RECORDER REPORT
ISLAMABAD: The Federal Board of Revenue (FBR) will not charge the additional customs-duty on sub-components and components, imported in any kit form by a new entrant assembler or manufacturer of motorcycles in Pakistan.
In this regard, the FBR has issued SRO.939(I)/2013 and SRO.940(I)2013 here on Tuesday to notify duty concessions for the manufacturers of motorcycles in line with the new entrant policy for motorcycles manufacturing industry applying new technology.
Through these notifications, the FBR has amended SRO 656(1)/2006, dated June 22, 2006 and SRO 693(I)/2006, dated July 1, 2006.
According to SRO 939(I)/2013, in line with the new entrant policy for motorcycle manufacturing industry with new technology notified by Ministry of Industries and Production vide Notification No. 4-1/2013/LED-II-(Vol-III), dated the 26th September, 2013, the additional customs-duty leviable under this notification shall not be charged on sub-components and components, imported in any kit form by a new entrant assembler or manufacturer, for assembly or manufacturing of motorcycles classified under Pakistan Customs Tariff (PCT) heading 87.11 specified for a period of five years from the start of assembly or manufacturing with new technology. This is subject to the fulfillment of certain conditions.
Firstly, the new entrant assembler or manufacturer shall achieve the annual localisation or indigenisation targets / levels in accordance with the localisation, plan spreading over a maximum period of five years, duly approved by Ministry of Industries and Production.
Secondly, the additional customs-duty shall be levied on the sub-components and components which become localised/ indigenised by the new entrant assembler or manufacturer, in accordance with the said localisation plan.
Thirdly, the new entrant shall abide by all the terms and conditions laid down in separate notifications issued by the Ministry of Industries and FBR for assembly or manufacturing of motorcycles and the expressions ‘new technology’ and ‘new entrant’ shall bear the same meaning as declared or notified by the Ministry of Industries and Production in respect of Motorcycle Manufacturing Industry.”
Under SRO 940(I)/2013, in line with the new entrant policy for motorcycle manufacturing industry with new technology notified by Ministry of Industries and Production vide notification No. 4-1/2013/LED- II(Vol-III), dated September 26, 2013, the incentive of importing CKD kit in any form @ 10% customs-duty imported by the new entrant for assembly or manufacturing of motorcycles shall be withdrawn on components localised by the new entrant each year in accordance with the approved localisation plan. The expressions ‘new entrant’ and ‘new technology’ shall bear the same meaning as declared or notified by the Ministry of Industries and Production in respect of motorcycle manufacturing industry.
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