GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE AND ECONOMIC
AFFAIRS
NOTIFICATION
Islamabad, the September 7, 1998
CUSTOMS/SALES TAX
S.R.O.954(I)/98.- In exercise of the powers
conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a)
of sub0-section (2) of section 13 of the Sales Tax Act, 1990, the Federal
Government is pleased to direct that goods as specified in Schedule I,
temporarily imported into Pakistan for subsequent exportation, for the purpose
of value added garments, including leather garments, flat goods, ladies hand
bags and soft luggage items, shall be exempt from the whole of customs-duty
leviable under the First Schedule to the Customs Act, 1969 (IV of 1969), and
sales tax leviable thereon subject to the following conditions, namely:-
(1) An application for exemption shall be made to the
Collector of Customs giving full particular of the goods and the purpose for
which they are imported. Only one point
of entry for such imports shall be available as peer the declaration of the
importer;
(2) an indemnity bond alongwith post-dated cheque equivalent
to the amount of customs duty and sales tax otherwise leviable shall be
furnished to the Collector of Customs
concerned in such form as prescribed by the Collector of Customs binding the
importer to re-export the goods, within a period of one and half year and if
the goods are not exported within the stipulated period, the Collector of
Customs shall enforce the indemnity bond alongwith post-dated cheque furnished
to them;
(3) at the time of importation of goods the importer shall
make a written declaration on the bill of entry to the effect that the goods
covered are imported for the purpose of this Notification. At the time of re-exportation of goods the
exporter shall make a written declaration on the bill of export to the effect
that goods covered were imported for the purposes of this Notification giving
particulars of import documents (IGN No., & date, B/E No. & date, Cash
No. & date, etc.);
(4) after the re-exportation of goods, the applicant shall
produce evidence to the Collector of Customs, or the Deputy Collector of
Customs concerned, that
the goods have been re-exported. On the
production of such an evidence the indemnity bond alongwith post-dated cheque
submitted at the time of import shall be released;
(5) the transfer of ownership of temporarily imported goods
may be allowed by the Collector of Customs concerned, subject to the transfer
of title of indemnity bond submitted at the time of import;
(6) in case where temporarily imported goods are used in
addition to other imported raw materials on the imports of which duties and
taxes have been paid and repayment is admissible on export of ultimately
manufactured products, the FOB price for claiming repayment shall be the value
excluding value of the goods temporarily imported under this notification; and
(7) exemption under this notification shall be available to
the extent of five percent of the FOB value of exports, to be declared by the
exporter on each Shipping Bill, giving particulars of import documents as
specified in condition (3) and total FOB value of such re-exported goods so
far.
SCHEDULE I
1. Elastic Webbing,
Knitted and woven, all sorts including knitted rib.
2. Shoulder pads, all
sorts.
3. Labels of textile and
other materials, all sorts with/without precoated adhesive.
4. Zips/Zip fasteners,
metal/plastic/nylon, in pieces or rolls.
5. Button,
plastic/press/metal/wooden/bronze all sorts including leather/textile covered.
6. Rivets and eyelets.
7. Buckles, rings and
decorative fitting, all sorts including plastic/press metal/wooden/bronze
leather.
8. Velcro patties/Velcro
tapes and other fastening materials.
9. Tapes, allsorts
including re-enforcement made of cotton/nylon, woven/non-woven, elastic/non-elastic.
10. Paper labels, care
labels price stickers poly bags stickers.
11. Woven labels.
12. Hang Tags/Ups
Tickets/Insert Tape.
13. Polypropylene strings.
14. Rubber Patches/Leather
Patches.
15. Embroidery Patches.
16. Locker Loops.
17. Plastic Tacks.
18. Draw Cords/Draw
Stains.
19. Eye let grommets.
20. Draw Cord Tunnel
Stoppers.
21. Twill Tape.
22. Embroidery Thread.
23. Hangers with size tab.
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[C.No.11(50)-Rebate/98]
SAYED MOHSIN ASAD
ADDITIONAL SECRETARY
As amended
S.R.O.737(I)/99, - dated 12.06.1999