KARACHI: The Federal Government has decided to withdraw duty exemptions on (Pick-ups 4×4) imported by exploration & production (E&P) companies, their contractors and service companies.
The subject vehicles invited only 5.0 percent customs duty, but they would be charged at statutory rate of duty.
Moreover, the sub-contractors of E&P Companies’ contractors would no more enjoy customs duty concessions on importing machinery, equipment, materials, specialized vehicles or vessels, helicopters, aircraft, accessories, spares, chemicals and consumables.
Moreover, all petroleum sector companies, corporations and organizations including their contractors and service companies shall be entitled to import machinery, equipment, helicopters, aircrafts, drilling bits, drilling and seismic (on shore or off shore) vessels, drilling rigs, specialized vehicles including accessories and spares for the purpose of construction, erection, exploration and production of petroleum projects on an import-cum-export basis without payment of duties and taxes against a corporate guarantee valid for a period of five years equal to the value of import duties and taxes exempted, extendable by the Collector of Customs on time to time basis, if the importer has a definite contract.
However, the concerned Collector shall allow extension for a further period as deemed appropriate on payment of 1.0 percent surcharge for each year on C&F value of the goods for which extension has been sought.