The Federal Board of Revenue (FBR) has introduced the Special Technology Zones Rules 2023, stating that goods imported for Special Technology Zones (STZs) must be retained for a minimum period of ten years and cannot be sold without prior approval from the FBR. The FBR issued these rules through an SRO.744(I)/2023 on Monday, outlining the conditions and tax benefits associated with STZs.
According to the FBR’s regulations, tax benefits will only be granted if the imported goods are utilized within the STZs for a ten-year period starting from the date of signing the development agreement or the issuance of a license. Furthermore, goods that have availed duty/tax exemption can only be used within the STZs and cannot be disposed of without the prior approval of the FBR.
To be eligible for exemption, enterprises must possess a valid license issued by the developer of an STZ and must be registered under the Customs Computerized System using a unique user ID. Each consignment imported will require certification from the authorized officer of the Special Technology Zones Authority (STZA) to verify that the imported capital goods are essential for the project.
Under the new rules, eligible importers can opt for partial shipment of capital goods, as long as the total import period of these partial shipments does not exceed twenty months from the initial import date. After acquiring a valid license from the licensing authority, the licensee of the zone must apply for a user ID from the registration authority. The Customs department will verify the business facility, including manufacturing areas and stores, and issue a user ID based on the items allowed under respective tariff headings, enabling the licensee to commence operations through the Customs Computerized Systems, as specified by the FBR.
