ISLAMABAD, Aug 28: The government has introduced amendments in conditions for availing duty exemption on import of raw materials, sub-components, sub-assemblies, components and assemblies for the progressive manufacture of vehicles, equipment and machinery.

The amendments were incorporated in the budgetary SRO453 through a customs notification issued on Saturday.

According to the amendments, the manufacturer shall also declare that the imported items shall be consumed for the purpose of manufacture or assembly of the permissible products within a period extended to one year from earlier 180 days; the clearance of inputs is allowed through the concerned collectorate only.

The manufacturer-cum-importer shall communicate to the concerned Collector of Customs in writing about the consumption of imported items within 60 days of consumption of goods. In case of non-consumption within extended to one year from earlier 180 from the date of import, the importer shall pay the customs duty and other taxes involved or obtain extension from the Collector of Customs giving plausible reasons for a reasonable period.

The manufacturer-cum-assembler of automotive vehicles enumerated at Serial No. 5 of Table-I- vehicles falling under PCT heading 8703- shall sell the said vehicles to an NTN holder only and the record of the same shall be furnished to CBR or to any other designated person on monthly basis. The vehicles falling under S. No 3, 4 and 6 were exempted from the conditions.

A new explanation was included - explanation 2: for the purpose of manufacture of goods in terms of table-II, items mentioned in approved deletion programmes for manufacture of components/parts and sub-assemblies to be supplied for the manufacture of vehicles of table-I shall be categorised and treated as sub-components and explanation 3: "bicycle chain strips cut to size imported under this notification shall be treated as raw materials liable to customs duty at the rate of 5 per cent.

The sale of items under S. No 5 and 6 - vehicles falling under PCT heading 87.02 & 87.04 (Non-CNG), and for fully CNG- dedicated vehicles of PCT heading 87.02 could only be made to sales tax registered person or to an NTN holder. Earlier, these items were exempted from the condition.