S.R.O. 42(I)/2009, dated 19th January, 2009

SROS: S.R.O. 42(I)/2009, dated 19th January, 2009 EXEMPTION FROM CUSTOMS-DUTY AND SALES TAX ON IMPORT OF CAPITAL EQUIPMENT(PLANT, MACHINERY, EQUIPMENT AND ACCESSORIES), IMPORTED FOR THE DEVELOPMENT OF PAKISTAN-CHINA INVESTMENT ZONES AND FOR ESTABLISHING PROJECTS IN THESE ZONES, SUBJECT T0 CERTAIN CONDITI Notification No. S.R.O. 42(1)/2009, dated 19th January, 2009:- In exercise of the powers conferred by section 19 of the Customs Act, 1969(IV of 1969), and clause(a) of sub-section(2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that capital equipment(plant, machinery, equipment and accessories) shall be exempt from the whole of customs-duty and sales tax if imported for the development of Pakistan-China Investment Zones and for establishing projects in these Zones, subject to the following conditions, namely:-- (a) locations and perimeters shall be notified by the Board of Investment of Investment Division; (b) only such projects or joint ventures would be entitled to this exemption as are certified by the Board of Investment to have at least forty per cent foreign equity from Chinese Companies; (c) capital equipment(plant, machinery, equipment and accessories) imported for the zones will not be removed from the zones without the permission of the FBR within five years of their importation; (d) in case of partial shipments 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 machinery, equipment and components required for the complete plant, duly supported by the contract, lay out plan and drawings; and (e) Board of Investment shall certify in the prescribed manner and format as per Annex-A that the imported goods are bona fide project requirement. In case the clearance of the imported goods is through Pakistan Customs Computerized System(PaCCS) the authorized officer of the BOI shall furnish all relevant information online to PaCCS against a specific user ID and…