SRO 502(I)/1994

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, REVENUE AND ECONOMIC AFFAIRS (REVENUE DIVISION) Islamabad, the 9th June,1994 (CUSTOMS) S.R.O.502(I)/94.- In exercise of the powers conferred by section 19 of the Customs Act,1969 (IV of 1969), the Federal Government is pleased to exempt components as are not manufactured locally imported for the manufacture of vehicles, machinery and equipment specified in column (2) of the Table below from so much of customs-duties leviable under the First Schedule to the said Act as are in excess of the rates specified in column (3) thereof, subject to the following conditions, namely :- (i) The components are in such knocked down condition as in approved by the Government in case of each specified vehicles, machinery and equipment; (ii) the manufacturer has suitable in-house facilities for progressive manufacture of vehicles, machinery and equipment inrespect of which he claims exemption under this notification; (iii) the manufacturer shall furnish to Chief, Survey and Rebate, Central Board of Revenue, or any officer authorized in this behalf, in the prescribed form, the list of vehicles, machinery and equipment that he is manufacturing or intends to manufacture alongwith the details of components required and the Chief or such authorized officer in consultation with the Collector of Customs, Central Excise and or Sales Tax will certify the annual capacity of the unit for the manufacture of such vehicles, machinery and equipment and total requirements of various types of components alongwith the quantity required for the manufacture of each vehcile, machinery and equipment; (iv) the manufacturer shall chalk out deletion program spreading over a maximum period of five years within which period he shall achieve a minimum deletion in the manufacture of vehicles, machinery and equipment to the extent of 75% of the C&F value of the inputs of the manufactured items and continued availability of the exemption under this Notification shall be contingent upon the achievement progressive annual deletion as approved by the Central Board of Revenue and Ministry of Industries; and (v) the manufacturer shall, at the time of import of components make a written declaration on the bill of entry to the effect that the components have been imported in accordance with his entitlement in terms of conditions (iii). (vi) at the time of import the manufacturer shall furnish to the Collector of Customs an indemnity bond and post-dated cheque of the amount equivalent to the customs duties exempted to abide by the conditions laid down in the notifications failing which he would pay the customs duties leviable on each consignment in excess of any other penalties that may be imposed by the Collector of Customs in this behalf; (vii) the manufacturer shall maintain record f the components and vehicles, machinery and equipment manufactured out of them in such Form as may be prescribed by the Central Board of Revenue; (viii) the manufacturer shall, within one year of the date of filing of bill of entry for home-consumption or ex-bond bill of entry relating to the components, apply to the Collector of Customs for discharging the bond, the application being supported by a certificate in the Form set out below, issued by the Assistant Collector Customs and Central Excise within whose jurisdiction the manufacturing units is located; and (ix) in case Assistant Collector, Central Excise and Customs, is not satisfied regarding the consumption of imported components or use of locally produced deleted components, he shall report his findings to the Collector of Customs concerned who shall initiate proceedings for encashment of post-dated cheque and penal action for giving false declaration. 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 TABLE --------------------------------------------------------------------------------------------------------------------------------------------------------S.No. Description of Vehicle Rate of customs-duty on CKD Kits -------------------------------------------------------------------------------------------------------------------------------------------------------- (1) (2) (3) -------------------------------------------------------------------------------------------------------------------------------------------------------- 1. Tractors falling under PCT heading 87.01: (a) agricultural tractors 0% (b) others 10% 2. Motor cars of cylinder capacity upto 1600CC falling under PCT heading 87.03 35% 3. Diesel cars falling under PCT heading 8703.3222 35% 4. Vehicles falling under PCT heading 87.03 excluding those specified at S.No. 2 above. 35% 5. Vehicles falling under PCT headings:- (a) 87.02: (i) for buses and coaches 15% (ii) Others 35% 87.04(excluding 8704.2120,8704.2220, 8704.3120 and 8704.3220) 35% 87.05 35% 87.12 35% 87.16 35% (b) 8704.2120 30% 8704.2220 8704.3120 8704.3220 (c) 87.11 30% 6. Combine harvester - threshers falling under PCT heading 8433.5100 0% 6A. Bulldozers for agriculture purposes falling under heading 84.29. 0% 7. Assembly kits of all the above categories corresponding to the number of their exported units 0% ad val. subject to the following conditions, namely:- (i) No duty drawback was claimed at the time of export; (ii) the imported kits relate to the vehicle of same engine capacity as was exported; and (iii) the importer makes a declaration in the bill of entry at the time of import that he intends to avail this facility and produces the evidence of export, namely:- (a) Copy of the bill of export bearing examination report of Customs; (b) Bill of lading; and (c) Foreign exchange repatriation certificate FORM Certificate No.________________ Dated________________________ It is certified that the components imported in CKD kits by _______________________________________under notification (Name of manufacturer) No.S.R.O._________dated ________and released vide bill of entry No.________dated__________have been used for the manufacture of_________________in accordance with the scale laid down by the Chief, Survey and Rebate vide his certificate No.______________dated__________. I am also satisfied that all the deleted components have been manufactured locally. Assistant Collector Name and official stamp. -------------------------------------------------------------------------------------------------------------------------------------------------------- [C.No.6(17)/93-CB] (Riaz Husain Naqvi) Additional Secretary As amended S.R.O.644(I)/94, - dated 30.06.1994. S.R.O.40(I)/98, - dated 21.01.1998 S.R.O.890(I)/94, - dated 13.09.1994 S.R.O.214(I)/98, - dated 31.03.1998 S.R.O.502(I)/95, - dated 14.06.1995 S.R.O.544(I)/98, - dated 12.06.1998 S.R.O.900(I)/95, - dated 05.09.1995 S.R.O.1047(I)/98, - dated 13.10.1998 S.R.O.1306(I)/96, - dated 18.11.1996 S.R.O.294(I)/99, - dated 27.03.1999 S.R.O.225(I)/97, - dated 28.03.1997 S.R.O.695(I)/99, - dated 12.06.1999 S.R.O.322(I)/97, - dated 09.05.1997 S.R.O.586(I)/97, - dated 07.08.1997