GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS

NOTIFICATION

Islamabad, the 18th June, 1998

CUSTOMS

S.R.O.622(I)/98.- In exercie of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the plant and machinery, not manufactured locally, shall be exempt from whole of the sales tax leviable under the Sales Tax Act and so much of the customs duty as is in excess of 5% ad valorem leviable thereon under the First Schedule to the Customs Act, 1969, imported or to be imported by WAPDA, M/s Marubeni Corporation Japan (EM-1 Contractor) and M/s Cegelec and Complex of France (EM-2 Contractor) for setting up or for balancing, modernization, replacement or extension of Chashma Hydropower Project, subject to the following conditions, namely:-

(1) The importer shall, at the time of import submit a detailed packing list of lplant and equipment specified below in Explanation below and shall also make a written declaration on the bill of entry to the effect that the plant and equipment 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 and sales tax exempted under this notificatin and the said bond shall not be discharged till the production of installation certificate from Assistant Collector of Customs and Central Excise, which shall be produced within one year fromt he date of importation of plant and machinery 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 plant and machinery imported for the purposes specified in the bills of entry have been duly installed or consumed or the machinery 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

Explanation.- (1) For the purposes of the notification, "machinery and equipment" shall mean,-

(i) machinery and equipment operated by power of any description, such as is used in the hydel 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 equipment 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 claues (i), (ii), (iii) and (iv), identifiable as for use in, or with, such machinery and equipment imported for 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]

(KHALIL MASOOD)

ADDITIONAL SECRETARY

As amended

S.R.O.735(I)/99, - dated 12.06.1999

S.R.O.900(I)/99, - dated 02.08.1999