NOTIFICATION
(CUSTOMS)

S.R.O. 575 (I)/2005.-  In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the machinery, equipment, apparatus, and items, as the case may be, mentioned in column (2) of the Table below shall be exempt from so much of customs-duty, leviable thereon under the First Schedule to the said Act, as is in excess of the rates specified in column (3) of the said Table and from so much of the Sales Tax as is in excess of the rates specified in column (4) of the said Table, subject to the following conditions and any other conditions, if mentioned in column (5) of the Table, namely:-

1. The imported items should not be listed in the list of locally manufactured items, as notified through a Customs General Order issued by the Central Board of Revenue from time to time 4[or , as the case may be, certified as such by the Engineering Development Board]. This condition shall, however, not be applicable in respect of Sr.No. 6, 15, 19, 5[24 ,25and 27] of the Table;

2. Except for S. No. 1, 8, 16, 17 and 24 of the Table, the Chief Executive, 3[or the person next in hierarchy duly authorized by the Chief Executive] or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the bonafide requirement and duties and taxes not paid at the time of import would be recoverable in case any mis-use is found at the subsequent stage. He shall furnish all relevant information Online to Pakistan Customs Computerized System (PACCS) against a specific user ID and password obtained under section 155D of the Customs Act, 1969.  In already computerized Collectorates/Customs stations where the PACCS is not yet operational, the Project Director or any other authorized person will feed the requisite information in the PACCS on daily basis and on weekly basis of the data obtained from the stations which have not yet been computerized;

3. The exemptions against Sr.No. 5 of the Table, shall be available to CNG companies or local automotive manufacturers and assemblers having valid CNG licences, in respect of import of approved models/brands as are covered in the Customs General Order.  Besides, the importer shall furnish quality certificate of the original manufacturer duly witnessed by the designated third party inspectors mentioned in the relevant Customs General Order regarding safety standards as laid in Pakistan CNG Rules, 1992;

4. In case of partial shipment of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the whole machinery, equipment and components required for the plant, duly supported by the contract, lay out plan and drawings.

5. The Mineral Exploration Companies and Power Generation projects, mentioned at Sr.No.  9 to 14 of the Table can also import construction machinery, equipment and specialized vehicles (including 4x4 vehicles), excluding passenger vehicles, on temporary basis against post dated cheque and undertaking pending completion of the project.  In case such goods are not exported on the conclusion of the project or transferred with the approval of the relevant Regulatory Authority/Central Board of Revenue, the importers shall be liable to pay duties and taxes on statutory rates leviable at the time of importation.

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