
(iv) Reference No. of shipping documents.
(v) Quantity in goods for export in balance in bond.
(vi) Officer's signature and date.
PART IV
( Wastage
and defective products )
(i) Quantity of goods found defective on manufacture.
(ii) Quantity of raw materials related to the goods found
defective.
(iii) Amount of duties and taxes paid.
(iv) Ex-bond for home-consumption bill of entry No. and date.
(v) Quantity of wastages destroyed.
(vi) Officer' signature and date.
9. The importer shall bear the cost of
the Customs staff posted at his bonded premises as Bond Officers as well as for
those posted for examination and transport of the export goods at the
examination sheds at the wharf or airport:
Provided that, the customs staff
shall not be posted for transport of the export goods to the examination at the
ports or airports for the consignments the value of which is less than one
hundred thousand rupees.
10. The importer shall enter into a
genereal bond, to be prescribed by the Collector of Customs, binding himself:-
(i) to provide such officer all facilities as may be required
by the Collector of Customs at his bonded premises;
(ii) to observe rules, procedure and instructions that may be
prescribed in respect of manufacture of the goods in bond;
(iii) to maintain detailed accounts in different parts of the
register mentioned in rule 8 and to keep the register and the relevant
documents open to Customs inspection on demand;
(iv) to pay on demand all duties and taxes together with
surcharge at 7 per cent per annum from the date of importation in respect of
raw materials which are used otherwise than for the manufacture of goods for
export in bond and which are not accounted for to the satisfaction of the
Collector of Customs and to pay any penalties imposed by the Collector for
violation of these rules or the Customs Act, 1969;
(v) to pay the cost of Customs staff posted at the bonded
premises from month to month within a week's time from the date of demand
thereof by the Collector of Customs; and
(vi) to abide by such further conditions imposed by the
Collector of Customs as may be necessary for purposes of identification and
accounting of the raw materials used in the manufacture of finished goods;
11. (i) the
bond under which a particular consignment is cleared shall be discharged when
the goods
manufactured in
bond related to that
consignment are shipped and duties and taxes, if any, are paid on all related
wastages and remnants cleared for home consumption; and
(ii) the bill of export related to the export of the goods
manufactured in bond shall be endorsed by the words "MANUFACTURED IN BOND" in capital letters.
12. No more than 5 per cent in terms of quantity of the raw materials shall be allowed to account for wastage or defective manufacture and the duties and taxes shall be paid in respect of any wastages or defective goods cleared for home consumption and in case of leather manufacture, leather trimmings and cuttings shall be determined by the Collector of Customs as wastage or part of consumption as decided by him in the certified analysis card.
13. The production and shipment reports,
the register maintained under rule 8 and the relevant documents shall be
audited after the end of each half year by the Officers of the Audit
Organization of the Custom House and a
certificate to the effect that the accounts are in order shall be submitted by
the Auditor of the Custom House in the first week of the month following the half
year of which the accounts have been audited.
14. The repayment of duties shall be
allowed on export of manufactured goods on account of other duty paid inputs
like tanning and dyeing materials, colors, pigments, linings, buttons and other
accessories etc. as given in the specified notification issued by the Central
Board of Revenue for the purpose.
Annex-A
SPECIMEN OF CERTIFIED ANALYSIS CARD FOR FINISHED
LEATHER AND LEATHER MANUFACTURES
( For
Import of Raw, Pickled, or Wet Blue Leather
)
Input
_______________Skins______Hides,_______________Sq.Ft.
of Raw pickled or Wet Blue vide Bill of Entry No._________Dated___________.
Output
(a) Finished
Leather:
________________Skins_____Hides/______________Sq.
Ft. of Finished Leather or
(b) Leather
Manufactuers:
Style____________________
Consumption
______________Sq. Ft. Per Unit/__________Skins___________Hides Per Unit.
Wastage
Annex - B
SPECIMEN OF CERTIFIED ANALYSIS CARD FOR LEATHER
MANUFACTURES
( For
Import of Finished Leather )
Input
_______________Skins
and Hides _______________Sq. Ft. of Finished Leather
Vide Bill of entry No.
_______________Dated_________________
Output
Style Number
__________________________
Consumption
---------------------Number of
Skins/Hides Per Unit.
Or
--------------------Sq. Ft. Per
Unit.
Wastage
Annex C
SPECIMEN OF CERTIFIED ANALYSIS CARD FOR LEATHER
MANUFACTURES
( For
Import of Accessories )
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Details
of Accessories Name
of Styles/Models
----------------------------------------------------------------------------------------------------------------------------
Style
A Style B Style C Style
D Style E Style F Style
G
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Buttons
Zippers
2 Side
stitching
Tape
Fusing
Stopper
Cord
Ends
Lining
Manger
Loops
Fur
Logo
Tags
Eyelets
Rivets
Bicycles
D Tags
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Wastage