Pakistan temporarily suspends customs duty on imported E&P equipment

The government of Pakistan has agreed to temporarily allow exploration and production companies to import drilling equipment, seismic vessels, and certain specialized vehicles without payment of customs duty and sales tax.

Aug. 11, 2004

By an OGJ correspondent

KARACHI, Aug. 11 -- The government of Pakistan has agreed to temporarily allow exploration and production companies to import drilling equipment, seismic vessels, and certain specialized vehicles without payment of customs duty and sales tax.

Last month, the government agreed that oil companies and service companies as well as their contractors, and subcontractors are entitled to the tax concessions.

Companies will be asked to submit a corporate guarantee valid for 2 years that equals the value of import duties and taxes exempted. The period could be extended by Pakistan's Collector of Customs if the importer has a definite contract.