Federal Government is pleased to notify the fallowing goods on which sales tax shall be charged at the rate of zero per cent

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS AND REVENUE (REVENUE DIVISION) *** Islamabad, the 30th November, 2007. NOTIFICATION (SALES TAX) S.R.O. 1161(I)/2007.- In exercise of the powers conferred by clause (c) of section 4 of the Sales Tax Act, 1990, the Federal Government is pleased to notify the goods specified in column (3) of the Table below, imported for the manufacture of goods specified in column (2) of the said Table, on which sales tax shall be charged at the rate of zero per cent, subject to the following conditions, namely:- (i) a sales tax registered importer-cum-manufacturer having suitable in-house facilities shall submit a complete list in the prescribed format [appended as Form-I] of his annual requirement of permissible items (inputs) he intends to import for the manufacture of goods mentioned in column (2) of the table to the Collector of Sales Tax and Federal Excise having jurisdiction or to any other organization or person as authorized by the Federal Board of Revenue; (ii) the importer-cum-manufacturer shall file a request containing a declaration of input or, as the case may be, output ratios to the Collector of Sales Tax and Federal Excise or the authorized person. The Collector or the authorized person may accept the declaration of input output ratio as declared by the applicant and determine the annual requirement of inputs. In case the Collector or authorized person is not satisfied with declared input output ratios of the items to be manufactured because of their being prima facie not in accordance with the prevalent average of the relevant industry or for any other reason, he may, after allowing a reasonable provisional quantity, make a reference to the Engineering Development Board or IOCO or to any other recognized authority for final determination thereof. The collector or authorized person shall then determine the final annual quantitative entitlement of inputs and the applicant shall proceed to consume imported inputs in accordance with the input output ratios and quantities so determined; (iii) the clearance of inputs shall be allowed through one port or dry port;

(iv) the authorized officer of Sales Tax Collectorate shall furnish all relevant information online to Customs Computerized System (PACCS) as per Form-II appended to this notification against a specific user ID and password obtained under section 155D of the Customs Act, 1969. In already computerized Collectorate/Customs stations where the PACCS is not yet operational, the Project Director or any other authorized person shall feed the requisite information in the PACCS on daily basis and on weekly basis of the data obtained from the stations which have not yet been computerized; and (v) the importer-cum-manufacturer shall file Goods Declaration on the prescribed format and manner with complete details of authorization of imported inputs for clearance. The Collector of Customs on satisfaction of correct declaration shall allow clearance of imported inputs after obtaining post dated cheque for the differential amount of statutory tax and concessionary taxes. TABLE S. No. Description of goods Description of raw Heading or sub- to be manufactured materials heading Nos (1) (2) (3) (4) 1. Diapers of HS Code Super Absorbent 3906.9090 5601.1040 Polymers Poly Back Sheet 3920.1000 and 3920.9900 Hot Melt Adhesive 3506.9190 Non-Woven, whether or 5603.1100 and not impregnated, 5603.1200 coated, covered or laminated of man made filaments. Toilet or facial tissue 4803.0000 stock, towel or napkin paper of a kind used for household or sanitary purpose (non-pours) Frontal Tape 3919.9090 and 3920.9900 Pre-Laminated Tape 3919.1090 and 3920.9900 Fluff Pulp 4703.2100 Spandex Bare Yarn 5402.4900

FORM-1 (To be filled in by the importer or any person or persons duly authorized by him form his organization) Name & address of the NTN/FTN Importer Port of clearance Clearing Agents Name/No. S. HS Description Specification Applicable Quantity Unit Unit of Total No. Code of imported rate of value measure value inputs duty in Pak rupees (1) (2) (3) (4) (5) (6) (7) (8) (9) CERTIFICATE It is certified that the description and quantity mentioned above are commensurate with the inputs requirement. It is further certified that the above items shall not be used for any other purpose. Signature ______________________ Name _______________________ NIC No. _______________________ FORM-II (To be filled in by the Collector of Sales Tax Collectorate) Header information NTN/FTN of importer Name of importer Approval No. (1) (2) (3) Details of input goods (to be filled by the authorized officer of the Goods imported (Collectorate of Regulatory Authority) import) HS Code Description Specs Applicable Quantity UOM Quantity Collectorate CRN/Mach. Date of customs duty imported No. CRN/Mach. rate No. (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

It is certified that the description and quantity mentioned above are commensurate with the input requirement. Signature _______________________ Name _______________________ Stamp _______________________ Note.- In case of clearance through Pakistan Customs Computerized System (PACCS), the above information shall be furnished on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969. [C. No. 4/7-STB/2007] (Musarrat Jabeen) Additional Secretary