Exemption from Customs Duties and Sales Tax on Import of Raw Amterial and Components for Local Manuf

EXEMPTION FROM CUSTOMS DUTIES AND SALES TAX ON IMPORT O RAW MATERIAL AND COMPONENTS FOR LOCAL MANUFACTURE OF VEHICLES 66Notification No. S.R.O. 495(I)/84 dated 14th June, 1984.--In exercise of the powers 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), and in supersession of this Ministry's Notification No. S.R.O. 655(I)/81, dated the 25th June, 1981, the Federal Government is pleased to exempt raw materials and components imported for local manufacturer of vehicles specified in column (2) of the table below from so much of the customs-duties as is in excess of rate specified in column (3) of the that Table and whole of the sales tax chargeable thereon, if imported by recognised manufacturers or assemblers of such vehicles subject to the following conditions, namely:- that the components are in such knocked down condition as is specified in the sanction given by the Government in case of each specified vehicle; the manufacturer or assembler has suitable in-house facilities for progressive manufacture of automative vehicles in respect of which he claims exemption under this Notification; the manufacturer or assembler shall furnish to the Chief, Survey and Rebate or any other officer authorised by the Central Board of Revenue in this behalf, in the prescribed form the list of vehicles that he is manufacturing or intends to manufacture alongwith details of the raw materials required 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 such vehicles and total annual requirements of various types of raw materials and components alongwith the quantity required for the manufacture of each vehicle; 67[iv) 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 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 (iii) and (iv) and that the he has achieved deletion level as per condition (iv)] the manufacturer or assembler shall furnish to the Collector of Customs a bond to abide by conditions laid down in the Notification failing which he would pay the customs-duties and sales tax leviable on each consignment in excess of the rate specified in the Table and to make payment of any other penalties that may be imposed by the Collector of Customs in this behalf; the manufacturer or assembler 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; 68[***] 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 bond, 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; 69[; and] 70[(ix) in case the Assistant Collector, Central Excise and Customs, in 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 bond and penal action for giving false declaration.] 71[Note.-- While implementing condition (iv) a difference of plus or minus 2 per cent in deletion programme shall not be takes into account.] TABLE S. NO. | Types of Vehicle | Rate of duty 1 | Agricultural tractors. | Free 2 | Buses and coaches of seating capacity exceeding forty persons. | 72 [Free] 3 | Station wagons built on truck chassis; other buses and coaches | 60% ad val. 4 | Trucks and dumpers with driver's cabin only 73 [; work-truck (mini-dumpers)]. | 30% ad val. 5 | Motor cars, vans and four wheel drive vehicles (4x4) of engine capacity on exceeding 74 [1800]cc. | 30% ad val. other four wheel drive vehicles (4x4) built on car chassis. | 60% ad val. 75 [6 | Trailers and semi-trailers of pay load capacity exceeding 20 tonnes. | 30% ad val. 76 [7 | ***] 77[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 bond 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 & Rebate), vide certificate No _________________ dated the _______________________. I am also satisfied that all the deleted components have been manufactured locally. Stamp and Signature] *** Also reported as PTCL 1984 St. 733(ii). Conditions (iv) and (v) substituted by Notification No. S.R.O. 537(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 520. Word "and" omitted by Notification No. S.R.O. 537(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 520. Substituted for "full stop" by Notification No. S.R.O. 537(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 520. Added by Notification No. S.R.O. 537(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 520. Added by Notification No. S.R.O. 411(I)/87, dated 26th May, 1987, reported as PTCL 1987 St. 558(i) w.e.f. 1st November, 1984. Substituted by Notification No. S.R.O.466 (I)/87, dated 4th June, 1987, reported as PTCL 1987 St. 395. Added by Notification No. S.R.O. 482(I)/88, dated 26th June, 1988, reported as PTCL 1988 St. 612. Substituted for the figure "1000" by Notification No. S.R.O. 47(I)/85, dated January, 1985, reported as PTCL 1985 St. 583(ii). S. No. 6 added by Notification No. S.R.O. 874(I)/88, dated 4th October, 1988, reported as PTCL 1989 St. 280. Omitted by by Notification No. S.R.O. 482(I)/88, dated 26th June, 1988, reported as PTCL 1988 St. 612. Substituted by Notification No. S.R.O. 537(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 520.