Exemption from customs duty on imports of raw material, equipments and machinery by M/s. Karachi Shipyard and Engineering Works.

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE AND ECONOMIC AFFAIRS Islamabad, the 13th June,1996 NOTIFICATION (CUSTOMS) S.R.O.433(I)/96.- In exercise of the powers conferred by section 19 of the Customs Act,1969 (IV of 1969), and in supersession of this Ministry's Notification No.S.R.O.335(I)/91, dated the 6th April,1991, the Federal Government is pleased to exempt raw materials, components, equipment and machinery, not manufactured locally, imported by M/s. Karachi Shipyard and Engineering Works Limited, hereinafter referred to as the importer, for use in building, fittings, repairing or re-fitting of ships, boats or floating structures falling in Chapter 89 of the Pakistan Customs Tariff, hereinafter referred to as ships,2[…] from so much of customs duties specified in the First Schedule to the Customs Act,1969 (IV of 1969),2[…] payable thereon, subject to the following conditions, namely:- (i) The importer shall furnish to the concerned Collector of Customs contract specifications and General Arrangements Plan for each ship that they intend to build before the importation of the raw materials, components, equipment and machinery; (ii) the importer shall, at the time of import of raw materials, components, equipment and machinery, make a written declaration on each bill of entry to the effect that the raw materials, components, equipment and machinery have been imported for use in the building, fitting, repairing or refitting of ships; (iii) the importer shall furnish the Collector of Customs concerned an undertaking in the Form set out below as Annexure-A with each bill of entry for goods imported under this notification; (iv) the importer shall maintain record of the receipt and consumption of the raw materials, components, equipment and machinery imported under this notification in prescribed form given as Annexure-B; (v) the importer shall, within six months of the completion of construction or repairing, as the case may be, of the ship or within six months of the consumption of the entire material cleared against each bill of entry, apply to the Collector of Customs concerned for discharging the undertaking. The application being supported by, in case of export of a ship, a copy of the shipping bill, in case of local sale of a ship, a delivery certificate from the purchaser and in case of repair or re-fitting, a work certificate signed by owner's representative or the Chief Engineer of the ship repaired or re-fitted, to the effect that necessary repair or re-fitting has been carried out in accordance with the owner's requirements. 3[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.] 1[TABLE] 2[O M I T T E D] ANNEX-A FORM [ See condition (3)] (On appropriate stamped non-judicial paper) UNDERTAKING THIS UNDERTAKING is made on the ___________day of _________19____ BETWEEN Messers Karachi Shipyard and Engineering Works Limited, Karachi(hereinafter called "the importers" 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, in accordance with Government of Pakistan's decision contained in Notification No.S.R.O._______dated the ______, the importer seeks release of raw materials, components, equipment and machinery, imported for use in ships vide bill of entry No.____dated_____, 2[…]subject to the conditions mentioned in the said Notification. AND WHEREAS, the raw materials, components, equipment and machinery imported shall be used for building, repairing, fitting or refitting of ships and the importer hereby undertakes that:- (i) It will, within six months of completion of construction of ship, produce a copy of shipping bill showing the export of ship; or (ii) A delivery certificate from the purchaser of the ship, in case of local sale, or (ii) A work certificate signed either by the ship owner's representative or the Chief Engineer of the ship repaired and refitted. (iii) Left over materials will be duly accounted for either by keeping or separating in the shipyard premises or used elsewhere after payment of duty at the leviable rate of duty and sales tax. (iv) In case of failure to furnish such a certificate or evidence, the importers bind themselves to pay to the Collector of Customs the sum of Rs._____(Rupees_______)being the customs duty, sales tax on materials imported within fifteen days of receipt of the demand notice from the Collector of Customs. NOW THESE PRESENTS WITNESS that in pursuance of this undertaking, the importer_______hereby agree to indemnify the said Collector of Customs from loss of revenue to the extent of Rs.____(Rupees________) as aforesaid and also against costs and expenses which may be incurred by the Collector of Customs in recovery of the above amount of revenue. It is further agreed that the above amount may be recovered as arrears of land revenue under sub-section(2) of section 202 of the Customs Act,1969, if the importer failed to abide by any condition laid down in the above said Notification; THIS UNDERTAKING shall be cancelled as soon as the relevant documents as indicated above are produced and the Collector of Customs is satisfied about the consumption of the raw materials components equipment and machinery as specified in the above said Notification, otherwise it shall remain in full force and virtue. IN WITNESS WHEREBY: M/s.______________________________(Address) _____________________________________ (Name and permanent address) WITNESSES: 1. _______________________________________ (Signature, name, designation and full address) 2. ______________________________________ (Signature, name , designation and full address) ANNEX-B KARACHI SHIPYARD AND EINGEERING WORKS LIMITED Register of raw material, components and machinery imported under S.R.O._______dated_______ Yard Order No.______ Name of vessel under construction____________________________________ For repair/fitting and refitting of ships Particulars of import and consumption. IGM No. Description of raw material Bill of Entry Quantity received Quantity Material Balance Dt.& Index components of machinery DA No. & date consumed Card No. (1) (2) (3) (4) (5) (6) (7) ---------------------------------------------------------------------------------------------------------------- ( RIAZ AHMAD MALIK ) Additional Secretary [C.No.5(4)/92-CUS-EXM. As amended 1. Amended vide S.R.O.226(I)/97, dated 28.03.1997 2. Omitted vide S.R.O.1054(i)/98, dated 16.10.1998 3. Added vide S.R.O.716(I)/99, dated 12.06.1999