SRO 954(I)/1998

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE AND ECONOMIC AFFAIRS NOTIFICATION Islamabad, the September 7, 1998 CUSTOMS/SALES TAX S.R.O.954(I)/98.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub0-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that goods as specified in Schedule I, temporarily imported into Pakistan for subsequent exportation, for the purpose of value added garments, including leather garments, flat goods, ladies hand bags and soft luggage items, shall be exempt from the whole of customs-duty leviable under the First Schedule to the Customs Act, 1969 (IV of 1969), and sales tax leviable thereon subject to the following conditions, namely:- (1) An application for exemption shall be made to the Collector of Customs giving full particular of the goods and the purpose for which they are imported. Only one point of entry for such imports shall be available as peer the declaration of the importer; (2) an 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 concerned in such form as prescribed by the Collector of Customs binding the importer to re-export the goods, within a period of one and half year and if the goods are not exported within the stipulated period, the Collector of Customs shall enforce the indemnity bond alongwith post-dated cheque furnished to them; (3) 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 purpose of this Notification. At the time of re-exportation of goods the exporter shall make a written declaration on the bill of export to the effect that goods covered were imported for the purposes of this Notification giving particulars of import documents (IGN No., & date, B/E No. & date, Cash No. & date, etc.); (4) 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. On the production of such an evidence the indemnity bond alongwith post-dated cheque submitted at the time of import shall be released; (5) the transfer of ownership of temporarily imported goods may be allowed by the Collector of Customs concerned, subject to the transfer of title of indemnity bond submitted at the time of import; (6) in case 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; and (7) exemption under this notification shall be available to the extent of five percent of the FOB value of exports, to be declared by the exporter on each Shipping Bill, giving particulars of import documents as specified in condition (3) and total FOB value of such re-exported goods so far. SCHEDULE I 1. Elastic Webbing, Knitted and woven, all sorts including knitted rib. 2. Shoulder pads, all sorts. 3. Labels of textile and other materials, all sorts with/without precoated adhesive. 4. Zips/Zip fasteners, metal/plastic/nylon, in pieces or rolls. 5. Button, plastic/press/metal/wooden/bronze all sorts including leather/textile covered. 6. Rivets and eyelets. 7. Buckles, rings and decorative fitting, all sorts including plastic/press metal/wooden/bronze leather. 8. Velcro patties/Velcro tapes and other fastening materials. 9. Tapes, allsorts including re-enforcement made of cotton/nylon, woven/non-woven, elastic/non-elastic. 10. Paper labels, care labels price stickers poly bags stickers. 11. Woven labels. 12. Hang Tags/Ups Tickets/Insert Tape. 13. Polypropylene strings. 14. Rubber Patches/Leather Patches. 15. Embroidery Patches. 16. Locker Loops. 17. Plastic Tacks. 18. Draw Cords/Draw Stains. 19. Eye let grommets. 20. Draw Cord Tunnel Stoppers. 21. Twill Tape. 22. Embroidery Thread. 23. Hangers with size tab. -------------------------------------------------------------------------------------------------------------------------------------------------------- [C.No.11(50)-Rebate/98] SAYED MOHSIN ASAD ADDITIONAL SECRETARY As amended S.R.O.737(I)/99, - dated 12.06.1999