Updated: Monday March 30, 2015/AlEthnien Jamada El Thaniah 10, 1436/Somavara Chaitra 09, 1937, at 05:43:07 PM

The Finance Act, 2014 (along-with Bill, 2014)

 

to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2014, and to amend and enact certain laws

WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2014, and to amend certain laws for the purposes hereinafter appearing;

It is hereby enacted as follows:-

 

1.                  Short title, extent and commencement. (1) This Act may be called the Finance Act, 2014.

(2)               It extends to the whole of Pakistan.

 

(3)               It shall, unless otherwise provided, come into force on the first day of July, 2014.

2.                  Amendments of Act IV of 1969. In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-

(1)               in section 2,-

 

(a)               for clause (k), the following shall be substituted, namely:-

 

“(k) “customs-station” means any customs-station, customs- airport, an inland river port, land customs-station or any place declared as such under section 9;”; and

(b)               clause (m) shall be omitted;

 

(2)               in  section  7,  for  the  word  “Central”,  the  word  “Federal”  shall  be substituted;

(3)               in section 18, after sub-section (1), the following new sub-section shall be inserted, namely:-

“(1A) Notwithstanding anything contained in sub-section (1), customs duties shall be levied at such rates on import of goods or class of goods as are prescribed in the Fifth Schedule, subject to such conditions, limitations and restrictions as prescribed therein.”;

(4)               in section 18A, for the words, figures and brackets “Central Excises and Salt Act, 1944 (I of 1944)”, the words and figures “the Federal Excise Act, 2005” shall be substituted;

(5)               in section 25,-

 

(a)               in sub-section (5), clause (d) shall be omitted; and

 

(b)               in sub-section (6),-

 

(i)                 for the comma, occurring for eighth time, the word “and” shall be substituted; and

(ii)               the word, letter and brackets “and (d)” shall be omitted;

 

(6)               in section 32, in sub-sections (2), (3) and (3A), after the word “duty”, the comma and word “, taxes” shall be inserted;

(7)               in section 80, in sub-section (3), after the word “duty”, the comma and the words “, taxes and other charges levied thereon” shall be added;

(8)               in section 81, in sub-section (1),-

 

(a)               in the first proviso, after the word “duty”, the comma and words “, taxes and other charges” shall be inserted; and

(b)               in the second proviso, for the word “tax”, the words “taxes and other charges” shall be substituted;

(9)               in section 185B, for clause (a), the following shall be substituted, namely:-

“(a) no court other than the Special Judge having jurisdiction shall try an offence punishable under this Act, except the offences relating to narcotics and narcotic substances which shall be tried by the Special Courts established under the Control of Narcotics Substances  Act, 1997 (XXV of 1997);”;

(10)          in section 194, in sub-section (3),-

 

(a)               for the words “Customs and Excise Group”, the words “Pakistan Customs Service” shall be substituted; and

(b)               for the word “five”, the word “three” shall be substituted;

 

(11)          the amendments set out in the First Schedule to this Act shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969); and

(12)          the provisions in the Second Schedule to this Act shall be added as the Fifth Schedule to the Customs Act, 1969 (IV of 1969).

3.                  Amendments of the Sales Tax Act, 1990.─ In the Sales Tax Act, 1990 the following further amendments shall be made, namely:-

(1)              in section 2, in clause (27), for the semicolon at the end a colon shall be substituted, and thereafter the following proviso shall be added, namely:-

“Provided that the Board may through a general order specify zones or areas for the purpose of determination of highest retail price for any brand or variety of goods;”;

(2)              in section 3,–

 

(i)                 in sub-section (2),–

 

(a)               in clause (a), in the proviso, the word “and”, at the end, shall be omitted; and

(b)               after clause (a), amended as aforesaid, the following new clause (aa) shall be inserted, namely:-

“(aa) goods specified in the Eighth Schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein; and”;

(ii)               after sub-section (3A), the following new sub-section shall be inserted, namely:─

“(3B) Notwithstanding anything contained in sub- sections (1) and (3), sales tax on the import and supply of the goods specified in the Ninth Schedule to this Act shall be charged, collected and paid at the rates, in the manner, at the time, and subject to the procedure and conditions as specified therein or as may be prescribed, and the liability to charge, collect and pay the tax shall be on the persons specified therein.”;

(iii)             for sub-section (8), the following shall be substituted, namely:- “(8)        Notwithstanding            anything                 contained   in                  any law    or notification made thereunder, in case of supply of natural gas to CNG stations, the Gas Transmission and Distribution Company shall charge  sales  tax from  the  CNG  stations  at  the  rate  of seventeen  per  cent  of  the  value  of  supply  to  the  CNG consumers,  as  notified  by  the  Board  from  time  to  time,  but excluding the amount of tax, as provided in clause (46) of section 2.”;

(iv)              after sub-section (8), substituted as aforesaid, the following new sub-section shall be added, namely:-

“(9) Notwithstanding anything contained in sub-section (1), tax shall be charged from retailers through their monthly electricity bills, at the rate of five per cent where the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half per cent where the monthly bill amount exceeds the aforesaid amount, subject to the exclusions, procedure, restrictions and limitations as prescribed in Chapter II of the Sales Tax Special Procedure Rules, 2007:

Provided that the tax under this sub-section shall be in addition to the tax payable on supply of electricity under sub- sections (1), (1A) and (5).”;

(3)              in section 3B, for sub-section (2), the following shall be substituted and shall be deemed to have been always so substituted, namely:-

“(2) Notwithstanding anything contained in any law or judgment of a court, including the Supreme Court and a High Court, any amount payable to the Federal Government under sub-section (1) shall be deemed to be an arrear of tax or charge payable under this Act and shall be recoverable accordingly and any claim for refund in respect of such amount shall neither be admissible to the registered person nor payable to any court of law or to any person under direction of the court.”;

(4)              in section 4, in clause (d), for the words “zero-rated goods”, the words “goods supplied at reduced rate of sales tax” shall be substituted;

(5)              in section 7,–

 

(i)                 in sub-section (1),–

 

(a)         for the word “section”, occurring for the first time, the words and figure “sections 8 and” shall be substituted;

(b)         after the words “output tax”, occurring for the first time, the commas, words, brackets and figures “, excluding the amount of further tax under sub-section (1A) of section 3,” shall be inserted;

(ii)               in sub-section (2), after clause (iii), the following new clause shall be inserted, namely:–

“(iiia)  the goods and services against which input tax is claimed are,–

(a)               imported or purchased for the purpose of sale or re-sale by the registered person on payment of tax;

(b)               used directly as raw material, ingredient, part, component or packing material by the registered person in the manufacture or production of taxable goods;

(c)               electricity, natural gas and other fuel consumed directly by the registered person in his declared business premises for the manufacture, production or supply of taxable goods; or

(d)               plant, machinery and equipment used by the registered person in his declared business premises for the manufacture, production or supply of taxable goods.”;

(6)              in section 8, in sub-section (1),–

 

(i)                 in clause (d), the word “and”, at the end, shall be omitted;

 

(ii)               after clause (e), for full stop at the end a semicolon shall be substituted and thereafter the following new clauses shall be added, namely:-

“(f)       goods and services not related to the taxable supplies made by the registered person;

(g)               goods and services acquired for personal or non-business consumption;

(h)                goods used in, or permanently attached to, immoveable property, such as building and construction materials, paints, electrical and sanitary fittings, pipes, wires and cables, but excluding such goods acquired for sale or re- sale or for direct use in the production or manufacture of taxable goods; and

(i)                  vehicles falling in Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of 1969), parts of such vehicles, electrical and gas appliances, furniture, furnishings, office equipment (excluding electronic cash registers), but excluding such goods acquired for sale or re-sale.”;

(7)              in section 40B, after the proviso, the following explanation shall be added, namely:–

“Explanation.– For the removal of doubt, it is declared that the powers of the Board, Chief Commissioner and Commissioner under this section are independent of the provisions of section 40.”;

(8)              after section 50A, the following new section shall be inserted, namely:– “50B. Electronic scrutiny and intimation (1) The Board may

implement  a  computerized  system  for  the  purpose  of  automated scrutiny, analysis and cross-matching of returns and other available

data relating to registered persons and to electronically send intimations to such registered persons about any issue detected by the system.

(2)                 The intimation sent by the computerized system under sub-section (1) shall be in the nature of an advice or advance notice, aimed at allowing the registered person to clarify the issue, rectify any mistake or take other corrective action before any legal or penal action is initiated.

(3)               The computerized system shall keep record of the issues detected, intimations sent, responses received and actions taken, and shall present such information to the officer of Inland Revenue and to the Board in the prescribed manner.

(4)               The Board may prescribe procedures and specifications for the smooth and efficient operation of the computerized system.”;

(9)              in the Fifth Schedule, in column (1), after Serial No. 8 and entries relating thereto in column (2), the following new serial numbers and entries relating thereto shall be added, namely:-

 

“9.

Goods exempted under section 13, if exported by a manufacturer who makes local supplies of both taxable and exempt goods.

 

10.

 

Petroleum Crude Oil (PCT heading 2709.0000).

 

11.

Raw  materials,  components,  sub-components  and  parts,  if imported or purchased locally for use in the manufacturing of

such plant and machinery as is chargeable to sales tax at the rate of zero percent, subject to the condition that the importer or purchaser of such goods holds a valid sales tax registration showing his registration category as “manufacturer”; and  in case of import, all the conditions, restrictions, limitations and procedures as are imposed by Notification under section 19 of the Customs Act, 1969 (IV of 1969), shall apply.

 

12.          The following goods and the raw materials, packing materials, sub-components, components, sub-assemblies and assemblies imported or purchased locally for the manufacture of the said goods, subject to the conditions, limitations and restrictions as specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007:–

(i)                 Colors in sets (PCT heading 3213.1000)

 

(ii)               Writing,       drawing       and       marking       inks        (PCT heading3215.9010 and 3215.9090)

(iii)             Erasers (PCT heading 4016.9210 and 4016.9290)

 

(iv)              Exercise books (PCT heading 4820.2000)

 

(v)                Pencil sharpeners  (PCT heading 8214.1000)

 

(vi)              Geometry boxes (PCT heading 9017.2000)

 

(vii)            Pens, ball pens, markers and porous tipped pens(PCT

heading 96.08)

 

(viii)          Pencils including color pencils (PCT heading 96.09)

 

(ix)              Milk including flavored  milk  (PCT  heading  04.01  and 0402.9900)

(x)                Yogurt            (PCT heading 0403.1000)

 

(xi)              Cheese (PCT heading 0406.1010)

 

(xii)            Butter (PCT heading 0405.1000)

 

(xiii)          Cream (PCT heading 04.01 and 04.02)

 

(xiv)          Desi ghee (PCT heading 0405.9000)

 

(xv)            Whey (PCT heading 04.04)

 

(xvi)          Milk and cream, concentrated and added sugar or other sweetening matter (PCT heading 0402.1000)

(xvii)        Preparations for infant use put up for retail sale (PCT heading 1901.1000)

(xviii)      Fat filled milk (PCT heading 1901.9090)

 

(xix)          Bicycles (PCT heading 87.12).”;

 

(10)          in the Sixth Schedule

 

(i)                 in Table-1, in column (1),–

 

(a)               against serial number 24, in column (3), after the figure and comma, “1510.0000,” the figure and comma “1511.1000,” shall be inserted; and

(b)               against S. No. 59, in column (2) after the word, “solution” , the comma and words “, cochlear implants system”, and in column (3), after the figure “99.25”, the comma and figure “, 99.37” shall respectively be inserted; and

(c)              

“72

Uncooked poultry meat

02.07

73

Milk and cream

04.01 and

 

04.02

74

Flavored milk

0402.9900

 

and 22.02

75

Yogurt

0403.1000

76

Whey

04.04

77

Butter

0405.1000

78

Desi ghee

0405.9000

79

Cheese

0406.1010

80

Processed cheese not grated or

 

powdered

0406.3000

81

Cotton seed

1207.2000

82

Frozen, prepared or preserved

sausages and similar products of poultry meat or meat offal

1601.0000

 

 
after serial number 71 and the entries relating thereto in columns (2) and (3), the following new serial numbers and entries relating thereto shall be added, namely:-

83

Meat and similar products of prepared frozen or preserved meat or meat offal of all types including poultry meat and fish

1602.3200,

 

1602.3900,

 

1602.5000,

 

1604.1100,

 

1604.1200,

 

1604.1300,

 

1604.1400,

 

1604.1500,

 

1604.1600,

 

1604.1900,

 

1604.2010,

 

1604.2020,

 

1604.2090,

 

1604.3000

84

Preparations for infant use, put up

 

for retail sale

1901.1000

85

Fat filled milk

1901.9090

86

Colours in sets (Poster colours)

3213.1000

87

Writing, drawing and marking inks

3215.9010

 

and 3215.9090

 

88

 

Erasers

 

4016.9210

 

 

and

 

4016.9290

89

Exercise books

4820.2000

90

Pencil sharpeners

8214.1000

91

Energy saver lamps

8539.3910

92

Sewing machines of the household type

8452.1010

and 8452.1090

93

Bicycles

87.12

94

Wheelchairs

8713.1000

and 8713.9000

95

Vessels for breaking up

89.08

96

Other    drawing,    marking    out    or

mathematical                      calculating instruments (geometry box)

9017.2000

97

Pens and ball pens

96.08

98

Pencils including colour pencils

96.09

99

Compost    (non-chemical     fertilizer)

 

produced and supplied locally

Respective

 

headings

100

Construction materials to Gawadar

Export Processing Zone’s investors and  to  Export  Processing  Zone

Respective headings

 

 

Gawadar      for      development      of

 

Zone’s infrastructure.

101

Raw and pickled hides and skins, wet blue hides and skins, finished leather,               and accessories, components and trimmings, if imported by a registered leather goods manufacturer, for the manufacture of goods wholly for export, provided that conditions, procedures and restrictions laid down in rules 264 to 278 of the Customs   Rules,   2001   are   duly

fulfilled and complied with.

Respective headings

102

Machinery, equipment and materials imported either for exclusive use within the limits of Export Processing Zone or for making exports therefrom, and goods imported for warehousing purpose in Export  Processing Zone, subject to the conditions that

such       machinery,       equipment,

Respective headings

 

 

materials and goods are imported by investors of Export Processing Zones, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (IV of 1969) and  rules  made  thereunder  shall

mutatis mutandis, apply.

103

Import and supply thereof, up to the year 2020, of ships of gross tonnage of less than 15 LDT and all floating crafts including tugs, dredgers, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistan entity and flying the Pakistan flag, except ships or crafts acquired for demolition purposes or are designed or adapted for use for recreation or pleasure purposes, subject to the condition that such ships or crafts are used only for the

purpose    for   which    they    were

Respective headings

 

 

procured, and in case such ships or crafts are used for demolition purposes within a period of five years of their acquisition, sales tax applicable to such ships purchased for  demolition  purposes  shall  be

chargeable.

104

Substances registered as drugs under the Drugs Act, 1976 (XXXI of 1976) and medicaments as are classifiable under Chapter 30 of the First Schedule to the Customs Act, 1969 (IV of 1969) except the following, even if medicated or medicinal in nature, namely:-

(a)         filled infusion solution bags imported with or without infusion given sets;

(b)         scrubs,        detergents        and washing preparations;

(c)         soft soap or no-soap soap;

 

(d)         adhesive plaster;

 

(e)         surgical tapes;

Respective headings

 

 

(f)           liquid paraffin;

 

(g)         disinfectants; and

(h)         cosmetics           and           toilet preparations.

105

Raw materials for the basic manufacture of pharmaceutical active ingredients and for manufacture of pharmaceutical products, provided that in case of import, only such raw materials shall be entitled to exemption which are liable to customs duty not exceeding ten per cent advalorem, either under the First Schedule to the Customs Act, 1969 (IV of 1969) or under a notification issued under

section 19 thereof.

Respective headings

106

Import of Halal edible offal of bovine animals.

0206.1000,

 

0206.2000,

 

0206.8000

and 0206.9000

107

Import and supply of iodized salt

 

 

 

bearing brand names and

trademarks whether or not sold in retail packing.

108

Components or sub-components of energy saver lamps, namely:-

(a)   Electronic Circuit

 

(b)   Plastic Caps (Upper and Lower)

 

(c)   Base Caps B22 and E27

 

(d)   Tungsten Filaments

 

(e)   Lead-in-wire

 

(f) Fluorescent Powder (Tri Band Phospher)

(g)   Adhesive Additive

 

(h)   Al-Oxide Suspension

 

(i)   Capping Cement

 

(j)   Stamp Pad Ink

 

(k)   Gutter for Suspension

 

 

 

 

8539.9040

 

8539.9040

 

8539.9040

 

8539.9040

 

8539.9040

 

3206.5010

 

3824.9099

 

3824.9099

 

3214.1050

 

3215.9010

 

2850.0000

109

Goods imported temporarily with a view to subsequent exportation, as concurred by the Board, including passenger service item, provision and stores of Pakistani

Airlines.

Respective headings

 

 

110

The following items with dedicated use of renewable source of energy like solar and wind, subject to certification by the            Alternative             Energy Development Board (AEDB), Islamabad:-

(a)         Solar PV panels;

 

(b)         LVD induction lamps;

 

(c)         SMD, LEDs with or without ballast, with fittings and fixtures;

(d)         Wind turbines including alternators and mast;

(e)         Solar torches;

 

(f)           Lanterns and related instruments;

(g)         PV modules along with related components, including invertors,   charge   controllers

and batteries.

 

 

 

 

 

 

 

 

 

 

8541.5000

 

8539.3990

 

9405.1090

 

 

 

8502.3100

 

 

 

8513.1040

 

8513.1090

 

8541.4000,

 

8504.4090,

 

9032.8990

 

and 8507.0000

111

White crystalline sugar

1701.9910

 

and

 

 

1701.9920

112

Following               cardiology/cardiac

 

surgery,                        neurovascular, electrophysiology, endosurgery, endoscopy, oncology, urology, gynaecology, disposables  and other equipment:-

A.              ANGIOPLASTY PRODUCTS

1.            Coronary Artery Stents

 

2.            Drugs Eluting Coronary Artery Stents

3.            Coronary Artery Dilatation Catheters (Balloons)

4.            PTCA Guide Wire

 

5.            PTCA Guiding Catheters

6.            Inflation Devices/Priority Packs

B.             ANGIOGRAPHY PRODUCTS

1.                  Angiography

Respective headings

 

Catheters

 

2.                  Sheaths

 

3.                  Guide Wires

 

4.                  Contrast Lines

 

5.                  Pressure Lines

 

6.                  Mannifolds

 

C.             CONTRAST MEDIA FOR ANGIOGRAPHY/ ANGIOPLASTY

1.                  Angiography Accessories

2.                  ASD Closure Devices

 

3.                  ASD Delivery Systems

4.                  VSD Closure Devices

 

5.                  VSD Delivery System

 

6.                  Guide Wires

 

7.                  Sizing Balloons

 

8.                  Sizing Plates

 

9.                  PDA Closure Devices

 

10.              PDA Delivery system

 

D.                TEMPORARY PACEMAKERS       (with   leads,

connectors and accessories)

 

E.                 PERMANENT PACEMAKER         (with   leads, connectors and accessories)

F.                 HEART FAILURE DEVICES (with leads, connectors and accessories)

G.                IMPLANTABLE CARDIOVERTES           (with            leads, connectors and accessories)

H.                CARDIAC ELECTROPHYSIOLOGY PRODUCTS

1.                  Electrophysiology catheters

2.                  Electrophysiology cables

3.                  Electrophysiology connectors

I.                    LEAR              CARDIOLOGY PRODUCTS

1.                  Radioactive isotopes

 

2.                  Cold kits (Cardioloite

MAA, DTPA etc)

 

J.                  CARDIAC             SURGERY PRODUCTS

1.                  Oxygenators

 

2.                  Cannulas

 

3.                  Prosthetic Heart Valves

4.                  Luminal Shunts for heart surgery

5.                  Artificial limbs and appliances

K.                EQUIPMENT

 

1.                  Cardiac Angiography Machine

2.                  Echocardiography Machines

3.                  ETT Machines

 

4.                  Gamma Camera for Nuclear cardiology studies

L.                 PERIPHERAL INTERVENTIONS EQUIPMENT Disposables  and  other  equipment

 

for peripheral  interventions including stents (including carotid and wall stents), balloons, sheaths, catheters, guide  wires, filter wires coils, needles, valves (including rotating homeostatic valves), connecting cables, inflation devices

adaptors.

113     High         Efficiency         Irrigation Equipment.

(If used for agriculture sector)

1)         Submersibl

 

75 lbs and head 1

e  pumps  (up  to      8413.7010

 

50 meters)

2)   Sprinklers   including    high    8424.8100 and low pressure (center pivotal) 8424.2010 system,     conventional     sprinkler

equipment, water reel traveling sprinkler, drip or trickle irrigation equipment, mint irrigation sprinkler

system.

3)         Air release valves, pressure      8481.1000,

gauges,  water  meters,  back  flow      8481.3000, preventers,           and          automatic     9026.2000,

 

 

controllers.

9032.8990

114

Green  House  Farming  and  Other Green House Equipment.

(If used for agriculture sector)

 

 

1)         Tunnel farming equipment.

8430.3100,

 

8430.3900

 

2)         Green                            houses

 

(prefabricated).

9406.0010

115

 

.

Plant, machinery and equipment imported for setting up fruit processing and preservation  units in Gilgit-Baltistan, Balochistan Province and Malakand Division subject to the same conditions and procedure as are applicable for import of such plant, machinery and equipment under the Customs Act,

1969 (IV of 1969).

Respective headings

116

 

.

Plant, machinery and equipment imported for setting up industries in FATA subject to the same conditions  and  procedure  as  are

applicable for import of such plant,

Respective headings.”;

machinery and equipment under the Customs Act, 1969 (IV  of 1969).

(ii)               in Table-2, in column (1),–

 

(a)               against serial number 3, for the entry in column (2), the following shall be substituted, namely:-

“Supplies made by cottage industry.”;

 

(b)              

“13

Reclaimed  lead,  if  supplied to recognized manufacturers

of lead batteries

Respective headings

14

Waste paper

Respective

 

headings

15

(a)             Sprinkler Equipment

(b)             Drip Equipment

(c)              Spray  Pumps  and nozzles

Respective headings

16

Raw     cotton     and     ginned

 

cotton

Respective

 

headings.”; and

 

 
after the already omitted serial number 12, the following new serial numbers and entries relating thereto shall be added, namely:-

(iii)             after Table-2, amended as aforesaid, the following new Table shall be added, namely:-

 

“Table-3

 

 

The plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure below, falling under the HS Codes specified in column (3) of that Annexure, shall be exempt from the whole of sales tax, subject to the following conditions, besides the conditions specified in column (4) of the Annexure, namely:-

 

(i)                         the imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board. This condition shall, however, not be applicable in respect of S. Nos. 1, 13, and 15 of the Annexure; and for such machinery, equipment and other capital goods imported as plant for setting up of a new industrial units provided the imports are made  against valid contract(s) or letter(s) of credit and the total C&F value of such imports for the project is US $50 million or above;

(ii)                        except for S. No. 9 and 14 of the Annexure, the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the company’s bonafide requirement. He shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969. In already computerized Collectorates or Customs stations  where the Pakistan Customs Computerized System is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; and

(iii)                        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, layout plan and drawings:

Explanation.- For the purpose of Table-3, capital goods mean any plant, machinery, equipment, spares and accessories, classified in Chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for-

(a)               the manufacture or production of any goods and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; or

(b)               use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry.

ANNEXURE

 

S.

 

No

Description

PCT

 

heading

Conditions

(1)

(2)

(3)

(4)

1.

Machinery and equipment for initial installation,

balancing, modernization,

Respective Headings

Nil

replacement or expansion of desalination plants, coal firing system, gas processing plants and oil and gas field prospecting.

2.              Following            machinery, equipment, apparatus, and medical, surgical, dental and veterinary furniture, materials, fixtures and fittings imported by hospitals and medical or diagnostic institutes:-

A.   Medical Equipment.

1)   Dentist chairs                           9402.1010

Locally manufactured goods of description as specified in column (2) and pre-fabricated buildings can also be imported upon fulfillment of the following conditions, namely:- (a) The project requirement shall be approved by the Board of Investment     (BOI).    The authorized officer of BOI shall

2)   Medical surgical dental or veterinary furniture

9402.9090

certify         the         item         wise requirement of the project in the

3)   Operating Table.                    9402.9010

4)   Operating Lights.                   9018.9090

prescribed format and manner as        per       Annex-B         and      shall

5)   Emergency Operating Lights.

6)   Hospital Beds with mechanical fittings

9405.4090

9402.9020

furnish all relevant information Online to Pakistan Customs Computerized System against a specific user ID and password

 

7) Gymnasium equipment.

9506.9100

obtained under Section 155D of

8) Cooling Cabinet.

8418.5000

the  Customs Act, 1969  (IV of

9) Refrigerated Liquid

3824.9099

1969);

Bath.

 

 

 

 

(b)     the     exception     shall     be

10) Contrast Media

3822.0000

 

 

 

available on one time basis for

Injections (for use in

 

 

 

 

setting up of new projects and

Angiography & MRI etc).

 

 

 

 

expansion of existing ones, and

11) Breathing Bags.

9020.0020

 

 

 

shall  not  be  available  on  the

12) Automatic blood cell

9018.9090

 

 

 

spare parts.

counter.

 

 

13). Automatic Cell

9018.9090

(c) only those importers shall be

Separator for preparation

 

eligible  to  avail  the  aforesaid

of platelets.

 

exception     whose     cases    are

B.   Cardiology/Cardiac

 

recommended and forwarded by

Surgery Equipment

 

BOI to FBR;

1) Cannulas.

9018.3940

 

 

2) Manifolds.

 

8481.8090

(d) the goods shall not be sold

 

3) Intravenous cannula i.v.

 

9018.3940

or otherwise disposed of without

 

catheter.

 

prior approval of  the FBR and

 

C.     Disposable Medical

 

the  payment  of  customs-duties

 

Devices

 

and taxes at statutory rates be

 

1) Self-disabling safety

 

9018.3110

leviable  at  the  time  of  import.

 

sterile syringes.

 

Breach of this condition shall be

2) Insulin syringes.                      9018.3110       construed as a criminal offence

 

3) Burettes.                                  7017.9000

 

E.    Other Related Equipments

1)   Fire extinguisher.                      8424.1000

under  the  Customs  Act,  1969 (IV of 1969)

2)   Fixtures & fittings for hospitals

Respective Headings

3.              1. Machinery, equipment, materials, capital goods, specialized vehicles (4x4 non-luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mine construction phase or extraction phase.

Respective Headings

2. Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for mine

Respective Headings

 

construction or extraction

 

phase.

4.

Coal mining machinery, equipment, spares, including vehicles for site use i.e. single or double cabin pick-ups, imported for Thar Coal Field.

Respective Headings

This concession shall be available to those mining companies or their authorized operators or contractors who hold permits, licenses, leases and who enter into agreements with the Government of Pakistan or a Provincial Government.

 

The goods shall not be sold or otherwise disposed of without prior approval of the Board and the payment of customs duties and taxes leviable at the time of import. These shall, however, be allowed to be transferred  to other entitled mining companies

with prior approval of the Board.

 

5.       1.     Machinery, equipment and spares meant for initial installation,                          balancing, modernization, replacement or expansion of                projects                       for                   power generation       through     oil, gas, coal, wind and wave energy                     including        under construction            projects, which          entered                        into      an implementation agreement with       the        Government                     of Pakistan.

 

2. Construction machinery, equipment and specialized vehicles,        excluding

passenger                vehicles, imported on temporary basis as required for the construction of project.

Respective Headings

(i)   This concession shall also be available to primary contractors of the project upon fulfillment of the following conditions, namely:-

 

(a)   the contractor shall submit a copy of the contract or agreement under which he intends to import the goods for the project;

 

(b)    the Chief Executive or head of the contracting company shall certify in the prescribed manner and format as per Annex-A that the imported goods are the projects bona fide requirement; and

 

(c)    the goods shall not be sold or otherwise disposed of without prior approval of the FBR on payment of sales tax leviable at

 

the time of import;

 

 

(ii) temporarily imported goods shall be cleared against a security in the form of a post- dated cheque for the differential amount between the statutory rate of sales tax and the amount payable under this notification, along with an undertaking to pay the sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.

 

6.

 

1.  Machinery,  equipment and spares meant for initial installation,           balancing, modernization, replacement or expansion of  projects         for          power generation     through     gas,

coal,      hydel,       and      oil

 

Respective Headings

 

-do-

 

 

including                       under construction projects.

 

2. Construction machinery, equipment and specialized vehicles,                excluding

passenger              vehicles, imported on temporary basis  as  required  for  the

construction of project.

7

1.         Machinery, equipment and spares meant for initial installation,           balancing, modernization, replacement or expansion of  projects        for               power generation through nuclear and      renewable      energy sources  like  solar,  wind, micro-hydel        bio-energy, ocean,                waste-to-energy and hydrogen cell etc.

 

2.   Construction machinery,

Respective Headings

-do-

equipment and specialized vehicles,        excluding

passenger                vehicles, imported on temporary basis as required for the construction of project.

 

Explanation.-                   The expression “projects for power generation” means any project for generation of electricity whether small, medium or large and whether for supply to the national grid or to  any other user or for in house consumption.

8.              1.Machinery                     and equipment meant  for power transmission and grid stations including under                 construction projects.

 

Explanation.- For the purpose of this serial number, “machinery and equipment” shall mean,-

 

(a)                   machinery and equipment operated by power of         any description, such as is used in the generation of power;

 

(b)     apparatus, appliances, metering and testing apparatus, mechanical and electrical       control, transmission    gear    and

Respective Headings

-do-

transmission tower, power transmission            and distribution cables and conductors, insulators, damper spacer and hardware and parts thereof adapted to be used in conjunction with the machinery and equipment as specified in clause (a) above; and

 

(c)       components parts of machinery and equipment, as specified in clause (a) and (b) above, identifiable for use in or with machinery imported for the project and equipment including spares for purposes of the project.

 

2. Construction machinery, equipment and specialized

vehicles,                 excluding

 

passenger                vehicles, imported on temporary basis as required for the construction of project.

9.              Following            machinery,

 

equipment      and      other

`

education and research related items imported by technical,           training

institutes,                 research

 

institutes,                  schools,

Nil

 

colleges and universities:-

 

1)    Quartz    reactor    tubes

7017.1010

and  holders  designed  for

 

insertion into diffusion and

 

oxidation      furnaces       for

 

production                           of

 

semiconductor wafers.

 

2) Other dryers

8419.3900

3)    Filtering    or    purifying

8421.2100

machinery  and  apparatus

 

for water

 

 

 

4)      Other       filtering       or

purifying     machinery     and apparatus for liquids

8421.2900

5)       Personal       weighing

machines,  including  baby scales; household scales

8423.1000

6)  Scales  for  continuous

weighing     of     goods    on conveyors

8423.2000

7) Constant weight scales and scales for discharging a predetermined weight of material into a bag or container, including hopper

scales

8423.3000

8) Other weighing machinery having a maximum                weighing capacity not exceeding 30

kg

8423.8100

9)          Other          weighing

machinery         having         a maximum                weighing

8423.8200

 

capacity exceeding 30 kg

 

but not exceeding 5,000kg

10)         Other         weighing

 

machinery

8423.8900

11) Weighing machine weights of all kinds; parts of weighing machinery of machines      of      heading

8423.2000 & 8423.3000

8423.9000

12) Other weighing machine weights of all kinds; parts of weighing machinery of machines of heading     8423.2000     &

8423.3000

8423.9000

13)                       Networking equipments like routers, LAN bridges, hubs excluding    switches    and

repeaters.

8517.6970

14)    Other    furnaces    and

 

ovens

8514.3000

15) Electronic balances of

9016.0010

 

a sensitivity of 5 cg or

better, with or without weights.

16)  Other  balances  of  a

sensitivity of 5 cg or better, with or without weights.

9016.0090