SRO 656 (page 1 of 3)

Process
Start Importer of components, sub components, assemblies , sub assemblies (but excluding consumables) in any kit form for assembly or manufacture of vehicle

Time Line

Responsibility

Importer is an assembler or manufacturer Yes Importer has suitable inhouse facilities Yes

No

No

Firm contract with another manufacturer Yes Other manufacturer has suitable inhouse facilities Yes

No

Registered with Sales Tax Department Yes Exemption available under section 19 of Customs Act

No

No

Registered with Sales Tax Department Yes

No

Approval

IOR and total annual material requirements to determined by EDB

Road worthiness of vehicles certified by EDB Yes

No

No exemption available under section 19 of Customs Act FINISH

Hard copy of list of components with parts numbers and respective PCT headings

Vehicles Service Manual / Parts Catalogue

Soft copy of list of components with parts numbers and respective PCT headings

Submit to EDB

Before Import

EDB to verify list EDB to update PACCS or One Customs System

SRO 656 (page 2 of 3)

Process
A

Time Line

Responsibility

EDB to update PACCS or One Customs System

Procurements of goods

Direct import

Purchase from sales tax registered local vendor

Goods Declaration (with a vow that items imported will be consumed within 1 year)

Import of goods and release by customs autorities

Customs Department

List of components verified by EDB Yes Declaration is in conformity with lists verified by EDB Yes

No Submit a Corporate Gurantee

No

Consignment will be released by Customs Authorities

Provisional release of consignment may be allowed by Customs Authorities

Documentation

Prescribed records to be maintained (As per Annexure B) Plus a reconciliation of input and output Note:- For furnishing of information, CEO or his authorized officer shall be responsible.

SRO 656 (page 3 of 3)

Process
B

Time Line Responsibility

Recoreds and reconciliation submitted to EDB on annual basis (latest by August 15th) Yes

No

Audit to be conducted by EDB (or nominee)

Findings of Audit (by EDB) shall be communicated to Collector Customs Collector of Customs may conduct an Audit

EDBs approval for manufacturing shall be revalidated

Yes Import quota shall be allocated online by EDB on PACCS

In Audit, compliance with SRO 656 found No

Quota shall be utilized on Goods Declaration basis (upto a maximum of allowed quota by EDB) Assistant Collector of Customs Station shall update PACCS or One Customs before allowing he GD out of charge of Customs

Collector of Customs to initiate proceedings for recovery of duties and taxes, along with any suitable penal action

EDBs approval for manufacturing shall NOT be revalidated No GD filled in PACCS or One Customs environment Yes Quota shall be utilized automatically

All new quota shall be allocated online by EDB

FINISH

SRO 655 (page 1 of 2)

Process
START Importer of raw material sub components, , components and sub assemblies

Time Line

Responsibility

Manufactured locally No

Yes

Importer has No suitable inhouse facilities Yes Registered with Sales Tax Department for manufacture of such goods Yes Exemption available under section 19 of Customs Act

Firm contract with another manufacturer (sub vendor) Yes Registered with Sales Tax Department Yes

No

No

No

Suitable inhouse facilities Yes

No

IOR and total annual material requirements to determined by EDB Bill of Entry or Goods Declaration (with a vow that items imported will be consumed within 1 year)

No exemption available under section 19 of Customs Act Importer may provide the imported raw materials to the sub vendor for the manufacture of sub components and components for the vehicles

FINISH

EDB or other authorized organization to update all relevant information and approved quota in PACCS or One Customs System

Sub Vendor. i. Not entitled to import any of the raw materials ii. After manufacturing of components supply only to contracted importer .iii . Maintain proper records

Maintain records of input and output as prescribed by FBR

The CEO or authorized officer shall furnish all relevant information to EDB (As per Annexure B)

SRO 655 (page 2 of 2)

Process
W

Time Line

Responsibility

Import quota shall be allocated online by EDB on PACCS Quota shall be utilized on Goods Declaration basis (upto a maximum of allowed quota by EDB)

Assistant Collector of Customs Station shall update PACCS or One Customs before allowing he GD out of charge of Customs

No

GD filled in PACCS or One Customs environment Yes

Quota shall be utilized automatically All new quota shall be allocated online by EDB

Import of goods as per approved quota

Consumption of goods within ONE YEAR from the date of import Yes

No

MCI shall pay custom duty and other taxes involved or obtain extension from Collector of Customs giving plausible reasons

MCI shall inform Collector of Customs in writing about the consumption of goods within SIXTY DAYS if consumption of goods.

MCI provide information to Collector of Customs as required above Yes

No

Records of MCI shall be audited by any agency designated by EDB and FBR

EDB to revalidate Input Output Ratio Certificate MCI to provide following information to EDB within 45 days of year ending i. Import, local procurement and consumption of all input materials .ii. Production and supply of components and assemblies .

Yes

In audit consumption of goods found satisfactory No

Collector of Customs shall initiate legal proceedings for recovery of taxes and duties along with penal action

FINISH