Import of equipments and materials for Gwadar port: Amended Finance Bill grants duty concessions/exemptions

The amended Finance Bill 2016 has granted duty concessions/exemptions on the import of equipments and materials like plant, machinery, equipment, appliances and accessories used for the construction, development and operations of Gwadar port and Free Zone Area.
According to the amended Bill issued here on Wednesday, following imports subject to such conditions, limitations and restrictions as may be prescribed by the Board from time to time: Equipments and materials (plant, machinery, equipment, appliances and accessories), imported by the Concession holder, its operating companies and contractors/sub-contractors exclusively for construction and operation of the terminals and the Free Zone Area for a period of forty (40) years; Ship bunker oils imported by the Concession holder for the sole purposes of supplying fuels and lubricants to the ships used in the port and its terminals for a period of 40 years; vehicles imported by the concession holder and its operating companies for a period of (23) years for construction, development and operations of Gwadar Port and Free Zone Area under the regulatory mechanism. The regulatory mechanism for such vehicles, including the number and types importable, shall be devised by the Ministry of Port & Shipping and FBR (in consultation with the Provincial Government if so required) and notified by the FBR.
The duty exemption would be available on the imports for port-related businesses established in the Free Zone Area for a period of 23 years. Zero percent duty would be applicable on the import of goods imported by privileged personnel or by organisations or by any person authorised by the contracting parties, under grant-in- aid agreements (including those agreements which cover off budget foreign contributions or funds brought by registered INGO's without any financial liabilities to the Government of Pakistan) signed by the Economic Affairs Division (EAD) and or by any Ministry authorised by the Government of Pakistan and duly concurred by the Federal Board of Revenue (FBR).