SRO 818(I)/1989

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE NOTIFICATION Islamabad, the 9th August, 1989 CUSTOMS/SALE TAX S.R.O. 818(I)/89. - In exercise of the powers conferred by section19 of the Customs Act, 1969 (IV of 1969) and sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that such of the goods specified in Schedule I as are temporarily imported into Pakistan with a view to subsequent exportation shall, subject to the following conditions, be exempt from payment of customs duty leviable under the First Schedule to the Customs Act, 1969 (IV of 1969) and sales tax payable thereon under the said Act, namely:- (1) An application for exemption shall be made to the Collector of Customs or the Deputy Collector of Customs giving full particulars of the goods and the purpose for which they are imported. (2) A bank guarantee, indemnity bond alongwith post-dated cheque equivalent to the amount of customs duty and sales tax otherwise leviable shall be furnished to the Collector of Customs or the Deputy Collector of Customs concerned, in such form as is prescribed by the Collector of Customs or the Deputy Collector of Customs binding the importer to re-export the goods temporarily imported within a period not exceeding one year. The Collector of Customs or the Deputy Collector of Customs concerned on a action made to him in this behalf, may, in deserving cases, grant at his discretion and subject to such condition as he may deem fit to impose, extension up to a further period of six months. If the goods are not exported within the stipulated period, the Collector of Customs or the Deputy Collector of Customs, as the case may be, shall enforce the bank guarantee furnished to him: (3) Only such of the goods except the goods mentioned against serial No. 5 covered by schedule I as are capable of identification at the time of their re-exportation shall be exempt from the aforesaid customs duty and sales tax. (4) Packing material as mentioned in Schedule 1 may be imported empty and it may be exported filled. (5) The Collector of Customs or the Deputy Collector of Customs may refuse entry of any goods without payment of customs duty and sales tax if prima facie it appears to him that any of the conditions, of this notification would be breached. At the time of importation of goods the importer shall make a written declaration on the bill of entry to the effect that the goods covered are imported for the purposes of this notification. At the time of re-exportation of goods the exporter shall make a written declaration on the bill to the effect that goods covered were imported for the purposes of this notification giving particulars of import documents (IGM No. & date, B/E No. & date, Cash No. & date, etc.). (6) Immediately after the re-exportation of goods, the applicant shall produce evidence to the Collector of Customs or the Deputy Collector of Customs concerned that the goods have been re-exported within the stipulated period. On the production of such an evidence the bank guarantee or the indemnity bond submitted at the time of import shall be released (7) The export shall be allowed only if the Assistant Collector, Incharge of Export Station, is satisfied that the goods temporarily imported have been duly consumed in the manufacture of goods being exported. (8) Omitted. (9) The transfer of ownership of temporarily imported goods may be allowed by the Collector of Customs or the Deputy Collector of Customs, concerned, at his discretion, subject to the transfer of title of bank guarantee or indemnity bond submitted at the time of import: Provided that the transfer of ownership shall be allowed only in cases in which the imported goods have undergone the manufacturing process to reach an intermediary product stage. (10) In cases where temporarily imported goods are used in addition to other imported raw materials on the imports of which duties and taxes have been paid and repayment is admissible on export of ultimately manufactured products, the FOB price for claiming repayment shall be the value excluding value of the goods temporarily imported under this notification. (11) Only such operations as are listed in Schedule II shall be carried out with the raw materials imported under this notification. (12) Exemption under this notification shall not be allowed in cases in which physical inspection of manufacturing becomes necessary for the purposes of such exemption. (13) Omitted FORM 1. Name of the Unit with address ____________________________________________ 2. N.T.N.No. ____________________________________________ 3. Export Registration No. ____________________________________________ 4. Import Registration No. ____________________________________________ 5. Station of Export ____________________________________________ 6. Value of garments exported in the Financial year ____________________________________________ 7. Intended station of import ____________________________________________ ---------------------------------- Signature and seal Collector of Customs SCHEDULE I 1. Material and components, sub-components for processing, assembly, manufacturing, repair or rebuilding. 2. Material for embellishing or decorating goods produced in Pakistan, for exportation. 3. Packing material (excluding straw, paper, paper cones glass, wool and like material). 4. Price labels/tags. 5. Textile designs, artwork, transparencies (bearing design for textiles). 6. Special labels, special buttons, special brand tags and other items required to be fixed on readymade garments. 7. Raw materials i.e. plush fabrics, nylon, polyester fiber, eyes and nose used in stuffed toys. 8. Polypropylene woven and jute bags subject to the condition that such bags bear the particulars of the Pakistani exporters in permanent print on each bag. SCHEDULE II 1. Assembly of machinery components and parts. 2. Assembly of electrical and electronic equipments and parts thereof. 3. Packaging of goods. 4. Manufacturing of leather goods from components. 5. Manufacturing of sports goods from components. 6. Manufacturing of garments from fabrics. 7. Incorporation of trimmings, buttons, belts and similar items in garments. 8. Manufacturing of aluminum-ware, steel ware, kitchen utensils and cutlery. 9. Manufacturing of bicycles. 10. Manufacturing of dolls, toys and games. 11. Manufacturing of vacuum flasks. 12. Manufacturing of furniture, woodware and fittings. 13. General superficial processes such as elementary repairs, cleaning, removal of damaged parts, sorting, straining, sifting, clarification, filtering, marking, sealing, labeling, repacking, drying, preserving, refrigerating, chilling, fumigating, greasing, anti-rusting, protective coating, printing, etc. 14. Forgings imported by manufacturers of surgical instruments. 15. Manufacturing of Foundation Garments. MUZAFFAR MAHMOOD QURASHI [F.No. 1(23)S&R-2/89] Additional Secretary [As amended] S.R.O. 1044(I)/89. - dated 22.10.1989. S.R.O.1172(I)/99, - dated 03.11.1999 S.R.O. 460(I)/91. - dated 20.05.1991. S.R.O.1363(I)/99, - dated 20.12.1999 S.R.O.660(I)/91. - dated 13.07.1991. S.R.O. 844(I)/91. - dated 24.08.1991. S.R.O.426(I)/92. - dated 14.05.1992. S.R.O.482(I)/94, - dated 09.06.1994. S.R.O.985(I)/94. - dated 06.10.1994 S.R.O.374(I)/96, - dated 13.06.1996 S.R.O.735(I)/96, - dated 08.09.1996 S.R.O.585(I)/97, - dated 07.08.1997 S.R.O.828(I)/98, - dated 21.07.1998 S.R.O.955(I)/98, - dated 07.09.1998. S.R.O.686(I)/99, - dated 12.06.1999