GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE AND ECONOMIC
AFFAIRS
NOTIFICATION
Islamabad, the 28th July, 1997
CUSTOMS
S.R.O.557(I)/97.- In exercise of the
powers conferred by section 19 of the Customs Act, 1969 (IV of 19679), the
Federal Government is pleased to direct that the machinery, equipment and
construction materials, not manufactured locally, shall be exempt from so much
of the customs sduty as is in excess of 2% leviable thereon under the First
Schedule to the said Act, imported or to be imported by WAPDA or its contractors under contract C-03
(Civil Works of Power Complex and Ancillary Works for Ghazi Brotha 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 of Customs and Central Excise in whose jurisdiction the project is located, and this certificate shall be produced within one year from the date of importation of machinery and equipment and after due verification by the said Assistant Collector this 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 a 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 purposes of this notification,
"machinery and equipment" shall mean.-
(i) machinery and equipment operated by power of any description, such as is used in the generation of hydel 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, machinery specified in clause (i);
(iv) all machinery and equipment imported temporarily for the construction, erection, installation and 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) In this notification the expression "not manufactured locally" shall mean the goods which are not included in the list of locally manufactured goods, specified inthe 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.721(I)/99, - dated 12.06.1999