ISLAMABAD: The Federal Board of Revenue (FBR) has notified draft rules to facilitate the import of duty-free equipment for technological zones for 10 years.
The new rules were notified through a notification SRO536, which will become final in case no objection is received from any quarter in 15 days. The rules cover the registration of zones, equipment import and retention period.
Under the rules, the definition of a zone means a particular type or class of zones, which may be geographical or virtual, new or existing or an expansion of a current zone, as approved and notified by the authority under the rules.
As per the details, the zone licensee will apply for a user ID from the registration authority after acquiring a valid licence. Ahead of issuing the ID, the customs authorities will verify a licensee’s business facility, including manufacturing areas and stores.
The licensee will start operations through Customs Computerized Systems based on items allowed under respective tariff headings. The ID can be cancelled in the wake of any violations.
The duty exemptions on the import of goods for special technology zones will be valid for ten years. The exemption will commence from signing the development agreement or issuing a license.
The facility is linked with certain conditions, and exempted goods can only be used within the limits of a Special Technology Zone (STZ) and will not be disposed of except with the prior approval of the Federal Board of Revenue.
No exemption will be allowed to an enterprise which does not hold a valid license issued by the developer of an STZ and which is not registered under the Customs Computerised System through a unique user ID.
Published in Dawn, May 11th, 2023