Exemption from Customs Duty and Sales Tax on Import of Raw Materials for Use in the Manufacture of C

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF RAW MATERIALS FOR USE IN THE MANUFACTURE OF CAPITAL GOODS AND MACHINERY 41Notification No. S.R.O. 1030(I)/86, dated 17th November, 1986.--In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and section 7 of the Sales tax Act, 1951 (III of 1951), and in supersession of the Notification No. S.R.O. 115(I)/86, dated the 29th January, 1986, the Federal Government is pleased to direct that components and raw materials imported for use in the manufacture of capital goods and machinery specified in the Ministry of Finance and Economics Coordination Notification No. S.R.O. 600(I)/83, dated 11th June, 1983, and the raw materials imported for use in the manufacture of intermediary goods specified in the Ministry of Finance and Economic Coordination Notification No. S.R.O. 601(I)/83, dated the 11th June, 1983, to be supplied to the projects financed out of the funds provided by the international loan or aid giving agencies against international tenders shall be released against bank/insurance guarantee equivalent to the customs-duties and sales tax leviable on each consignment at 20% ad valorem under the aforesaid Notification furnished to the Collector of Customs and valid for the period of the tender subject to the conditions that the importer-cum-manufacture-- at the time of import, makes a declaration on the bill of entry to the effect that the raw materials and components have been imported in accordance with his entitlement in terms of conditions (ii) and (iii) and conditions (ii) of the Ministry of Finance and Economics Coordination Notification No. S.R.O. 600(I)/83 and S.R.O. 601(I)/83, both dated the 11th June, 1983, respectively, and makes a further declaration to the effect that the raw materials and components have been imported or manufacture of capital goods and machinery and intermediary, goods, as the case may be, to be supplied to the projects financed, out of the funds provided by the international loan or aid giving agencies against international tenders; and furnishes a bond to the Collector of Customs, at the time of importation of raw materials and components, to abide by she conditions laid down in this Notification failing which he shall pay the amount of customs-duties and sales tax exempted under this Notification and shall make payment of any penalties that may be imposed by the said Collector in this behalf. 2. The importer-cum-manufacturer shall, within the aforesaid validity period of the bank/insurance guarantee, apply to the collector of Customs for discharging the bank/insurance guarantee, the application being supported by-- a certificate from the Chief, Survey and Rebate or any other officer authorised by the Board in this behalf a to the quantum of customs-duties payable on the import of components and raw materials used in the fabrication of an item of capital goods and machinery or intermediary products; and a certificate from the concerned project that the goods referred to in clause (a) have been supplied to it. 3. This Notification shall take effect from 29th May, 1986. **** 41. Reported as PTCL 1987 St. 135.