Exemption from Customs Duty and Sales Tax on Import of Plant and Machienry for Setting Up Industrial

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF PLANT AND MACHINERY FOR SETTING UP INDUSTRIAL PROJECT 23Notification No. S.R.O. 530(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 direct that the plant and machinery , as is not manufactured locally, shall e exempt from whole of customs duty leviable thereon and from the whole of sales tax, if imported for setting up such industrial projects as are established on or before 30th June, 1993, for the areas specified in the Table below, subject to the following conditions, namely:- 1. the plant and machinery shall be those as defined hereunder:- "Machinery means:- Machinery, operated by power of any description, such as us used in any industrial process, including generation of power, or used in process directly connected with extraction of minerals, timber, and 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 Components parts of machinery as specified in items (i), (ii) and (iii) above, identifiable as for use in or with such machinery. the importer shall, at the time of importation, by documents in his possession, satisfy the Collector of Customs that the plant and machinery have been imported for projects located in the areas specified in the Table and shall furnish an indemnity bond in the FORM set out below to the extent of customs duties and sales tax exempted under this Notification. The said indemnity bond will be discharged subsequently on production of a certificate from the Assistant Collector, Customs and Central Excise, the Secretary Kashmir Affairs Division, or an officer authorized by him in this behalf or the Resident Commissioner for Northern Areas, as the case may be, the effect that the plant and machinery as declared to the customs have been duly installed in an area specified in the Table and such other evidence as the Collector of Customs may require and after such enquiry as he deems fit, in order to establish such installation; the importer shall, at the time of importation of the plant and machinery, furnish a bond to the Collector of Customs to abide by the conditions laid down in this Notification failing which he would pay the amount of customs duties and sales tax due and make payment of any penalties that may be imposed in this behalf. the certificate of installation referred to in such paragraph (2) shall be submitted to the Collector of Customs not later than one year from the date of importation of such plant and machinery and if the plant and machinery are removed to an area other than that for which these have been imported within a period of ten years from the date of installation; 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 section 202 of the Customs Act, 1969 (IV of 1969). TABLE S.No. | Areas 1 | Province of Baluchistan (excluding Hub Chowki area); 2 | North West Frontier Province; 3 | Federally Administeratered Tribal Area 4 | Northern Areas administered by Administrator, Azad Kashmir, 5 | Administrative Divisions of Bahawalpur and Dera Ghazi Khan in the province of Punjab; and 6 | Administrative divisions of Larkana and Sukkur in the province of Sindh 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______ (Rupes_______________) 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, otherwise it shall remain in full force and virtue. 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. SCHEDULE OF MACHINERY 23. Reported as PTCL 1989 St. 836