Text of (CUSOTMS) SRO 456 (I)/2004.
MINISTRY OF FINANCE, ECONOMIC AFFAIRS,
STATISTICS AND REVENUE
(REVENUE DIVISION)
Islamabad, the 12th June, 2004
NOTIFICATION
(CUSTOMS)
SRO 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. SRO 357(I) / 2002, dated the 15th June, 2002, and No.SRO 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 Coefficient Organisation, or any other person, association or agency authorised by the Central Board of Revenue and a certificate of annua l requirement issued by such designated or authorised 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 Organisation (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 recognised 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.
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TABLE
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S No Description of Description of raw Heading or Extent of Special
goods to be materials, sub-components, sub- exemption from conditions of
manufactured components and assemblies. headings customs duty in import
Nos excess of rates
given below
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(1) (2) (3) (4) (5) (6)
1. Agarbatti. Diethyl Phthlate. 2917.3400 10% ad val. Nil
2. Air-conditioning, chilling, Raw materials. Respective 5% ad val. Nil
humidification and headings.
industrial refrigeration Sub-components and 10% ad val.
plants. components
Modules / assemblies. 15% ad val.
3. Air conditioners, deep - Raw matRespective 5% ad val. Nil
freezes, refrigerators. headings.
Sub-components and 10% ad val.
components.
4. Alkyd resins. Crude soyabean oil, whether or 1507.1000 10% ad val. Nil
not degummed
Crude coconut oil 1513.1100
5. Aluminum presensitized Aluminium plates, 7606.1 100 10% ad val. Nil
printing plates. sheets and foils. 7607.1900
6. Articles of stationery. Raw materials. Respective 5% ad val. Nil
headings.
Parts and components. 10% ad val.
7. Audio/video cassettes. 8523.1300 10% ad val. Nil
Magnetic tape in jumbo rolls andpancake only.
Components. Respective
headings.
8. Audio tapes or metallic Polyester base film / polyester3920.6300 10% ad val. Nil
yarn. film-uncoated.
9. Bearings. Raw material. Respective 0 % ad val. Nil
Sub-components and headings.
component .
10. Bolts, nuts, screws, High Carbon / High Tensile 7213.2000 5 % ad val. Nil
concrete nails and blind Wire Rod.
rivets. High Carbon Steel Wire 7217.3090 10 % ad val.
11. Cable and conductors. Raw materials excluding Respective 5 % ad val. Nil
artificial plastic resin. headings.
12. Capital goods, machinery Flat-rolled products of iron orRespective 5% ad val. Nil
and equipment. steel of prime quality, of headings.
thickness exceeding 10 mm and
width exceeding 1250 mm.
13. Cement. Coal. 2701.1900 5 % ad val Nil
14. Centrifugal and turbine Raw materials. Respective 5 % ad val. Nil
pumps. headings.
Sub-components and 10 % ad val.
Components
15. Ceramics. Decoflux, Optapic-G 3824.9099 20% ad val. Nil
Alumina Balls, 6815.9000
Moulds, Die. 8480.6000 5% ad val.
16. Chemical Plant. Raw materials. Respective 5% ad val.
headings.
Sub-components and 10% ad val.
components.
Modules / assemblies. 15% ad val.
17. Chemical resins and Phthalic anhydride. 2917.3500 20% ad val. Nil
processed chemicals.
18. Cranes and derricks. Raw materials. Respective 5% ad val. Nil
headings.
Sub-components and 10% ad val.
components,
Modules / assemblies. 15% ad val.
19. Defence stores, machinery Raw materials, Respective 5 % ad val. Nil
and equipment headings.
manufactured for the use Sub-components and 10 % ad val.
of defence forces under the components.
certificate from the
Director General Defence
Production, Ministry of
Defence, Government of
Pakistan.
20. Diapers and sanitary (i). Adhesives based on 3506.9190 10% ad val. Nil
napkins. polymers or rubbers.
(ii). Toilet or facial tissue s4803.0000
towel or napkin paper of a kind
used for household or sanitary
purpose.
(iii). Non-wovens, whether or 5603.1100
not impregnated, coated,
covered or laminated of man
made filaments.
(iv).PE + nw laminate sheet, 3920.1000
(v).Frontal Tape, 3920.9900
(vi).Pre Laminated Tape, 3920.9900
(vii).Perforated Poly Film, 3920.9900
(viii).Poly Back Sheet, 3920.9900
(ix).Hot Melt Adhesive, 3906.9190
(x).Non Porous Tissue Paper, 4803.0000
(xi).Siliconised Paper, 4810.9900
(xii).Non Woven Fabric, 5603.1100
(xiii).Loop Pile Fabric. 6001.2200
21. Diesel generating sets, Raw materials. Respective 5 % ad val. Nil
generators and boilers. headings.
Sub-components and 10 % ad val.
components.
22. Disposable syringes and Dichlorotetrafluoroethanes gas,2903.4400 5 % ad val. Nil
needles. Ethylene Oxide Gas, 2910.1000
Printing Ink, 3215.1110
Epoxy Bond, 3506.1000
Polypropylene (medical grade), 3902.1000
PVC (medical grade) 39.04
Plastic Film 3921.9000
3920.2040
PVC gaskets, 3923.5000
Silicon Oil, 3910.0000
Rubber gaskets, 4016.9310
Paper labels 4821.1000
23. Dry battery cells. Natural manganese dioxide, 2530.9010 0 % ad val. Nil
Electrolytic manganese dioxide,2820.1010
Ammonium chloride, 2827.1000
Zinc chloride, 2827.3600
Mercuric chloride, 2827.3990
Electrolytic paper, 4811.9000
Zin c slugs, 7907.0010
Carbon rods. 8545.9020
24. Dyes stuff and chemicals. Creslyic Acid, 2707.6000 10% ad val. Nil
Cresote Oil, 2707.9100
Petroleum Jelly, 2712.1000
Sodium Sulphate, 2833.1100
Napthalene, 2902.9010
Glycerol, 2905.4500
Formic Acid, 2915.1100
Diazo, aroor -azoxy- compounds,2927.1010 5% ad val.
Activated Carbon, 3802.1000 10% ad val.
Stearic Acid. 3823.1100 20% ad val.
25. Electric bulbs and tube Raw materials. Respective 5 % ad val. Nil
lights. headings.
Sub-components and 10 % ad val.
components.
26. Electric meters, electrical Raw materials. Respective 5 % ad val. Nil
capacitors, industrial headings.
switch gears, high voltage Sub-components and 10 % ad val.
electrical switches. components.
27. Electrical capacitors. BOPP metalised film (4 to 12 3920.2030 5% ad val Nil
micron).
28. Electronic diagnostic, Raw materials. Respective 5% ad val. Nil
monitoring and laboratory headings.
equipments for medical Sub-components and 10% ad val.
use. components,
Sub-assemblies. 15 % ad val.
29. Engineering goods. Non-alloy (carbon) steel 72.14 10% ad val.
sections, bars and rods. 72.15
72.16
30. Eylets Copper strips, 7409.1900 10% ad val. Nil
Brass strips. 7409.2100
31. First Aid bandages. PVC tape. 3919.1000 20% ad val. Nil
32. Flat-rolled products of iron CRC sheets of thickness of less7209.1800 5 % ad val. Nil
or non-alloy steel, plated than 0.5 mm
or coated with zinc.
33. Flexible laminated tubes. 3921.9000 20% ad val. Nil
34. Aluminum PE Laminated sheets. Masterbatch, 3204.1700 10% ad val. Nil
Footwear. PU paints, 3208.9000
Release agents, 3403.1990
Wax cream, 3405.1010
Shoe adhesives, 3506.9100
3506.9900
Isocyanate, 3824.9099
Desmodur RE, 3824.9099
Toe puff material, 3921.9000
Fibre board, 4411.3900
Insole board, 4811.5990
Combralla lining material, 5603.1300
5603.1400
Shoe reinforcement tapes. 5906.1000
35. Formic acid. Sodium hydro oxide {caustic 2815.1200 20% ad val. Nil
soda in aqueous solutions (soda
lye or liquid soda)}.
36. Grinding Wheel. Raw materials. Respective 10 % ad val. Nil
headings.
37. Insulators. Raw materials. Respective 5% ad val. Nil
headings.
Sub-components and 10% ad val.
components.
38. Interlining fabrics. Melamine Resin 3909.2000 10% ad val. Nil
39. Leather Tanning. Chromium Sulphate. 2833.2300 10% ad val. Nil
40. LPG tanks, gas pressure Raw materials. Respective 5 % ad val. Nil
regulators, heat exchanger, headings.
pressure vessels. Sub-components and 10 % ad val.
components.
41. Machinery, equipment, Raw materials, Respective 0 % ad val. Supplied to
intermediary or capital headings. electric
sub-components and power
goods and specialized components generation
vehicles (4 x 4 non luxury) ie oil,
excluding passenger gas, hydel, coal,
vehicles. wind and wave
energy projects,
their expansion or
modernization,
including under
construction
projects, and
captive power
projects.
42. Machinery, equipment, Raw materials, Respective 0 % ad val.
vehicles and intermediary sub-components and headings. Supplies against
international
or capital goods. components. tender to the
projects
financed
out of
international
loan
or aid giving
agencies.
43. Manufacture or (i) Oils and other products of 2707.6000 5% ad val. Nil
formulation of distillation of high temperatur2707.9100
agricultural pesticides coal-tar and similar products i2707.9990
by manufacturers o r which the weight of the aromatic
formulators duly constituents exceeds that of
recognised and Non-aromatic constituents.
approved by the
Ministry of Food and (ii) Surface active agents. 3402.1190 5% ad val.
Agriculture. 3402.1200
3402.1300
3402.1990
(iii) All active ingredients forRespective 0 % ad val.
pesticides registered by the headings /
Department of Plant Protection sub-
under the Agricultural Pesticideheadings
Ordinance 1971(II of 1971), Nos. of
stabilizers, emulsifiers Chapter 28,
and solvents. 29,34 or 38.
44. Masterbatches. Pigments, dyes, additives, filtRespective 5 % ad val. Nil
resins headings.
45. Medical equipment as Raw materials, Respective 0 % ad val. Nil
follows: (i) Dialysers components Headings.
(ii) Blood Tubing lines for
dialysis comprising of
Arterial & Veinous lines
(iii) Arterial & Veinous
Fistula Needle sets
comprising Arterial and
Veinous Lines.
46. Oleo-chemical/Stearic Palm Stearin, 1511.9010 5 % ad val. Nil
acid. Crude soya -bean oil, 1507.1000 10% ad val.
Crude coconut oil, 1513.1100
RBD coconut oil, 1513.1900
Palm Acid oil, 3823.1920
Palm Kernel Acid oil. 3823.1990
47. Paper and Paper Board. Cationic Potato Starch, 3505.1000 15% ad val. Nil
Potato Starch. 1108.1300
48. sack for cement Sack kraft paper. 4804.2100 10% ad val. Nil
industry. 4804.2900
49. Parts of locomotives. Raw materials, Respective 5 % ad val. Nil
Sub-components and headings. 10 % ad val.
components.
50. Pharmaceuticals. Composite diagnostic re-agent. 3822.0090 10% ad val. Nil
51. Printed circuit boards. Raw materials, Respective 5 % ad val. Nil
headings.
Sub-components and 10 % ad val.
components.
52. Printing ink. Organic pigments, 3204.1700 10% ad val. Nil
Inorganic pigments, 32.06
32.07
Driers, 32.11
Waxes, 34.04
Resins. 3912.2000
39.02
53. PVC Compound. Raw materials. Respective 5% ad val. Nil
headings.
54. Refrigerated vehicles, Raw materials. Respective 5 % ad val. Nil
chillers for milk storage headings.
and bowzers for Sub-components and 10 % ad val.
transportation of LPG / components.
hazardous chemicals and
specialized drums for
transport & distribution of
petrochemicals.
55. Ribbons for Nylon fabrics, 5903.9000 10% ad val. Nil
Typewriter/computer Polyethylene film, 3920.1000
printers. Empty cartridges. 3926.9090
56. Ring Spinning Frame. Raw materials. Respective 0 % ad val. Nil
Sub-components and headins.
components.
57. Seamless pipes. (i) Special steel round bars an7214.9900 10% ad val. Nil
rods of non - alloy steel
exceeding diameters 75 mm.
(ii) Lubricating anti-rust and 3403.9900
anti-corrosion preparation.
58. Solar cells, panels, Raw materials, Respective 5% ad val. Nil
modules. headings.
Sub-components and 10% ad val.
Components,
Sub-assemblies. 15 % ad val.
59. Sticker paper. Cast coated paper, 4810.2200 20% ad val. Nil
Release base paper. 4811.5900
60. (i) Sugar mill upto 10,000 Raw materials, Respective 0 % ad val. Supplies to the
tcd capacity per unit. sub-components headings. export sector or to
(ii) Cement plant upto 4000 tpd and components. exempt industrial
capacity per unit. units, projects,
(iii)Plants for the agencies.
production of industrial
chemicals.
(iv)Thermal power plant
upto 350 MW capacity
per unit.
(v)Hydel Power Plant
upto 50 MW capacity per
unit.
(vi)Fertiliser plants.
(vii)Heat exchangers,
pressure vessels,
Coloumns, filters,
production separators,
coolers and boilers.
(viii)Machinery for the
manufacture of surgical
goods, sports goods and
stuffed toys.
(ix)Machinery supplied to
the approved
manufacturers /
assemblers of vehicles,
capital goods, electronics
equipment and system,
consumer durable items
and auto parts.
(x)Marble processing
industry.
(xi)Steel pipes/tubes
industry.
(xii)Plant, machinery and
equipment as in Tables of
Notification No. SRO
439(I)/2001, dated the
18th June 2001.
(xiii)Machinery and
capital goods or
engineering goods meant
for export.
(xiv)Textile machinery.
(xv)Any other industrial
plant recommended and
approved by Engineering
Development Board and
the Central Board of
Revenue.
61. Telephone sets, fax Raw materials. Respective 5 % ad val. Nil
machines, speakers, small headings.
transformers, Sub-components and 10 % ad val.
telecommunication Components,
equipments, electronic
exchanges, PABX /digital 15 % ad val.
Sub-assemblies.
switching equipments.
62. Thermosetting powder. Epoxider 3907.3000 10% ad val. Nil
63. Toilet soap. Palm Stearin, 1511.9010 10% ad val. Nil
Crude Palm Kernel Oil, 1513.2100
Cresylic acid, 2707.6000
Pigments and dye colours, 3204.1900
Surface active agents, 34.02
Mixture of odoriferous 3302.9000
substances.
64. Tyres and tubes. Antioxidents / Antiozonants, 2921.5100 0 % ad val. Nil
Rubber Accelerators / Retarders3812.1000
Rubber - Natural, 40.01
Rubber- Synthetic, 40.02
Nylon or Polyester Tyre Cord 59.02
Fabrics,
Bead Wire, 7217.3010
Brass Plated Steel Tyre Cords, 7312.9010
65. Tufted carpets. BCF Nylon Yarn. 5402.3200 10% ad val. Nil
5402.3900
BCF Polypropylene Textured 5402.4100
Yarn.
Woven Fabrics of Synthetic 5407.2000
Filament Yarn.
66. Under EEPAS Nil
Television sets. Raw materials for the Respective 5% ad val.
manufacture of TV sets and headings.
parts thereof,
Picture tube (colour), 8540.1100
Picture tube (black and white),8540.1200
Deflection yoke, 8540.9100
Tuner, 8529.9000
Transformers, 8504.3100
Front and back cover, 8529.9000
Other sub-components, Respective
components, modules
and sub- headings.
assemblies.
67. Under EEPAS (i). Raw materials, sub- Respective 5% ad val. Nil
Cellular mobile phones; components, components for the headings.
Laser video disc players; electronic apparatus.
DVD player, VCD player;
VCP(Video Cassette (ii). SKD kits for assembly of
Player); VCR(Video microwave ovens VCP, VCR, 10% ad val.
Cassette Recorder); VCD, DVD apparatus and
Compact disc player; Plasma T.V.
under "Emerging
Stereo car cassettes Electronics
Products Assembly
players; Hi-fi system; Scheme"
(EEPAS) imported in
Pocket size cassette player; more than seven components,
CD players; Radio -cum- SKD kits would not contain
cassette player; Radio; packing materials, carton boxes,
Electronic calculator; brochures and the printed
Microwave ovens; Caller materials.
Line Identification (CLI)
apparatus, Plasma T.V
sets.
68. Viscose staple fibre. Cotton linter. 1404.2000 5 % ad val. Nil
69. Welded steel pipes. Raw materials. Respective 5 % ad val. All consumables
headings. not manufactured
locally shall be
included in raw
materials.
70. Wire (High Tensile ), High Raw materials. Respective 5% ad val. Nil
Carbon and prestressed headings.
concrete wire/ strands,
Core wire for ACSR spring
wires.
71. Wire rope High Carbon Steel Wire Rod. 7213.2000 5 % ad val Nil
72. Any other project or Raw materials, Respective 5% ad val As specified by
industry approved by heading. the Engineering
Indigenization Committee Sub-components and 10% ad val. Development
of Engineering Components, Baord or Central
Development Board Board of Revenue.
having members from the Modules and assemblies.
Ministry of Industries and 15% ad val
Production and Central
Board of Revenue
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(C.No. 1 / 6 / Mach / 2004-Pt.III)
(MUHAMMAD RAMZAN)
Additional Secretary
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