SRO 28(I)/1998

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE AND ECONOMIC AFFAIRS NOTIFICATION Islamabad,the 17th January,1998. (CUSTOMS) S.R.O.28(I)/98. - In exercise of the powers conferred by section 19 of the Custosm Act,1969(IV of 1969), the Federal Government is pleased to direct that the plant, machinery and equipment, not manufactured locally, if imported by the companies for the sectors specified in column(2) of the Table below, with regard to the projects, shall be exempt from so much of customs-duty leviable under the First Schedule to the Customs Act, 1969 (IV of 1969), as is in excess of the rates specified in column (3) of the said table subject to the following conditions, namely:- (1) Only such plant, machinery and equipment shall be entitled to the exemption under this notification, as are certified through Central Board of Revenue by the Engineering Development Board/Board of Investment (BOI), Islamabad from time to time. The Board of Investment shall take such measures as it deems necessary to ensure that the concerned sectors entitled to avail exemption under this notification, import only that machinery and equipment as is approved by them in view of their actual project requirement; (2) the importer shall, at the time of import of plant, machinery and equipment, make a written declaration on the bill of entry to the effect that machinery and equipment has been imported in accordance with the SRO; (3) the importer shall furnish an indemnity bond in the form set out below to the extent of customs-duty and sales tax exempted under this notification and the said bond shall not be discharged till production of installation certificate and shall be produced within one year from the date of importation of plant, machinery and equipment from Assistant Collector, Customs and Central Excise, in whose jurisdiction the project is located and such certificate of verification shall clearly state that machinery and equipment imported for the purposes specified in the bills of entry have been duly installed; and (4) 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. Explanation.- 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. TABLE S.NO. Type of Sector Rate of duty (1) (2) (3) 1. Service sector 10 per cent Activities of Service Sector. Wholesale, distribution and retail trade, transportation, storage and communications, infrastructure projects including development of industrail zones; telecommunications i.e. E-mail/internet/electronic information services (EIS), data communication network services, trunk radio services, cellular mobile telephone services, audiotex services, voice mail services, card pay phone services, close user group for banking operations, international satellite operatiors for domestic data communications, paging service and any other telecommunication service which is deregulated in future, will become part of this list, real estate development,(development of commercial buildings, apartment buildings, housing projects, super markets/shopping malls, urban development, development of new communities); hotel and tourism or tourism related services; technical testing facilities; audio-visual services; sporting and other recreation services; rental services relating to transport equipment and machinery, equipment and tools for land development and agriculture purpose; environmental services. 2. Social sector 10 per cent Activities of Social Sector. Education, technical/vocational training, human resources development(HRD) as well as hospitals, medical and diagnostic services. 3. Agriculture sector Whole Activities of Agriculture Sector. Land development/reclamation of barren, desert and hilly land for agriculture purpose and crops farming,, reclamation of water front areas or creeks, crops, fruits, vegetables, flowers farming/integrated agriculture, (cultivation and processing of crops); modernization and development of irrigation facilities and water management, plantation, forestry and horticulture. Dairy, small ruminants(sheep, goat) and all other livestock farming and breeding. LIST OF AGRICULTURE MACHINERY (A) Land development, leveling and clearing machinery and equipment i. Laser land leveling equipment. ii. Hydraulically driven land leveler/land planer. iii. Survey equipment (Theodolite etc). iv. Stone collector wind rower capacity 1.5-2.5m. v. Bulldozer pulled soil scrapper capacity 20-25m3. (B) Tillage and planting equipment i. Para plow-sub-soiler (with vibratory mechanism) ii. Rotary tiller/weedier (Above 90 HP). iii. Flame weedier. iv. Vegetable seedling transplants. v. Paddy seeding raising equipment. (C) Fertilizer, plant protection equipment i. Slurry Spreaders. ii. Manure Spreader/compost shredder. iii. Self propelled sprayers/air assisted sprayers,(excluding manual type spray). iv. Power knapsack/mist blower sprayer. v. Herbicides applicators (with working pressure above 40 psi). vi. Granular applicators. vii. Spray nozzles assembly. viii. Spray pumps (gear and diaphragm type). (D) High efficiency irrigation and Drainage equipment i. Sprinkler including high and low pressure (center pivota) system and conventional spinkler equipment, water reel travelling sprinkler). ii. Drip/trickle irrigation equipment/mint irrigation sprinkler system. iii. Dredger/excavator/dragline equipment/back hoe trenchers. iv. Tile drain laying equipment. v. Direct power rotary drilling rigs. vi. Tractor mounted rotary ditcher (excluding tractor). vii. Tractor mounted chain trencher (excluding tractor). (E) Harvesting and threshing machinery i. Combine harvestor - 90 HP & above (wheat, paddy, corn, sunflower, soyabean, gram pulses millet, groundnut, rapeseed, mustard, canola). ii. Straw balers. iii. Food mowers. iv. Forage choppers. v. Sugarcane harvester. vi. Potato digger/harvester. vii. Cotton picker. viii. Onion and garlic harvester. ix. Stock pullers cum shredder. x. Flail mower. xi. Fodder rakes. xii. Forage wagon. xiii. Fruit Harvesters. xiv. Rotary slushier. xv. Pruner machinery. (F) Post-harvest handling and processing machinery i. Mobile/stationary seed processing units. ii. Vegetables and fruits cleaning and sorting/grading equipment. iii. Fooder and feed cube maker equipment. (G) Dairy or livestock machinery/Miscellaneous i. Milking machines. ii. Sheer machinery. iii. Slurry digester. iv. Solar heating equipment. v. Green houses/G.H. equipment. vi. Veterinary equipment (not locally manufactured). (H) Seeding and planting equipment i. Potato planter. ii. Rice transplanter. iii. Canola/sunflower drill. iv. Sugarcane planter. (I) Harvesting thrashing and storage equipment i. Groundnut digger. ii. Sugar Harvester. FORM ( See condition (6) ) ( On appropriately stamped non-judicial paper ) INDEMNITY BOND THIS DEED OF INDEMNITY is made on the ____________ day of __________ BETWEEN Messers _________ having registered office at _________(hereinafter called "the importers" which expression shall include their successors, 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 the said Notification been pleased to direct that the plant, machinery and equipment, as is not manufactured locally, imported for (mention type of industry or activity) shall be exempt from the customs-duty as is in excess of rates specified in the said Notification in accordance wsith the said Notification. AND WHEREAS M/s. _____________ having registered office at _______________ have imported the plant, machinery and equipment as is not manufactured locally in accordance with the conditions given in the aforesaid Notification for installation at _____________________________. NOW, THEREFORE, in consideration of the release of plant, machinery and equipment, without recovery of the leviable customs duty the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs. ______ being the customs duty leviable on the plant, machinery and equipment if the importers fail to produce a certificate from the Assistant Collector of Central Excise within one year from the date of filing of bill of entry for home consumption relating to the plant, machinery and equipment to the effect that the machinery has been installed at the said project. The importers further agree and bind themselves that the amount or duty covered by the Bond may be recovered as arrears of customs duty under section 202 of the Customs Act,1969(IV of 1969). The Bond shall become void when the aforesaid certificate has been produced and the Collector of Customs is satisfied th at the importers have fulfilled all the conditions of this Bond and the aforesaid Notification. Signed by importers on this ______________________ day of _____________________________. _______________ Managing Director (Name and permanent address) 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. SCHEDULE OF MACHINERY IMPORTED. _____________________________________________________________________________________________________ [C.No..5/2/March/97] NASEED AHMAD Additional Secretary As amended S.R.O.533(I)/99, - dated 01.05.1999 S.R.O.727(I)/99, - dated 12-06-1999 S.R.O.977(I)/99, - dated 30.08.1999