ISLAMABAD, April 1: The federal government has exempted the import of ships and all the floating crafts from the customs duty till the year 2020.

The duty exemption to be allowed on import of ships and floating crafts included — tugs, dredgers, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistani entity and flying Pakistani flag.

The Central Board of Revenue (CBR) issued a notification on Monday amending the budgetary notification SRO444 in this connection.

According to the notification, the duty exemption will not be available on import of vessels and other floating structures for demolition purposes.

The facility will be available in the condition that the ships and crafts were used for the purpose for which they were procured only.

However, the importers will pay full duties and other charges applicable to ships purchased in case such ships and crafts were used for demolition purposes.

The notification reads as: “the federal government is pleased to direct that the following further amendment shall be made in its notification no SRO444(I)/2001 dated the 18th June, 2001, namely- in the aforesaid notification, in table II, for s.no 13 in column (1), and the entries relating thereto in column (2), (3), (4) and (5), the following shall be substituted, namely-13: Ships and all the floating crafts including tugs, dredgers, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistani entity and flying Pakistani flag; chapter 89 excluding PCT heading 89.08; 0 % ad val; this exemption shall be available up to the year 2020 subject to the condition that the ships and crafts etc, appearing in column (2) are used for the purpose for which they were procured and in case such ships and crafts are used for demolition purposes, full import duties and other charges applicable to ships purchased for demolition purposes shall be chargeable”.