GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS

Islamabad, the 2nd June,1998.

NOTIFICATION

(CUSTOMS AND SALES TAX)

S.R.O.511(I)/98.- In exercise of the powers conferred by section 19 of the Customs Act,1969(IV of 1969), and clause (a) of sub-section (1) of section 13 of the Sales Tax Act,1990, the Federal Government is pleased to exempt from whole of sales tax (on imports and its subsequent to subscriber); and from so much of the customs duty leviable under the First Schedule to the Customs Act, 1969 (IV of 1969), as is in excess of one thousand two hundrfed and fifty rupees per cellular telephone(hand-held set) alongwith one battery and a battery charger imported by the recognized cellular mobile companies, subject to the following conditions, namely:-

(i) The delivery of the hand held sets shall be allowed without payment of customs duty and sales tax at the time of import but the customs duty at the rate of one thousand two hundred and fifty rupees per connection shall be paid on the sets imported under this arrangement as well as those presented at the time of first energization or activation;

(ii) the release shall be allowed by the concerned Collector of Customs against indemnity bond equal to the amount of duty and sales tax applicable at the time of import;

(iii) only those hand-held sets shall be allowed release under this arrangement as are approved by the Pakistan Telecommunication Authority (PTA);

(iv) the cellular company shall maintain records for a period of three years of the sets released under this arrangement as well as those energized or activated after payment of fixed customs-duty and such record shall be produced by the company for inspection, as and when required, by an appropriate officer of customs, Central Excise, Sales Tax or the Pakistan Telecommunication Authority;

(v) the indemnity bond shall be released by the concerned Collector on production of a certificate by the Assistant Collector or Deputy Collector of Central Excise of the area, alongwith evidence of payment to the effect that the imported sets as well as those presented otherwise were energized or activated against payment of customs-duty ; and

(vi) the cellular companies shall deposit the customs duty, so collected, in the relevant head of account on the last working day of each month during which the sets are energized or activated.

INDEMNITY BOND

[ See condition (ii) ]

(On appropriately stamped non-judicial paper )

THIS DEED OF INDEMNITY is made on the ____________date of ___________BETWEEN Messers_________ having registered office at ___________(hereinafter called " the importers" which expression shall include 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, vide its Notification No. S.R.O._____, dated the _________ and subject to the conditions given in that Notification, been pleased that the cellular telephone (hand held sets), alongwith battery and battery charger shall be exempt from the whole of sales tax and from so much of customs-duty as is in excess of one thousand two hundred and fifty rupees chargeable and leviable thereon if imported by the recognized cellular telephone companies in accordance with the conditions given in the said Notification;

NOW, THEREFORE, in consideration of the release of the cellular telephone (hand held sets), alongwith one battery and battery charger, without payment of customs-duty and sales tax, the importers bind themselves to pay on demand to the Government of Pakistan a sum equal to the amount of customs duty and sales tax leviable on ceulular telephone(hand held sets) alongwith battery and battery charger, if the importer fails-

(a) to pay customs-duty at the rate of one thousand two hundred and fifty rupees per set at the time of energization and activation of imported sets as well as those otherwise presented to them for energization or activation; and

(b) to produce a certificate from the Assistant Collector or Deputy Collector of Central Excise, of the area, to the effect that imported sets as well as those otherwise presented were energized or activated on payment of customs-duty at the rate prescribed in the said Notification.

2. The importers further agree and they bind themselves that the amount payable under this bond may be recovered as arrears of customs-duty under section 202 of the Customs Act,1969(IV of 1969), and the rules made thereunder.

3. This bond shall be rendered void when the aforesaid certificate has been produced and the Collector of Customs concerned is satisfied that the importers have fulfilled all the conditions of this bond and the aforesaid Notification.

Signed by importers on this________________ day of __________________19

(Authorised person)

On behalf of the

Cellular mobile telephone company

Collector of Customs

(On behalf of the President)

Witness __________________________________________________________

(signature, name, designation and full address)

Witness _________________________________________________________

(signature, name, designation and full address).

Note:- This bond shall be witnessed by a Government servant in BPS 17 or above or an officer of a Scheduled bank;

DETAIL OF CELLULAR TELEPHONE (HAND HELD SETS)

[C.No.12/6/Mach./96] (KHALIL MASOOD)

Additional Secretary

As amended

S.R.O. 5 (I)/99, - dated 04.01.1999

S.R.O.730(I)/99, - dated 12.06.1999