BOARD OF INVESTMENT
(PP WING)
***
STANDARD OPERATING PROCEDURES (SOPs) FOR CASES OF GRANTING
EXEMPTION SALES TAX AND CONCESSIONARY CUSTOMS DUTY UNDER SALES
TAX ACT, 1990 AND CUSTOMS ACT, 1969 DULY AMENDED
THROUGH FINANCE ACT, 2014
Introduction
In order to remove discriminatory exemptions / concessions, a committee under the
Chairmanship of Federal Minister for Finance, Revenue, Economic Affairs, Statistics and
Privatization was set up to review, simplify and rationalize the whole concessionary regime
(SROs), giving due regard to the aspects of taxpayer facilitation, growth of local/export
oriented industry and revenue generation.
On the recommendations of the committee, the Government of Pakistan has been pleased to
enact Finance Bill 2014 to amend certain laws.
As a result of amendments in Customs Act, 1969 and Sales Tax Act 1990, the concessionary
imports under serial Nos.16 and 17 (related to BOI) of SRO-575(I)/2006 have been
withdrawn. However, concessionary imports related to BOI under serial No.7 of SRO575(I)/2006 is still available to facilitate the social/health sector as per following details:
The machinery, equipment, apparatus, and medical, surgical, dental and veterinary furniture,
materials, fixtures and fittings (including fabricated buildings), as specified in column-2 of
Annexure of the Table-3 of Sixth Schedule of Sales Tax Act, 1990 and Table of Fifth
Schedule to the Customs Act, 1969 duly amended through Finance Act, 2014, imported by
hospitals and medical or diagnostic institutes are exempted whole of sales tax and allowed
concessionary customs duty subject to the following conditions ::
a) The imported goods as are not listed in the locally manufactured items, notified
through a Customs General Order issued by the Federal Board of Revenue (FBR)
from time to time as the case may be, certified as such by the Engineering
Development Board (EDB).
b) Locally manufactured goods of description as specified in column (2) can also be
imported if the project requirement shall be approved by the Board of Investment
(BOI). The authorized officer of BOI shall certify the items wise requirement of the
project in be prescribed format and manner as per Annex-B.
c) The exception shall be available on one time basis for setting up of new projects and
expansion of existing ones, and shall not be available on the spare parts.
d) In case of partial shipments of machinery and equipment for setting up a plant, the
importer shall at the time of arrival of first partial shipment, furnish complete details of
the machinery, equipment and components required for the complete plant, duly
supported by the contract, layout plan and drawings.
contd. P/2
-2-
e) Only those importers shall be eligible to avail the aforesaid exemption whose cases
are recommended and forwarded by BOI to FBR.
f) The goods shall not be sold or not or otherwise disposed of without prior approval of
the FBR and payment of custom-duties and taxes at statutory rates be leviable at the
time of import. Breach of this condition shall construed as a criminal offence under the
Customs Act, 1969 (IV of 1969):
OBJECTIVE TO ADOPT STANDARD OPERATING PROCEDURES
In order to facilitate the applying companies/importers the Standard Operating
Procedures (SOPs) have been prepared to process the cases on ‘Fast Tract Basis’ for
speedy disposal. The purpose is to have the required documents in one go and to have
better understandings between the importers and Government agencies:
STANDARD OPERATING PROCEDURES (SOPs)
 WHO IS ELIGIBLE?
Hospitals and medical or diagnostic institutes etc.
 HOW TO APPLY?
Hospitals and medical or diagnostic institutes shall apply to BOI at least fifteen (15) days
prior to their shipment of imported goods. In case, where ‘Not Manufacturing Locally
Status’ of the imported goods is required, the company shall simultaneously apply to EDB
and BOI, to cut short the process.
 HOW TO APPLY?
The importer shall apply to BOI along-with following information/documents (3 sets) at the
address given below:
i) Company/hospital Profile
ii) Complete Project Profile in all respects, such as cost etc.
iii) Details of Machinery, Equipment and Capital Goods along-with specification,
catalogue, snaps etc. and other relevant information such as purpose of the said
machinery, equipment in the project.
…contd. P/3
- 3 -
iv) Annex-A and Annex-B on the prescribed format and manner duly certified/signed
and stamped by the Chief Executive Officer or next officer nominated by the CEO.
v) Bill of Lading.
vi) Commercial Invoice
vii) Undertaking that the imported machinery, equipment shall be used for the intended
project only. The same items shall not be sold out or used in any other project or by
third party/company.
viii) A statement regarding total value of imported machinery, equipment and Sales
Tax applicable before exemption and relief amount after exemption.
 FACILITATION SERVICES BY BOI
 The BOI will examine the request in the light of the provision available in the
Finance Act, 2014 and views/comments of EDB, if required.
 BOI will certify that the item(s) mentioned in the Annex-A/B item(s) is/are bonafide
requirement of the project of the company.
 The request along-with all necessary documents will be forwarded to Federal
Board of Revenue (FBR) for their consideration at their end.
 ADDRESS/CONTACT PERSON
QAZI ASIF MAHBOOB
Desk Officer (Policy & Planning)
Board of Investment (BOI),
Room No.103, First Floor, Old USAID Building,
Ataturk Avenue, G-5/1, Islamabad
Tele: (92-51) 9224749, Fax: (92-51) 9244557
-------------------------
Annex-I
DETAILS OF MACHINERY EQUIPMENT, APPARATUS ETC.
IN RESPECT OF SERIAL NO.2 OF TABLE-3 OF ANNEXURE OF FINANCE
ACT, 2014
Following machinery, equipment, apparatus, and medical, surgical, dental and
veterinary furniture, materials, fixture and fittings imported by hospitals and medical or
diagnostic institutes:A. Medical equipment
1)
2)
3)
4)
5)
Dentist Chairs
Medical surgical dental or veterinary furniture
Operating Table.
Operating Lights.
Emergency operating lights.
6) Hospital beds with mechanical fittings
7) Gymnasium equipments
8) Cooling Cabinet.
9) Refrigerated Liquid Bath.
10) Contrast Media Injection (for use in Angiography & MRI etc).
11) Breathing Bags.
12) Automatic Blood cell Counter
13) Automatic Cell Separator for Preparation of platelets.
B. Cardiology/ Cardiac Surgery Equipment
1) Cannulas.
2) Manifolds.
3) Intra venous Cannula i.v. catheter.
C. Disposable Medical Devices
1) Self disabling safety sterile syringes.
2) Insulin syringes.
3) Burettes
D. Other Related Equipments
1) Fire extinguisher.
2) Fixture & fittings for hospitals
Annex-A
(9)
(10)
(11)
(12)
(13)
CRN / Macn No..
Collectorate
Quantity Imported
UOM
(8)
Name of Regulatory Authority
(3)
Goods imported (Collectorate of Import)
Quantity
(7)
WHT
Specs
(6)
Sales Tax Rate
(applicable)
(5)
Customs Duty rate
(applicable)
(4)
Description
HS Code
Header Information
NTN of Importer
Regulatory Authority No.
(1)
(2)
Details of Input goods (to be filled by the Chief
Executive of the importing company)
(14)
Date
of
CRN/
Mach.
No.
(15)
CERTIFICATE. It is certified that the description and quantity mentioned above are
commensurate with the project requirement and that the same are not manufactured locally. It is
further certified that the above items shall not be used for any other purpose.
Signature of Chief Executive, or
the person next in hierarchy duly
authorized by the Chief Executive
Name : _____________________________________________________________
N.I.C. No. _____________________________________________________________
NOTE: In case of clearance through Pakistan Customs Computerized System, the above
information shall be furnished on line against a specific user I.D. and password obtained under
section 155D of the Customs Act, 1969 (IV of 1969).
Explanation:
Chief Executive means.1. Owner of the firm, in case of sole proprietorship; or
2. Partner of firm having major share, in case of partnership firm; or
3. Chief Executive Officer or the Managing Director in case of limited company or
multinational organization; or
4. Principal Officer in case of a foreign company
Annex-B
(8)
(9)
(10)
Quantity Imported
UOM
(7)
Goods imported (Collectorate of Import)
Quantity
(6)
WHT
Specs
(5)
Sales Tax Rate
(applicable)
(4)
Customs Duty rate
(applicable)
(3)
Description
HS Code
Header Information
NTN of Importer
Approval No..
(1)
(2)
Details of Input goods (to be filled by the authorized
officer of the Regulatory Authority)
(11)
Collect
orate
CRN/
Mach
No.
(12)
(13)
Date
of
CRN/
Mach
No.
(14)
CERTIFICATE. Before certify the above-authorized officer of the Regulatory Authority shall
ensure that the goods are genuine and bonafide requirement of the project and that the same
are not manufactured locally.
Signature __________________
Designation ________________
NOTE: In case of clearance through Pakistan Customs Computerized System, the above
information shall be furnished on line against a specific user I.D. and password obtained under
section 155D of the Customs Act, 1969 (IV of 1969).