Indemnity Bond Release Certification
According to the National Board of Revenue (NBR) SRO, you may enjoy tax exemption on capital machineries. For instance, 100 percent export oriented industries enjoy full tax exemption on import duty or any other tax is payable on imported capital machinery. However, the government keeps a bond depending on the value of the imported capital machinery on non-judicial stamp that you need to install your capital machinery within 1 year of import and export at-least 80 percent products produced by the installed capital machinery. Also, you cannot transfer your imported capital machinery to third parties after a tax exemption bond is signed. If an exporter is unable to do so, he will be paying full taxes against the capital machinery.