KARACHI: The Federal Board of Revenue (FBR) on Wednesday issued a notification to grant exemption of taxes and duties on the import of machinery and equipment for the Lahore Orange Line Metro Train Project. Earlier, the federal government had approved tax exemptions worth Rs 20 billion to Punjab government’s multibillion-dollar OMT project while the development took place in a meeting of the Economic Coordination Committee (ECC) of the Cabinet chaired by Finance Minister Ishaq Dar. According to the notification, the federal government is pleased to direct that equipment, if not manufactured locally, imported by M/s CR-NORINCO (Chinese Contractor) to be furnished and installed in Lahore Orange Line Metro Train Project shall be exempt from all customs duties. The exemptions are subjected to the conditions that the equipment imported under this notification shall only be used in the aforesaid project, the importer shall furnish an indemnity bond, in the prescribed manner and format, the Punjab Mass Transit Authority, shall certify in the prescribed manner and format. The FBR said that in the event a dispute arises whether any item is entitled to exemption under this notification, the item shall be immediately released by the Customs Department against a corporate guarantee, valid for a period of six months, submitted by the importer. A certificate from the regulatory authority duly verified by the Transport and Communication Section of the Ministry of Planning, Development and Reform, that the item is covered under this Notification shall be given due consideration by the Customs Department towards finally resolving the dispute while disputes regarding the local manufacturing only shall be resolved through the Engineering Development Board of the federal government. “For the clearance of imported equipment through Pakistan Customs Computerized System the authorized officer of the regulatory authority shall furnish all relevant information.” The notification further states that that the equipment, imported under this notification shall not be re-exported, sold or otherwise disposed off, without prior approval of the FBR. In case goods are sold or otherwise disposed off, with prior approval of the FBR the same shall be subject to payment of duties as may be prescribed by the FBR; violation of any of the above conditions shall render the goods liable to payment of statutory rate of customs duties imposable on the date of clearance of goods in addition to any other penal action under relevant provisions of the law, it added.