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 restriction and, shall be exempt from (or shall enjoy a reduced rate of) Customs Duty and Sales Tax on, plant, machinery, equipment and spare parts, and replacements therefor required for the design, construction, completion, operation, repair and maintenance of the Complex 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 Finance Act, 2014, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990 (as each may be amended, modified, replaced or substituted from time to time, and including subsequent notifications and circulars issued pursuant thereto); provided, that such imported plant, machinery and equipment, spare parts and replacements shall be dedicated for use by the Project and located at the Site, and will not be used for any purpose other than the Project or sold or otherwise transferred to any Person other than the Lenders or their designee as a result of enforcement of security; and provided, further, that any amendment, modification, replacement or substitution of the applicable provisions of the [Finance Act, 2014, 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 Tax shall not give rise to a breach or a GOP default hereunder so long as such withdrawal of exemption or loss of the preferential rate results in (i) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement or (ii) is allowed by NEPRA within one hundred and twenty (120) Days of the Seller’s application being filed with NEPRA for modification of the Reference Tariff to permit pass-through of the Customs Duties and/or Sales Tax 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, spare parts and replacements imported for incorporation into the Complex or use in the 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. For release of such plant, machinery or equipment, spare parts or replacements, such notice may be given at any time after a delay of ten (10) Days following 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, on plant, machinery or equipment, spare parts and replacements not manufactured locally, imported prior to the Commercial Operations Date for incorporation into the Complex or for use in the Project, and the Seller chooses to pay such duties under protest, upon the Seller’s notice to AEDB, 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 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 fees and Customs Duties therefor.

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 restriction andany restriction, shall be and exempt from (or shall enjoy a reduced rate of) Customs Duty and Sales Tax onTax, to import plant, machinerymachinery and equipment not manufactured locally, equipment and spare parts, parts and replacements therefor required for the design, construction, completion, operation, repair and maintenance of the Complex 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 RevenueComplex, 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 Finance Actstatutory revisionary order (SRO) 575 (I) 2006, 2014dated 5th June 2006, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990 (as each may be amended, modified, replaced or substituted amended 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 dedicated for use by the Project and located used 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 any or used by another Person other than the Seller or its Contractors, or Lenders or their designee as a result of enforcement of security; and provided, provided further, that any amendment, modification, replacement revocation or substitution of the applicable provisions of the [Finance Act(SRO) 575 (I) 2006, 2014dated 5th June 2006, the Customs Act or Sales Tax Act] that results resulting 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 default of the GOP default hereunder so long as such withdrawal of exemption or loss of the preferential rate results in (iA) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement Agreement, or (iiB) is as allowed by NEPRA within one hundred and twenty (120) Days of the Seller’s an application being filed by the Seller with NEPRA for modification of the Reference Tariff to permit pass-through of the Customs Duties and/or and Sales Tax and/or the change in the applicable rate thereof, as the case may beTax. (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. For Such notice may be given at any time after a delay in the release of such plant, machinery or equipment, spare parts or replacements, such notice may be given at any time after a delay 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, on of 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 notice to the AEDB by the Seller’s notice to AEDB, 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 and customs fees for those items of the plant, equipment and Customs Duties therefor.machinery. Implementation Agreement 28

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 restriction andany restriction, shall be and exempt from (or shall enjoy a reduced rate of) Customs Duty and Sales Tax onTax, to import plant, machinerymachinery and equipment not manufactured locally, equipment and spare parts, parts and replacements therefor required for the design, construction, completion, operation, repair and maintenance of the Complex 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 RevenueComplex, 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 Finance Actstatutory revisionary order (SRO) 575 (I) 2006, 2014dated 5th June 2006, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990 (as each may be amended, modified, replaced or substituted amended 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 dedicated for use by the Project and located used 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 any or used by another Person other than the Seller or its Contractors, or Lenders or their designee as a result of enforcement of security; and provided, provided further, that any amendment, modification, replacement revocation or substitution of the applicable provisions of the [Finance Act(SRO) 575 (I) 2006, 2014dated 5th June 2006, the Customs Act or Sales Tax Act] that results resulting in the withdrawal of exemption from or loss of the preferential rate of Customs Duty or Sales Tax shall not constitute a Change in Law or give rise to a breach or a default of the GOP default hereunder so long as such withdrawal of exemption or loss of the preferential rate results in (iA) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement Agreement, or (iiB) is as allowed by NEPRA within one hundred and twenty (120) Days of the Seller’s an application being filed by the Seller with NEPRA for modification of the Reference Tariff to permit pass-through of the Customs Duties and/or and Sales Tax and/or the change in the applicable rate thereof, as the case may beTax. (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. For Such notice may be given at any time after a delay in the release of such plant, machinery or equipment, spare parts or replacements, such notice may be given at any time after a delay 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, on of 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 notice to the AEDB by the Seller’s notice to AEDB, 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 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 fees and Customs Duties therefor.

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 restriction and, shall be exempt from (or shall enjoy a reduced rate of) Customs Duty and Sales Tax on, plant, machinery, equipment and spare parts, and replacements therefor required for the design, construction, completion, operation, repair and maintenance of the Complex 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 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 Finance Act, 2014, the Fifth Schedule to the Customs Act, 1969 and the Sixth Schedule to the Sales Tax Act, 1990 (as each may be amended, modified, replaced or substituted from time to time, and including subsequent notifications and circulars issued pursuant thereto); provided, that such imported plant, machinery and equipment, spare parts and replacements shall be dedicated for use by the Project and located at the Site, and will not be used for any purpose other than the Project or sold or otherwise transferred to any Person other than the Lenders or their designee as a result of enforcement of security; and provided, further, that any amendment, modification, replacement or substitution of the applicable provisions of the [Finance Act, 2014, the Customs Act or Sales Tax Act] Act that results in the withdrawal of exemption from or loss of the preferential rate of Customs Duty or Sales Tax shall not give rise to a breach or a GOP default hereunder so long as such withdrawal of exemption or loss of the preferential rate results in (i) a Change in Tax as provided in Section 14.4 and Schedule 1 to the Energy Purchase Agreement or (ii) is allowed by NEPRA ▇▇▇▇▇ within one hundred and twenty (120) Days of the Seller’s application being filed with NEPRA for modification of the Reference Tariff to permit pass-through of the Customs Duties and/or Sales Tax 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, spare parts and replacements imported for incorporation into the Complex or use in the 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. For release of such plant, machinery or equipment, spare parts or replacements, such notice may be given at any time after a delay of ten (10) Days following 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, on plant, machinery or equipment, spare parts and replacements not manufactured locally, imported prior to the Commercial Operations Date for incorporation into the Complex or for use in the Project, and the Seller chooses to pay such duties under protest, upon the Seller’s notice to AEDB, 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 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 fees and Customs Duties therefor.