SRO 504(I)/1994

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, REVENUE AND ECONOMIC AFFAIRS ( REVENEUE DIVISION ) NOTIFICATION Islamabad, the 9th June, 1994 CUSTOMS S.R.O. 504 (I)/94.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969) and in supersession of this Minitry's Notification No.S.R.O.479(I)/92, dated the 14th May, 1992, the Federal Government is pleased to exempt raw materials, sub-components and components as are not manufactured locally imported for the manufacture of goods specified in Table-I below, from so much of customs duties leviable under the First Schedule to the said Act as are in excess of the Table-II below, subject to the following conditions, namely:- (i) the components are in such knocked down condition as is approved by the Government in case of each item appearing inTable-I; (ii) the manufacturer has suitable in-house facilities for progressive manufacture of the goods in respect 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 goods that he is manufacturing or intends to manufacture alongwith the details of raw materials, sub-components and components required. The Chief or such authorized officer in consultation with the Collector of Customs, Central Excise and or Sales Tax shall certify the annual capacity of the unit for the manufacture of such goods and total require-ments of various types of raw materials, sub-components and components alongwith the quantity required for the manufacrture of each item; (iv) the manufacturer shall chalk out deletion programme spreading over a maximum period of five years within which period he shall achieve a minimum deletion in the manufacture of items 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 of progressive annual deletion as approved by the Central Board of Revenue and Ministry of Industries; and (v) at the time of import of raw materials, sub-components and components, the manufacturer shall make a written declaration on the bill of entry to the effect that raw materials, sub-components and components have been imported in accordance with his entitlement in terms of condition (iii) and that he has achieved deletion level in accordance with condition (iii); (vi) at the time of import the manufacturer shall furnish to the Collector of Customs an indemnity bond alongwith post-dated cheque of the amount equivalent to the customs duties and sales tax exempted, to abide by the conditions laid down in the notifiation failing which he shall pay customs duties and sales tax leviable on each consignment in addition to any other penalties that may be imposed by the Collector of Customs in this behalf; (vii) the manufacturer shall maintain record of the inputs and goods manufactrured 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 relating to raw materials, sub-components and components shall apply to the Collector of Customs for discharging the indemnity bond and post-dated cheque, the application being supported by a certificate in the Form set out below, issued by the Assistant Collector of Customs and Central Excise within whose jurisdiction the manufacturing unit is located; and (ix) in case Assistant Collector of Customs and Central Excise, is not satisfied regarding the consumption of imported inputs or use of locally produced deleted inputs, he shall reprot his findings to the Collector of Customs concerned who shall initiate proceedings for encashment of bank guarantee or post-dated cheque and penal action for making 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 - I S.No. Description of goods. (1) (2) 1. Airconditionrs. 2. Washing machines. 3. Deep freezers/refrigerators. 4. Electric irons. 5. Electric shavers. 6. Electric toasters. 7. Electric water coolers. 8. Fan heaters. 9. Hair dryers. 10. Stereo deck cassette recorders, tape recordrs and cassette players. 11. Vacuum cleaners and foot polishers. 12. Infra-red, halogen and energy saving lamps. 13. Coffee, tea and ice cream makers. 14. Egg beaters. 15. Electric ovens and grills. 16. Deep fryers. 17. Micro wave ovens. 18. Electric cooking ranges.. 19. Gas heaters and other domestic gas appliances. 20. Tube lights and Fluorescent bulbs. 21. Electric bulbs. 22. Electric recharging lights. 23. Electric and electronic fans. 24. Any other item approved by the Central Board of Revenue. 25. Food Grinders, Choppers, Blenders, Processors and Mixers. 26. Fruit and vegetable juice extractors. 27. Vaccum flask, 28. Radios other than car radios and audio systems 29. Telephone sets. 30. Televisions. 31. Audio Cassette Player. TABLE - II S.No. Description of inputs. Rate of duty 1. Raw materials. 5% 2. Sub-components and components. 10% Explantion: Vendors and manufacturers manufacturing components of goods mentioned in Table-I for in-house use or sale, as the case may be, shall be entitled for import of raw materials and sub-components as are not manufactured locally at concessionary rates under this notification subject to fulfillment of conditions as aforesaid. They shall maintain record of the sale of the manufactured components in the Form-II set out below and shall produce, on demand, such record and other evidence of sales as may be required for inspection by an officer of Customs not below the rank of Assistant Collector of Customs in whose jurisdiction the manufacturing unit is located or nay other officer authorized by the Central Board of Revenue in this behalf. FORM - I Certificate No.___________________________ Dated______________________ It is certified that the raw materials, sub-components and components imported by_________________under Notification No. (Name of the manufacturer/vendor) 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 certificate No.______ dated____________ I am also satisfied that all the deleted sub-components and component have been manufactured locally. Assistant Collector Name and official stamp FORM - II Register of sale of components manufactuured from raw materials and sub-components imported under Notifiction No.S.R.O._____ dated_____________________. Sr.No. Name and address of buyer Date of sale Components sold Quantity No. and date of the consumption certificate (1) (2) (3) (4) (5) (6) (C.No.6(17)/93-CB). ( RIAZ HUSAIN NAQVI ) Additional Secretary [As amended.] S.R.O.595(I)/94, - dated 09.06.1994 S.R.O.623(I)/94, - dated 22.06.1994 S.R.O.645(I)/94, - dated 30.06.1994 S.R.O.659(I)/94, - dated 03.07.1994 S.R.O.891(I)/94, - dated 13.09.1994 S.R.O.928(I)/95, - dated 20.09.1995 S.R.O.523(I)/96, - dated 13.06.1996 S.R.O.209(I)/97, - dated 28.03.1997 S.R.O.323(I)/97, - dated 09.05.1997 S.R.O.545(I)/98 - dated 12.06.1998 S.R.O.696(I)/99, - dated 12.06.1999