GOVERNMENT OF PAKISTAN
CUSTOMS COLLECTORATE (PREVENTIVE)
CUSTOM HOUSE, KARACHI
STANDING ORDER NO. 2/1986(PREVENTIVE)
SUB: PROCEDURE OF TRANSFER OF GOODS FROM EXPORT PROCESSING ZONE TO TARIFF AREA FOR PARTIAL PROCESSING - FACILITY OF SUBCONTRACTING - REGARDING.
In pursuance of para 10 of SRO. 249(l)/81 dated 25.03.81, the following procedure is laid down avail the facility of sub-contraction in the Tariff Area by the Investors of Export Processing Zone, Karachi.
1. The facility of sub-contracting shall Lie restricted to only such type of goods which are capable of identification before leaving the EPZ area and reentry into the EPZ after the goods have been processed, embellished, decorated, worked and further manufactured,
2. The investor in the EPZ area shall make out an application triplicate in the same of Assistant Collector of Customs ad submit it through EPZ Authority by declaring the particulars like the name of the enterprise whom the subcontract has been granted, the nature of sub-contract, the material to be transferred, value and its quantity, form/shape of end-product, material used in it of end-product, Customs duty and taxes involved, particulars of bank guarantee, name of the bank etc, for processing in the Tariff Area in the form given in Part-1 of the Annexure.
3. The EPZA would then certify the said information contained in that application as given in Part-2 of the Annex, and would forward the case to the Assistant Collector of Customs, Ineharge EPZ to allow the transfer of the goods to Tariff Area through Principal Appraiser Incharge EPZ.
4. The processing staff in the-EPZ would examine the consignment in the place within the Zone approved for the purpose and tafly particulars given already in the application made by the investors and would calculate the amount of duty and taxes involved on the goods in the light of Para. 6 of SRO No. 249(l)/81 dated 25.3.81.
5. The investor would then furnish a bank guarantee to the amount of duty and taxes involved from a scheduled bank of Pakistan in case the goods are otherwise importable in the import tariff area of the country and if the goods are not importable then in addition to the amount of duty and taxes leviable equal to that value of the goods after a certificate in the form set out in Part III of the Annex. Issued toy the EPZA is produced and the bank guarantee is furnished, the Assistant Collector of Customs Incharge EPZ would then allow the removal of the goods to the Tariff Area for the purpose of processing by another party by way of sub-contracting.
6. No Customs escort would be provided as it would be the responsibility of the investor to safely transfer the goods to the destination and bringing it back to Zone. The investor will then take the goods outside the Zone at his own risk and cost for purpose of further processing and would be responsible to return the goods back to the Zone within the specified time for the purpose. On the basis of these documents, the Customs Officer at the gate will issue a gate pass bearing these particulars.
7. After the completion of the processing, the goods shall be brought back to the EPZ and would be examined and verified by the gate staff as well as the appraising staff in the form given in Part V of lie Annex. On satisfying the same, the Assistant Collector of Customs will release the ban guarantee to the investor, after a certificate in the form set out in Part IV of the Annex, has been given be him.
8. where the investor thinks that the job to further processing is not expected to be completed within the specified time due to certain reasons beyond the control of the other party to whom the job of subcontracting has been given, he may apply to the Assistant Collector before the expiry of the said period for granting, extension in the time limit. The Assistant Collector after satisfying himself would allow the extension in the time period upto a maximum limit of two months.
i) In case the investor fails to bring back the goods to the EPZ, the Assistant Collector of Customs shall forthwith encase the bank guarantee lying already with the Customs under Rules 8 of SRO 249(l)/81 dated 25.03.1981 and the importer shall for violation also be liable Jo pay penalty laid down in the Act & the Rules made there under.
Signed by
(COLLECTOR OF CUSTOMS)
(PPREVENTIVE)
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