Exemption from customs duty on import of machinery and equipment and construction materials.

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE AND ECONOMIC AFFAIRS ( REVENUE DIVISION ) Islamabad, the 18th June, 2001 NOTIFICATION CUSTOMS S.R.O.438(I)/2001.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and in supersession of its Notifications No. S.R.O.279(I)/94, dated the 2nd April, 1994, S.R.O.429(I)/95, dated the 30th May, 1995, S.R.O.462(I)/95, dated the 4th June, 1995, S.R.O.585(I)/95, dated the 1st July, 1995, S.R.O.150(I)/97, dated the 5th March, 1997, S.R.O.557(I)/97, dated the 28th July, 1997 and S.R.O.622(I)/98, dated the 18th June, 1998, the Federal Government is pleased to direct that the machinery and equipment or machinery, equipment and construction material as the case may be, which is not manufactured locally and specified in column (2) of the Table below for the projects specified in column (3) of the Table shall be exempt from so much of customs-duty, leviable thereon under the First Schedule to the said Act, as is in excess of the rates specified in column (4) of the said Table, subject to the following conditions, namely:- (1) the importer shall, at the time of import submit a detailed packing list of the goods specified in Explanation below and shall also make a written declaration on the bill of entry tot he effect that the machinery, equipment and spares have been imported for the specified category of the project claimed on the bill of entry; (2) 2[Ommited. (3) Omitted.] (4) spares and maintenance parts required for the project after its commissioning shall be subject to customs-duty at the rate of twenty per cent ad val. Explanation.- For the purposes of this notification,- (1) the expression “machinery and equipment” shall mean,- (a) machinery and equipment operated by power of any description, such as is used in respective category of projects specified above; (b) apparatus and appliances, including metering and testing apparatus and appliances specifically adopted for use in conjunction with machinery and equipment specified in clause (i); (c) mechanical and electrical controls and transmission gear adapted for use in or with clause (i); (d) 1[except for projects at S.No.7] 2[and 8], all machinery and equipment imported temporarily for the construction, erection, installation and end completion of the project including specific equipments relevant to the category of project and specialized vehicles (4x4 non-luxury), but excluding passenger vehicles; and (e) component parts of machinery and equipment as specified in clauses (a), (b), (c) and (d), identifiable as for use in, or with, such machinery and equipment imported for the category of project specified above including spares for purposes of the said project; and (2) 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 or certified as such by the Engineering Development Board/Central Board of Revenue. TABLE -------------------------------------------------------------------------------------------------------------------------------------------- S.No. Descripiton of goods Projects Rate of duty (1) (2) (3) (4) 1. Machinery, equipment, For setting up or balancing, modernization and 0% ad val. and construction Materials extension of Power generation i.e. oil,, gas, coal, including coal mining Wind and wave energy project including under equipment. Construction project which entered into an Implementation agreement with the Government of Pakistan. 2. Machinery and equipment For setting up or balancing, modernization and 2[5% ad val]. including coal mining extension of Power generation through oil, gas, equipment. coal, wind and wave energy projects including under constructions projects. 3. Machinery and equipment. For setting up of hydel power generation projects 2[5% ad val]. including under construction projects. 4. Machinery, equipment and For construction of Ghazi Barotha Hydro Power construction materials as Project covered by:- already imported or to be imported by WAPDA or its contractors. (i) contract C-01 and C-02 (Barrage and power 0% ad val. channel construction). (ii) Contract C-03 and contracts ME-01 and ME-02 2% ad val. (civil works of power complex & ancillary works, for mechanical and electrical works respectively). 5. Plant and machinery For setting up or for balancing, modernization, 5% ad val. imported or to be replacement or extension of Chashma Hydropower Imported by WAPDA, its Project undertaken by WAPDA, M/s Marubeni contractors M/s Marubeni Corporation, Japan (EM-1 contract) and Corporation Japan (EM-1 M/s Cegelec & Complex of France (EM-2 contractor) Contractor) and M/s Cegelec a nd Complex Of France (EM-2 Contractor). 6. Machinery and equipment. Transmission system projects and grid station 5% ad val. Including under construction projects. 1[7. Plant and equipment For setting up of power generation projects 5% ad val.] including auxiliary, (excluding captive power generation projects) dedicated transmission line through oil, gas, hydel 2[and] coal 2[omitted]. fuel source construction. 2[8. Plant, machinery and Foe genration of power through renewable 0% ad val.] equipment energy sources like solar, wind, microhydal bio-energy, ocean, waste-to-energy, hydrogen cell, etc. FORM 2[Omitted] SCHEDULE OF MACHINERY IMPORTED Dr. Manzoor Ahmad Additional Secretary As amended: 1. Inserted vide S.R.O.480(I)/2003 dated 07.06.2003 2. Inserted vide S.R.O.454(I)/2004 dated 12.06.2004 3. Substituted vide S.R.O.554(I)/2004 dated`30.06.2004