SRO 358(I)/2002

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS & REVENUE (REVENUE DIVISION) *** Islamabad, the 15th June, 2002. NOTIFICATION (CUSTOMS) S.R.O. 358 (I)/2002.- In exercise of the powers conferred by section 19 of the Customs Act,1969(IV of 1969), and in supersession of its Notification No. S.R.O. 444(I)/2001, dated the 18th June, 2001, the Federal Government is pleased to exempt - (i) the raw materials and components, as are not produced locally, and specified in column (3) of the Table I below, falling under the heading or sub-heading numbers of the First Schedule to the said Act and specified in column (4) of the said table, if imported by the manufacturers of goods specified in column (2) of the said Table, from so much of customs-duty as is in excess of the rates specified in column (5) thereof, subject to the conditions specified under the caption "conditions with reference to Table I" and produced below the said Table I; and (ii) the raw materials, components and goods specified in column (2) of the Table II below and falling under the heading and sub-heading numbers of the First Schedule to the said Act specified in column(3) of the Table II, from so much of customs-duty specified in the First Schedule to the said Act, as is in excess of the rates specified in column(4) of that Table subject to the conditions specified in column(5) thereof; TABLE I S.No. Description of Description of raw Heading or sub- Rate of duty. goods to be materials and headings Nos. manufactured components (1) (2) (3) (4) (5) 1. Masterbatches. Pigments, dyes, additives, Respective 10% ad val. fillers, resins. headings. 2. Dry battery cells. Natural manganese 2530.9010 5% ad val. dioxide. Acetylene black. 2803.0020 5% ad val. Electrolytic manganese 2820.1010 5% ad val. dioxide. Ammonium chloride. 2827.1000 5% ad val. Zinc chloride. 2827.3600 5% ad val. Mercuric chloride. 2827.3990 5% ad val.

(1) (2) (3) (4) (5) Carbon rods. 8545.9020 5% ad val. Zinc slugs. 7907.0010 5% ad val. Electrolytic paper. 4811.9000 5% ad val. 3. Oleo-chemical/Stearic Palm stearin. 1511.9010 10% ad val. acid. 4. Engineering goods. Non-alloy (carbon) steel 72.14 20% ad val. sections, bars and rods not 72.15 20% ad val. manufactured locally. 72.16 20% ad val. 5. Footwear. PU paints. 3208.9000 10% ad val. Release agents. 3403.1990 10% ad val. Wax cream. 3405.1010 10% ad val. Shoe adhesives. 3506.9100 10% ad val. 3506.9900 10% ad val. Hot melt materials. 3506.9900 10% ad val. Isocyanate. 3824.9099 10% ad val Desmodur RE. 3824.9099 10% ad val. Toe puff material. 3921.9000 10% ad val. Fibre board. 4411.3900 10% ad val. Insole board. 4811.5990 10% ad val. Combralla lining material. 5603.1300 10% ad val. 5603.1400 Shoe reinforcement tapes. 5906.1000 10% ad val. Rubber, master batch. 3204.1700 10% ad val. 6. Disposable syringes Medical grade paper labels 4821.1000 10% ad val. and needles. PVC gaskets. 3923.5000 10% ad val. Rubber gaskets. 4016.9310 10% ad val. Polypropylene (medical 3902.1000 10% ad val. grade). PVC (medical grade) 39.04 10% ad val. Plastic film. 3921.9000 10% ad val. 7. Manufacture or i. Oils and other 2707.6000 5% ad val. Formulation of products of 2707.9100 5% ad val. agricultural pesticides distillation of high 2707.9990 5% ad val. by manufacturers or temperature, coal-tar formulators duly and similar products recognized and in which the weight approved by the of the aromatic Ministry of Food and constituents exceeds Agriculture. that of Non-aromatic constituents. ii. Surface active agents. 3402.1190 5% ad val. 3402.1200 5% ad val. 3402.1300 5% ad val. 3402.1990 5% ad val.

(1) (2) (3) (4) (5) iii. Active Respective 5% ad val. ingredients, headings/sub- stabilizers, headings Nos. of emulsifiers Chapter 28, 34 or and solvents. 38. 8. Ribbons for Polyethylene film. 3920.1000 10% ad val. Typewriter/computer Empty cartridges. 3926.9090 10% ad val. printers. Nylon fabrics. 3903.9000 10% ad val. 9. Printing ink. Organic pigments. 3204.1700 10% ad val. Inorganic pigments. 32.06 10% ad val. 32.07 10% ad val. Driers. 32.11 10% ad val. Waxes. 34.04 10% ad val. Resins. 3912.2000 39.02 10% ad val. 10. Articles of stationery. Raw materials. Respective headings. 5% ad val. Parts and components. Respective headings. 10% ad val. Under EEPAS 11. i. Television sets. Raw materials. Respective headings. 5% ad val. Picture tube (colour). 8540.1100 5% ad val. Picture tube (black and 8540.1200 5% ad val. white). Deflection yoke. 8540.9100 5% ad val. Tuner. 8529.9000 5% ad val. Transformers. 8504.3100 5% ad val. Front and back cover. 8529.9000 5% ad val. Other sub-components, Respective headings. 5% ad val. components, modules and sub-assemblies. ii. Cellular mobile i. Raw materials, Respective 5% ad val. phones; Laser video components, sub- headings. disc players; DVD components for player; VCP(Video the electronic Cassette Player); apparatus. VCR(Video Cassette Recorder); Compact ii. SKD kits for Respective 10% ad val. disc player; Stereo car cassettes players; assembly of headings. Hi-fi system; Pocket microwave ovens size cassette player/ VCP, VCR, VCD CD players; Radio- and DVD cum-cassette player; apparatus under Radio; Electronic “Emerging calculator; Electronics Microwave ovens; Products Caller Line Assembly Identification (CLI) Scheme” apparatus.

(1) (2) (3) (4) (5) (EEPAS) imported in more than seven components, SKD kits would not contain packing materials, carton boxes, brochures and the printed materials. 12. Formic acid. Sodium hydro oxide 2815.1200 20% ad val. {caustic soda in equeous solutions (soda lye or liquid soda)} 13. Sticker paper. Cast coated paper. 4810.2200 20% ad val. Release base paper. 4811.5900 20% ad val. 14. Flexible tubes. Aluminum foils P.E. 3921.9000 20% ad val. laminated sheets. 15. Aluminum Aluminium plates, sheets 7606.1100 10% ad val. presensitized printing and foils. 7607.1900 10% ad val. plates. 16. Acrylic sanitary ware. Sanitary grade acrylic 3920.5100 20% ad val. sheets. 17. Toilet soap. Cresylic acid 2707.6000 10% ad val. Pigments and dry colours. 3204.1900 10% ad val. Surface active agents. 34.02 10% ad val. Mixture of odoriferous 3302.9000 10% ad val. substances. Note: For Sr. No.11 in Table I, the determination of local manufacturing aspect shall not be applicable (Conditions with reference to Table I) (i) The manufacturer has suitable in-house facilities for manufacture of goods in respect of which he claims exemption under this notification or is duly registered with the Sales Tax Department as a manufacturer of respective goods; (ii) the manufacturer shall furnish to Chief (Survey), Central Board of Revenue, or any officer authorized in this behalf, the list of such goods along with the details of raw materials, sub-components and components required and the Chief (Survey) Central Board of Revenue, or such

authorized officer, will certify input/output ratio and annual requirement of the manufacturer; (iii) the manufacturer shall, at the time of import of raw materials and components make a written declaration on the bill of entry to the effect that the inputs have been imported in accordance with his entitlement in terms of condition (ii) above. The manufacturer shall also declare that the imported raw material and components, etc., shall be consumed for the purpose of manufacture and assembly of the permissible products within a period of one year; (iv) the manufacturer shall communicate to the concerned Collector of Customs in writing about the consumption of imported goods within one month of consumption. In case of non-consumption within one year, the importer shall pay the customs-duty and other taxes involved or shall give plausible reasons to the Collector of Customs and seek extension for a reasonable period; and (v) in case the manufacturer does not provide information regarding consumption or otherwise of the imported goods within a period of one year of import or such extended period as allowed by the Collector or if otherwise deemed necessary, the Duty Suspension Audit Organization (DSAO) shall carry out audit of the manufacturing unit. If upon audit consumption of goods is not found satisfactory the Collector of Customs shall initiate proceedings for the recovery of leviable customs duty and penal action under the relevant provisions of the law in force. TABLE II S. No. Description of Goods. Heading or Rate of Conditions of import. sub- Duty. headings. (1) (2) (3) (4) (5) 1. Air craft spares, parts, Respective 5% ad val. If imported by domestic air chemicals, lubricants and headings. lines for maintenance of their paints. aircrafts. 2. Ships and all the floating crafts Chapter 89 0% ad val. This exemption shall be including tugs, dredgers, excluding available up to the year 2020, survey vessels and other PCT heading subject to the condition that specialized crafts purchased or 89.08 the ships and crafts, etc., bare-boat chartered by a appearing in column (2) are Pakistani entity and flying used for the purpose for Pakistani flag. which they were procured and in case such ships and crafts

(1) (2) (3) (4) (5) are used for demolition purposes, full import duties and other charges applicable to ships purchased for demolition purposes shall be chargeable. 3. Paraxylene. 2902.4300 0% ad val. If imported by M/s ICI Acetic acid. 2915.2100 0% ad val. Pakistan Limited for the manufacture of Heavy duty polypropylene or 6305.3300 10% ad val. Pureterephthalic Acid (PTA). polyethylene special bags and This concession shall remain flexipacks for packing one ton valid up to the 30th June, or more, of PTA. 2008. 4. i. Special steel round 7214.9900 10% ad val If imported by a recognized bars and rods of non- seamless pipes manufacturing alloy steel exceeding industry duly notified as such diameters 75 mm. by the Ministry of Industries and in such quantities as are ii. Lubricating anti-rust 3403.9900 10% ad val. determined by Chief and anti-corrosion (Survey), CBR. preparation. 5. Coking coal for manufacture 2701.1200 5% ad val. If imported by the Pakistan of coke. 2701.1900 Steel Mills. 6. Phosphoric acid. 2809.2010 0% ad val. If imported by the Phosphatic Fertilizer Industry. 7. Desalination plants, Coal Respective 5% ad val. i. Goods are meant for firing system, Gas processing headings. setting up of a complete plants and Oil & Gas field plant. Any machine meant prospecting. for balancing, modernization, replacement or expansion of existing plant is excluded. ii. At the time of arrival of the first partial shipment of the plant, the importer shall furnish complete details of the whole machinery, equipment and components parts required for the plant, duly supported by the contract and layout plan and drawings.

(1) (2) (3) (4) (5) 8. Oil refining (mineral Respective 10% ad val. i. Goods are meant for oil/hydro-cracking and other headings. setting up of a complete value added petroleum plant. Any machine meant products). Plants for petro- for balancing, chemical/petro-chemical down modernization, stream products (including replacement or expansion fibers) Cool chain plants, of existing plant is Plants for heavy chemical excluded. industry. ii. At the time of arrival of the first partial shipment of the plant, the importer shall furnish complete details of the whole machinery, equipment and components parts required for the plant, duly supported by the contract and layout plan and drawings. 9. Sugar plants, cement plants, Respective 20% ad val. i. Goods are meant for thermal power plants, hydro headings. setting up of a complete electric power plants upto 50 plant. Any machine meant MW capacity per unit. for balancing, modernization, replacement or expansion of existing plant is excluded. ii. At the time of arrival of the first partial shipment of the plant, the importer shall furnish complete details of the whole machinery, equipment and components parts required for the plant, duly supported by the contract and layout plan and drawings. 10. Motor vehicle not exceeding Respective 10% ad val. If imported by the war 1350 cc cylinder capacity headings. disabled defence force fitted with special gadgets to personal or by a civil disabled overcome disability. personal in accordance with the conditions laid down in the General Order issued by the Central Board of Revenue.

(1) (2) (3) (4) (5) 11. Machinery and equipment for Respective 5% ad val. If not manufactured locally, grain handling and storage headings. imported for development of facilities. grain handling and storage facilities by private sector. 12. Plant, machinery, equipment Respective 10% ad val. If not manufactured locally and articles imported by the headings and as certified through importers for the sectors Central Board of Revenue by specified below:- the Facilitation Committee of Board of Investment (BOI), 1. Service sector. Islamabad from time to time. The Board of Investment Wholesale, distribution and shall take such measures as it retail trade, transportation, deems necessary to ensure that the concerned sectors storage and communication, entitled to avail exemption infrastructure projects under this notification, import including development of only those goods as are industrial zones; approved by the Committee telecommunication i.e. E- in view of actual project mail/internet/electronic requirement. 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 operators for domestic data communications, paging service and any other telecommunication service which is deregulated in future, will become part of this list, 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

(1) (2) (3) (4) (5) 2. Social sector. Education, -do- technical/vocational training, human resources development (HRD) as well as hospitals, medical and diagnostic 13. Following agriculture machinery and equipment: - (A) Land development, Respective 0% ad val. If not manufactured locally leveling and clearing headings. and imported for the machinery and purpose of land equipment. development and reclamation of barren, i. Laser land leveling desert and hilly land for equipment. ii. Hydraulically driven agriculture purpose and land leveler/land crops farming; reclamation planer; of water front areas or iii. Survey equipment like creeks; crops, fruits, theodolite; vegetables, flowers iv. Stone collector wind farming; integrated rower, capacity 1.5- agriculture (cultivation and 2.5 m; and processing of crops); v. Bulldozer pulled soil modernization and scrapper, capacity 20- development of irrigation 25m3. facilities and water management; plantation, forestry and horticulture; dairy; small ruminants (sheep, goat) and all other livestock farming and breeding. (B) Tillage and planting equipment. i. Para plow-sub-soiler (with vibratory mechanism); ii. Rotary tiller/weedier -do- (above 90 HP); iii. Flame weedier; iv. Vegetable seedling

(1) (2) (3) (4) (5) transplants; and v. Paddy seeding raising equipment. (C) Fertilizer, plant Protection equipment. i. Slurry spreaders; ii. Manure spreader/composite shredder; iii. Self propelled -do- sprayers/air assisted sprayers, (excluding manual type sprayers); iv. Power knapsack/mist blower sprayers; v. Herbicides applicators (with working pressure above 40 psi); vi. Granular applicators; vii. Spray nozzles assembly; and viii. Spray pumps (gear and diaphragm type); (D) High efficiency irrigation and Drainage equipment. i. Sprinkler including high and low pressure (center pivota) system -do- and conventional sprinkler 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;

(1) (2) (3) (4) (5) vi. Tractor mounted rotary ditcher (excluding tractor); and vii. Tractor mounted chain trencher (excluding tractor). (E) Harvesting and threshing machinery. i. Combine harvesters; ii. Straw balers; iii. Forage choppers; iv. Sugarcane, potato, onion, garlic, fruit, -do- groundnut, harvester/digger. v. Cotton picker; vi. Stock pullers cum shredder; vii. Fodder rakes; viii. Forage wagon; ix. Rotary slusher; and x. Pruner machinery; (F) Post-harvest handling and processing machinery. i. Mobile/stationery seed processing units; ii. Vegetables and fruits cleaning and -do- sorting/grading equipment; and iii. Fodder and feed cube maker equipment; (G) Dairy or livestock machinery/Misce- llaneous. i. Milking machines; ii. Sheer machinery; iii. Slurry digester; -do- iv. Solar heating equipment; v. Green houses/G.H. equipment; and vi. Veterinary equipment.

(1) (2) (3) (4) (5) (H) Seeding and planting equipment. 14. Hides, skins and finished 41.01 0% ad val. Nil. leather. 41.02 41.03 (except 4103.3000) 41.04 41.05 41.06(except 4106.3100 & 4106.3200) 41.07 41.09 15. Seeds for sowing. Respective 0% ad val. Nil. headings, 16. Books, magazine, journals and 4901.9100, 0% ad val. Nil. newspapers. 4901.9900, 4902.1090, 4902.9090, 49.03. 17. Pulses. 07.13 0% ad val. Nil. 18. Raw cotton. 52.01 0% ad val. Nil. 19. Raw wool. 51.01 0% ad val. Nil. 5105.1000, 5105.2100, 5105.2900. 20. Pure terphthalic acid (PTA). 2917.3610 15% ad val. Nil. 21. Yarn spun from silk waste, not 5005.0000 15% ad val. Nil put up for retail sale. 22. Of nylon or other polyamides, 5402.3100 15% ad val. Nil. measuring per single yarn not more than 50 tex. 23. Other textured yarn. 5402.3900 15% ad val. Nil. 24. Of nylon or other polyamides, 5402.4100 15% ad val. Nil. measuring per single yarn not more than 50 tex. 25. Of nylon or other polyamides, 5402.6100 15% ad val. Nil. measuring per single yarn not

(1) (2) (3) (4) (5) more than 50 tex. 26. Viscose yarn, untwisted or 5403.3100 15% ad val. Nil. with a twist not exceeding 120 turns per metre 27. Monofilament 5404.1000 15% ad val. Nil. 28. Other synthetic textile 5404.9000 15% ad val. Nil. materials. 29. Acrylic or modacrylic 5501.3000 15% ad val. Nil. 30. Acrylic or modacrylic 5503.3000 15% ad val. Nil. 31. Other textile products and 5911.9000 15% ad val. Nil. articles for technical uses. 32. Silver. 71.06 US $ 2.00 per If imported by companies KG. specifically registered and authorized for the purpose by Ministry of Commerce and the import duty is realized in foreign exchange. 33. Gold. 71.08. US $ 1.00 per If imported by companies 11.664 specifically registered and grams. authorized for the purpose by Ministry of Commerce and the import duty is realized in foreign exchange. 34. Diamonds. 7102.1000, 2% ad val. Nil. 7102.3100. 35. Rough Gemstone. 7103.1000 2% ad val. Nil. 36. Phthalic anhydride 2917.3500 20% ad val. If imported by recognized manufacturers of chemical resin and processed chemicals in such quantity as determined by Chief (Survey), CBR. 37. Ambulances Respective 30% ad val. Nil. headings.

(1) (2) (3) (4) (5) 38. Sealed Lead-acid batteries of a 8507.2000 10% ad val. Nil. kind used in telephone exchanges. 39. Imports against the Respective As envisaged If exemption letters have been authorization of SMEDA headings. in Table-II of issued or where the cases are under Table-II of defunct defunct under process with the Section 18 of Finance Act, Section 18 of competent authority of 1999. the Finance SMEDA provided the same Act, 1999. are issued by the 30th June, 2002 and the imports are effected by the 31st December 2002. [ C.No.1(2)Mach./2002 ]. (Dr. Manzoor Ahmad) Additional Secretary