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

Right to Import; Customs Duties. a) The GOP encourages the Company 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 Company and its Contractors shall be entitled to import prior to the Commercial Operations Date without restriction and exempt from Sales Tax, but subject to the payment of the applicable Customs Duty, not to exceed five percent (5%) on value, determined under the Laws of Pakistan, of imported plant, machinery and equipment not manufactured locally and required for the design, construction, completion, operation and maintenance of the Complex, subject to compliance with any restrictions imposed by the Import Policy Order (SRO 775(I)2006, dated 31st July 2006), as issued from time to time; provided , that, unless all Taxes are paid in full, such imported plant, machinery and equipment 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 Company or its Contractors. b) From and after the Commercial Operations Date, the applicable Customs Duty shall be [ten percent (10%)] on plant, machinery and equipment not manufactured locally and required for the repair, operation and maintenance of the Complex. c) Provided that applicable Customs Duties are timely paid by the Company, all plant, machinery and equipment imported for incorporation into the Complex, or use in the Project shall be cleared for release from Customs and available for removal by the Company or its agents within fifteen (15) Business Days following delivery by the Company of written notice to the PPIB of a delay in the release by Customs of such plant, machinery and equipment. Such notice may be given at any time after a delay in the release of such plant, machinery or equipment of ten

Right to Import; Customs Duties. (a) The GOP encourages the Company 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 Company and its Contractors shall be entitled to import prior to the Commercial Operations Date without restriction and exempt from Sales Tax, but subject to the payment of the applicable Customs Duty, not to exceed five percent (5%) on value, determined under the Laws of Pakistan, of imported plant, machinery and equipment not manufactured locally and required for the design, construction, completion, operation and maintenance of the Complex, subject to compliance with any restrictions imposed by the Import Policy Order (SRO 775(I)2006, dated 31st 31 st July 2006), as issued from time to time; provided , that, unless all Taxes are paid in full, such imported plant, machinery and equipment 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 Company or its Contractors. b) . From and after the Commercial Operations Date, the applicable Customs Duty shall be [ten percent (10%)] ) on plant, machinery and equipment not manufactured locally and required for the repair, operation and maintenance of the Complex. c(b) Provided that applicable Customs Duties are timely paid by the Company, all plant, machinery and equipment imported for incorporation into the Complex, or use in the Project shall will be cleared for release from Customs and available for removal by the Company or its agents within fifteen (15) Business Days following delivery by the Company of written notice to the PPIB of a delay in the release by Customs of such plant, machinery and equipment. Such notice may be given at any time after a delay in the release of such plant, machinery or equipment of tenten (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 into Pakistan. In the event that there is a claim for Customs Duties in excess of five percent (5%) on the value, as determined under the Laws of Pakistan, of plant, machinery or equipment not manufactured locally, imported prior to the Commercial Operations Date for incorporation into the Complex, or use in the Project, and the Company chooses to pay such duties under protest, upon notice to the GOP by the Company, such dispute shall be resolved consistent with the terms of this Agreement and the Laws of Pakistan within ninety (90) days after the Company 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 Company, 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 Company to re-export any items of plant, equipment or machinery used in the construction of the Complex that are not reasonably required for the Company to operate and maintain the Complex, unless the Company agrees promptly to pay the applicable Custom Duties for those items of the plant, equipment or machinery.