Third Schedule Table I: Third Schedule Table I

S.No. THIRD SCHEDULE Heading/ (Conditional exemptions) sub-heading [See Sub-section (1) of section 16] Number TABLE-I (Goods) Description of Goods (1) Crude vegetable oil, if obtained from the locally 5.07, 15.08, grown seeds excluding cooking oil, without 15.09, 15010, having undergone any process other than the 15.11, 15.12, process of washing. 15.13, 15.14 15.15, 15.16, 15.17 & 15.18 1[2 ***] (3) Un-manufactured tobacco or tobacco refuses if 24.01 used for the purposes other than the manufacturer of cigarettes, smoking mixtures for pipes and cigarettes and cigars and cheroots. 2[3A ** 3B** ] (4) Cigars, cheroots, cigarillos and cigarettes, of 24.02 tobacco or of tobacco substitutes,- (i) If supplied to Pakistan Navy for consumption by its personnel on board its vessels. (ii) If made by hand in tapered shape of biris without the use of any manual or power- operated machine in any process of their manufacture. 1 Omitted vide Finance Act, 2007. 2 Omitted vide Finance Act, 2008. 90 The Federal Excise Act, 2005 S.No. Description of Goods Heading/ sub-heading Number (iii) If supplied for consumption by the President of Pakistan, the President of Azad Jammu & Kashmir and the Governors of the Provinces, members of their families and guests provided that the cigarettes are manufactured and supplied on the specific written orders of the competent official authority and the cigarettes and their packets are special-crested for the respective privileged House. (iv) If supplied against payment in foreign exchange, to M/s Duty Free Shops Ltd for sale in its Duty Free Shops and on board international flight by the Pakistan International Airlines subject to the same conditions and procedures as are applicable for the purposes of exemption of customs duty. 1[5 ***] 6 Motor spirit,– 2710.1110 2710.1110 2[7** (i) If supplied to Pakistan Navy for consumption 8** ] in its vessels (ii) If supplied for consumption by the International Bank for Reconstruction and Development in its official cars 9 Sludge and sediment recovered from storage tanks 2710.9900 of the incoming vessels or ships meant for breaking 1 Omitted vide Finance Act, 2013. 2 Omitted vide Finance Act, 2013. 91 The Federal Excise Act, 2005 S.No. Description of Goods Heading/ sub-heading Number 10 Natural gas if produced and used in the same field 2711.2100 for drilling, production, pressure maintenance or in any other joint operations including flaring in the same field. Explanation.- For the purpose of this entry, "Joint Operations" means all marine and land activities, including gas exploration, prospection, development and production activities conducted by Working Interest Owners under a petroleum concession agreement with the Government. 11 Carbon black oil (carbon black feed stock) if 2707.9910 imported by 1[a duly registered manufacturer of 2713.9010 carbon black]. Goods,- 12 (i) If donated to the President's Funds for Afghan Respective Refugees, Assistance to Palestine and Famine headings Relief for Africa, provided that before making such donation the manufacturer or importer shall inform in writing to the Collector of Federal Excise or as the case may be, Collector of Customs about quantity, value and the duty involved on such goods and shall in case of imports, fulfill the conditions and comply with the procedures specified for the purposes of exemption from customs duty. (ii) If purchased by the Cabinet Division, Government of Pakistan, for donation to a foreign country in the event of natural disasters as certified by the Emergency Relief Cell of that Division. (iii) If supplied against international tender issued by UNICEF, UNDP, WHO, WFP, 1 Substituted for “National Petrocarbon (Pvt.) Limited, Pipri, Karachi as raw material for the manufacture of the carbon black” by Finance Act, 2008. 92 The Federal Excise Act, 2005 UNHCR, International Red Cross or any other relief agency, for Afghan Refugees subject to the conditions given below, namely,- ( (a) payment for the supply shall be received in foreign currency, which shall be surrendered to the State Bank of Pakistan and the supplier shall receive payment in Pak rupees as per State Bank procedure and foreign exchange regulations; (b) the goods shall be duly received by the organization which signed the contract, and a certificate to this effect shall be issued by the organization which shall be duly attested by the Chief Commissioner/ Commissioner of Afghan Refugees and will be submitted by the manufacturer to the 1[Commissioner] of Federal excise; and (c) the registered person shall retain the relevant documents and certificates in record. (iv) If supplied as ship stores to ships and aircrafts leaving for abroad subject to the satisfaction of the Collector of Customs in terms of section 24 of the Customs Act, 1969. 13 Goods imported or supplied under grants-in-aid Respective for which a specific consent has been obtained Heading from the 2[Board]. 1 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53. This Ordinance was presented in the Parliament but lapsed on 5 June 2010 as Parliament did not approve it. Originally this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 2 Substituted vide Finance Act, 2007. 93 The Federal Excise Act, 2005 14 Goods if imported as bonafide baggage Respective Heading 15 Goods if imported by Duty Free Shops as baggage Respective free of custom duty, regulatory duty and sales Heading tax under the baggage rules made under the Customs Act, 1969 (IV of 1969). 16 Any goods 1[,excluding un-manufactured Respective tobacco,] which are manufactured produced in- Headings. house by a registered person and used for the manufacture and production of goods on which duty of excise is paid by such person. 2[omitted] 217 Goods for further manufacture of goods in the Respective Export Processing Zones Headings. 3[18*** Materials and equipment 5[(plant, machinery, Respective equipment, appliances and accessories)] for Headings ] construction and operation of 6[Gwadar] Port and 4[19 development of Free Zone for 3[Gwadar] Port as imported by or supplied to China Overseas Ports Holding Company Limited (COPHCL) and its operating companies namely (i) China Overseas Ports Holding Company Pakistan (Private) Limited, (ii) Gwadar International Terminals Limited, (iii) Gwadar Marine Services Limited and (iv) Gwadar Free Zone Company Limited, their contractors and sub-contractors; and Ship Bunker Oils bought and sold to the ships calling on/visiting 3[Gwadar] Port, having Concession Agreement with the Gwadar Port Authority, for a period of forty years, subject to the conditions and procedure as specified under S. No. 100A of 1 Expression inserted and Explanation omitted by Finance Supplementary (Amendment)Act,2018. 2 Inserted vide Finance Act, 2008. 3 Serial number 18 omitted through Finance Act, 2016. 4 New serial number 19 added through Finance Act, 2016. 5 The expression inserted by Finance Act, 2017. 6 The word “Gwadar” substituted for the word “Gawadar” by Finance Act, 2017. 94 The Federal Excise Act, 2005 Table-1 of Sixth Schedule to the Sales Tax Act, 1990. 1[20 Supplies made by the businesses to be established Respective in the Gwadar Free Zone for a period of twenty- Headings”; and three years within the Gwadar Free Zone, subject to the condition that the sales and supplies outside the Gwadar Free Zone and into the territory of Pakistan shall be subjected to Federal Excise Duty. 2[21 Vehicles imported by China Overseas Ports Respective Holding Company Limited (COPHCL) and its Headings] operating companies, namely:– (a) China Overseas Ports Holding Company Pakistan (Private) Limited; (b) Gwadar International Terminal Limited; (c) Gwadar Marine Services Limited; and (d) Gwadar Free Zone Company Limited; for a period of twenty-three years for construction, development and operations of Gwadar Port and Free Zone Area subject to limitations, conditions prescribed under PCT heading 9917 (3). 3[22 Equipment imported by M/s China Railway Corporation to be furnished and installed in Lahore Orange Line Metro Train Project subject to the following conditions: (a) that the equipment imported under this serial number shall only be used in the aforesaid Project; (b) that the importer shall furnish an indemnity bond, in the prescribed manner and format as set out in Annex-A to this serial number, at the time of import to the extent of federal excise duty exempted under this serial number on consignment to consignment basis; 1 New serial number 20 added through Finance Act, 2016. 2 New serial number 21 added by Finance Act, 2017 3 New serial number 22 added by Finance Act, 2018. 95 The Federal Excise Act, 2005 (c) that the Punjab Mass Transit Authority, established under the Punjab Mass Transit Authority Act, 2015 (ACT XXXIII of 2015), hereinafter referred as the Regulatory Authority, shall certify in the prescribed manner and format as set out in Annex-B to this serial number that the imported equipment is bona fide requirement of the Project under the Contract No. PMA-CR- NORINCO-OL, dated 20.04.2015, hereafter referred as the contract, signed between the Regulatory Authority and CR-NORINCO; (d) in the event a dispute arises whether any item is entitled to exemption under this serial number, the item shall be immediately released by the Customs Department against a corporate guarantee, valid for a period of six months, submitted by the importer. A certificate from the Regulatory Authority duly verified by the Transport and Communication Section of the Ministry of Planning, Development and Reform, that the item is covered under this serial number shall be given due consideration by the Customs Department towards finally resolving the dispute; (e) for the clearance of imported equipment through Pakistan Customs Computerized System the authorized officer of the Regulatory Authority shall furnish all relevant information, as set out in Annex-B to this serial number, online against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation or any other person authorized by 96 The Federal Excise Act, 2005 the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; (f) that the equipment, imported under this serial number, shall not be re-exported, sold or otherwise disposed of without prior approval of the Federal Board of Revenue (FBR). In case goods are sold or otherwise disposed of with prior approval of FBR the same shall be subject to payment of federal excise duty as may be prescribed by the FBR; (g) in case the equipment, imported under this serial number, is sold or otherwise disposed of without prior approval of the FBR in terms of condition (f), the same shall be subject to payment of statutory rates of federal excise duty as were applicable at the time of import; (h) notwithstanding the condition (f) and (g), equipment imported under this serial number may be surrendered at any time to the Collector of Customs having jurisdiction, without payment of any federal excise duty, for further disposal as may be prescribed by the FBR; (i) the indemnity bond submitted in terms of condition (b) above shall stand discharged on submission of a certificate from the Regulatory Authority to the effect that the equipment has been installed or consumed in the said Project. In case the equipment is not consumed or installed in the project the indemnity bond shall be discharged on fulfillment of conditions stipulated at (f) or (g) or (h), as the case may be; and 97 The Federal Excise Act, 2005 (j) that violation of any of the above conditions shall render the goods liable to payment of statutory rate of federal excise duty leviable on the date of clearance of goods in addition to any other penal action under relevant provisions of the law. Explanation. For the purpose of this provisions, “equipment” shall mean machinery, apparatus, materials and all things to be provided under the contract for incorporation in the works relating to Lahore Orange Line Metro Train Project. 1[23 Imports made by diplomats, diplomatic 99.01, 99.02 missions, privileged persons and privileged and 99.05.] organizations which are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the Parliament or issued or agreed by the Government of Pakistan. 1 New serial number 23 and entries relating thereto inserted by Finance Act, 2024. 98 The Federal Excise Act, 2005 1[Annex-A [See condition (b)] INDEMNITY BOND (On appropriately stamp non-judicial paper attested by a Government servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a Scheduled Bank) THIS DEED OF INDEMNITY is made on the _________ date of __________BETWEEN Messrs___________ having registered office at _________ (hereinafter called "the importers" which means and includes their successors, administrators, executors and assignees) of the one part, and the President of the Islamic Republic of Pakistan through the Collector of Customs _________ (hereinafter called the "Collector of Customs"), of the other part. WHEREAS the Federal Government, by its decision contained in serial number 22 of this table and subject to the conditions thereof, has been pleased to direct that such equipment shall be exempt from the whole of federal excise duty leviable thereon, in accordance with the said serial number 22, if imported for Lahore Orange Line Metro Train Project. AND WHEREAS M/S.____________, the importers have imported the equipment mentioned in the said serial number for the above mentioned project in accordance with the conditions given in the said serial number 22; NOW, THEREFORE, in consideration of the release of the equipment without recovery of leviable federal excise duty, the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs. __________ being the federal excise duty and charges leviable on the equipment, if the importers fail to fulfill the condition (f) or (g) or (h) of the said serial number 22, as the case may be. The importers further agree and bind themselves that the amount covered by this Indemnity Bond shall be recovered as arrears of federal excise duty under section 202 of the Customs Act, 1969. This Bond shall stand revoked automatically when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the said serial number 22. Signed by importers on this ____________________ day of _______________________201_. Managing Director or person next 1 Annex “A” & “B” added by Finance Act, 2018. 99 The Federal Excise Act, 2005 in hierarchy duly authorized by MD (Name and permanent address) Collector of Customs (On behalf of President) Witness (1) ________________________________________________ (signature, name, designation and full address) Witness (2) ________________________________________________ (signature, name, designation and full address) 1[Annex-B [See conditions (c) and (e)] NTN or FTN of Importer Approval No. Details of equipment (to be filled by the authorized officer of the Regulatory Authority) to be imported Description L/C No. or IGM No. Remarks, and bank contract if any. specifications. Quantity/UOM No. and B/L. Date & Index No. (1) (2) (3) (4) (5) CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY: It is hereby certified that the description, quantity and other details mentioned above are true and correct. Goods imported are in commensuration with the project requirements and are bona fide requirement of the Project under the Contract. It is further certified that the above items shall not be used for any other purpose except for the Project. Signature: __________________________ Name and Designation: __________________________ Official Stamp: __________________________ Date: __________________________ 100 The Federal Excise Act, 2005 1[24 The following goods, when supplied within the limits of the Border Sustenance Markets, established in cooperation with Iran and Afghanistan: (i) Animal Fats and Oil and their fractions 1516.1000 (ii) Vegetable Fats and their fractions 1516.2010 (iii) Vegetable Oils and their fractions 1516.2020 Provided that, such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of duty involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction: Provided further that, the said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets. 25. Import and supply of raw materials, Respective components, parts and plant and machinery headings] by registered persons authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.” 2[26 Imports or supplies made by, for or to a Respective qualified investment as specified at Serial heading.] No.1 of the First Schedule to the Foreign Investment (Promotion and Protection) Act, 2022 for the period as specified in the Second Schedule to the said Act. 1 New serial numbers 24 and 25 inserted by Finance Act, 2021. 2 New serial number added by Finance Act, 2023 101 The Federal Excise Act, 2005 1[27 Imported construction materials and goods Respective imported by M/s China State Construction headings Engineering Corporation Limited (M/s CSCECL), whether or not locally manufactured, for construction of Karachi- Peshawar Motorway (Sukkur-Multan Section) subject to fulfilment of same conditions, limitations and restrictions as are specified under S. No. 145 of Table-1 of Sixth Schedule to the Sales Tax Act, 1990, provided that total incidence of exemptions of all duties and taxes in respect of construction materials and goods imported for the project shall not exceed ten thousand eight hundred ninety- eight million rupees including the benefit of exemption from duties and taxes availed before 30th June, 2018 under the provisions of Sales Tax Act, 1990, the Customs Act, 1969, The Federal Excise Act 2005 and the Income Tax Ordinance, 2001 and the notifications issued thereunder. 1 S. No. 23 occurring for the second time re-numbered as S. No. 27 by Finance Act, 2025. 102 The Federal Excise Act, 2005

Effective date: 2005-07-01

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