GOVERNMENT OF PAKISTAN - Federal Board of …

1 GOVERNMENT OF PAKISTAN . MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS AND REVENUE. (REVENUE DIVISION). **. Islamabad, the 1st July, 2006. NOTIFICATION. (CUSTOMS). 693 (I) In exercise of the powers conferred by sub-section (5) of section 18 of the Customs Act, 1969 (IV of 1969), the Federal GOVERNMENT is pleased to levy additional customs-duty on the import of goods, - - (a) at the rate of 15% of the customs value on goods classifiable under tariff headings of the First Schedule to the Customs Act, 1969, as specified in Appendix I to this notification 1[: 2&4. [omitted]. (b) at the rates specified in column (4) of the Table below on the sub-components and components, specified in Appendix I and Appendix II as mentioned in column (3) of the said Table, imported as part of any kit form for the assembly or manufacturing of motor cars and vehicles classifiable under headings mentioned in column (2) of that Table, namely-- TABLE.]

2 Sr. No. PCT Headings Appendix Rate of additional customs-duty (1) (2) (3) (4). 1 (Agricultural Tractors) Appendix II 35% ad val. 2 and Appendix II 35% ad val. 3. (Tractors other than mentioned at Sr. Appendix II 25% ad val. and 2 above). 4 (CNG dedicated buses) Appendix II 35% ad val. 5 (Non-CNG buses) Appendix II 30% ad val. 6 6[excluding 4-stoke auto rickshaw of PCT heading Appendix I 4. [ ]%ad val. ]. 6. [6a 4-stroke auto rickshaw of PCT heading Appendix I 30% ad val. 7 (vehicles of exceeding 5 tons). Appendix II 25% ad val. 8 (vehicles of not exceeding 5 tons) Appendix I 30% ad val. 3,4,6, 9 Appendix I [ ad [but for motorcycles for a period of one year].]]

3 7. [Provided that in line with Auto Industry Investment Policy (AIIP) of the Auto Industry Development Programme (AIDP) approved by the Economic Coordination Committee (ECC) of the Cabinet in Case dated , the additional customs-duty leviable under this notification shall not be charged on sub-components and components, imported in any kit form by an assembler or manufacturer declared to be a new entrant by the Engineering Development Board (EDB) for the vehicles specified in the said Table for a period of three years from the start of assembly or manufacturing of respective vehicles, subject to following conditions, namely:- (i) the new entrant assembler or manufacturers shall chalk out a plan for progressive manufacturing of the vehicles spreading over a maximum period of three years within which he shall catch up with the localization or indigenization level of respective vehicles, as approved by Auto Industry Development Committee (AIDC) of the EDB.]

4 (ii) the continued non-levy of said additional customs-duty shall be contingent upon the achievement of progressive annual indigenization as determined by AIDC of the EDB. In case of any material deviation by the new entrant, the AIDC shall determine the stoppage or withdrawal of the incentive of non-levy of said additional customs-duty, allowed as such, retrospectively;. (iii) the new entrant shall abide by all the terms and conditions laid down in the separate notifications issued by the Ministry of Industries and FBR for assembly or manufacturing of the said vehicles under Auto Industry Development Programme (AIDP) and Tariff Based System (TBS).

5 (iv) the additional customs duty shall be levied on the sub-components and components which become indigenized by the New Entrant assembler or manufacturers, in accordance with the said plan for progressive manufacturing; and (v) the term new entrant' shall bear the same meaning as declared or notified by the Ministry of Industries]10[:]. 11. [Provided further that 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 PCT heading specified in the said TABLE, for a period of five years from the start of assembly or manufacturing with new technology subject to the following conditions, namely.

6 - (i) the new entrant assembler or manufacturer shall achieve the annual localization or indigenization targets / levels in accordance with the localization plan spreading over a maximum period of five years, duly approved by Ministry of Industries and Production;. (ii) the additional customs-duty shall be levied on the sub-components and components which become localized / indigenized by the new entrant assembler or manufacturer, in 2. accordance with the said localization plan;. (iii) 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 (iv) 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.

7 ]. APPENDIX-I. HS Code DESCRIPTION. (1) (2). - - - Following components for vehicles of chapter 87:- (1) Weather strips for doors and luggage compartments for motor cars of heading and vehicles of sub - heading , except weather strip moulding (inner / outer) for glass (2) Weather strips for doors and glass for vehicles of sub- heading (3) Weather strips for doors for vehicles of sub heading - - - Following components for vehicles of chapter 87:- (1) Weather strips for doors and luggage compartments for motor cars of heading and vehicles of sub - heading , except weather strip moulding (inner / outer) for glass (2) Weather strips for doors and glass for vehicles of sub- heading (3) Weather strips for doors for vehicles of sub heading - - - Following components for vehicles of chapter 87.

8 - (1) Weather strip for doors and luggage compartments for motor cars of heading and vehicles of sub - heading , except weather strip moulding (inner / outer) for glass (2) Weather strips for doors and glass for vehicles of sub- heading (3) Weather strips for doors for vehicles of sub heading - - - Following components for vehicles of chapter 87:- (1) Weather strips for doors and luggage compartments for motor cars of heading and vehicles of sub - heading , except weather strip moulding (inner / outer) for glass (2) Weather strips for doors and glass for vehicles of sub- heading (3) Weather strips for doors for vehicles of sub heading - - - Following components for vehicles of chapter 87.

9 (1) Water hoses of a kind used for engine cooling system / heater for motor cars of heading and vehicles of sub - heading (2) Hose side demister for motor cars of heading (not exceeding 800cc). (3) Water hoses used for engine cooling / heater systems, hoses brake reservoir, air cleaner hose, cool air hoses for vehicles of sub - heading and (4) Water hoses of a kind used for engine cooling system / heater for vehicles of sub - heading 3. (5) Water hoses for engine cooling system, air cleaner hoses and brake oil reservoir hose for vehicles of sub -heading (6) Engine cooling system / radiator hoses and fuel tubes,meant for industrial assembly / manufacture of vehicles ofsub - heading (7) Air intake hoses, radiator hoses, intercooler hoses and heater hoses, meant for industrial assembly / manufacture of vehicles of sub -heading - - - Following components for vehicles of chapter 87.

10 (1) Water hoses of a kind used for engine cooling system / heater for motor cars of heading and vehicles of sub- heading (2) Hose side demister for motor cars of heading (not exceeding 800cc). (3) Water hoses used for engine cooling / heater systems, hoses brake reservoir, air cleaner hose, cool air hoses for vehicles of sub - heading and (4) Water hoses of a kind used for engine cooling system /heater for vehicles of sub - heading (5) Water hoses for engine cooling system, air cleaner hoses and brake oil reservoir hose for vehicles of sub -heading (6) Engine cooling system / radiator hoses and fuel tubes, meant for industrial assembly / manufacture of vehicles of sub - heading (7)