Exemption from Customs Duty and Sales Tax on Import of Certain Raw Materials for Manufacture of Pipe

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF CERTAIN RAW MATRIALS FOR MANUFACTURE OF PIPES OF IRON OR STEEL OF AN INTERNAL DIAMETER BELOW 200 MM ; AND FIBRE GLASS PIPES Notification No. S.R.O. 464(I)/88, dated 26th June, 1988.--In exercise of the power 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 exempt, such raw materials as are imported by recognized industrial units specified in column 2 of the table below for use in the manufacture of articles specified in column 3 of the table below to be supplied to the projects financed out of the funds provided by the international loan or aid giving agencies against international tenders only, from payment of the whole of customs duties and sales tax leviable thereon subject to the following conditions, namely,-- the manufacturer shall have suitable in house facilities to manufacture the articles in respect of which he claims exemption under this notification. 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 list of articles that he is manufacturing or intends to manufacture along with details of the raw materials required, and the Chief Survey and Rebate 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 of various articles ad the total annual requirements of various types of raw materials along with the quantity required for the manufacture of each article. the manufacturer shall, at the time of import of raw materials make a written declaration on each copy of the bill of entry to the effect that the raw materials have been imported in accordance with his entitlement in terms of condition (ii) above; the manufacturer shall furnish to the Collector of Customs a bank guarantee equivalent to the customs duties and sales tax leviable on each consignment or a standing bank guarantee covering multiple consignments, valid for the period of the tender subject to the satisfaction of the Collector of Customs; the manufacturer shall maintain record of the raw materials and the articles manufactured out of them in such form as may be prescribed by the Central Board of Revenue; and the manufacturer shall, within validity of bank guarantee, apply to the Collector of Customs for discharging the guarantee the application being supported by a certificate in the form-I set out below issued by the Assistant Collector Central Excise and Land Customs, within whose jurisdiction the manufacturing unit is located and a certificate from the in-charge of the concerned project that the goods pertaining to the international tender have been supplied to it; and the manufacturer shall maintain in Form-II set out below a record of sale of the items manufactured under this 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 on this behalf. TABLE S.No. | Type of industrial unit | Article manufactured by the Unit 1. | Iron and steel pipes manufacturing industry | Pipes of iron or steel of an internal diameter below 200mm 2. | Fibreglass pipes manufacturing industry | Fibreglass pipes FORM-I Certificate No.________________dated _______________I _______(Name of Officer)_________Assistant Collector, Customs and Central Excise ______(Place of Posting)__________ am satisfied that the componentsincluding 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___________and the goods have been supplied for the international tender No___________________for these goods 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 Sold | 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)