ISLAMABAD, Dec 24: The government on Tuesday exempted the buses in CKD condition from customs duty.
The exemption would be allowed on import of buses in CKD condition whether CNG or diesel, which will be used for the sole purpose as specified by Small and Medium Enterprises Development Authority (Smeda), said a customs notification No SRO948 issued here.
The facility would be allowed only to those importers who would fulfil the following conditions:
The importer of CKD buses shall be made through Smeda; the importer shall, at the time of import such CKD buses, make a written declaration on the bill of entry to the effect that the CKD buses have been imported under this notification with exemption from payment of customs duty leviable under the first schedule to the Customs Act, 1969.
The exemption on such CKD buses would be granted only if it was covered by a special serially numbered certificate issued by Smeda addressed to the collector of customs indicating the required detailed particulars.
Smeda should specify the quantities and particulars of components in such knocked down condition as were in accordance with the approved deletion programme; the importer should, at the time of import, submit an indemnity bond in the form as set out by the CBR that the CKD buses, should be used for the sole purpose as specified by Smeda.
The CKD buses imported under this notification with exemption from payment of customs duty through Smeda should not be transferred to any other person or company except after obtaining necessary permission from Smeda.
According to the notification, the importer should within one year of filing of bill of entry (for home consumption or ex- bond), apply to the collector of customs for discharging indemnity bond supported with a consumption certificate issued by the concerned assistant collector of customs and central excise and in case of breach of the conditions of this notification, the collector of customs should enforce indemnity bond and take such penal action as he might deem fit under the Customs Act (IV of 1969).
The indemnity bond should be written on appropriate non- judicial stamp paper and should be witnessed by a government servant in basic pay scale 16 or above, an oath commissioner, a notary public or an officer of a scheduled bank.