Duty-free import of temporarily exported plant: new section added to Customs Act

The Central Board of Revenue (CBR) has incorporated a new section in the Customs Act, 1969 to allow duty-free import of temporarily exported plant and machinery to facilitate foreign investors. Sources told Business Recorder on Tuesday that section 22A has been introduced in the Customs Act in budget (2007-08) providing duty-free import of temporarily exported plant and machinery.
This section should be read with Pakistan Customs Tariff (PCT) heading 9918 where an entry has also been made for enforcement of new section 22A. Under section 22A (temporary export of imported plant and machinery), imported plant and machinery, temporarily exported that have not undergone any alteration, renovation, addition or refurbishment, may be re-imported duty free subject to the specific or general terms and conditions the Board may by the rules prescribe.
The PCT heading 9918 covered goods not produced or manufactured in Pakistan which are re-imported by industrial concerns after having been exported and have not undergone any process outside Pakistan since their exportation.
In case the goods have undergone any alterations, renovations, addition or repairs prior to their re-import into Pakistan, the cost incurred on such alterations, renovations, additions or repairs (excluding the element of freight and other incidentals) shall be liable to duty as leviable under its respective PCT heading determined at the time of original import provided the machinery was exported under a contract of alteration, renovation, addition or repairs and that the supplier and the receiver as well as the make, model, weight and other specifications remain the same as were at the time of the original import of the goods, heading added.