Amendment in S.R.O. 665(I)/2006

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATICS AND REVENUE (REVENUE DIVISION) **** Islamabad, the 9th June 2007. NOTIFICATION (CUSTOMS) S.R.O 496 (I)/2007.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the following further amendments shall be made in its Notification No. S.R.O 656(I)/2006, dated the 22nd June, 2006, and shall be deemed to have so made on the 10th June 2007, namely:- In the aforesaid Notification,- (1) in the preamble after word and comma “form,” the words “and direct materials” shall be inserted; (2) in conditions - (i) after condition (i), the following shall be added: “(ia) the input output ratio of the items to be manufactured and total annual requirements of materials shall be determined by the Engineering Development Board (EDB) or by any other organization as the Central Board of Revenue may authorize;” “(ib) the manufacturer-cum-importer, at the time of import of approved items, shall make a declaration on the Goods Declaration (GD) to the effect that the items have been imported in accordance with his entitlement for the manufacture of specified items. The manufacturer shall also declare that the imported items shall be consumed for the purpose of manufacture of the items within a period of one year;” (ii) in condition (iii), after the word “lists”, occurring for the first time,

the words, letters, and figure “and determine the CKD kit of each vehicle in accordance with the terms set out in the First Schedule of the Customs Act, 1969, and update PACCS” shall be inserted; (iii) in condition (vi) for the words “If the EDB does not verify the list of imported components released provisionally against ‘corporate guarantee’ or for any other” the words “For any” shall be substituted; (iv) for condition (ix) the following shall be substituted, namely:- (ix) the chief executive officer of the importing company or his duly authorized officer shall furnish all relevant information online to EDB as per “Form B’ (appended to this notification); (v) for condition (x) the following shall be substituted, namely:- “(x) For shifting of quota debiting from paper based registers to PACCS, following methodology shall be adopted, namely:- (a) the EDB shall update PACCS regarding valid quotas issued under this notification; (b) the clearance Collectorate maintaining quota registers shall update PACCS regarding already cleared quantities and quota debiting on paper registers shall stop thenceforth. This one-time exercise shall be undertaken immediately by the Customs Collectorates at the intimation from EDB; (c) from then on the quota shall be debited on GD to GD basis. In case Goods Declaration is filed on PACCS, quota shall be debited automatically. In case GD is filed in non-PACCS environment, the Assistant Collector of the Customs Station shall update PACCS before allowing the GD out of charge of Customs; (d) all new quotas shall be allocated online by EDB on PACCS only.” ;

(vi) after condition (xi) the following Explanation shall be added, namely:- “Explanation.- The expression “direct materials” means the material used in the direct consumption during the assembly or duly approved by the EDB.”; (3) In the Table; (i) in serial No. 9 in column (1), in column (4), for the figure “30%” the figure “25%” shall be substituted; and (ii) after serial No. 11, in column (1) and entries relating thereto in columns (2), (3) and (4), the following new serial number and entries relating thereto shall be added namely,- 12. Materials for direct use in -- 0% the manufacture of vehicles listed at Sr. No. 1 to 10 above (4) the Annexure B shall be substituted with the following, namely,- “ANNEXURE B [See clause (iii)] VERIFICATION OF LISTS AS PER CLAUSE (III) AND RECORDS PRESCRIBED. FORM- A (To be filled in by the authorized officer of Engineering Development Board) Header information Vehicle HS Code of Name of NTN/ STN Approval Unit of CD rate Name & vehicle in Batch ID Quantity importer of importer No. Measurement applicable Model kit form Detail of input goods (to be filled by the authorized officer of Engineering Development Board) Customs Duty rate Respective HS Description Part No. UOM Quantity Total Quantity (applicable) + Additional Code Per Unit Customs Duty rate 1 2 3 4 5 6 7 Signature __________________________ Designation __________________________ NOTE:- In case of clearance through Customs Computerized System (PACCS), the above information shall be furnished on-line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969.

FORM- B (To be filled in by the Chief Executive of the importing company) Name & address of the Importer NTN/STN Vehicle Name HS Code of Batch ID Quantity Unit of CD Rate & Model vehicle in kit form Measurement applicable S.No Respective Description Specifications of Applicable rate of Quantity Unit Unit of Total value PCT Heading imported inputs duty + Additional Valu measure in Pak Customs duty rate e Rupees CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the inputs requirement and as per Form-A duly verified by EDB. It is further certified that the above items shall not be used for any other purpose. Signature of Chief Executive Name of Chief Executive ___________________ N.I.C No. ________________________________ Explanation.- the expression “Chief Executive” means - (a) owner of the firm, in case of sole proprietorship; (b) partner of firm having major share, in case of partnership firm; (c) chief executive officer or the Managing Director in case of limited company o multinational organization; or (d) Principal Officer in case of a foreign company. Verification of Import Lists List 1 Vehicle Name & Model:-_____________________________HS Code of Vehicle:-__________ S.No Part Part Quantity per Total UOM Respective Rate of Name No vehicle Quantity HS Code Custom duty 1 2 3 4 5 6 List 2 S.No Part Part Quantity per Total UOM Respective Rate of Custom duty +Rate Name No Vehicle Quantity HS Code Of Additional Custom Duty 1 2 3 4 5 6 Records to be maintained in respect of imported components Quantity

S.No Part Part Respective Rate of Quantity Opening Imported Total Vehicles Consumed Closing Name No HS Code Customs duty Per Balance during available produced during Balance + Additional Vehicle As on The Year During the the year As on Custom Duty 7 + 8 year (Units) 9 - 11 1 2 3 4 5 6 7 8 9 10 11 12 Record to be maintained in respect of locally procured components Quantity S.No Part Part No Quantity Opening Locally Name of Total Vehicles Consumed Closing Name Per balance purchased Vendor available Produces During Balance Vehicle 5 + 6 During the year 8 - 10 the year 1 2 3 4 5 6 7 8 9 10 11 Record to be maintained in respect of in house manufacture of components Quantity S.No Part Part No Quantity Opening Manufactured Total Vehicles Consumed Closing Name Per Balance In-house available produced during Balance vehicles 5 + 6 during the the year 7 - 9 year 1 2 3 4 5 6 7 8 9 10” [ C. No. 2(18 )II&Tar-III/2007] (MUSARRAT JABEEN) Additional Secretary