Incentive Package for special industrial Zones/Economics

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS & REVENUE (REVENUE DIVISION) *** Islamabad, the 19th January, 2009. NOTIFICATION (CUSTOMS) S.R.O. 41(I)/2009.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, and in supersession of its Notification No. S.R.O. 316(I)/2007, dated the 12th April, 2007, the Federal Government is pleased to direct that capital equipment (plant, machinery, equipment and accessories), if not manufactured locally, shall be exempt from the whole of customs-duty and sales tax if imported for the development of projects in the Special Industrial and Economic Zones and for establishing projects in these Zones, subject to the following conditions, namely:- (i) locations and perimeters shall be notified by the Board of Investment of Investment Division; (ii) the benefit of this notification shall be admissible only for capital equipment (plant, machinery, equipment and accessories), and not for raw materials; (iii) the goods imported under condition (ii) for the zones will not be removed without the permission of the FBR within five years of their importation; (iv) in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, lay out plan and drawings; and (v) Board of Investment (BOI) shall certify in the prescribed manner and format as per Annex-A that the imported goods are bona fide project requirement. In case the clearance of the imported goods is through Pakistan Customs Computerized System (PaCCS), the authorized officer of the BOI shall furnish all relevant information online to PaCCS against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already computerized Collectorates or Customs stations where the PaCCS is not operational,

the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis. Explanation.- In this notification,- (a) the expression “machinery” means,- (i) machinery and equipment operated by power of any description, such as is used in industrial process; (ii) apparatus and appliances, including metering and testing apparatus and appliances specifically adopted for use in conjunction with machinery and equipment specified in sub-clause (i); (iii) mechanical and electrical controls and transmission gear adapted for use of goods specified in sub-clause (i); and (iv) component parts of machinery and equipment, as specified in sub-clauses (i), (ii) and (iii), identifiable for use in or with machinery; and (b) the expression “not manufactured locally” means the goods which are not listed in the locally manufactured list, notified through a Customs General Order issued by the Federal Board of Revenue from time to time or, as the case may be, certified as such by the Engineering Development Board. Annex-A [See clause (v), First paragraph] Header Information NTN or FTN of Importer Approval No. (1) (2) Details of input goods (to be filled by the authorized officer of the Goods imported (Collectorate of import) Regulatory Authority) HS Description Customs- Sales Quantity Collect- CRN Date of Code duty rate Tax rate imported Orate or CRN or (appli- (applic- Mach Mach cable) able) No. No. Specifications WHT Quantity UOM (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

Certificate.- Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are genuine and bona fide requirement of the project and that the same are not manufactured locally. Signature: ________________________ Designation: ________________________ NOTE:- In case of clearance through Pakistan Customs Computerized System (PaCCS), the information shall be furnished on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969. [C.No. 1/9/Mach./92] (MUHAMMMAD AFZAL BHATTI) ADDITIONAL SECRETARY