Common use of Right to Import; Customs Duties Clause in Contracts

Right to Import; Customs Duties. (a) The GOP encourages the Seller and its Contractors to incorporate as much locally produced material, equipment, and supplies as possible for the design, construction, completion, operation and maintenance of the Complex. Nonetheless, the Seller and its Contractors shall be entitled to import without any restriction, and exempt from Customs Duty and Sales Tax, to import plant, machinery and equipment not manufactured locally, spare parts and replacements required for the design, construction, completion, operation, repair and maintenance of the Complex, subject to compliance with any restrictions imposed and benefits extended by the statutory revisionary order (SRO) 575 (I) 2006, dated 5th June 2006, (as amended from time to time and including subsequent circulars issued pursuant thereto) provided, that such imported plant, machinery and equipment, spare parts and replacements shall be used at the Site, in relation to the Project and will not be sold or otherwise transferred to or used by another Person other than the Seller or its Contractors, or Lenders as a result of enforcement of security, provided further, that any amendment, revocation or substitution of (SRO) 575 (I) 2006, dated 5th June 2006, resulting in the withdrawal of exemption from Customs Duty or Sales Implementation Agreement 27 Tax shall not constitute a Change in Law or give rise to a breach or default of the GOP hereunder so long as such withdrawal of exemption results in (A) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement, or (B) as allowed by NEPRA within one hundred and twenty (120) Days of an application being filed by the Seller with NEPRA for modification of the Tariff to permit pass-through of the Customs Duties and Sales Tax. (b) Provided that applicable Customs Duties and Sales Tax, if any, are timely paid, all plant, machinery, equipment spare parts and replacements imported for incorporation into the Complex, or use in the Project will be cleared for release from Customs and available for removal by the Seller or its agents within fifteen (15) Business Days following delivery by the Seller of written notice to AEDB of a delay in the release by Customs of such plant, machinery and equipment, spare parts or replacements. Such notice may be given at any time after a delay in the release of such plant, machinery or equipment, spare parts or replacements of ten (10) Days following the delivery to the proper authorities of all documents (including all information and details) required by the Laws of Pakistan for importation of plant, machinery and equipment, spare parts and replacements into Pakistan. In the event that there is a claim for Customs Duties or Sales Tax, as determined under the Laws of Pakistan, of plant, machinery or equipment, spare parts and replacements not manufactured locally, imported prior to Commercial Operations Date for incorporation into the Complex, or use in the Project, and the Seller chooses to pay such duties under protest, upon notice to the AEDB by the Seller, such Dispute shall be resolved consistent with the terms of this Agreement within ninety (90) Days after the Seller files its refund claim. (c) All items not consumed during the construction of the Complex or incorporated into the Complex may be freely re-exported by the Seller, within twelve (12) Months following the Commercial Operations Date, without incurring further liability for Customs Duties in Pakistan. The GOP may, as provided by the Laws of Pakistan, require the Seller to re-export any items of plant, equipment or machinery used in the construction of the Complex that are not reasonably required for the Seller to operate and maintain the Complex, unless the Seller agrees promptly to pay the applicable import duties and customs fees for those items of the plant, equipment and machinery. Implementation Agreement 28

Appears in 1 contract

Samples: Implementation Agreement

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Right to Import; Customs Duties. (a) The GOP encourages the Seller and its Contractors to incorporate as much locally produced material, equipment, and supplies as possible for the design, construction, completion, operation and maintenance of the Complex. Nonetheless, the Seller and its Contractors shall be entitled to import without any restrictionrestriction and, and shall be exempt from (or shall enjoy a reduced rate of) Customs Duty and Sales TaxTax on, to import plant, machinery machinery, equipment and equipment not manufactured locallyspare parts, spare parts and replacements therefor required for the design, construction, completion, operation, repair and maintenance of the ComplexComplex as provided in the Finance Act, 2014, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990 (as each is in effect on the date hereof) and any other item or items of plant, equipment or machinery that are incorporated into the Complex or whose use is dedicated to the operation and/or maintenance of the Complex as confirmed by the AEDB and by the Federal Board of Revenue, subject to the conditions and compliance with any additional requirements and restrictions (including, to the extent applicable, relating to locally manufactured items) imposed and benefits extended by the statutory revisionary order (SRO) 575 (I) 2006Finance Act, dated 5th June 20062014, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990 (as amended each may be amended, modified, replaced or substituted from time to time time, and including subsequent notifications and circulars issued pursuant thereto) ); provided, that such imported plant, machinery and equipment, spare parts and replacements shall be used dedicated for use by the Project and located at the Site, in relation to the Project and will not be used for any purpose other than the Project or sold or otherwise transferred to or used by another any Person other than the Seller Lenders or its Contractors, or Lenders their designee as a result of enforcement of security; and provided, provided further, that any amendment, revocation modification, replacement or substitution of (SRO) 575 (I) 2006the applicable provisions of the Finance Act, dated 5th June 20062014, resulting the Customs Act or Sales Tax Act that results in the withdrawal of exemption from or loss of the preferential rate of Customs Duty or Sales Implementation Agreement 27 Tax shall not constitute a Change in Law or give rise to a breach or a GOP default of the GOP hereunder so long as such withdrawal of exemption or loss of the preferential rate results in (Ai) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement, Agreement or (Bii) as is allowed by NEPRA XXXXX within one hundred and twenty (120) Days of an the Seller’s application being filed by the Seller with NEPRA for modification of the Reference Tariff to permit pass-through of the Customs Duties and and/or Sales TaxTax and/or the change in the applicable rate thereof, as the case may be. (b) Provided that applicable Customs Duties and Sales Tax, if any, are timely paid, all plant, machinery, equipment equipment, spare parts and replacements imported for incorporation into the Complex, Complex or use in the Project Project, will be cleared for release from Customs and be available for removal by the Seller or its agents within fifteen (15) Business Days following delivery by the Seller of written notice to AEDB of a delay in the release by Customs of such plant, machinery and equipment, spare parts or replacements. Such notice may be given at any time after a delay in the For release of such plant, machinery or equipment, spare parts or replacements replacements, such notice may be given at any time after a delay of ten (10) Days following the delivery to the proper authorities of all documents (including all information and details) required by the Laws of Pakistan for importation of plant, machinery and equipment, spare parts and replacements into Pakistan. In the event that there is a claim for Customs Duties or Sales Tax, as determined under the Laws of Pakistan, of on plant, machinery or equipment, spare parts and replacements not manufactured locally, imported prior to the Commercial Operations Date for incorporation into the Complex, Complex or for use in the Project, and the Seller chooses to pay such duties under protest, upon the Seller’s notice to the AEDB by the SellerAEDB, such Dispute shall be resolved consistent with the terms of this Agreement within ninety (90) Days after the Seller files its refund claim. (c) All items not consumed during the construction of the Complex or incorporated into the Complex may be freely re-exported by the Seller, within twelve (12) Months following the Commercial Operations Date, without incurring further liability for Customs Duties in Pakistan. The GOP may, as provided by the Laws of Pakistan, require the Seller to re-export any items of plant, equipment or machinery used in the construction of the Complex that are not reasonably required for the Seller to operate and maintain the Complex, unless the Seller agrees promptly to pay the applicable import duties and customs fees for those items of the plant, equipment and machinery. Implementation Agreement 28

Appears in 1 contract

Samples: Implementation Agreement

Right to Import; Customs Duties. (a) The GOP encourages the Seller and its Contractors to incorporate as much locally produced material, equipment, and supplies as possible for the design, construction, completion, operation and maintenance of the Complex. Nonetheless, the Seller and its Contractors shall be entitled to import without any restrictionrestriction and, and shall be exempt from (or shall enjoy a reduced rate of) Customs Duty and Sales TaxTax on, to import plant, machinery machinery, equipment and equipment not manufactured locallyspare parts, spare parts and replacements therefor required for the design, construction, completion, operation, repair and maintenance of the ComplexComplex as provided in the [Finance Act, 2014, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990]7 (as each is in effect on the date hereof) and any other item or items of plant, equipment or machinery that are incorporated into the Complex or whose use is dedicated to the operation and/or maintenance of the Complex as confirmed by the AEDB and by the Federal Board of Revenue, subject to the conditions and compliance with any additional requirements and restrictions (including, to the extent applicable, relating to locally manufactured items) imposed and benefits extended by the statutory revisionary order (SRO) 575 (I) 2006Finance Act, dated 5th June 20062014, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990 (as amended each may be amended, modified, replaced or substituted from time to time time, and including subsequent notifications and circulars issued pursuant thereto) ); provided, that such imported plant, machinery and equipment, spare parts and replacements shall be used dedicated for use by the Project and located at the Site, in relation to the Project and will not be used for any purpose other than the Project or sold or otherwise transferred to or used by another any Person other than the Seller Lenders or its Contractors, or Lenders their designee as a result of enforcement of security; and provided, provided further, that any amendment, revocation modification, replacement or substitution of (SRO) 575 (I) 2006the applicable provisions of the [Finance Act, dated 5th June 20062014, resulting the Customs Act or Sales Tax Act] that results in the withdrawal of exemption from or loss of the preferential rate of Customs Duty or Sales Implementation Agreement 27 Tax shall not constitute a Change in Law or give rise to a breach or a GOP default of the GOP hereunder so long as such withdrawal of exemption or loss of the preferential rate results in (Ai) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement, Agreement or (Bii) as is allowed by NEPRA within one hundred and twenty (120) Days of an the Seller’s application being filed by the Seller with NEPRA for modification of the Reference Tariff to permit pass-through of the Customs Duties and and/or Sales TaxTax and/or the change in the applicable rate thereof, as the case may be. (b) Provided that applicable Customs Duties and Sales Tax, if any, are timely paid, all plant, machinery, equipment equipment, spare parts and replacements imported for incorporation into the Complex, Complex or use in the Project Project, will be cleared for release from Customs and be available for removal by the Seller or its agents within fifteen (15) Business Days following delivery by the Seller of written notice to AEDB of a delay in the release by Customs of such plant, machinery and equipment, spare parts or replacements. Such notice may be given at any time after a delay in the For release of such plant, machinery or equipment, spare parts or replacements replacements, such notice may be given at any time after a delay of ten (10) Days following the delivery to the proper authorities of all documents (including all information and details) required by the Laws of Pakistan for importation of plant, machinery and equipment, spare parts and replacements into Pakistan. In the event that there is a claim for Customs Duties or Sales Tax, as determined under the Laws of Pakistan, of on plant, machinery or equipment, spare parts and replacements not manufactured locally, imported prior to the Commercial Operations Date for incorporation into the Complex, Complex or for use in the Project, and the Seller chooses to pay such duties under protest, upon the Seller’s notice to the AEDB by the SellerAEDB, such Dispute shall be resolved consistent with the terms of this Agreement within ninety (90) Days after the Seller files its refund claim. (c) All items not consumed during the construction of the Complex or incorporated into the Complex Complex, may be freely re-exported by the Seller, Seller within twelve (12) Months following the Commercial Operations Date, without incurring further liability for Customs Duties in Pakistan. The GOP may, as provided by the Laws of Pakistan, require the Seller to re-export any items of plant, equipment or machinery used in the construction of the Complex that are not reasonably required for the Seller to operate and maintain the Complex, unless the Seller agrees promptly to pay the applicable import duties fees and customs fees for those items of the plant, equipment and machinery. Implementation Agreement 28Customs Duties therefor.

Appears in 1 contract

Samples: Implementation Agreement

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Right to Import; Customs Duties. (a) The GOP encourages the Seller and its Contractors to incorporate as much locally produced material, equipment, and supplies as possible for the design, construction, completion, operation and maintenance of the Complex. Nonetheless, the Seller and its Contractors shall be entitled to import without any restriction, and exempt from Customs Duty and Sales Tax, to import plant, machinery and equipment not manufactured locally, spare parts and replacements required for the design, construction, completion, operation, repair and maintenance of the Complex, subject to compliance with any restrictions imposed and benefits extended by the statutory revisionary order (SRO) 575 (I) 2006, dated 5th June 2006, (as amended from time to time and including subsequent circulars issued pursuant thereto) provided, that such imported plant, machinery and equipment, spare parts and replacements shall be used at the Site, in relation to the Project and will not be sold or otherwise transferred to or used by another Person other than the Seller or its Contractors, or Lenders as a result of enforcement of security, provided further, that any amendment, revocation or substitution of (SRO) 575 (I) 2006, dated 5th June 2006, resulting in the withdrawal of exemption from Customs Duty or Sales Implementation Agreement 27 Tax shall not constitute a Change in Law or give rise to a breach or default of the GOP hereunder so long as such withdrawal of exemption results in (A) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement, or (B) as allowed by NEPRA within one hundred and twenty (120) Days of an application being filed by the Seller with NEPRA for modification of the Tariff to permit pass-through of the Customs Duties and Sales Tax. (b) Provided that applicable Customs Duties and Sales Tax, if any, are timely paid, all plant, machinery, equipment spare parts and replacements imported for incorporation into the Complex, or use in the Project will be cleared for release from Customs and available for removal by the Seller or its agents within fifteen (15) Business Days following delivery by the Seller of written notice to AEDB of a delay in the release by Customs of such plant, machinery and equipment, spare parts or replacements. Such notice may be given at any time after a delay in the release of such plant, machinery or equipment, spare parts or replacements of ten (10) Days following the delivery to the proper authorities of all documents (including all information and details) required by the Laws of Pakistan for importation of plant, machinery and equipment, spare parts and replacements into Pakistan. In the event that there is a claim for Customs Duties or Sales Tax, as determined under the Laws of Pakistan, of plant, machinery or equipment, spare parts and replacements not manufactured locally, imported prior to Commercial Operations Date for incorporation into the Complex, or use in the Project, and the Seller chooses to pay such duties under protest, upon notice to the AEDB by the Seller, such Dispute shall be resolved consistent with the terms of this Agreement within ninety (90) Days after the Seller files its refund claim. (c) All items not consumed during the construction of the Complex or incorporated into the Complex may be freely re-exported by the Seller, within twelve (12) Months following the Commercial Operations Date, without incurring further liability for Customs Duties in Pakistan. The GOP may, as provided by the Laws of Pakistan, require the Seller to re-export any items of plant, equipment or machinery used in the construction of the Complex that are not reasonably required for the Seller to operate and maintain the Complex, unless the Seller agrees promptly to pay the applicable import duties and customs fees for those items of the plant, equipment and machinery. Implementation Agreement 28

Appears in 1 contract

Samples: Implementation Agreement

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