The CBR has issued SRO 738(I)/2004 to exempt CNG/diesel buses imported by small and medium enterprises.
The CBR has also issued a new pro forma of 'Indemnity Bond' for the importers. The importers have to fulfil the following conditions to avail the exemption of custom duty on these buses:
The import of CKD buses shall be made through Small and Medium Enterprises Development Authority (Smeda).
The importer shall, at the time of import of such CKD buses, make a written declaration on the bill of entry to the effect that the CKD buses have been imported under this notification with exemption from payment of customs duty leviable under the First Schedule to the Customs Act, 1969.
The exemption on such CKD buses shall be granted only if it is covered by a special serially numbered certificate issued by the Smeda, addressed to the Collector of Customs, indicating the required detailed particulars.
The Smeda shall specify the quantities and particulars of components in such knocked down condition as are in accordance with the approved deletion programme.
The importer shall, at the time of import, submit an 'indemnity bond' in the form as set out in the notification, undertaking that the CKD buses shall be used for the sole purpose as specified by the Smeda;
The CKD buses imported under this notification with exemption from payment of customs duty through Smeda shall not be transferred to any other person or company except after obtaining necessary permission from Smeda.
The importer shall, within one year of filing of bill of entry, (for home consumption or ex-bond), apply to the Collector of Customs for discharging indemnity bond supported with a consumption certificate issued by the concerned Assistant Collector of Sales Tax and Central Excise.
In case of breach of the conditions of this notification, the Collector of Customs shall enforce indemnity bond and take such penal action as he may deem fit under the Customs Act, 1969 (IV of 1969).