GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS

 

Islamabad,the 8th January,1996

 

NOTIFICATION

(CUSTOMS)

 

                S.R.O.24(I)/96.-  In exercise of the powers conferred by section 19 of the Customs Act,1969 (IV of 1969) and in supersession of its Notification No.S.R.O.503(I)/94, dated the 9th June,1994, the Federal Government is pleased to exempt raw materials, sub-components and components, as are  not manufactured locally  if imported for the manufacture of components, sub-assemblies of automotive  vehicles , automative battery and bicycles  meant for sale or in house use, from so much of customs-duty leviable under the First Schedule to the said Act as is in excess of rates specified in column (3) of the table below subject to the following conditions, namely:-

 

                (i)            the manufacturer has suitable in house facilities for progressive manufacture of components and sub-assemblies of automotive vehicles in respect of which he claims exemption under this notification;

                (ii)           the manufacturer shall furnish to the Chief, Survey and Rebate, Central Board of Revenue or any other officer authorized in this behalf in the prescribed form the list of components and sub-assemblies of automotive vehicles he is manufacutring or intends to manufacture alongwith the details of inputs required and the Chief or such authorized officer, as the case may be, in consultation with the Collector of Customs, Collector of Central Excise and Collector of Sales Tax shall certify the annual capacity of the unit for the manufacture of such components and sub-assemblies of automotive vehicles and total requirement of inputs alongwith the                                                     quantity required per unit;

                (iii)          the manufacturer shall chalk out deletion programme spreading over a maximum period of five years within which period he shall achieve a minimum deletion in the manufacture of inputs other than raw materials 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 of progressive annual deletion as approved by the Central Board of Revenue and Ministry of Industries; and

                (iv)          the manufacturer shall, at the time of import of inputs make a written declaration on the bill of entry to the effect that the inputs have been imported in accordance with his entitlement in terms of conditions (ii) and (iii);

                (v)           at the time of import, the manufacturer shall furnish to the Collector of Customs an indemnity bond and a post dated cheque of the amount equivalent to the customs-duties exempted and to abide by the conditions laid down in this notification failing which he shall pay the customs-duties leviable on each consignment in addition any other penalties that may be imposed by the Collector of Customs in this behalf;

                (vi)          the manufacturer shall maintain record of inputs and the goods manufactured out of them in such form as may be prescribed by the Central Board of Revenue.

                (vii)         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 inputs, apply to the Collector of Customs for discharging the bond, the application being supported by a certificate in the Form-I set out below, issued by the Assistant Collector Customs and Central Excise within whose jursidiction the manufacturing unit is located;

                (viii)        in case the Assistant Collector, Central Excise and Customs, is not satisfied regarding the consumption of imported inputs or use of locally produced deleted inputs, 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; and

                (ix)          the manufacturer shall maintain a record of the sale of the manufactured goods in Form-II set out below and shall produce, on demand, such record and other evidence of sales as may be required for inspection by an officer of Customs not below the rank of Assistant Collector of Customs in whose jurisdiction the manufacturing unit is located or any other officer authorized by the Central Board of Revenue in this behalf.

 

                Explanation.-  For the purposes of this notification the expression "not manufactured locally" shall mean the goods which are not incuded in the list of locally manufactured goods, specified in the General Order, issued by the Central Board of Revenue.

 

TABLE

                S.No.                       Description of goods                                                             Rate of customs-duty

                 (1)                                          (2)                                                                                           (3)

                1.                             Raw material                                                                                           

 

                                                (i)            for tractors                                                                              0%

                                                (ii)           others                                                                                      10%

                                                (iii)          Bicycles                                                                                   5%

 

                2.                             Sub-components.                                                                                      15%

 

                                                (i)            for tractors                                                                              0%

                                                (ii)           for buses and coaches                                                               10%

                                                (iii)          others                                                                                      15%

                                                (iv)          Bicycles                                                                                   10%

 

                3.                             Components for sub-assemblies and assemblies:

 

                                                i)              for cars, motorcycles, scooters, mopeds and

                                                                auto-rickshaws, etc.                                                                  25%

                                                ii)             for commercial vehicles :

                                                                (a) Buses and coaches..                                                             15%

                                                                (b) others e.g. trucks, vans, etc.                                                25%

                                                iii)            Tractors.                                                                                  0%.

 

FORM I

 

                Certificate No.________________________________                                                         Date__________________

 

 

It is certified that the inputs of parts of automotive vehicles imported by _______________________under Notification No.

                                                                                                             (Name of manufacturer)

S.R.O.____________dated____________and released vide bill of entry No.__________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 inputs have been manufactured locally.

 

Assistant Collector,

                                                                                                                                Name and official stamp.

 

 

FORM II

 

                Register of sale of components and sub-assemblies of automotive vehicles manufactured from inputs imported under Notification No.S.R.O._______. dated_____________________.

 

 

S.No.               Name and address of buyer   Date of sale    Components and sub-assemblies                    Quantity          No. and date of

                                                                                                of automotive vehicles sold                                                    the consumption

                                                                                                                                                                                                certificate.

 (1)                          (2)           (3)                           (4)                            (5)              (6)

 

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( KHALID AKBAR )

                                                                                                                                                Deputy  Secretary

[C.No.2(8)T.II/91-4/96]

 

 

As amended

S.R.O.229(I)/96,      -               dated        04.04.1996              S.R.O.431(I)/96,      -               dated        13.06.1996

S.R.O.1164(I)/96,    -               dated        06.10.1996              S.R.O.215(I)/97,      -               dated        28.03.1997

S.R.O.325(I)/97,      -               dated        09.05.1997              S.R.O.381(I)/97,      -               dated        28.05.1997

S.R.O.427(I)/97,      -               dated        13.06.1997              S.R.O.215(I)/98       -               dated        31.03.1998

S.R.O.549(I)/98       -               dated        12.06.1998              S.R.O.791(I)/98       -               dated        11.07.1998.

S.R.O.713(I)/99,      -               dated        12.06.1999              S.R.O.367(I)/2000,  -               dated        17.06.2000