Exemption from Customs Duty and Sales Tax on Import of Raw Materials and Components by a Recognised

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF RAW MATERIALS AND COMPONENTS BY A RECOGNISED MANUFACTURER OF CERTAIN CAPITAL GOODS AND MACHINERY 12Notification No. S.R.O. 600(I)/83, dated 11th June, 1983.--In exercise of the powers conferred by section 19 of the customs Act, 1969 (IV of 1969), and sub-section (1) of section 7 of the Sales Tax Act, 1969 (III of 1951), and in supersession of this Ministry's Notification No. S.R.O. 547(I)/78, dated the 28th June, 1979, the Federal Government is pleased to direct that, with immediate effect, raw materials and 13[ components, excluding circuit breakers and such other components as are manufactured in the country], shall be exempt from so much of the customs duty leviable thereon as is in excess of 14[20]% ad valorem and whole of the sales tax chargeable thereon if imported by a recognised manufacturer for the basic local manufacture of capital goods and machinery specified in the schedule to this notification, subject to the following conditions, namely:- the manufacturer shall have suitable in-house facilities to manufacture the items of capital goods and machinery in respect of which he claims exemption under this Notification; the manufacturer shall furnish to the Chief, Survey and Rebate, or any other officer authorised by the Central Board of Revenue in this befall in the prescribed form the list of capital goods and machinery that he is manufacturing or intends to manufacture alongwith the details of raw materials 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 various types of machinery and total annual requirements of various types of raw materials and components alongwith the quantity required for the manufacture of each item; 15[(iii) 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% 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 (ii) and (iii) and that he has achieved deletion level as per condition (iii);] the manufacturer shall furnish to the Collector of Customs a bank guarantee or insurance guarantee equivalent to the customs-duty and sales tax leviable on each consignment in excess of 16[20]% ad valorem or a standing bank guarantee or insurance guarantee for covering multiple consignments subject to the satisfaction of the Collector of Customs; the manufacturer 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; 17[***] 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 bank guarantee or insurance guarantee, 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 18[;] 19[(viii) 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 guarantee and penal action for giving false declaration.] 20[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 and components imported by Messrs ______________________________ under provisions of SRO ______________ against bank guarantee or insurance guarantee vide bill of entry No._______________ dated the _________________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] Explanation.-- For the purpose of this Notification, unless otherwise specified, "component' shall mean and individual part shaped, fashioned, fabricated or otherwise manufactured from one piece of metal or other material and not joined or connected to another part or component or materials except through a welding process. SCHEDULE S. NO. | Description of capital goods an machinery 1 | Ball roller and taper bearings. 2 | Barrage gates. 3 | Centrifugal and turbine pumps 4 | Cement plants. 5 | Dies and moulds. 6 | Diesel engines. 7 | Diesel generating sets. 8 | Electric meters. 9 | Electric motors. 10 | Electric transformers. 11 | Electricity poles. 12 | Gas meters. 13 | Gas appliances for industrial use. 14 | Industrial chains. 15 | Industrial sewing machines. 16 | Insulators. 17 | Jute Mill machinery. 18 | L.P.G. tanks of a capacity of 30 tons and above. 19 | Machine tools. 20 | Mounted tripod for machine guns. 21 | Office machines. 22 | Parts of automotive vehicles. 21 [22A | Parts of loconative.] 23 | Passenger lifts. 24 | Petrochemical plant and machinery for oil and gas drilling refining and distribution. 25 | Petroleum (gasoline) dispensing pumps. 26 | Road rollers. 27 | Sugar plants. 28 | Switch gears for industrial use. 29 | Tea driers. 30 | Textile machinery excluding cone winding machines. 31 | Transmission towers. 32 | Water meters. 33 | Welding generators. 22 [33A | Air conditioning plants including chilling plants and humidification plants of more than 10 hors power. 33B | Band saw blades. 33C | Electric accumulators and separator plates. 33D | Telecommunication equipment] 23 [33E | Electrical capacitors.] 34 | Any other machinery and equipment required by exempt sector as specified by the Central Board of Revenue. 35 | Parts of the above mentioned capital goods and machinery when specifically allowed by the Central Board of Revenue. Substituted for the words "such other components as are not ordinary manufactured in the country" by Notification No. S.R.O. 510(I)/84, dated 14th June, 1984, reported as PTCL 1984 St. 461. Substituted for the figure "30" by Notification No. S.R.O. 508(I)/86, dated 29th May, 1986, reported as PTCL 1986 St. 516(i). Conditions (iii) and (iv) substituted by Notification No. S.R.O. 529(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 509. Substituted for the figure "30" by Notification No. S.R.O. 508(I)/86, dated 29th May, 1986, reported as PTCL 1986 St. 516(i). Word "and" omitted by Notification No. S.R.O. 529(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 509. Substituted for full stop by Notification No. S.R.O. 529(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 509. Condition No. (viii) added by Notification No. S.R.O. 529(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 509. Form substituted by Notification No. S.R.O. 529(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 509. Inserted by Notification No. S.R.O. 360(I)/89, dated 19th April, 1989, reported as PTCL 1989 St. 662(i). S. Nos. 33A to 33D added by Notification No. S.R.O. 501(I)/85, dated 23rd May, 1985, reported as PTCL 1985 St. 796(i). S. No. 33E added by Notification No. S.R.O. 483(I)/88, dated 26th June, 1988, reported as PTCL 1988 St. 613(i).