Exemption of Customs Duty and Excise Duty

[Syed Ibrahim]

Sir,

We wish to inform that TWAD board requires HDPE pipe using PE 100 resin which is to be imported from foreign, for executing a water supply project with the International  loan assistance from JICA. The project is being implemented through a contractor for which the contract was awarded to him under ICB bidding process.We agree to issue Project Authoriyu Certificate (PAC) in appendix 27 under paragraphs 4.1.3 and 8.2.4 of FTP,  for the tax exemption.

In the PAC under quantity column we want to indicate our requirement of pipes both in lenth in "m" and weight in "MT" soas to inform the quantity of resin to be imported . But the manufacturer/Vendor is objecting for weight in "MT". He wants the quantity in "m" only.

Please guide us the correct way of submitting the PAC.

Syed Abbas Ibrahim

Deputy Chief Engineer, TWAD Board, Chennai.

AI Summary

Customs duty exemption: state PAC quantity consistently with supplier invoice and BOQ and include specifications to enable weight calculation.
The PAC for customs duty exemption should state HDPE pipe quantity in length (metres) and include detailed specifications (size, breadth, wall thickness, quality) in the description so weight can be calculated if required. Ensure the foreign supplier's invoice uses the same unit of measure as the PAC; the controlling unit (metre or weight) should follow the BOQ or purchase order to facilitate smooth customs clearance.