456/2004

GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS AND REVENUE

(REVENUE DIVISION)

***

Islamabad, the 12 th June, 2004

NOTIFICATION

CUSTOMS

S.R.O. 456 (I)/2004.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and in supersession of this Division's Notifications No. S.R.O. 357(I) / 2002, dated the 15^th June, 2002, and No.S.R.O. 435(I) / 2001, dated the 18^th June, 2001, the Federal Government is pleased to exempt raw materials, sub-components, components and assemblies, as are not manufactured locally, specified in column (3) of the Table below, imported for the manufacture of goods specified in column (2) of the Table, from so much of customs-duty leviable under the First Schedule to the Customs Act, 1969 (IV of 1969), as is in excess of the rates specified in Column (5) of that Table, subject to certain exclusions specified below, the special conditions as specified in Column(6) of the Table and the following general conditions, namely. -

(i) (a) The manufacturer has suitable in-house facilities and registration with the Sales Tax Department for manufacture of such goods; or (b) the importer-cum-manufacturer is in possession of a firm contract for the manufacture of specified goods from any other manufacturer registered with the Sales Tax Department for the manufacture of such goods;

(ii) the manufacturer-cum-importer shall furnish to the Collector of Customs and Collector of Sales Tax the list of such goods that he is manufacturing or intends to manufacture along with the details of raw materials, sub-components and components required for the manufacture of each item and the total annual requirement of all such inputs;

(iii) the input output ratios of items to be manufactured and total annual requirement of raw materials, sub-components and components is determined by Directorate of Input Output Co-efficint Organisation, or any other person, association or agency authorized by the Central Board of Revenue and a certificate of annual requirement issued by such designated or authorized person to the relevant Collector under intimation to the Central Board of Revenue;

(iv) the clearance of inputs shall be allowed through only one port or dryport, nearest to the manufacturing unit;

(v) the manufacturer-cum-importer shall, at the time of import of raw materials and components, make a written declaration on the bill of entry or customs declaration to the effect that the inputs have been imported and will be used for the manufacture of specified items under the claimed Notification;

(vi) the manufacturer cum importer shall maintain record of the inputs and the goods manufactured out of them in such form as may be prescribed by the Central Board of Revenue or required under any other law in force by the CBR;

(vii) the manufacturer cum importer shall communicate to the concerned Collector of Customs in writing about the consumption of imported goods within one month of consumption. In case of non-consumption within one hundred eighty days, the importer shall pay the customs-duty and other taxes involved or shall give plausible reasons to the Collector of Customs and seek extension for a reasonable period;

(viii) in case the manufacturer-cum-importer does not provide information regarding consumption or otherwise of the imported goods within a period of one hundred eighty days of import or such extended period as allowed by the Collector or if otherwise deemed necessary, the records of importer cum manufacturer shall be audited by the Duty Suspension Audit Organization (DSAO) or by any other person duly appointed by the Collector. If upon audit consumption of goods is not found satisfactory the Collector of Customs shall initiate proceedings for the recovery of leviable customs-duty and other taxes besides penal action under the relevant provisions of the laws in force;

(ix) the importer-cum-manufacturer of goods mentioned at serial No. 41, 42 and 60 of Table below shall also furnish a certificate from the incharge of the concerned project to the effect that the machinery has been supplied to them and duly installed; and

(x) goods mentioned in Column (3) of serial No. 1, 4, 8, 9, 12, 13, 15, 17, 20, 24, 30, 31, 32, 38, 39, 45, 47, 48, 50, 56, 57, 64, 65 and 68 of the Table are importable only by recognized manufacturers of items mentioned in column (2).

Explanation.- For the purposes of this notification the expression “not manufactured locally” shall mean the goods which are not included in the list of locally manufactured goods, specified in the General Order and amendments made thereunder, issued by the Central Board of Revenue or declared as such by the Engineering Development Board or Central Board of Revenue; provided that in case of manufacture of engineering goods meant for export, the import of raw materials or components even if manufactured locally shall be allowed free of duty against bank guarantee against specific export orders subject to identification by the committee setup for this purpose in the Engineering Development Board.

Exclusions.- Mild steel bars, mild steel rods and mild steel wire rods shall not be entitled to the exemption under this notification.

Table

S.No.	Description of goods to be manufactured.	Description of raw materials, sub-components, components and assemblies.	Heading or sub-headings Nos.	Extent of exemption from customs duty in excess of rates given below.	Special conditions of import.
(1)	(2)	(3)	(4)	(5)	(6)
1.	Agarbatti.	Diethyl Phthlate.	2917.3400	10% ad val.	Nil
2.	Air-conditioning, chilling, humidification and industrial refrigeration plants.	Raw materials. Sub-components and components Modules / assemblies.	Respective headings.	5% ad val. 10% ad val. 15% ad val.	Nil
3.	Air conditioners, deep-freezes, refrigerators.	Raw materials. Sub-components and components.	Respective headings.	5% ad val. 10% ad val.	Nil
4.	Alkyd resins.	Crude soyabean oil, whether or not degummed Crude coconut oil	1507.1000 1513.1100	10% ad val.	Nil
5.	Aluminum presensitized printing plates.	Aluminium plates, sheets and foils.	7606.1100 7607.1900	10% ad val.	Nil
6.	Articles of stationery.	Raw materials. Parts and components.	Respective headings.	5% ad val. 10% ad val.	Nil
7.	Audio/video cassettes.	Magnetic tape in jumbo rolls and pancake only. Components.	8523.1300 Respective headings.	10% ad val.	Nil
8.	Audio tapes or metallic yarn.	Polyester base film / polyester film-uncoated.	3920.6300	10% ad val.	Nil
9.	Bearings.	Raw material. Sub-components and component .	Respective headings.	0 % ad val.	Nil
10. 2	Bolts, nuts, screws, concrete nails and blind rivets.	High Carbon / High Tensile Wire Rod. High Carbon Steel Wire	7213.2000 7217.3090	5 % ad val. 10 % ad val.	Nil
11. 3.	Cable and conductors.	Raw materials excluding artificial plastic resin.	Respective headings.	5 % ad val.	Nil
12.	Capital goods, machinery and equipment.	Flat-rolled products of iron or steel of prime quality, of thickness exceeding 10 mm and width exceeding 1250 mm.	Respective headings.	5% ad val.	Nil
13.	Cement.	Coal.	2701.1900	5 % ad val	Nil
14.	Centrifugal and turbine pumps.	Raw materials. Sub-components and Components	Respective headings.	5 % ad val. 10 % ad val.	Nil
15.	Ceramics.	Decoflux, Optapic-G Alumina Balls, Moulds, Die.	3824.9099 6815.9000 8480.6000	20% ad val. 5% ad val.	Nil
16.	Chemical Plant.	Raw materials. Sub-components and components. Modules / assemblies.	Respective headings.	5% ad val. 10% ad val. 15% ad val.
17.	Chemical resins and processed chemicals.	Phthalic anhydride.	2917.3500	20% ad val.	Nil
18.	Cranes and derricks.	Raw materials. Sub-components and components, Modules / assemblies.	Respective headings.	5% ad val. 10% ad val. 15% ad val.	Nil
19.	Defense stores, machinery and equipment manufactured for the use of defense forces under the certificate from the Director General Defense Production, Ministry of Defense, Government of Pakistan.	Raw materials, Sub-components and components.	Respective headings.	5 % ad val. 10 % ad val.	Nil
20.	Diapers and sanitary napkins.	(i). Adhesives based on polymers or rubbers. (ii). Toilet or facial tissue stock, towel or napkin paper of a kind used for household or sanitary purpose. (iii). Non-wovens, whether or not impregnated, coated, covered or laminated of man made filaments. (iv).PE + nw laminate sheet, (v).Frontal Tape, (vi).Pre Laminated Tape, (vii).Perforated Poly Film, (viii).Poly Back Sheet, (ix).Hot Melt Adhesive, (x).Non Porous Tissue Paper, (xi).Siliconised Paper, (xii).Non Woven Fabric, (xiii).Loop Pile Fabric.	3506.9190 4803.0000 5603.1100 3920.1000 3920.9900 3920.9900 3920.9900 3920.9900 3906.9190 4803.0000 4810.9900 5603.1100 6001.2200	10% ad val.	Nil
21.	Diesel generating sets, generators and boilers.	Raw materials. Sub-components and components.	Respective headings.	5 % ad val. 10 % ad val.	Nil
22.	Disposable syringes and needles.	Dichlorotetrafluoroethanes gas, Ethylene Oxide Gas, Printing Ink, Epoxy Bond, Polypropylene (medical grade), PVC (medical grade) Plastic Film PVC gaskets, Silicon Oil, Rubber gaskets, Paper labels	2903.4400 2910.1000 3215.1110 3506.1000 3902.1000 39.04 3921.9000 3920.2040 3923.5000 3910.0000 4016.9310 4821.1000	5 % ad val.	Nil
23.	Dry battery cells.	Natural manganese dioxide, Electrolytic manganese dioxide, Ammonium chloride, Zinc chloride, Mercuric chloride, Electrolytic paper, Zinc slugs, Carbon rods.	2530.9010 2820.1010 2827.1000 2827.3600 2827.3990 4811.9000 7907.0010 8545.9020	0 % ad val.	Nil
24.	Dyes stuff and chemicals.