Exemption from Customs Duty and Sales Tax on Import of Raw Materials for the Local Manufacture of Po

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF RAW MATERIALS FOR THE LOCAL MANUFACTURE OF POWER GENERATORS BELOW 100 KVA Notification No. S.R.O. 455(I)/87, dated 4th June, 1987.---In exercise of the powers conferred by section 19of the Customs Act, 1969 (IV of 1969), and sub-section (1) of section 7 of the Sales Tax Act, 1951 (III of 1951), and in suppression of its Notification No. S.R.O. 702(I)/86, dated 13th July, 1986, the Federal Government is pleased to exempt from the whole of customs duties and sales tax payable under the said Acts, the raw materials and components as are not manufactured in the country and are imported by the recognized manufacturers of power generators for the following conditions, namely; the manufacturers shall have suitable in house facilities to manufacture power generators; the manufacturer shall furnish to the Chief, Survey and Rebate, or any other officer authorized by the Central Board of Revenue in this behalf, in the prescribed from the details of raw materials and components required and the Chief or, as the case may be, the authorized officer, in consultation with the Collector of Customs or the concerned Government Department, shall certify the annual capacity of the unit for the manufacture of power generators below 100 KVA and total annual requirements of various types of raw materials and components along with the quantity required for the manufacture of each items. the manufacturer shall chalk out deletion programme spreading over a maximum period of five years within which the 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 f import of raw materials and components the manufacturer shall make a written 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 that he has achieved deletion level as per condition (iii);] the manufacturer shall furnish to the Collector of Customs a bank guarantee or insurance guarantee equivalent to the customs duties and sales tax leviable on each consignment or a standing bank guarantee or insurance guarantee for covering multiple consignment subject to the satisfaction of the Collector of Customs; 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; the manufacturer shall, within one year of the date of importation of 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 Form-I set out below issued by the Assistant Collector, Customs and Central Excise, within whose jurisdiction the manufacturing unit is located.; the manufacturer 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 an 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. 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 finding to the Collector of Customs concerned who shall initiate proceedings for enforcement of the guarantee and penal action for giving false declaration. FORM-I Certificate No___________________dated_______________ I ___________(Name of Officer)_______________Assistant Collector, Central Excise and Customs______________ (Place of posting)____________________am satisfied that the raw_____________________ materials and components 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 ____________________(Name of items to be mentioned)_____in accordance with the scale laid down by the Chief (Survey and Rebate) vide certificate No.________dated the ___________ I am also satisfied that all the deleted components have been manufactured locally. Stamp and Signature FORM-II Register of sale of goods manufactured from raw materials and components imported under Notification_______(give No. and date)_______________ S.NO. | Item Sold | Name and address of party to whom sold | Quantity Sold | Date of sale | No. and date of the consumption certificate issued under the Notification relating to the items sold