Exemption from Customs Duty on Raw Materials Imported by Certain Recognised Industrial Units

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON RAW MATERIALS IMPORTED BY CERTAIN RECOGNISED INDUSTRIAL UNITS 47Notification No. S.R.O. 603(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, 1951 (III of 1951), and in supersession of this Ministry's Notification No. S.R.O. 551(I)/79, dated the 28th June, 1979 the Federal Government is pleased to exempt on and from the day of issue of this notification, raw materials and such components as are not manufactured in the country imported by a recognised industrial unit for basic local manufacturer of goods specified in column 2 of the table below from so much of the customs duty as is in excess of 40% ad valorem and whole of the sales tax 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 behalf in the prescribed form the list of goods 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 various types of raw materials alongwith the quantity required for the manufacture of each item; 48[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 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 (ii) and (iii) and that the 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 40% 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; 49[***] 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; 50[; and] 51[(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.] 52[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 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 an 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. Components eligible for concession in case of airconditioners, refrigerators and deep-freezers shall be compressors, capacitors, overload relays, thermostat switches, evaporators, copper tubing and magnitized gaskets only. TABLE S. NO. | Description of goods. 1 | Airconditioners. 2 | Refrigerators. 3 | Deep-freezers. 4 | Electric bottle coolers. 5 | Electric water coolers. 6 | Food grinders and mixers. 7 | Food Choppers and mixers. 8 | Fruit juice extractors. 9 | Electric toasters. 53 [10 | Vacuum cleaners/floor polishers. 11 | Stereo deck cassette recorder /tape polishers. 12 | Automatic and semi-automatic washing machines with dryers.] 54 [13 | Radio cassette recorder.] 55 [14 | Electric iron.] Reported as PTCL, 1983 St. 545. Conditions (iii) and (iv) substituted by Notification No. S.R.O. 528(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 507. Word "and" omitted by Notification No. S.R.O. 528(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 507. Substituted for full stop by Notification No. S.R.O. 528(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 507. Condition (viii) added by Notification No. S.R.O. 528(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 507. Form substituted by Notification No. S.R.O. 528(I)/89, dated 3rd June, 1989, reported as PTCL 1989 St. 507. S. Nos. 10 to 12 added by Notification No. S.R.O. 505(I)/85, dated 23rd June, 1985, reported as PTCL 1985 St. 798. S. No.13 added by Notification No. S.R.O. 241(I)/86, dated 12th March, 1986, reported as PTCL 1986 St. 583(ii). S. No.14 added by Notification No. S.R.O. 487(I)/88, dated 26th June, 1988, reported as PTCL 1988 St. 612(i).