ISLAMABAD, June 17: The government has allowed Export Processing Zone (EPZ) units to export not more than 20 per cent of their total production to tariff areas in Pakistan.

A customs official told Dawn on Thursday that these units are bound to export 80 per cent of their production to other countries in order to safeguard legitimate interests of public exchequer and to stop them from giving unhealthy competition to the industries in the tariff areas.

The official said that the decision was taken following a survey conducted by the Central Board of Revenue (CBR), which revealed that a large number of units set up in the EPZ were exporting goods only to tariff areas in Pakistan. These amendments were incorporated in the Customs Rules, 2001 through a customs notification of SRO461 of 2004.

According to further amendments in the EPZ rules, the import of vehicles will be allowed without payment of customs duty and other taxes to those units on the basis of their investment in the EPZ: for investment of $1 million, the units will be entitled to import vehicles up to 1000 CC; for $5 million up to 1300 CC; for $10 million investment up to 1800 CC; and in case of more than $10 million investment the sponsors would be entitled for above 1800 CC vehicles.

And units employing upto 25 workers will be allowed to import or purchase one coaster while units employing more than 25 will be allowed to import or purchase a bus with up to 50 seats. Similarly, units with a turnover of $5 million or more per annum will be allowed to import or purchase one cargo vehicle or truck.