NBR relaxes rules for machinery import for govt project
The National Board of Revenue (NBR) has eased some rules in importing machinery, parts and equipment for use in government projects.
The customs department of NBR, the central authority for tax administration, issued a circular on 27 January in this regard.
The previous rules were outdated and are not suitable for projects being taken up by the government at present, according to sources.
Keep updated, follow The Business Standard's Google news channel
They said the old rules were complicating the processes of approving machinery import and returning those after the completion of a project. This would also lead to an increase in project expenses.
Under the new rules, machinery and equipment imported for a project may be used for other projects subject to permission. However, this will only happen if the managers of both projects do not have any objections. In addition, all liabilities including bank guarantees will have to be borne by the receiver project implementing authority.
Such usage of imported machinery was not allowed under the old rules, which made it compulsory for the machinery to be returned once a project was finished.
Meanwhile, under the new rules, importers of any faulty machinery will be responsible for sending those back.
Besides, importers will be given approval for a year in importing equipment for projects from now on, which can later be extended for another six months.
