Amendments in Notification No. S.R.O 656(I)/2006, dated the 22nd June, 2006

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE AND REVENUE (REVENUE DIVISION) ***** Islamabad, the 12th June, 2013. NOTIFICATION (CUSTOMS) S.R.O. 496 (I)/2013.- 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, namely:- In the aforesaid Notification,- (i) in condition (i), for the semi-colon at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:- “Provided that the facility of assembly or manufacture under firm contract shall not be available to importer, for auto rickshaw of heading 8703.2115, 3-Wheeler Cargo Loader of heading 8704.3150 and vehicles of heading 87.11;” (ii) in condition (iii), after the word “update”, for the letters and words “PaCCS or One Customs System”, the words “Customs Computerized System” shall be substituted and thereafter the full stop and words “.Pending verification of lists by the EDB, the customs department may allow provisional release against “Corporate Guarantee” submitted by the importer-cum-assembler or manufacturer” shall be omitted; (iii) in condition (viii), after the word “System”, occurring first time, the brackets, letters and words “(PACCS) or One Customs System” shall be omitted; (iv) condition (x) shall be omitted;

(v) after condition (xii), the following new condition shall be added, namely:- “(xiii) all the consignments imported under this notification shall only be cleared through Customs Computerized System”; and (vi) after the Table, for the existing “Annexure A”, the following “Annexure A” shall be substituted, namely:- “Annexure A [See condition (i)] MINIMUM IN-HOUSE ASSEMBLING/ MANUFACTURING FACILITIES REQUIRED FOR ASSEMBLERS / MANUFACTURERS OF VEHICLES A. CARS & LIGHT COMMERCIAL VEHICLES (LCVs) 1. Body welding shop Following equipment / facilities should be available for sub-assembly/ Assembly covering Under Body, Side Body / Side Panel, Main Body, Shell Body, Engine Compartment etc. (a) Welding jigs; for sub assembly / assembly operations covering underbody, Engine Compartment, Side Body / Side Panel, Main Body; (b) Welding guns & Other Equipment; for above fixtures; (c) Welding transformers; (d) Hoists; (e) Necessary tools; (f) Body handling Equipment; (g) Tools & gauges; for body parts fitting & body accuracy. 2. Body Paint shop (a) Booth for:- (i) Pretreatment including Cleaning, Degreasing, Metal preparation for Primer Coat; (ii) Primer; (iii) Under Coat; (iv) Sealer; (v) Top Coat. (b) Dry Off / Baking ovens for:- (i) Pretreatment; (ii) Primer; (iii) Under Coat; (iv) Sealer; (v) Top Coat. 3. Vehicles Final Assembly:- (a) Trim Line with Multiple Stations:- (i) Trim Line with Multiple Station; (ii) Sealer Pumps;

(iii) Conveyors; (iv) Pneumatic Tools; (v) Torque Wrenches; (vi) Other Hand Tools. (b) Chassis Line with Multiple Stations Equipped with hoists and underground Pits:- (i) Central Lifter; (ii) Engine Docking Machine/ System; (iii) Axle Lifting Machine/ System; (iv) Wheel Sub-assembly/Balancing; (v) Wheel Assembly; (vi) Pneumatic Tools. (c) Final Line:- (i) Coolant Feeder; (ii) Brake Bleeding Machine; (iii) AC coolant filing, if applicable; (iv) Fuel Filling. 4. Vehicles Performance Testing Facilities:- (a) Toe in Tester; (b) Side Slip Tester; (c) Brake Tester; (d) Drum Tester; (e) Turning radius; (f) Headlight aiming tester; (g) Shower tester (With at least sufficient number of nozzles to cover roof, side walls, doors, windows and floor in a rain simulation). 5. Inspection Equipments;- 6. Storage:- (a) Vendorized / In-house Parts; (b) CKD Parts; (c) Finished Goods. B. HEAVY COMMERCIAL VEHICLES (HCVs) 1. Main Chassis-Frame Assembly &/ or Riveting Line:- (a) Jigs and fixtures for Drilling, Riveting & Welding Jigs and fixtures suitable for main chassis making (assembling); (b) Riveting Guns; (c) Overhead Cranes and Hoists; (d) Riling Machines; (e) Dollies; (f) Suitable Welding Equipment. 2. Axle Assembly:- (a) Tools for Axle Assembly; (b) Hoist(s) / Crane(s); (c) Press for fitting Hub Bearings; (d) Stands;

(e) Toe in Toe Out Adjustment Tools; (f) Torque Wrenches. 3. Welding Shop:- (a) Welding Jigs; (b) Spot Welding Guns; (c) Welding Transformers; (d) Hoists; (e) Necessary Tools. 4. Paint Shop (a) Booths for:- (i) Cleaning, Degreasing, De-rusting etc; (ii) E.D Painting facility for cabins; (iii) Conventional system for body & Structural parts; (iv) Pretreatment / Primer Coat; (v) Top Coat. (b) Chassis Paint / Touchup Area:- (i) Spray Guns; (ii) Paint Containers. (c) Baking Ovens. (d) Sealing equipments. 5. Vehicles Final Assembly (a) Trim Line:- (i) Cranes / Hoists; (ii) Dollies for Bodies / cabins; (iii) Pneumatic Tools; (iv) Other Hand Tools. (b) Chassis Line:- (i) Cranes / Hoists; (ii) Lifting Hangers equipment for dropping or docking the engines; (iii) Torque Wrenches; (iv) Wheels Sub assembly; (v) Hanger for Cab Mounting; (vi) Pneumatic Tools. (c) Final Line:- (i) Coolant Feeder; (ii) Brake Bleeding Machines. 6. Vehicles Performance Testing Machines:- (i) Toe in tester; (ii) Side Slip Tester; (iii) Brake Tester; (iv) Speedometer Tester; (v) Headlight aiming Tester; (vi) Shower Tester. 7. Inspection Tools and equipments. 8. Storage:-

(a) Vendorised and In house Parts; (b) CKD Parts; (c) Finished Goods. C. TRACTORS 1. ENGINE ASSEMBLY Sub Assembly:- (a) Engine assembly line with proper tooling, jigs and fixtures including Degreasing and Washing Machines; (b) Gear Box assembly line with proper tooling, jigs and fixtures; (c) Rear Axles assembly line with proper tooling, jigs and fixtures; (d) Front Axle assembly line; (e) Steering assembly; (f) Wheel sub assembly. 2. PAINT SHOP FOR SHEET METAL AND CHASSIS (a) Booth for:- (i) Cleaning, Washing, Degreasing, De-rusting, Metal preparation for Primer Coat; (ii) Phosphating / pretreatment; (iii) Primer Coat; (iv) Top Coat. (b) Baking Ovens; (c) Paint mixing and spraying equipment; (d) Overhead conveyors for Sheet Metal Parts. 3. VEHICLES FINAL ASSEMBLY:- (a) Conveyors; (b) Material Handling Equipment; (c) Pneumatic Tools supported by pneumatic air supply infrastructure & balancers; (d) Torque Wrenches and Calibrators; (e) Engine Docking Equipment; (f) Overhead Gantries & Jib Cranes for Electric Hoist. 4. PERFORMANCE TESTING FACILITIES:- (a) Toe in Tester; (b) Brake Tester; (c) Turning Radius; (d) Headlight aiming Tester; (e) Roller Tester for Functional Inspection; (f) Diesel Lab for calibration of Fuel Injection Equipment. 5. INSPECTION TOOLS/EQUIPMENTS:- (a) Engine Dynamometer; (b) Engine components contamination measuring equipment; (c) Engine Noise Meter; (d) Exhaust Gas Analyzer; (e) Rear Axle Test rig; (f) Hydraulic Test rig; (g) Pre-loading equipment; (h) Axle and play equipment; (i) Paint-gloss and thickness testing equipment; (j) Salt Spray testing equipment for paints;

(k) Material Testing Laboratory. 6. STORAGE:- (a) Vendorised/In-house Parts; (b) CKD Parts; (c) Finished Goods. 7. Test Rigs for Endurance Testing of Safety / Critical items. 8. Availability of manufacturing drawings to include:- (a) Dimensions; (b) Materials; (c) Mechanical and Physical properties; (d) Assembly and Testing Procedures. 9. Availability of purchase orders on vendors / suppliers. D. MOTORCYCLE/ MOTORCYCLE RICKSHAW 1. MOTORCYCLE FRAME WELDING SHOP This shop will be completely equipped with the following:- (a) Welding Jigs; (b) Spot Welding Machine; (c) MIG Welding Machine; (d) Frame/Chassis Inspection Jigs; (e) Boring Machine for the head pipe. 2. BODY PAINT SHOP Booth for:- (a) Cleaning, degreasing, de-rusting, metal preparation for phosphate; (b) Spray Booths, including preparation area, spray, flash off; (c) Finish Coat/ Final Coat; (d) Baking Ovens. 3. ENGINE ASSEMBLY & TESTING (a) Engine Assembly Line equips with fixtures for the following Sub- assemblies:- (i) Crank Cases and Crank Case Covers; (ii) ACG Flywheel; (iii) Complete Cylinder with Crankshaft and Connecting Rod; (iv) Spindle Kick Starter and Spindle Gear Change/ Shifting; (v) Spark Plug, Rocker Arm and Tappet adjusting; (vi) Cover Cylinder Head and Oil Filling; (b) Engines Assembly Tools:- (i) Pneumatic Tools; (ii) Torque Wrenches; (iii) Compressor; (iv) Press of Pneumatic Jig (for Ball Bearing fitting); (v) Engine number Punching Arrangement; (vi) Parts/ Material Handling System; (vii) Dust Free Environments.

(c) Engine Testing Tools:- (i) Test Bench of Check Gears and Neutral Light Functioning; (ii) Measured Oil Filling Arrangement; (iii) Leakage Testing. 4. TESTING INSTRUMENTS/ EQUIPMENTS FOR INSPECTION OF COMPONENTS/ PARTS BEFORE ISSUANCE OF FINAL ASSEMBLY:- (a) Surface Plate; (b) Dimensional inspection instruments (e.g. verneercaliper, micrometer, dial indicator & headlight gauge etc); (c) Material hardness tester (metal & rubber); (d) Destructive test arrangement (especially for chromed parts); (e) Coating layer thickness meter; (f) Functional tests; (g) Peripheral/ run-out accuracy, etc., testing arrangement. 5. FINAL ASSEMBLY (a) Frame Assembly Fixture:- Fixture for complete motorcycle assembly to support/ hold the motorcycle height from the first step of the assembly that/ is putting Engine or Frame Body up to the complete finished product, including assembly of the motorcycle from the following:- (i) Rear Fork (or swing arm); (ii) Front and Rear Wheel; (iii) Front and Rear Fenders; (iv) Front and Rear Shock absorber; (v) Steering Handle with Switch Assembly, Break Levers and Throttle; (vi) Driver Chain and Chain Cases; (vii) Fuel Tank Seat and Side Cover; (viii) Wiring and Cables routing; (ix) Speedometer, Head Light and Tail Light; (x) Front and Rear, Right and Left Winkers; (xi) Brake Pedal, Brake Rod and Gear Change Pedal; (xii) Front and Rear Wheel Panels fitting; (xiii) Exhaust Muffler, rubber Step, Bar and Pillion Assembly fitting. (b) Final Assembly Tools:- (i) Pneumatic Guns; (ii) Torque Wrenches; (iii) Compressor; (iv) Press or pneumatic Jig (for Cones and Bushes); (v) Frame Number punching arrangement; (vi) Parts/ Material Handling System. 6. FINAL INSPECTION:- (a) Test Bench For Brake Testing; (b) Speedometer Test Bench; (c) Headlight aiming Testing; (d) Vehicle Alignment; (e) Emission Tester; (f) Noise Tester. 7. STORAGE:- a) Vendorised / In-House Parts; b) CKD Parts;

c) Finished Goods. E. STROKE AUTO RICKSHAW 1. FRAME WELDING SHOP:- (a) Welding Jigs; (b) Spot Welding Machines; (c) MIG Welding; (d) Frame/ Chassis Inspection Jigs. 2. BODY PAINT SHOP System for:- (a) Cleaning, degreasing, de-rusting, metal preparation for phosphate; (b) Spray Booths, including preparation area, spray, flash off; (c) Finish and final coat; (d) Baking Ovens. 3. ENGINE ASSEMBLY AND TESTING (a) Engine leakage Testing; (b) Engine running/ endurance test. 4. TESTING INSTRUMENTS/ EQUIPMENTS FOR INSPECTION OF COMPONENTS/ PARTS BEFORE ISSUANCE OF FINAL ASSEMBLY:- (a) Surface Plate; (b) Dimensional inspection instruments (e.g. veneer caliper, micrometer, dial indicator & height gauge etc); (c) Material hardness tester (metal & rubber); (d) Destructive test arrangement (especially for chromed parts); (e) Coating layer thickness meter; (f) Parts fitting/ functional tests; (g) Peripheral/ run-out accuracy, testing arrangement for the wheels. 5. FINAL ASSEMBLY (a) Chassis Assembly Line: Chassis Assembly Line with Fixture / Conveyors for the assembling of complete 4-Stroke Auto Rickshaw to support/ hold the Rickshaw Chassis/ Frame from the first step of the assembly i.e. putting Engine and Rear & Front Body, up to the complete finished product, including assemblies from the following:- (i) Front Fork Assembly; (ii) Front and Rear Wheels; (iii) Differential sub-assembly testing; (iv) Wheel Assembly; (v) Front and Rear Shock absorbers/ Leaf Springs; (vi) Steering Handle with Switch Assemblies, Break Leers and Throttle; (vii) Wiring and Cables Routing; (viii) Dash Board with panel meters; (ix) Head Light, Tail Light and Winkers; (x) Front and Rear, Right and left Winkers; (xi) Front and Rear Body; (xii) Wind screen and Back View Mirrors; (xiii) Hood Frame and Hood Cover; (xiv) Radiator Assy and engine water cooling system; (xv) Exhaust muffler Assy.

(b) Final Assembly Tools;- (i) Pneumatic Guns; (ii) Torque Wrenches; (iii) Compressor; (iv) Press or pneumatic Jig (for Cones and Bushes); (v) Frame Number Punching arrangement; (vi) Parts/ Material Handling System. 6. FINAL INSPECTION:- (a) Test Bench for Brake Testing; (b) Speedometer Test Bench; (c) Headlight aiming Testing System; (d) Vehicle alignment; (e) Emission Tester; (f) Noise Tester. 7. STORAGE:- (a) Vendorised / In-House Parts; (b) CKD Parts; (c) Finished Goods.” 2. This Notification shall take effect from the 13th June, 2013. [C. No. 1(6)Tar-III/2013] (Mohammad Riaz) Additional Secretary