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SROs issued regarding new entrants of motorcycle manufacturing industry

SROs issued regarding new entrants of motorcycle manufacturing industry

ISLAMABAD: Under SRO 939 (I)/2013, in exercise of the powers conferred by sub-section (5) of section 18 of the Customs Act, 1969 (IV of 1969), Federal Government is pleased to direct that the following further amendment shall be made in its notification No. SRO 693(I)/2006, dated the 1st July, 2006.

In the aforesaid Notification, after the table, for the second provision, the following shall be substituted, namely:-

            “Provided further that in line with the new entrant policy for motorcycle manufacturing industry with new technology notified by Ministry of Industries and Production vide Notification No. 4-1/2013/LED-II-(Vol-III), dated the 26th September, 2013, the additional customs-duty leviable under this notification shall not be charged on sub-components and components, imported in any kit form by a new entrant assembler or manufacturer, for assembly or manufacturing of motorcycles classified under PCT heading 87.11 specified in the said TABLE, for a period of five years from the start of assembly or manufacturing with new technology subject to the following conditions, namely:-

 

(i)The new entrant assembler or manufacturer shall achieve the annual localization or indigenization targets / levels in accordance with the localization plan spreading over a maximum period of five years, duly approved by Ministry of Industries and Production;

 

(ii)The additional customs-duty shall be levied on the sub-components and components which become localized / indigenized by the new entrant assembler or manufacturer, in accordance with the said localization plan;

(iii)The new entrant shall abide by all the terms and conditions laid down in separate notifications issued by the Ministry of Industries and FBR for assembly or manufacturing of motorcycles; and

 

(iv)The expressions ‘new technology’ and ‘new entrant’ shall bear the same meaning as declared or notified by the Ministry of Industries and Production in respect of Motorcycle Manufacturing Industry.”

 

Meanwhile, as per SRO 940 (I)/2013, in exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), Federal Government is pleased to direct that the following further amendments shall be made in its Notification No. S.R.O. 656(I)/2006, dated the 22nd June, 2006, namely:-

In the aforesaid notification,-

(a)after paragraph 2, the following new paragraph shall be inserted, namely:-

 

 “2A.In line with the new entrant policy for motorcycle manufacturing industry with new technology notified by Ministry of Industries and Production vide notification No. 4-1/2013/LED-II-(Vol-III), dated the 26th September, 2013, the incentive of importing CKD kit in any form @ 10% customs-duty imported in terms of serial No. 11 of the following TABLE by the new entrant for assembly or manufacturing of motorcycles shall be withdrawn on components localized by the new entrant each year in accordance with the approved localization plan. The expressions ‘new entrant’ and ‘new technology’ shall bear the same meaning as declared or notified by the Ministry of Industries and Production in respect of motorcycle manufacturing industry.”; and

 

(b)in the TABLE, in column (1), against serial No.11, in column (3), against item (i), in column (4), after the word “year”, the words and figure “and 10% for motorcycles for new entrant for a period of five years” shall be added.