Exemption from Customs Duty, Sales Tax, General Surcharge and Iqra Surcharge on Temporarily Import O

EXEMPTION FROM CUSTOMS DUTY, SALES TAX, GENERAL SURCHARGE AND IQRA SURCHARGE ON TEMPORARILY IMPORT OF CERTAIN GOODS WITH THE CONDITION OF RE-EXPORTATION. 60Notification No. S.R.O. 818(I)/89, dated 9th August, 1989.--In exercise of the power conferred by section 19 of the Customs Act, 1969 (IV of 1969), section 7 of the Sales Tax Act, 1951 (III of 1951), sub-section (2) of section 5 of the Finance Act, 1985 (I of 1985) and sub-section (2) of section 2 of the Finance Ordinance, 1982 (XII of 1982), the Federal Government is pleased to direct that such of the goods specified in Schedule I as are temporarily imported into Pakistan with a view to subsequent exportation shall, subject to the following conditions, be exempt from payment of customs duty, sales tax Import surcharge and Iqra surcharge payable thereon under the said Acts and Ordinance, namely:-- An application for exemption shall be made to the Collector of Customs or the Deputy Collector of Customs giving full particulars of the goods and the purpose for which they are imported. A bank guarantee, insurance guarantee or indemnity bond equivalent to the amount of customs duty, sales tax, Import surcharge and Iqra surcharge otherwise leviable shall be furnished to the Collector of Customs or the Deputy Collector of Customs concerned, in such form as is prescribed by the Collector of Customs or the Deputy Collector of Customs, binding the importer to re-export the good temporarily imported within a period not exceeding one year. The Collector of Customs or the Deputy Collector of Customs concerned on a written application made to him in this behalf, may, in deserving cases, grant at his discretion and subject to such condition as he may deem fit to impose extension upto a further period of six months. If the goods are not exported within the stipulated period, the Collector of Customs or the Deputy Collector of Customs, as the case may be, shall enforce the bank guarantee furnished to him. Provided that the insurance guarantee is furnished by such insurance companies as are managed by the Government of Pakistan or are approved by the Central Board of Revenue, and indemnity bond is duly supported by such collateral security as is accepted by commercial banks extending credit facilities. Only such of the goods covered by Schedule I as are capable of identification at the time of their re-exportation shall be exempt from the aforesaid customs duty, sales tax, Import surcharge and Iqra surcharge. Packing material as mentioned in Schedule I may be imported empty and it may be exported filled The Collector of Customs or the Deputy Collector of Customs may refuse entry of any goods without payment of customs duty, sales tax, Import surcharge and Iqura surcharge if prima facie it appears to him that any of the conditions, of this notification would be breached. At the time of importation of goods the importer shall make a written declaration on the bill of entry to effect that the goods covered are imported for the purposes of this notification. At the time of re-exportation of goods the exporter shall make a written declaration on the bill of export to the effect that goods covered were imported for the purposes of this notification giving particulars of import documents (IGM No. & date, B/E No & date, Cash No. & date, etc) Immediately after the re-exportation of goods, the applicant shall produce evidence to the Collector of Customs or the Deputy Collector of Customs concerned that the goods have been re-exported within the stipulated period. On the production of such an evidence the bank guarantee, insurance guarantee or the indemnity bond submitted at the time of import shall be released. The export shall be allowed only if the Assistant Collector, Incharge of Export Station is satisfied that the goods temporarily imported have been duly consumed in the manufacture of goods being exported. Export shall be allowed from the same customs station from which the temporary importation of constituents was effected The transfer of ownership of temporarily imported goods may be allowed by the Collector of Customs or the Deputy Collector of Customs, concerned, at his discretion, subject to the transfer of title of bank guarantee, insurance guarantee or indemnity bond submitted at the time of import: Provided that the transfer of ownership shall be allowed only in cases in which the imported goods have undergone the manufacturing process to reach an intermediary product stage. In cases where temporarily imported goods are used addition to other imported raw materials on the import of which duties and taxes have been paid and repayment is admissible on export of ultimately manufacture products, the FOB price for claiming repayment shall be the value excluding value of the goods temporarily imported under this notification. Only such operations as are listed in Schedule-II shall be carried out with the raw materials imported under this notification. Exemption under this notification shall not be allowed in cases in which physical inspection of manufacturing becomes necessary for the purposes of such exemption. SCHEDULE-I Material for processing, manufacturing or repair Material for embellishing or decorating goods produced in Pakistan, for re-exportation. Packing material excluding straw, paper , paper cones, gives wool and like materials. SCHEDULE-II Assembly of machinery components and parts Assembly of electrical and electronic equipment and parts thereof Packaging of goods Manufacturing of leather goods from components. Manufacturing of sports goods from components Manufacturing of garments from cut garments pieces Incorporation of trimmings, buttons, belts and similar items in garments 61[Manufacturing of Aluminum ware, steel ware, kitchen utensils and cutlery.] Manufacturing of bicycles Manufacturing of dolls, toys and games Manufacturing of vacuum flasks Manufacturing of furniture, wood ware and fittings. General superficial processes such as elementary repairs, cleaning removal of damages parts serving, straining, sifting, clarification, filtering, marketing, sealing, labeling repackaging, drying, preserving, refrigerating, chilling, fumigating, greasing, anti-rusting, protective coating, etc. 60. Reported as PTCL 1990 St.1. 61 Substituted by Notification No. SRO 1044(I)/89, dated 22nd October, 1989.