Amendment in SRO 575(I)/2006, dated 5.6.2006 relating to import of plant, machinery and equipment etc

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, REVENUE AND ECONOMIC AFAIRS (REVENUE DIVISION) *** Islamabad, the 11th June, 2008. NOTIFICATION CUSTOMS S.R.O. 554(I)/2008.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of Section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments shall be made in its Notification No. S.R.O. 575(I)/2006, dated the 5th June, 2006, namely:- In the aforesaid Notification, - (a) for the letters “CBR”, wherever occurring, the letters “FBR” shall be substituted; (b) for condition (i), the following shall be substituted, namely:- “(i). the imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Federal Board of Revenue (FBR) from time to time or, as the case may be, certified as such by the Engineering Development Board. This condition shall, however, not be applicable in respect of S. Nos. 1, 2, 6, 15, 20, 28, 29 and 31 of the Table; and for such machinery, equipment and other capital goods imported as plant for setting up of a new industrial units provided the import is made against a valid contract or an irrevocable letter of credit for a minimum C&F value of US $ 50 millions;”. (c) the condition (ia) and the entry relating thereto shall be omitted; (d) in the Table, in column (1),- (i) against S. No. 1,- (a) in column (2),- (i) under heading (C), against entry (5), in column (3), after the figure “8432.4000” the figure “8432.8090” shall be added; and

(ii) under heading (D), against entry (2), in column (3), after the figure “8424.8100” the figure “8424.2010” shall be added; (ii) against S. No. 4, in column (2) after entry (15), the following new entries and the corresponding entries relating thereto in column (3) shall be added, namely:- 16. Parts, voice cards. 8517.7000 17. Other (digital call recorders) 8519.8990 18. VAST terminals 8525.6040; (iii) against S. No. 7,- (a) in column (5), for the word “Nil” the following shall be substituted, namely:- “Locally manufactured goods of description as specified in column (2) and pre-fabricated buildings can also be imported upon fulfillment of the following conditions, namely:- (a) The project requirement shall be approved by the Board of Investment (BOI). The authorized officer of BOI shall certify the item wise requirement of the project in the prescribed format and manner as per Annex-B and shall furnish all relevant information Online to Pakistan Customs Computerized System (PACCS) against a specific user ID and password obtained under Section 155D of the Customs Act, 1969 (IV of 1969); (b) the exception shall be available on one time basis for setting up of new projects and expansion of existing ones, and shall not be available on the spare parts. (c) only those importers shall be eligible to avail the aforesaid exception whose cases are recommended and forwarded by BOI to FBR; (d) the goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs-duties and taxes at statutory rates be leviable at the time of import. Breach of this condition shall be construed as a criminal offence under the Customs Act, 1969 (IV of 1969);”

(b) in column (2) against entries, A, B, C and E, in column (5), for the word “Nil”, wherever occurring, the word “do” shall be substituted; (iv) against S. No. 8, - (a) for the entry in column (5), the following shall be substituted, namely:- “(i) The Ministry of Tourism shall approve the project. The authorized officer of the Ministry shall determine the item wise requirement of every project irrespective of the category of the project on the format prescribed as Annex-B. The authorized officer of the Ministry shall furnish all relevant information Online to Pakistan Customs Computerized System (PACCS) against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969); (ii) Locally manufactured goods of description as specified in column (2) and pre-fabricated buildings can also be imported upon fulfillment of the following conditions, namely:- (a) the exception shall be available on one time basis for setting up of new projects and expansion of existing ones, and shall not be available on the spare parts; (b) only those importers shall be eligible to avail the aforesaid exception whose cases are recommended and forwarded by Ministry of Tourism to FBR; and (c) the goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs-duties and taxes at statutory rates be leviable at the time of import. Breach of this condition shall be construed as a criminal offence under the Customs Act, 1969 (IV of 1969); and (iii) in order to avoid misuse of items or equipment imported by hotel industry at concessional duty rates, Ministry of Tourism shall also ensure that these items or equipment are imported in relation to approved room capacity and are installed in the same hotel project and not elsewhere.”; and

(b) in column (2) against entry (ii), in column (5) for the word “Nil” the word “do” shall be substituted; (v) against S. No. 11, for the entry in column (5) the following shall be substituted, namely:- “(i) This concession shall also be available to primary contractors of the project upon fulfillment of the following conditions, namely:- (a) the contractor shall submit a copy of the contract or agreement under which he intends to import the goods for the project; (b) the chief executive or head of the contracting company shall certify in the prescribed manner and format as per Annex-A that the imported goods are the projects bona fide requirement; and (c) the goods shall not be sold or otherwise disposed of without prior approval of the FBR on payment of customs-duties and taxes leviable at the time of import; and (ii) temporarily imported goods shall be cleared against a security in the form of a post dated cheque for the differential amount between the statutory rate of customs- duty and sales tax and the amount payable under this notification, along with an undertaking to pay the customs- duty and sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.”; (vi) against S. No. 17, in column (5), for the word “Nil” the following shall be substituted, namely:- “Locally manufactured goods of description as specified in column (2) and pre-fabricated buildings can also be imported upon fulfillment of the following conditions, namely:- (a) The project requirement shall be approved by the BOI. The authorized officer of BOI shall certify the item wise requirement of the project in the prescribed format and manner as per Annex-B and shall furnish all relevant information online to Pakistan Customs Computerized System (PACCS) against a specific user ID and password obtained

under Section 155D of the Customs Act, 1969 (IV of 1969); (b) the exception shall be available on one time basis for setting up of new projects and expansion of existing ones, and shall not be available on the spare parts; (c) only those importers shall be eligible to avail the aforesaid exception whose cases are recommended and forwarded by BOI to FBR; and (d) the goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs-duties and taxes at statutory rates be leviable at the time of import. Breach of this condition shall be construed as a criminal offence under the Customs Act, 1969 (IV of 1969).”; (vii) against S. No. 33, in column (2). - (i) entry (84) and the corresponding entries relating thereto in columns (3) and (4) shall be omitted; (ii) against entry (86) in column (3), for the figures “8537.1000”, the figures “8537.1090” shall be substituted; and (iii) entry (99), and the corresponding entries relating thereto in columns (3) and (4) shall be omitted; (viii) Sr. No. 34, and the corresponding entries relating thereto in columns (2), (3), (4) and (5) shall be omitted; and (ix) against S. No. 35, in column (2),- (a) under heading (2), against entry (e), in column (3), for the figure “8543.7000” the figure “8543.1790” shall be substituted; (b) under heading (3),- (i) against entry (c), in column (3), for the figure “8537.2000” the figure “8543.1790” shall be substituted;

(ii) after entry (d), the following new entries and the corresponding entries relating thereto in column (3) shall be added, namely:- “(e) Generator 8501.6100”; (c) under heading (8), for entry (h), and the corresponding entries relating thereto in column (2) and (3), the following shall be substituted; namely:- “(h) Sheet mixture of 3920.9900.”; Paper and plastic; and (d) under heading (10), after entry (c), the following new entries and the corresponding entries relating thereto in column (3) shall be added, namely:- “(d) Deep cycle battery 8507.8000”. 2. This notification shall take effect from the 12th June, 2008. [C.No. 1/1/Tariff-II/2008]. (MEHMOOD ALAM) ADDITIONAL SECRETARY