The Federal Board of Revenue (FBR) has announced the imposition of additional customs duty (ACD) ranging from 2% to 7% on specific imports falling under various tariff slabs, with the new rates taking effect from July 1, 2021.
(more…)Category: Pakistan Customs
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Condition of bank guarantee, post dated cheque waived on temporary import
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday waived the condition of bank guarantee and pay order under temporary import against exempt sales tax and customs duty.
The FBR issued SRO 847(I)/2021 to allow the persons availing facility of temporary importation for subsequent exportation to clear consignments without submitting bank guarantee or pay order. However, the persons shall require to submit indemnity bond or post dated cheque equivalent to the amount of payable duty and taxes.
The FBR said that the export shall be processed subject to profiling by the Risk Management System, the Assistant Collector or the Deputy Collector, in charge of the export station, may examine goods being exported in case of specific information regarding the misuse of the facility with the permission of the collector and findings of the examination shall be uploaded in the system.
The FBR further said that immediately after re-export of goods, the applicant shall produce evidence to the collector of customs concerned that the goods have been re-exported within the stipulated time period.
On production of such evidence or declaration, the indemnity bond and post dated cheque submitted at the time of import shall be released.
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FBR makes huge seizure of smartphones, drives at Islamabad Airport
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday made a huge seizure of smartphones and drives worth Rs50 million at Islamabad International Airport.
A FBR spokesman said that in line with the vision of Prime Minister and due focused approach against the menace of smuggling, FBR has seized 10 cartons and 06 bags lying unclaimed on a conveyer belt at Islamabad International Airport.
The bags contained 25 Apple Macbooks, 235 Apple iPhones, 09 LG Thinq V50 smartphones, 200 SanDisk drives, 94 Lexar SSD drives, 217 SSD drives of difference brands, 40 Lexar SD RAMs, 20 Apples watches (Series 6), 30 Apple Air pods, 04 Apples iPad Pro (5th Generation), 12 Apple iPad (8th Generation), 10 Apple power adapters, 05 Apple USB Power adapters, 03 Apple HD TV devices,05 Honey Well dome cameras, 07 used cameras and other miscellaneous goods having market value of Rs.50 million.
FBR will continue its counter smuggling drive to support local industry and to play its role in economic growth of the country.
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FBR directs customs officers to submit asset declaration, PERs
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday directed officers of Pakistan Customs Service (PCS) from Grade – 19 to Grade – 20, who are in promotion zone, to submit asset declaration and performance evaluation reports (PERs) by July 10, 2021.
The FBR said that the meeting of Central Selection Board (CSB) for promotion of Pakistan Customs Service from BS-20 to BS-21 and BS-19 to BS-20 will be held shortly.
All BS-19 and BS-20 officers of PCS in the promotion zone are advised to ensure that their PERs and Declaration of Assets up to June 30, 2021 are complete and submitted to the Board latest by July 10, 2021 positively.
Completion of PERs and submission of Declaration of Assets are the pre-requisites for promotion to selection grads under Civil Servants Promotion (BS-18 to BS-21) Rules, 2019.
The FBR is trying hard to ensure that all eligible officers be considered for promotion in the forthcoming CSB meeting. However, cooperation in timely completion of service record is equally essential.
All BS-19 and BS-20 officers of PCS are advised to get the needful done as early as possible. The Reporting/Countersigning Officers are also advised to forward PERs to the Board (ERM Section), if pending with them immediately.
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Customs officials to get reward only after realization of duty, taxes
ISLAMABAD: The government has amended reward rules and announced that customs officials will get reward money only after realization of duty and tax involved in evasion cases.
According to budget 2021/2022 documents, amendment to Customs Act, 1969 has been proposed through Finance Bill, 2021.
The proposed amendment through the bill is as:
“Reward to officers and officials of Customs and Law Enforcement Agencies.-(1) In cases involving evasion of customs-duty and other taxes and confiscation of goods, cash reward shall be sanctioned to the officers of Customs Service of Pakistan, as defined under the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990 and officials including officers and officials of other law enforcement agencies, who assist Customs officers and officials or are actually instrumental in seizure of smuggled goods and vehicles as confirmed by the respective Collectorate of Customs, for their meritorious conduct in such cases, and to the informer providing credible information leading to such confiscation or detection, as may be prescribed by rules by the Board, only after realization of part or whole of the duty and taxes involved in such cases.” -
Importers to pay penalty up to Rs250,000
The government has proposed amendments to the Customs Act, 1969, introducing monetary penalties for importers who fail to provide mandatory documents electronically.
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Importers ID to be blocked for one year on contravening packing list
ISLAMABAD: Pakistan customs has been empowered to confiscate goods and block importers for one year on charges of contravening invoices and packing list inside container or consignment.
According to budget 2021/2022 documents, the Finance Bill, 2021 proposed penalties for contravening invoices or packing list.
At present if any person contravenes the requirement of placement of invoice and packing list inside the import container or consignment than such person shall be liable to a penalty not exceeding Rs50,000.
However, the punishment proposed through Finance Bill, 2021 is:
such person shall be liable to a penalty as under:-
1st time Rs 100,000/-
2nd time Rs 500,000/-
3rd time Rs1,000,000/-
4th time outright confiscation of goods and blockage of WeBOC user ID for one year.
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Pakistan Customs authorized to license public, common and private warehouses
ISLAMABAD: Pakistan Customs has been authorized to appoint or license public, common and private warehouses for shifting of dutiable goods without payment of customs duty.
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Nuclear detection, marine directorates set up in Pakistan Customs
ISLAMABAD: Two new directorates including national nuclear detection architecture and marine will be established in Pakistan Customs.
According to budget 2021/2022 documents, the Finance Bill 2021 has proposed establishment of Directorate General of National Nuclear Detection Architecture
The Directorate General of National Nuclear Detection Architecture shall consist of a Director General and as many Deputy Director Generals, Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.”;
Similarly, the Finance Bill 2021 also proposed to establish Directorate General of Marine.
The Directorate General of Marine shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.
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Budget 2021/2022: salient features of budgetary measures in Customs Duty
ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announced measures in regime of customs duty.
GUIDING PRINCIPLES
(a) Remove anomalies in cascading structure of tariff
(b) Promote and protect domestic industry by introducing targeted interventions
(c) Enhance import-substitution by rationalizing tariffs on industrial raw materials / intermediate goods
(d) Facilitate export-oriented manufacturing by reviewing the existing exemption regimes & export schemes
INDUSTRIAL RELIEF MEASURES
1. Reduction / exemption of CD, ACD & RD on import of goods falling under 589 PCT codes to incentivize the textile industry.
2. Reduction / exemption of CD, ACD & RD on import of flat rolled products of HRC and stainless steel.
3. Reduction / exemption of CD and ACD on raw materials and intermediary goods and point of sale machines falling under 328 tariff lines as a consequent of tariff rationalization.
4. To incentivize the pharmaceutical sector and to keep the prices stable in the market, –
Exemption of CD & ACD on more than 350 APIs
Plant, machinery and equipment subject to concessionary rate of 5%
Exemption of CD & ACD on raw material of auto-disable syringes and Reduction in tariff on finished auto-disable syringes
5. Reduction / exemption on inputs / raw materials of food processing industry.
6. Reduction of CD & ACD on uncoated paper and paperboard for printing and graphic arts industry.
7. Reduction / exemption of CD & ACD on Vaccines for veterinary medicines and feed additives to incentivize the dairy sector.
8. Reduction / exemption of CD & ACD on goods falling under more than 100 PCT codes relating to Tourism industry.
9. Reduction of duties on raw material/inputs of footwear industry.
10. Reduction / exemption of CD & ACD on inputs for poultry industry.
11. Reduction / exemption of CD & ACD on raw material for manufacturer of aseptic plastic packaging.
12. Exemption of ACD on import of raw materials for cables / optical fiber manufacturers.
13. Reduction / Exemption of CD & ACD on raw materials for Paint Industry.
14. Reduction / Exemption of CD & ACD on raw materials for Chemical and Artificial Leather Industry.
15. Reduction / Exemption of CD & ACD on inputs for Electronics Manufacturing Industry.
16. Reduction / exemption of CD & ACD on raw materials / inputs of furniture, coating, boiler manufacturing industry, bobbins and cops manufacturing industry etc.
RELIEF TO COMMON MAN
17. Reduction of ACD on goods falling under 2436 tariff lines pertaining to 20% customs duty slab from 7% to 6%.
18. Extension in exemption from customs duties on import of COVID-19 related items for further six month.
19. Exemption of CD &ACD on Inputs of Ready-To-Use Supplementary Foods (RUSF) and Ready-To-Use Therapeutic Food (RUTF).
20. Exemption of CD & ACD on 06 life-saving drugs.
21. Enhance the value of unsolicited gifts through post or courier from Rs.20,000 to 30,000.
22. Exemption of CD & ACD on import of grain storage hermetic bags and cocoons.
23. Rationalization of tariff structure on auto sector.
REVIEW OF REGULATORY DUTY (RD) REGIME:
24. Rationalization of RD on import of Mobile Phones to encourage import substitution
25. Increase in rates of RD on import of non-essential / luxury items to support local industry.
26. Reduction of RD on import of cocoa paste, butter and powder being industrial input goods.
EXPORT FACILITATION MEASURES:
27. To ease of doing business, a new Uniform Export Facilitation Scheme is being proposed. The existing schemes shall be phased out in next two years.
28. Bond to Bond Transfer of goods through WeBOC without prior approval of the Collector is being proposed to be allowed.
29. Reduction of RD on export of molasses, skin and hides to boost positive image of the country with our important trading partners across the world.
MISCELLANEOUS
1. Establishment of Border Sustenance Markets to mitigate the problems faced by the people residing in border areas due to fencing and counter-smuggling measures.
LEGISLATIVE CHANGES:
1) Introduction of a concept of Common bonded warehousing to encourage Small and Medium Enterprises.
2) Empowering Collector of customs to determine customs value there by facilitating trade.
3) Enabling the Director General Valuation to take appropriate decision on appeal and capping the time limit for such proceedings. Facilitation of trade by avoiding time consumed in unnecessary litigations.
4) Allowing the importers to amend manifest till berthing event without seeking approval from custom authorities and hence ease of doing business.
5) Enable customs authorities to allow bonafide amendment in into-bonds goods declaration and thus facilitate trade.
6) Allowing the Collector to extend warehousing period for six months. Reducing the processing time of the requests and promoting ease of doing business.
7) Reducing the time limit allowed for decision of the cases wherein the impugned goods are lying at sea ports, airports or dry-ports and thus decreasing the cost of doing business.
8) Enable customs authorities to issue correction / corrigendum certificate in case of genuine / obvious error and facilitate trade.
9) Inclusion of other law enforcement agencies for the purpose of reward and increasing their motivation.
10) Affording opportunity of being heard to the registered users of WeBOC in accordance with the canons of natural justice.
11) Increasing the period of validity of advance ruling from the current one year to three years in accordance with international benchmarks and facilitating trade thereof.
12) Provision for the classification committee to avoid unnecessary litigation on account of classification disputes and consequently decreasing the cost of doing business.
13) Removal of fine in case of delay in filing of goods declaration and thereby providing ease of doing business.
ENFORCEMENT FEATURES:
1) Inclusion of master bill of lading and certificate of origin in the existing definition of document to discourage origin fraud.
2) Inclusion of the retailing in definition of smuggling to discourage retailers from selling smuggled goods.
3) Making shipping lines responsible for re-export of banned items imported in commercial quantities.
4) Increasing the pitch of fine in case of non-placement of invoice and packing list in container to inculcate compliance.
5) Discouraging smuggling by denying release of vehicles used repeatedly for smuggling against redemption fine.