Communication ministry to provide details of exempted imports by Chinese companies for Motorways

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ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday made it mandatory for ministry of communication to provide details of required material and goods imported by Chinese companies at concessionary duty rates for construction of motorway.
In a circular issued on Thursday, the FBR issued SRO 51(I)/2018 to amend its previous notification SRO 642(I)/2016 dated July 27, 2016, which was issued to allow exemption from customs duty on import of construction material by M/s. China State Construction Engineering Corporation Limited (CSCECL) for the construction of Karachi-Peshawar Motorway (Sukkur-Multan Section) and M/s. China Communication Construction Company (CCCC) for the construction of Karakorum Highway (KKH) Phase-II (Thakot-Havellian Section).
In the latest notification, the FBR imposed an additional condition that the ministry of communication shall provide details of required material and goods and shall certify their consumption to the clearance collectorate for discharge of the indemnity bond submitted by the Chinese companies.
It said in case of non-consumption, the imported construction material and goods may be sold, disposed of or surrendered to customs on such terms and conditions and subject to payment of customs duties as may be prescribed by the FBR.
In case imported construction materials and goods are sold or otherwise disposed of without prior approval of the FBR, the same shall be subject to payment of statutory rates of customs duties as were applicable at the time of import.
In the latest SRO, the FBR also allowed customs duty exemption to imported construction material by M/s CSCEC for the construction of Karachi – Peshawar Motorway (Sukkur –Multan Section), involving an amount not exceeding Rs10,898 million. The company has already been allowed exemption from sales tax and federal excise on import of such material two days back.