GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS

NOTIFICATION

Islamabad, the 5th March, 1997

CUSTOMS

S.R.O.150(I)/97.- Whereas the Government of Pakistan had executed agreements with foreign construction contractors of Hydropower project which provide protection against fiscal changes:

And whereas it is necessary to safeguard such contractual obligations to foreign contractors:

NOW THEREFORE, 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, equipment and construction materials, not manufactured locally, shall be exempt from whole of the customs-duty leviable thereon under the First Schedule to the said Act already imported or to be imported by WAPDA or its contractors under contracts C-01 and C-02 (Barrage and power channel construction for Ghazi Barotha Hydro Power Project), 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 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 project.

(2) the importer shall furnish an indemnity bond in the form prescribed under Notification No. S.R.O.279(I)/94, dated the 2nd April, 1994 to the extent of customs-duty exempted under this Notification. The said bond shall not be discharged till the production of installation certificate from Assistant Collector which shall be produced within one year from the date of importation of machinery and equipment and after due verification by the 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 consumed or the machinery and equipment imported temporarily have 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 (IV of 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 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 clause (i);

(iii) mechanical and electrical controls and transmission gear adapted for use in or with clause (i);

(iv) all machinery and equipment imported temporarily for the construction, erection, installation and end-completion of the project including specific equipments 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), identifiable as for use in or with, such machinery and equipment imported for the project including spares for purposes of the project.

(2) For the purposes of 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.

(C.No.1/26/Mach./95)

RIAZ AHMAD MALIK

ADDITIONAL SECRETARY

As amended

S.R.O.718(I)/99, - dated 12.06.1999