Regulations have been imposed on imports for Special Technology Zones (STZs) by the Federal Board of Revenue (FBR) in an effort to ensure proper management and control over the importation of goods within these zones.
These regulations, outlined under the SRO 536(I)/2023, aim to safeguard tax benefits, monitor the utilization of imported goods, and maintain accountability among eligible importers.
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Under the new rules, goods imported for STZs must be retained within the zones for a minimum period of ten years. Importers are prohibited from selling these goods without prior approval from the FBR. The objective is to ensure that imported goods are used for their intended purposes within the STZs and to prevent any unauthorized sale or misuse.
Tax benefits will only be granted to importers if the goods are imported for a period of ten years, starting from the date of signing the development agreement or issuance of the license. These benefits are specifically intended for consumption within the STZs by eligible importers, ensuring that the tax incentives are received by those who contribute to the growth and development of the zones over an extended period.
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Imported goods that have availed duty/tax exemptions must be used solely within the boundaries of the Special Technology Zones. The FBR strictly prohibits the disposal of these goods without prior approval. This provision aims to prevent any potential misuse or unauthorized transfer of exempted goods, maintaining control and accountability over their usage.
Eligibility for exemptions and benefits is contingent upon importers holding a valid license issued by the developer of a Special Technology Zone and being registered under the Customs Computerised System with a unique user ID. These requirements ensure that only authorized and legitimate enterprises operating within the STZs can avail themselves of the benefits provided by the FBR. This serves as a safeguard against unauthorized entities attempting to take advantage of the tax incentives.
To certify the authenticity and necessity of imported capital goods, the authorized officer of the Special Technology Zones Authority (STZA) will verify each consignment in the prescribed manner and format. This certification process ensures that the imported goods align with the intended purposes of the STZs and are essential for the development projects within these zones.
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Importers under these regulations are permitted to import capital goods through partial shipments. However, the total duration for the import of these partial shipments must not exceed twenty months from the date of the first import. This provision allows flexibility while still maintaining control over the importation process.
Upon acquiring a valid license, the licensee of the zone must apply for a user ID from the registration authority. The Customs will then verify the licensee’s business facility, including manufacturing areas and stores, before issuing the user ID. This step ensures that importers are properly vetted and have the necessary infrastructure in place before commencing operations within the STZs.
The implementation of these regulations by the FBR aims to establish control, accountability, and efficient management of goods within the Special Technology Zones. By ensuring compliance with the specified rules regarding retention, tax benefits, usage, licensing, and registration, the FBR seeks to foster growth and development within the STZs while safeguarding the interests of legitimate importers.
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