ASSEMBLY/MANUFACTURE OF VEHICLES
UNDER THE TARIFF
BASED SYSTEM (TBS)
1.As per condition (i)
it is mandatory for the New Applicants to install in-house facilities
for assembly/manufacture of vehicles as defined in
1. Welding shop
Following equipment / facilities should
be available for sub-assembly/ Assembly covering Under Body, Main Body,
Shell Body, Engine Compartment etc.
(a). Welding jigs;
(b). Welding guns;
(c). Welding transformers;
(e). Necessary tools.
2. Paint shop
(a). Booth for
(b). Baking ovens
3. Vehicles Final Assembly
(i) Sealer Pumps
(iii) Pneumatic Tools
(iv) Torque Wrenches
(i) Central Lifter
(ii) Engine Docking Machine
(iii) Axle Lifting
(iv) Wheel Subassembly
(v) Wheel Balancing
(vi) Pneumatic Tools
(i) Coolant Feeder
(ii) Brake Bleeding Machine
4. Vehicles Performance Testing
(a) Toe in Tester
(b) Side Slip Tester
(c) Brake Tester
(d) Drum Tester
(e) Turning radius
(f) Headlight aiming tester
(g) Shower tester
5. Inspection Equipments
2.After completing the
above facilities, intimate EDB alongwith photographs of the facilities,
sales tax registration, factory premises lay out and ownership details
alongwith complete address for verification by the technical team.
3.On receipt of
application for verification and above documents, EDB shall inform the
assembler about the visit program of EDBs Technical Team. On
satisfactory verification, EDB shall issues a certificate for the
assembly / manufacture of vehicle fro one finanacial year..
4.Based on EDBs
certificates, the assembler shall approach PSQCA for the certification
5.EDB / PSQCA
certificates shall be tha basis for registration of vehicles with the
Exise & taxation department.
6.In parallel or
subsequent to issuance of the above certificate the assembler/
manufacturer under condition (iii) of
submit lists of CKD parts / components as per
( see the guidelines to
ID' or 'Form
SRO. 656(I)/2006 dated June 22, 2006.
7.The assemblers /
manufacturers registered with EDB, are entitled to import CKD kits of
non-localized parts/components at concessionary rate of duty vide
dated June 22, 2006.
localized parts/components of vehicles are provided at
These parts/components are importable at additional rate of duty.
9.EDB verifies the lists of
parts/ components importable at concessionary rate of duty & additional
rate of duty with part number, part name in accordance with the Parts
Catalogue of vehicle provided by the assembler/manufacturer.
departement releases the consigments of CKD kits as approved by EDB.
Under the Pakistan Customs Computerized System (PaCCS), the impoter
shall have to submit the information of imported consignments as per
dated June 22, 2006.
12.Following the provisions (v) &
(vi) of SRO. 656(I)/2006, the assemblers / manufacturers are liable to
maintain the records of inputs used for the assembly of vehicles for
submission to EDB at the end of the year for audit. If the assembler /
manufacturer fails to provide the information and subsequent to an audit
if it is found that the assemblers / manufacturers has failed to comply
with the conditions of the SRO, would face proceedings under the
relevant provisions of Custom Act 1969, which may consequent upon:-
·Recovery of exempted duties
or duties chargeable as a result of the evasion of the conditions of the
SRO, i.e. CBU rate of duty.
Initiation of penal