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

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF RAW MATERIALS AND COMPONENTS FOR USE IN THE BUILDING, FITTING, REPAIRING OR REFITTING OF SHIPS 1Notification No. S.R.O. 36(I)/87, dated 18th January, 1987.--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), the Federal Government is pleased to direct that such raw materials and components as are not manufactured in the country, shall be allowed clearance against bank or insurance guarantee equal to the customs-duties and sales tax chargeable thereon, if imported by an recognized manufacturer for use in the building, fitting, repairing or refitting of ships, 2[***] whether self-propelled or not, designed primarily for the conveyance of persons or foods or both , be sea or by inland navigation, subject to the following conditions, namely:- the manufacturer has suitable in-house facilities to manufacture the items in respect of which he claims exemption under this Notification; the manufacturer shall furnish to the Chief, Survey and Rebate, Central Board of Revenue, or any other officer authorised in this behalf, in the prescribed form, the list of items that he is manufacturing or intends to manufacture alongwith details of the raw materials and components required, and the Chief or such authorised officer, in consultation with the Collector of Customs or the concerned Government Department will certify the annual capacity of the unit for the manufacture of ship 3[***] and total annual requirements of various types of raw materials and components alongwith the quantity required for the manufacture of each item; 4[(iii) the manufacturer shall chalk out deletion programme spreading over a maximum period of five years within which period he shall achieve a minimum deletion in the manufacture of components to the extent of 75 per cent of the C&F value of the inputs of the manufactured items. Continued availability of the exemption under this Notification shall be contingent upon (a) the achievement of progressive annual deletion as approved by the Central Board of Revenue or the Ministry of Industries as the case may be and (b) the use of locally manufactured deleted items; at the time of import of raw materials and components the manufacturer shall make a written declaration of 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);] the manufacturer shall, at the time of importation of raw materials and components, furnish a bond to the Collector of Customs to abide by the conditions laid down in this Notification failing which he will pay the amount of customs-duty and sales tax exempted under this Notification and make payment of any penalties that may be imposed by the said Collector in this behalf; the manufacturer shall maintain record of the raw materials and components and the items manufactured out of them in such form as may be prescribed by the Central Board of Revenue;5[***] the manufacturer shall, within one year of the date of importation of the raw materials and components, apply to the Collector of Customs for discharging the bank guarantee or insurance guarantee, the application being supported by a certificate in the form set out below issued by the Assistant Collector, Central Excise and Customs, within whose jurisdiction the manufacturing unit is located 6[; and ] 7[in case the Assistant Collector, Central Excise and Customs, is not satisfied regarding the consumption of imported items or use of locally produced deleted items, he shall report his findings to the Collector of Customs concerned who shall initiate proceedings for enforcement of the guarantee and penal action for giving false declaration.] Explanation.--For the purpose of this Notification, unless otherwise specified, "Component" shall mean individual part shaped, fashioned, fabricated or otherwise manufactured from one piece of metal or other material and not joined or connected to another part or component or materials except through a welding process. 8[FORM Certificate No. _______________ dated ________________________________ I ______ _____(Name of the Officer) ________________ Assistant Collector of Central Excise and Customs ____________(Place of posting) _______ am satisfied that the raw materials imported by Messrs ______ ________________________under provisions of SRO ______________ against bank guarantee or insurance guarantee vide bill of entry No ._______________ dated the _________________have been used for the manufacture of ____________(Name of items to be mentioned)___________ in accordance with the scale laid down by the Chief (Survey & Rebate), vide certificate No _________________ dated the _______________________. I am also satisfied that all the deleted components have been manufactured locally. Stamp and Signature] **** Reported as PTCL 1987 St. 213. Words "boats, floating structures and other vessels" omitted by Notification No. S.R.O. 438(I)/87, dated 4th June, 1987, reported as PTCL 1987 St. 383(ii). Word "boats etc." omitted by Notification No. S.R.O. 438(I)/87, dated 4th June, 1987, reported as PTCL 1987 St. 383(i). Condition Nos. (iii) and (iv) substituted by Notification No. S.R.O. 535(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St.516. Word "and " omitted by Notification No. S.R.O. 535(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 516. Substituted for full stop by Notification No S.R.O. 535(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 516. Condition Nos. (iv) added by Notification No. S.R.O. 535(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St.516. Form substituted by Notification No. S.R.O. 535(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St.516.