Exemption from Customs Duties and Sales Tax on Raw Materials and Components of Certain Specialized V

EXEMPTION FROM CUSTOMS DUTIES AND SALES TAX ON RAW MATERIALS AND COMPONENTS OF CERTAIN SPECIALIZED VEHICLES. Notification No. S.R.O. 18(I)/88, dated 12th January, 1988.--In exercise of the power conferred by section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (1) and (2) of section 7 of the Sales Tax Act, 1951 (III of 1951), the Federal Government is pleased to direct that such raw materials and components including chassis of specialized vehicles specified in column 2 of the table below as are not manufactured locally shall be exempt from the whole of the customs duty and sales tax leviable thereon if imported by recognized manufacturers / fabricators for local manufacture of such specialized vehicles subject to following conditions, namely; the manufacturer/fabricator shall have suitable in-house facilities to manufacture/fabricator the specialized vehicles in respect of which he claims exemption under this notification; the manufacturer/fabricator shall furnish to the Chie, Survey and Rebate, or any other officer authorized by the Central Board of Revenue in this behalf, in the prescribed form the list of specialized vehicles that he is manufacturing/ fabricating or intends to manufacture/fabricate along with the details of raw materials and components required and the Chief or such authorized officer in consultation with the Collector of Customs or the concerned Government department will certify the annual capacity of the unit for the manufacture/fabrication of various types of specialized vehicles and total annual requirement of various types of raw materials and components along with the quantity required for the manufacture/fabrication of each vehicle; the manufacturer/fabricator shall chalk out deletion programme spreading over maximum period of 5 years within which period he shall achieve deletion to the extent as approved by the Central Board of Revenue or Chief, Survey and Rebate in this behalf and the continued availability of the exemption under this notification shall be contingent upon the achievement of approved progressive deletion; at the time of import of raw materials and components including chassis the manufacturer/fabricator shall make a written declaration on each copy of the bill of entry to the effect that the raw materials and components including chassis have been imported in accordance with his entitlement in terms of conditions (ii) and (iii); the manufacturer/fabricator shall furnish to the Collector of Customs a bank guarantee or insurance guarantee equivalent to the customs duty and sales tax leviable on each consignment or a standing bank guarantee or insurance guarantee for covering multiple consignments subject to the satisfaction of the Collector of Customs; the manufacturer / fabricator shall maintain record of the raw materials and components including chassis and the items manufactured out of them in such form as may be prescribed by the Central Board of Revenue; the manufacturer/fabricator shall, within one year of the date of importation of the raw materials and components including chassis, apply to the Collector of Customs for discharging the bank guarantee or insurance guarantee, the application being supported by a certificate in Form-I set out below issued by the Assistant Collector, Customs and Central Excise, within whose jurisdiction the manufacturing/ fabricating unit is located; and the manufacturer/ fabricator shall maintain in Form-II set out below a record of sale of the items manufactured under the Notification and shall produce, on demand, such record and other evidence of sale, as may be required for inspection by and officer of Customs not below the rank of Assistant Collector of Customs authorized by the Collector of Customs in whose jurisdiction the manufacturing unit is located or any other officer authorized by the Central Board of Revenue in this behalf. TABLE S.No. | Type of Vehicle | Heading No. in the First Schedule to the Customs Act, 1969 (IV of 1969) | Purpose for manufacture for supply to the following institution/organization against confirmed order (1) | (2) | (3) | (4) 1 | Fire crash tenders/fire fighting lorries. | 87.05 | Civil Aviation Authority and Local bodies 2. | Specially designed motor lorries for refuse collection or for cleaning streets and gutters | 87.05 | Local Bodies 3. | Rescue vehicles, ladder vehicles, and mob and riot control vehicles. | 87.05 | Police and other civil armed forces. FORM-I Certificate No.________________dated _________________________________ I______(Name of Officer)_______Assistant Collector, Customs and Central Excise ___________ (Place of Posting)____am satisfied that the raw materials ad components including chassis imported by Messrs______________________under the provisions of S.R.O.__________against bank guarantee or insurance guarantee vide bill of entry________No._____dated___________ have been used for the manufacture of __________(Items to be mentioned)________________________in accordance wit the scale laid down by the Chief, Survey and Rebate vide certificate No____________ dated______________ File No__________________ Stamp and Signature FORM-II Register of sale of goods manufactured from raw materials and components including chassis imported under Notification_________________(give No. and date SRO)______. S.No. | Item | Name and address of the party to whom sold | Quantity sold | Date of Sale | No. and date of the consumption certificate relating to the item sold. (1) | (2) | (3) | (4) | (5) | (6)