Exemption from Customs Duty, Sales Tax, General Import Surcharge and Iqra Surcharge on Import of Gol

EXEMPTION FROM CUSTOMS DUTY, SALES TAX, GENERAL IMPORT SURCHARGE AND IQRA SURCHARGE ON IMPORT OF GOLD Notification No. S.R.O. 1116(I)/89, dated 14th November, 1989.--In exercise of the power conferred by section 19 of the Customs Act, 1969 (IV of 1969), section 7 of the Sales Tax Act, 1951 (III of 1951), sub-section (2) of section 2 of the Finance ordinance, 1982 (XII of 1982), and sub-section (2) of section 5 of the Finance Act, 1985 (I of 1985), the Federal Government is pleased to exempt gold falling under heading No. 71.08 of the First Schedule to the Customs Act, 1969 (IV of 1969), and imported in accordance with the conditions specified below, from so much of the customs duty as is in excess of 3% ad valorem and whole of the sales tax, import surcharge and Iqra surcharge:- Persons coming to Pakistan will be allowed to import upto one hundred Troy Ounces, on each visit, in accordance with the procedure aid down in condition 3. Individuals and firms resident or established in Pakistan will be allowed to import upto five hundred Troy ounces, at a time, in accordance with the procedure laid down in condition 4. Persons referred to in category (1) above may purchase gold directly from the market or through branches of Pakistani nationalized commercial banks overseas. Where the purchase is made from a branch of the nationalized commercial bank, the bank will quote a price based on London bullion market prices, to which will be added 3% of the value of gold as import duty, and bank's own handling charges as notified by the Pakistani Banking Council, which will not exceed 1% of the value of gold. The value of gold will be determined as the closing price in the London bullion market on the working day preceding the payment of duty. The buyers will make payment of cost, import duty and handling charges to the bank in convertible foreign exchange. The bank will immediately notify the transaction by telex to its head office, and branches designated by the head office, for arranging the purchase and delivery of gold to the buyer on his return to Pakistan The bank will also issue a certificate in the Form 'G' set out in the Annex evidencing the payment of duty for import of gold by the person named therein. A copy of this form shall be sent to the Second Secretary (Customs Budget), Central Board of Revenue, Islamabad another copy shall be sent to the head office of the bank. Whereas the buyer opts to make the purchase of gold himself he will deposit, with the diplomatic mission of Pakistan in the country concerned, the import duty at 3% of the value of gold. The duty will be paid in convertible foreign exchange. The diplomatic mission will issue a certificate in the form referred to in condition (v) above. A copy of the certificate shall be sent to the Second Secretary (Customs Budget), Central Board of Revenue, Islamabad, and another copy shall be given to the passenger for handling it over to the Customs officials at the time of arrival for taking the delivery of the gold. The diplomatic missions will make arrangements with London gold merchants or a branch of nationalized commercial bank in London to keep themselves posted with the London market prices of gold for the purpose of verifying the import duty payable. The diplomatic mission will pass on the amounts of duty collected by them through the Ministry of Foreign Affairs for credit to Government account. The buyer will be permitted to carry the gold to Pakistan through PIA only. For this purpose he will approach PIA office in the country concerned, deliver the gold to them at the time of embarkation and obtain a receipt for the same. The gold will be transported by PIA by the same flight by which the person is traveling. PIA will be responsible for safe transportation and delivery of the gold to the passenger at the time of disembarkation in Pakistan in the presence of Customs Officials Individual and firms resident or established in Pakistan referred to in the category 2 above, may apply to one of the designated branches of the nationalized commercial banks in Pakistan. The bank would quote a price on the basis of London bullion market price plus 4%. This 4% would include 3% import duty and 1% bank charges. Payment of the cost of gold will be made in convertible foreign exchange. FEBCs will not be accepted for this purpose. However, cheques issued from freely convertible accounts or remittance from abroad will be acceptable. The bank will make arrangements for purchase of the gold, its transportation to Pakistan and delivery to the buyer within 10 days. ---------------------- Annex "FROM 'G' Certified that Mr / Miss / Mrs__________________________ s/o, d/o, w/o_______________________________residing at_______________________ having permanent address___________________________________________ and holding Passport No.__________________dated_______________________issued at________ has paid an amount of ______________________________________ as customs duty @ 3% for the import of __________(quantity in Troy ounce in figures and words)_______gold consisting of ____(in figures and words)______________slabs bearing marks and numbers__________________________ of value_____(in figures and words)__________________ vide challan / receipt___________________________dated_____________________ in the ______________(Name and branch of Bank/ Diplomatic Mission)____________ AUTHORIZED OFFICER OF THE BANK / DIPLOMATIC MISSION [As amended]