KARACHI: The Federal Board of Revenue (FBR) has granted mineral exploration and extraction companies facility of zero percent customs duty on import of vehicles and capital goods with certain conditions.
According to updated Fifth Schedule of Customs Act, 1969 issued by the Federal Board of Revenue (FBR) stated that zero percent customs duty has been allowed on:
- Machinery, equipment, materials, capital goods, specialized vehicles (4×4 non luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mineral exploration phase.
- Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the exploration phase.
- This concession shall be available to those Mineral Exploration and Extraction Companies or their authorized operators or contractors who hold permits, licenses, leases and who enter into agreements with the Government of Pakistan or a Provincial Government.
- Temporarily imported goods shall be cleared against a security in the form of a post dated cheque for the differential amount between the statutory rate of customs duty and sales tax and the amount payable under this Schedule, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.
- The goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs duties and taxes leviable at the time of import. These shall however be allowed to be transferred to other entitled mining companies with prior approval of the FBR.
