EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF SUCH RAW MATERIALS AND COMPONENTS BY UNIT OF ELECTRONIC INDUSTRY FOR MANUFACTURE OF ELECTRONIC COMPONENTS ETC.

                10Notification No. S.R.O. 510(I)/89, dated 3rd June, 1989.--In exercise of the power conferred by section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (1) and (2) of section 7 of the Sales Tax Act, 1951 (III of 1951), the Federal Government is pleased to exempt such raw materials and components as are not manufactured locally from the whole of the customs duties and sales tax leviable thereon if imported by an approved unit of electronic industry for the manufacture of electronic components, electronic equipment and systems as specified in the Schedule below, subject to the following conditions, namely:-

  1. the manufacturer has suitable in-house facilities to manufacture the items in respect of which he claims exemption under this notification; 

  2. the manufacturer shall furnish in the prescribed form the list of items he is manufacturing or intends to manufacture alongwith details of raw materials and components required to the Chief Survey and Rebate or any other officer authorized by the Central Board of Revenue in this behalf,  and the Chief Survey and Rebate, or such authorized officer in consultation with the Collector of Customs or the concerned Government Department will certify the annual  requirement of raw material and components for the manufacture of electronic components equipments and systems along with the quantity required for the manufacture of each item;

  3. at the time of import of raw material and components the manufacturer shall make a written declaration on the bill of entry to the effect that the raw materials and components have been imported in accordance with his entitlement in terms of condition (ii);

  4. the manufacturer shall furnish to the Collector of Customs a bank guarantee or insurance guarantee equivalent to the customs duties and sales tax leviable on each consignment or a standing bank guarantee or insurance guarantee covering multiple consignments subject to the satisfaction of the Collector of Customs;

  5. the manufacturer shall maintain record of the raw materials and components and the items manufactured out of them in such form as may be prescribed by the Central Board of Revenue; and

  6. the manufacturer shall, within one year of the date of importation of the raw material and components, apply to the Collector of Customs for discharging the bank guarantee or insurance guarantee, the application being supported by a certificate in the form set out below issued by the Assistant Collector, Central Excise and Customs, within whose jurisdiction the manufacturing unit is located;

FORM

            Certificate No.________________dated ______________I______________ (Name of Officer)__________Assistant Collector, Central Excise and Land Customs  ________(Place of posting)__________ am satisfied that the raw material and components imported by Messrs________under the provisions of S.R.O._______against bank guarantee or insurance guarantee vide bill of entry________No._____dated___________ have been used for the manufacture of __________(Items to be mentioned)________________________in accordance wit the scale laid down by the Chief, Survey and Rebate vide certificate No__________________dated the _____________________ File No._____________

           

Stamp and Signature

SCHEDULE

ELECTRONIC COMPONENTS & EQUIPMENT AND SYSTEMS

(I)    Electronic Test Equipment:

  1. Frequency meters.

  2. Pattern generators

  3. Decibel meters

  4. Signal generators

  5. Thickness measurement systems

  6. Process control/monitoring

  7. Automatic control equipment

(II)    Communication Equipment;

  1. Transmitters

  2. Receivers

  3. Transceivers

  4. Telecommunication equipment

(III).    Medical Electronics:

  1. Electronic diagnostic medical equipment (including ECG, EGG, Ultrasound equipment, X-ray, Electromayoghaphs, Audiometers).

  2. Electronic therapeutic medical equipment (including electro-surgery, electrotheraphy, diathermy, electronically controlled resuscitation/respiration equipment, heart pacer, infra red lamps and defibrallators).

  3. Electronic monitoring medical equipment (including BP monitors, beayrate monitors, temp monitors, respiration monitors and ausculation system).

  4. electornic laboratory/Miscelolaneous medical equipment (Cell counters, acid-base analysers, spectrometers, centrifuges, blood gas analysers, operating theatre lights, ultraviolet lamps and electronically controlled autoclaves).

  5. Klystrons

  6. Blook pressure measurement equipment

  7. Heart rate temperature measurement electronics systems

(IV)    Defence electronics:

  1. Radars, all types

  2. Electronic locating equipment

  3. Electronic warfare equipment,

  4. Secrecy equipment

(V)    Industrial electronics and robotics:

  1. Electronic counters

  2. Servos and synthros

  3. Testing and quality control equipment for industry

  4. Micro controller for industrial process control

  5. Trimmers

  6. Carbon resistors

  7. Fly-black/inductor transformers

  8. Resistors

  9. Inductor

(VI)    Space electronics;

(VII)    Micorowave equipments and systems;

  1. Microwave transmission and reception equipment

  2. Microwave amplifiers

(VIII)    Power electronic equipment:

(IX)        Optronics equipment:

  1. Opto electronic devices

  2. Image intensification /night vision devices

  3. Laser device (all types including solid state, gaseous, liquid and solid

  4. Optical fibre

  5. Optical communication systems

  6. Infra-red systems

  7. Laser range finders

  8. Image intensification tubes

  9. Lasers

(X).        Office equipment:

  1. computers (including micro computers)

  2. Memories

  3. Calculators

  4. Photocopying machines

  5. Electronic typewriters/word processors

(XI)        Other electronic equipment/ systems;

  1. Controlled rectifiers

  2. Thyristors

  3.  Thermisters

  4. Power supplies

  5. Ni-CD batteries

  6. oscilloscopes

  7. Digital multimeters

  8. Uninterruptable power supply systems

  9. Small transformers

  10. Inverters upto 10 KVA

  11. Stabilizers upto 10 KVA for sophisticated electronic equipment

  12. potentiometers

  13. Ferrites

  14. Integrated circuit /customs built chips

  15. Semi-conductor chips

  16. Tuners

(XII)    Miscellaneous components/ sub-assemblies:

  1. Printed circuit boards

  2. condensers

  3. Picture tubes

  4. Cathode ray tube including LED and LCD

  5. Thick film/thin film/hybrid modules

  6. Solar cells

  7. Microprocessors

  8. Diodes

  9. Transistors

  10. Potentiometers

  11. Any other item specified by the Government

10. Reported as PTCL 1989 St. 479.