Exemption from Customs Duty and Sales Tax on Certain Machinery As Is Not Manufactured Locally

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON CERTAIN MACHINERY AS IS NOT MANUFACTURED LOCALLY Notification No. S.R.O. 485(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), and in supersession the Ministry's Notification No. S.R.O.785(I)/86, dated the 11th August, 1986, the Federal Government is pleased to exempt, the whole of the customs duties and sales tax leviable on such plant and machinery as is not manufactured locally and falls within the heading/sub-heading numbers of the First Schedule to the Customs Act, 1969 (IV of 1969), specified in the table below, if imported for initial installation or extension of a project goods, subject to the following conditions, namely;-- (1) The plant and machinery shall be those as specified hereunder:-- machinery operated by power of any description such as is used in any industrial process for the manufacture of goods apparatus and appliances, including metering and testing apparatus and appliances, specially adapted for use in conjunction with machinery specified in item (i) above; mechanical and electrical control and transmission gear adapted for use in item (i) above ; and competent parts of machinery as specified in items (i), (ii) and (iii), identifiable as for use in or with such machinery but excluding maintenance spares for current use. the importer shall furnish an undertaking to the Collector of Customs to the effect that machinery shall be installed at a place for which it has been imported and it shall not be disposed of without the prior approval of the Central Board of Revenue; the importer shall furnish to the Collector of Customs an indemnity bond in the form set out below to the extent of customs duty and sales tax exempted under this notification; and the manufacturer shall, within one year of the date of importation of the plant and machinery, apply to the Collector of Customs for discharging the indemnity bond the application being supported by a certificate in thee form set out below issued by the Assistant Collector, Central Excise and Customs, within whose jurisdiction the manufacturing unit is located. Explanation.-- A project shall be deemed to be a project for basic manufacture of engineering goods if it is an approved industrial undertaking engaged in basic manufacture of 24[such goods], including parts, components and sub-assemblies, of the electrical, electronic, non-electrical machinery, transport equipment and scientific, precision and measuring instruments. TABLE 8402.1100. 8402.1200, 8402.1900 AND 8402.2000; 8404.1000, (excluding auxiliary plant for use with boilers of heading No. 84.03 and 8404.2000; 8413.5000, 8413.6000, 8413.7090 and 8413.8100; 8414.8000; 84.16; 8417.1000, 8417.8000 and 8417.9000; 8419.2000, 8419.3200, 8419.3900, 8419.4000, 8419.5000, 8419.6000, 8419.8920, 8419.8990 and 8419.9000 8421.1290, 8421.1900, 8421.2900, 8421.3190 and 8421.3900;8423.2000 and 8423.8900; 8424.3000 (sand blasting machine only), 8424.8900 and 8424.9000; 84269.1200 (excluding straddle carriers), 8426.1990, 8426.2000 and 8426.3000; 8428.2000, 8428.3100 to 8428.3900 (excluding portable jacks), 8428.6000 and 8428.9000; 8454.1000, 8458.9100; 8455.1000, 8455.2100, 8455.2200 and 8455.3000; 84.56; 84.57; 8458.1100, 8458.9100; 8459.1000, 8459.2100, 8459.2900 to 8459.6100, 8459.6990 and 8459.7000; 84.60 excluding sub-heading 8460.9010; 84.61 excluding sub-heading 8461.2010 and 8461.5010; 84.62 excluding sub-heading 8462.9110; 84.63; 84.64; 84.65 excluding sub-heading 8465.9110; 84.68; 25[Machinery for the manufacture of foundry moulds falling in sub-heading 8474.8000.] 8479.4000, 8479.9100, 8479.8200 and 8479.8900 84.80; Generators all sorts falling under heading 85.01; Generating sets all sorts and electric rotary converters falling under heading 85.02; Liquid dielectric transformers of power handling capacity exceeding 1500KVA falling under sub-heading Nos. 8504.2200 and 8504.2300, 8504.4000, 8504.5000; 85.05; 85.14; 8515.1100 to 8515.8000 excluding 8515.2110; 85.43; 8545.1100; 90.24; 9026.1000, 9026.2000 and 9026.8000; 9027 (excluding parts and accessories); Electrical measuring checking analysing or automatically controlling instruments and apparatus falling within respective headings of chapter 90; 9032.1000, 9032.2000, 9032.8100 and 9032.8900. FORM [ See Conditions (3) ] (on appropriately stamped non-judicial paper) INDEMNITY BOND THIS DEED OR INDEMNITY is made on the ________day of 19________ BETWEEN Messrs_______________having registered office at __________________(hereinafter called"the importers" which means and includes their successors, administrators, executors and assignees) of the one part, AND the President of Pakistan through the Collector of Customs____________(hereinafter called " Collector of Customs") of the other part; WHEREAS, in accordance with the Government of Pakistan's decision contained in this Notification No. S.R.O______________(I)/88, dated the _______________June, 1988 allowing release of the machinery mentioned in the annexure appended hereto imported vide B/E No._____________ dated__________without recovery of so much of the customs duties and sales tax as are specified, and subject to the conditions mentioned, in the said Notifications; AND WHEREAS, the machinery imported shall be installed at_________________and the importers shall produce a certificate from the Assistant Collector, Customs and Central Excise, Secretary Kashmir Affairs division, or an officer authorized by him in this behalf, or the Resident Administrator for Northern Areas, as the case may be, within one year from the date of importation of the machinery to the effect that the machinery as declared to the Customs have been imported for an approved project for initial installation or extension of the existing unit and has been duly installed in Pakistan at __________________ and shall produce such other evidence as the Collector of Customs may, require in order to establish such installation. In case of failure to furnish such a certificate or evidence, the importers bind themselves to pay to the Collector of Customs the sum of Rs__________________(Rupees_______________) being the customs duties leviable on the machinery imported by the importers within fourteen days of receipt of the demand notice from the Collector of Customs; NOW THESE PRESENTS WITNESS. that in pursuance of this BOND, the importers___________hereby agree to indemnify the said Collector of Customs from loss of revenue to the extent of Rs_____________________(Rupees)________________ as aforesaid and also against costs and expenses which may be incurred by the Collector of Customs in recovery of the above amount of revenue; It is further agreed that the above amount may be recovered 22[under] section 202 of the Customs Act, 1969 if the importers fail to abide by any condition laid down in the above said Notification; THIS INDEMNITY BOND shall be cancelled as soon as the above said certificate is produced and the Collector of Customs is satisfied about the installation of the plant in the area as specified in the above said notification, IN WITNESS WHEREOF M/s.___________________ (Address) (Managing Director) (Name and Permanent Address) WITNESS 1._________________(Signature, name, designation and full address)____________________ 2._________________(Signature, name, designation and full address)____________________ Note:- The witnesses should be Government servants in BPS-16 or above, or an Oath Commissioner, Notary Public or an officer of a Scheduled Bank. SCHEDULE OF MACHINERY FORM [See condition (4)] Certificate No.__________dated______________I___________ (Name of Officer)__________Assistant Collector, Customs and Central Excise______________ Place of Posting)______________am satisfied that the machinery imported by Messrs_______________ (Name of the Company)_________________under the provisions of S.R.O____________against bond vide bill of entry NO.___________dated the ____________has dully been installed in the said unit. Stamp and Signature File No._______________________ 24. Substituted for "metal products" by Notification No. SRO ____(I)/89, dated 25th November, 1989 25. Inserted by Notification No. S.R.O.____(I)/89, dated 25th November, 1989 26. Substituted for the words "as an arrears of land revenue under sub-section (2) of" by Notification No. S.R.O.518(I)/89, dated 3rd June, 1989, reported as PTCL 1989, ST. 544(i)