GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS & REVENUE

NOTIFICATION

Islamabad, the 1st July, 1999

CUSTOMS

S.R.O.812(I)/99.- In exercise of the powers conferred by sub-section (7) of section 18 of the Finance Act, 1999, the Federal Government is pleased to specify the following conditions, limitations and restrictions to grant the exemption of duty on the import of goods specified in Table II of the said section, namely:-

(i) The imports of goods shall be made only under the Prime Minister's Urban Transport Strategy Plan, 1999 through Small and Medium Enterprise Development Authority hereinafter called SMEDA and the institutions established thereunder as notified by the Federal Government in its Notification No. 6(68)DS(E&F)/98, dated the 27th May, 1999;

(ii) the importer shall, at the time of import of such goods, make a written declaration on the bill of entry to the effect that the goods have been imported under the aforesaid concessionary scheme;

(iii) the exemption on these goods shall be granted only if it is covered by a special serially numbered certificate issued by SMEDA addressed to Collector of Customs indicating the required detailed particulars;

(iv) in case of import of vehicles in complete built ukp unit (CBU) conditions SMEDA will specify the quantities and detailed particulars of vehicles in the line with the conditions of the scheme;

(v) in case of vehicles for local manufacturing and assembling, SMEDA shall specify the quantities and particulars of components in such knocked down condition as are in accordance with the approved deletion program;

(vi) the importer shall, at the time of import, submit an indemnity bond in the form specified below undertaking that the goods shall be used for the sole purpose as specified by SMEDA;

(vii) goods imported under this scheme at concessionary rates of duty through SMEDA shall not be transferred, provided that SMEDA may allow transfer of such goods to any other person subject tot he condition that the person to whom they are so allowed to be transferred shall use the said goods for use only under the Prime Minister's Urban Transport Strategy Plan, 1999;

(viii) in case of machinery and CKD kits the manufacturers shall within one year of filing of bill of entry (for home consumption or ex-bond), apply to the Collector of Customs for discharging indemnity bond supported with a consumption or installation certificate issued by the Assistant Collector of Customs and Central Excise within whose jurisdiction the manufacturing unit is located; and

(ix) in case of breach of the conditions of this scheme, the Collector shall to enforce indemnity bond, and take such penal action as he may deem fit under the Customs Act, 1969 (IV of 1969).

F O R M

[ See condition (v) ]

( On appropriately stamped non-judicial paper )

INDEMNITY BOND

This deed of indemnity is made on the _________day of __________between Mr./Messrs___________________ having registered office/permanent address at __________________(hereinafter called "the importer" which means and includes his/their successor/s, administrator/s, executors and assignee/s) of the one part, AND the President of Pakistan through the Collector of Customs, _____________(hereinafter Collector "The Collector of Customs") of the other part;

WHEREAS, the Federal Government, by its decision contained in Notification No. S.R.O._________, dated ________ and subject tot he conditions specified in the said Notification and any rules or orders framed by SMEDA in this behalf, has been pleased to direct that such goods as are specified in Table II of section 18 of the Finance Act, 1999, shall be exempt from customs-duty specified therein as is in excess of the rates specified leviable thereon in accordance with the conditions laid down under the said Notification;

AND WHEREAS Mr/Messrs __________________having registered office and permanent address at ______________(hereinafter called the importers) have imported the goods mentioned in the Schedule to this Bond in accordance with the conditions laid down in the said Notification;

NOW, THEREFORE, in consideration of the release of the goods without recovery of customs-duty, as is admissible under the said Notification, the importers bind themselves to pay on demand the sum of Rs._______(Rupees__________________) being the customs-duty, leviable onthe goods, if the importers fail --

(i) to use the said goods for the purposes as contained in the Prime Minister's Transport Strategy Plan, 1999; and

(ii) to comply with any of the conditions laid down in the said Notification, this bond or any other rules or orders made or issued by SMEDA.

The importers further agree and bind themselves that the amount covered by this Bond may be recovered as arrears of customs-duty under section 202 of the Customs Act, 1969, and under any rules made thereunder.

Signed by importers on this______________day of ______________________19.

------------------------------------------------

(Managing Director)

( Name and permanent address )

Witness ________________________________________________

(Signature, name, designation and full address)

Witness ________________________________________________

(Signature, name, designation and full address)

Note.- The bond shall be written on appropriate non-judicial stamp paper and shall be witnessed by a Government servant in Basic Pay Scale 16 or above, an Oath Commissioner, a Notary Public or an officer of a Scheduled Bank.

[F.No.2(1)-Tar.II/99]

M. ANWAR ALI

ADDITIONAL SECRETARY