Exemption from Customs Duty and Sales Tax on Import of Specific Mining Machinery and Equipment When

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF SPECIFIC MINING MACHINERY AND EQUIPMENT WHEN IMPORTED BY AN APPROVED MINING INDUSTRY. 22Notification No. S.R.O. 525(I)/89, dated 3rd June, 1989.---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), the Federal Government is pleased to exempt machinery and equipment specified in the table below when imported by a mining industry approved by the Federal Government or Provincial Government, from the whole of customs duties and sales tax chargeable thereon, subject to the following conditions, namely:- the importer shall at the time of importation make a declaration on each copy of the bill of entry to the effect that the machinery and equipments imported for installation in a government approved mining project; the importer shall furnish to the Collector of Customs, an indemnity bond in the form set out below to the extent of the customs duties and sales tax exempted under this notification. The said indemnity bond will be discharged on production of a certificate from the Assistant Collector, Customs and Central Excise in whose jurisdiction the mining project is located, to the effect that the machinery and equipment have been duly installed / put to use in a government approved mining project. the importer shall maintain proper record of the machinery and equipment in the manner prescribed by the said Assistant Collector. the importer shall, at the time of importation of the machinery & equipment , furnish a bond to the Collector of Customs to abide by the condition laid down in the notification failing which he shall pay the amount of customs duties and sales tax due and make payment of any penalties that may be imposed in this behalf; and the certificate referred to in sub-paragraph (b) shall be submitted to the Collector of Customs not later than one year from the date of importation of such machinery and equipment and if the said machinery and equipment is removed to an area other than that for which it has been imported within period of ten years from the date of importation, the amount of customs duties and sales tax exempted under this notification and any penalties that may be imposed in this behalf shall be recovered under the relevant provisions of Customs Act, 1969(IV of 1969) TABLE OF MINING MACHINERY & EQUIPMENT S.No. | Description of items | H.S.Heading 1 | Electric or diesel mine hoists and winches | 8425.2000 2 | Mine conveyors | 8428.2000 3 | Mine cranes | 8428.9000 4 | Mine cutting machine | 8430.3100 5 | Miner's safety goggles | 9004.9010 6 | Mine Pneumatic rock drills and picks | 8467.1100 7 | Mine signalling equipment and gas or fire alarms | 8531.8000 8 | Flam proof tubing for mine face ventilation fans of cotton or synthetic fibre | 8414.5900 9 | Mine exploration drilling equipment | 8430.3100 10 | Mine locomotives | 8428.5000 11 | Miner's safety helmets | 6506.1000 12 | Pit head winding gear/wiriches | 8425.3100 13 | Self propelled coal cutters | 8430.4900 14 | Flame proof mine communication equipment | 8517.8100 15 | Flame proof coaxial cable and coaxial electrical conductor | 8544.2000 16 | Theodolites | 9015.2000 17 | Mine trolley/tubes | 8606.9000 18 | Mine Fire Extinguishers | 8424.1000 19 | Mine oil safety lamps | 9405.9100, 9405.9200, 9405.9900 FORM [ See Conditions (2) ] (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)/89, dated the _____June, 1989 allowing release of the machinery mentioned in the annex appended hereto 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, 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 machinery and equipment in the mining project, otherwise it shall remain in fulforce. M/s.___________________ (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. 22. Reported as PTCL 1989 St. 490