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Category: Pakistan Customs

  • Refunds of customs duties to be claimed within one year

    Refunds of customs duties to be claimed within one year

    KARACHI: Federal Board of Revenue (FBR) has said that the refunds against customs duties would be paid if claims have been made within one year.

    The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019.

    The FBR explained through Section 33 of the Act that refunds f customs duties would be paid if claims had been made within one year.

    Section 33: Refund to be claimed within one year.

    Sub-Section (1): No refund of any customs-duties or charges claimed to have been paid or over-paid through inadvertence, error or misconstruction shall be allowed, unless such claim is made within one year of the date of payment.

    Sub-Section (2): In the case of provisional payments made under section 81, the said period of one year shall be reckoned from the date of the adjustment of duty after its final assessment.

    Sub-Section (3): In the case where refund has become due in consequence of any decision or judgment by any appropriate officer of Customs or the Board or the Appellate Tribunal or the Court, the said period of one year shall be reckoned from the date of such decision or judgment, as the case may be.

    Sub-Section (3A): The claim filed under this section shall be disposed of subject to pre-audit within a period not exceeding one hundred and twenty days from the date of filing of such claim:

    Provided that the said period may, for reasons to be recorded in writing, be extended by the Collector of Customs for a period not exceeding ninety days.

    Sub-Section (4): No refund shall be allowed under this section, if the sanctioning authority is satisfied that the incidence of customs duty and other levies has been passed on to the buyer or consumer.

    Sub-Section (5): For the purpose of this section, the Board may, by notification in the official Gazette, specify the jurisdiction and powers of the officers of Customs to sanction refund in terms of amount of Customs duty and other taxes involved.

    Section 34: Power to give credit for, and keep account-current of duties and charges.

    An officer of customs, not below the rank of Assistant Collector of customs may, in the case of any mercantile firm or public body, if he so thinks fit, instead of requiring payment of customs duties or charges as and when they become due, keep with such firm or body an account-current of such duties and charges, which account shall be settled at intervals of not exceeding one month, and such firm or body shall make a deposit or furnish a security sufficient in the opinion of that officer to cover the amount which may at any time be payable by it in respect of such duties or charges.

  • Lahore Customs Intelligence announces auction of vehicle on Oct 15

    Lahore Customs Intelligence announces auction of vehicle on Oct 15

    ISLAMABAD: Directorate of Intelligence and Investigation (Customs), Lahore announced auction of vehicles to be held on October 15, 2019 at State Warehouse of the directorate.

    The directorate will announced auction of following vehicles:

    01. BMW Car 745i, Model 2003, Chassis No. WBAGL22000DP38322

    02. Honda Accord Car CL-9, Model 2002, Chassis No. CL9-1000417

    03. Toyota Mark-X Car, Model 2005, Chassis No. GRX120-0025787

    04. Toyota Crown Car, Model 2003, Chassis No. JZS175-0064405

    05. Triumph Heavy Motor Cycle Color Black, Model 2010, Chassis No. PROTOTYPEVH004CP2

    06. Heavy Motor Cycle Yamaha Brand 1000cc Made in Japan, Model R1 2000, Chassis No. JYARN041000003182

    07. Yamaha Dragstar Heavy Motor Cycle 1100cc, Model 2002,Chassis No. VPIOJ-001201

    08. Yamaha Heavy Motor Cycle 500cc, Model 2006 Chassis No. ,JYASJ031000032395

    09. Honda Heavy Motor Cycle, Model 1992, Chassis No. 2073695

    10. BMW Car 750Li, Model 2002, Chassis No. WBAGN62040DE55989

    11. Toyota Run-X Car, Model 2001,Chassis No. ZZE123-0007850

    12. Honda Civic Car VTI, Model 2002, Chassis No. ESI-1201681

  • Date of determination of import duty rate under Customs laws

    Date of determination of import duty rate under Customs laws

    KARACHI: Federal Board of Revenue (FBR) has explained determination of rate of import duty under Customs Act, 1969.

    The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019. Section 30 of the Act explained date of determination of rate of import duty.

    Section 30: Date of determination of rate of import duty

    The rate of duty applicable to any imported goods shall be the rate of duty in force;

    (a) in the case of goods cleared for home consumption under section 79, on the date on which a goods declaration is manifested under that section; and

    (b) in the case of goods cleared from a warehouse under section 104, on the date on which a goods declaration for clearance of such goods is manifested under that section:

    Provided that, where a goods declaration has been manifested in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is delivered at the port of first entry:

    Provided further that, in respect of goods for the clearance of which a goods declaration for clearance has been manifested under section 104, and the duty is not paid within seven days of the goods declaration being manifested, the rate of duty applicable shall be the rate of duty on the date on which the duty is actually paid:

    Provided further that in case of the goods illegally removed from the warehouse, the rate of duty shall be the rate prevalent either on the date of in-bonding or detection of case or date of payment of the duty and taxes, whichever is higher:

    Provided further that in case of exercising option for redemption of fine in lieu of confiscation of the goods seized during anti-smuggling operations, the rate of duty shall be the rate prevalent either on the date of seizure or date of payment of duty and taxes, whichever is higher:

    Provided further that the Board, with approval of the Federal Minister-in-charge may, by notification in the official Gazette, for any goods or class of goods, specify any other date for the determination of rate of duty.

    Explanation:- For the purpose of this section “manifested” means that when a machine number is allocated to goods declaration and is registered in Customs record.

    Section 30A: Date of determination of rate of duty for clearance through the Customs Computerized System

    Subject to the provisions of section 155A, the rate of duty applicable to any imported or exported goods if cleared through the Customs Computerized System, shall be the rate of duty in force on;-

    (a) the date of payment of duty;

    (b) in case the goods are not chargeable to duty, the date on which the goods declaration is filed with Customs.

    Provided that where a goods declaration has been filed in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is filed at the customs-station of first entry:

    Provided further that the Board, with approval of the Federal Minister-in-charge may, by notification in the official Gazette, specify any other date for the determination of rate of duty in respect of any goods or class of goods.

    Section 31: Date for determination of rate of duty on goods exported

    The rate and amount of duty applicable to any goods exported shall be the rate and amount chargeable at the time of the delivery of the goods declaration under section 131:

    Provided that where the export of any goods is permitted without a goods declaration or in anticipation of the delivery of such a declaration, the rate and amount of duty applicable shall be the rate and amount chargeable on the date on which loading of the goods on the outgoing conveyance commences:

    Provided further that the Board, with approval of the Federal Minister-in-charge may, by notification in the official Gazette, for any goods or class of goods, specify any other date for determination of the rate of duty.

    Section 31A. Effective rate of duty

    (1) Notwithstanding anything contained in any other law for the time being in force or any decision of any Court, for the purposes of section 30, 30A and 31, the rate of duty applicable to any goods shall include any amount of duty imposed under section 18,18A and 18C and the amount of duty that may have become payable in consequence of the withdrawal of the whole or any part of the exemption or concession from duty whether before or after the conclusion of a contract or agreement for the sale of such goods or opening of a letter of credit in respect thereof.

    (2) For the purpose of determining the value of any imported or exported goods, the rate of exchange at which any foreign currency is to be converted into Pakistan currency shall be the rate of exchange in force on the date immediately preceding the relevant date referred to in sections 30, 30A or 31.

  • Preventive Peshawar announces auction of confiscated vehicles on October 08

    Preventive Peshawar announces auction of confiscated vehicles on October 08

    ISLAMABAD: Model Customs Collectorate (MCC) Preventive, Peshawar has announced auction of confiscated vehicles on October 08, 2019 at warehouses located at Peshawar/F.C/ Airport/Nowshera/Mardan/DryPort and Abbottabad.

    The following vehicles will be presented for the auction:

    State Warehouse Peshawar

    01. Mercedes Benz (Bullet Proof) Model 1982, Chassis No. WDB-12603312037551

    02. Mercedez Benz Truck Model 1995, Chassis No. WDB6770381K175873

    03. Mitsubishi Pajero Jeep Model 2006, Chassis No. JMYLNV76W6J001329

    04. Toyota Land Cruiser Prado Model 1999, Chassis No.LJ90-0002325

    05. Toyota Hilux Pick Up 4X4 Model 1997 Chassis No. JT733LNA309004002

    06. Toyota Hilux Pick Up Model 2007 Chassis No. MROCS12G400043443

    07. Toyota Fielder Car Model 2002 Chassis No. NZE121-0134145

    08. Mitsubishi Pajero Model 2006 Chassis No. JMYLNV76W6J001340

    09. Toyota Land Cruiser Model 2004 Chassis No. LTERB71J800020686

    10. Toyota Hilux Pick Up Model 2001 Chassis No. JTFDE626800061496

    11. Toyota Camry Car Model 2014 (as per Website) Chassis No. 6TIBF3FK-40X056581

    12. Mercedez Benz Car Model 2002(as per Website) Chassis No. WDB2100162B169560

    13. Toyota Land Cruiser 1993 Chassis No. KZJ78-0007642

    State Warehouse Mardan

    14. Toyota Surf Model 1996 Chassis No. RZN185-0015007

    15. Toyota Vitz Car Model 2004 (as per website) Chassis No. SCP10-0455187

    16. Toyota Corolla “X” Car Model 2006 (as per website) Chassis No. NZE121-3360828

    17. Toyota Corolla “G” Car Model 2001 (as per website) Chassis No. NZE121-3051579

    18. Suzuki Pick Up Model 1997 (as per website) Chassis No. DD51T-513559

    19. Suzuki Pick Up Model 1997 (as per website) Chassis No. DC51T-521096

    20. Suzuki Pick Up Model 1990 (as per website) Chassis No. DA51T-180485

    21. Toyota Corolla “G” Car Model 2000 (as per website) Chassis No. CE121-3000296

    22. Toyota Fielder “X” Car Model 2001 (as per website) Chassis No. NZE121-0033751

    23. Suzuki Alto Car Model 2012 (as per website) Chassis No. HA25S-827003

    State Warehouse Abbotabad

    24. Toyota Mark-X Car Model 2006 Chassis No. GRX120-0009539

    STATE WARE HOUSE, FRONTIER CORPS

    25. Daewoo Car Model 1992 Chassis No. KLATF19TINB-522281

    26. Pickup Model 1980 Chassis No. RN43-003433

    27. Mark-1 Motor Car Model Nil Chassis No. LA3VS-216474

    28. Motor Car Model 1978 Chassis No. M-430-300918

    29. Toyota Corolla Car Model 2003 (as per Website) Chassis No. NZE120-6005014

    30. Toyota Double Cabin Model 1996 (as per Website) Chassis No. JT133LNA409046824

    31. Towance Model 1994 (as per Website) Chassis No. CR22-5016240

    32. Toyota Pick Up Double Cabin Model 1986 (as per Website) Chassis No. LN56-0075058

    33. Toyota Corolla Car Model 1992 (as per Website) Chassis No. CE100-3020027

    34. Toyota Mark-II Car Model 2001 (as per Website) Chassis No. JZX110-6022047

    35. Toyota Corolla Saloon Car Model 2004 (as per Website) Chassis No. ZZE121-9010983

    36. Suzuki “VXR” Car Model 2001 Chassis No. HA23S-613292

    37. Toyota Corolla Car Model 2001 (as per Website), Chassis No. CE100-9020816

    38. Toyota State Car Model 1990 (as per Website) Chassis No. CE96-0081343

  • FBR notifies major reshuffle in Pakistan Customs Service; 35 officers transferred

    FBR notifies major reshuffle in Pakistan Customs Service; 35 officers transferred

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday in a major reshuffle transferred and posted 35 officers of Pakistan Customs Service (PCS) from BS-17 to BS-21 with immediate effect and until further orders.

    (more…)
  • Customs official awarded major penalty for corruption, misconduct

    Customs official awarded major penalty for corruption, misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed major penalty of ‘compulsory retirement’ upon a BS-16 officials of Pakistan Customs on charges of corruption, misconduct and inefficiency.

    According to an official note issued on Thursday the FBR said that disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Mansab Shah, Inspector (BS-16), Model Customs Collectorate of Preventive, Lahore on account of “Inefficiency”, “Misconduct” and “Corruption” under E&D, Rules 1973 after placing him under suspension vide notification 25.03.2019.

    “On receipt of preliminary fact finding inquiry report, all charges were established.”

    A Show Cause Notice dated 27.03.2019 was accordingly issued to him and he was also called for personal hearing by the Authorized Officer / Collector, MCC (Preventive), Lahore on 28.05.2019.

    After considering the charges framed in the charge sheet and other available record, the Authorized Officer / Collector, MCC (Preventive), Lahore recommended to the Authority for imposition of major penalty of Compulsory Retirement.

    The Member (Admn) FBR being Authority in this case, after having considered all aspects of the case and the recommendations of the Authorized Officer has therefore, imposed the major penalty of “Compulsory Retirement” upon Mansab Shah, Inspector, under rule 4(1)(b)(ii) of the Govt. Servants (Efficiency & Discipline) Rules, 1973 with immediate effect.

    The period of suspension of the accused officer w.e.f 25.03.2019 till date will be treated as a leave of kind due as admissible under the rules.

    The official shall have right of Appeal as admissible in the Civil Servants (Appeal) Rules, 1977.

  • SRO to save customs officers in mega gold scam challenged before FBR policy board

    SRO to save customs officers in mega gold scam challenged before FBR policy board

    ISLAMABAD: The Directorate General of Internal Audit (Customs) Lahore has challenged the issuance of SRO 1114(I)/2019 before the Policy Board of the Federal Board of Revenue (FBR) alleging the issuance of the notification was a bid to save senior customs officers in mega gold corruption cases.

    In a compliant on October 02, 2019 made to Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance and Revenue and Chairman FBR’s Policy Board and the other members of the FBR’s policy board that is constituted under Section 6 of the FBR Act, 2007, it has been alleged that the SRO has taken away from the Customs Internal Audit its capacity to detect customs officers’ corruption and resulting massive revenue loss.

    The SRO has been called a device to liberate the customs officers’ corruption and revenue losses from the fear of subsequent internal audit’s detection.

    According to the complainant i.e. Directorate General of Internal Audit (Customs) Lahore, the FBR has purported to act under certain provisions of Customs Act and Sales Tax Act which do not give the FBR any power to abolish any field formations.

    It is alleged that these provisions confer on FBR only the power to appoint officers in field formations and to define their powers and functions.

    It has been further alleged that two directorates of Internal Audit had been abolished in breach of FBR’s statutory obligations under FBR Act, 2007.

    According to the complainant, Section 4(1)(d) of FBR Act requires FBR to improve productivity in its field formations. Section 4(1)(g) of FBR Act requires FBR to take appropriate measures including internal controls to combat corruption within its field formations.

    Section 4(1)(j) of FBR Act requires FBR to introduce and maintain a system of accountability of performance, competence and conduct of its employees.

    It has been alleged that abolition of two directorates of internal audit and over burdening of the single directorate of Islamabad with the responsibility of Customs Internal Audit throughout the country is a measure against FBR’s statutory obligation to improve productivity in field formations.

    It is also a measure against the FBR’s statutory obligation to control corruption and to maintain a system of performance accountability of its officers and employees.

    The complainant questioned that why FBR has conceived a unique SRO of its own kind which has the effect of sheltering corruption and revenue losses from the fear of detection.

    It has been alleged in the complaint that the Directorate of Internal Audit Karachi has been abolished to shelter the customs officers posted in Karachi, who are normally responsible for 90 percent of the customs corruption and revenue losses which take place throughout the country in a year.

    It has been further alleged that the Directorate of Internal Audit Lahore has been abolished for more than one reason, all meant to shelter revenue losses from detection and to save corrupt customs officers from accountability.

    It has been alleged in the complaint that the struggle of Directorate of Internal Audit Lahore to recover a revenue loss of Rs60 billion in gold cases and the efforts of the Directorate to take gold cases against customs officers to a logical conclusion have resulted in its abolition just to serve the interests of senior customs officers involved in these cases.

    The gold case made by Internal Audit took a new beginning when in response to a new story published on June 11, 2018, the Federal Tax Ombudsman took suo moto cognizance of these cases involving a revenue loss of Rs60 billion and recommended disciplinary and criminal proceedings against the customs officers responsible for causing the revenue loss.

    The collector of five customs collectorates subsequently filed representations against FTO’s recommendations before the President of Pakistan. However, the Directorate of Internal Audit Lahore had pleaded the gold cases against the customs officers.

    The directorate of internal audit Lahore requested the FBR Policy Board that the operation of SRO may be immediately held in abeyance till determination of its legality and proper evaluation of its pro corruption consequences.

  • Importer to pay KIBOR+3pc on timely payment failure

    Importer to pay KIBOR+3pc on timely payment failure

    KARACHI: An importer in case of failure to pay import duty or other taxes within specified time then the importer shall be liable to pay surcharge at the rate of KIBOR + 3 percent on the due charges.

    According to Customs Act, 1969 updated June 30, 2019 issued by Federal Board of Revenue (FBR), the KIBOR means Karachi Inter Bank Offered Rate prevalent on the first day of each quarter of the financial year.

    According to the Customs Act, 1969, under Section 21A the FBR is allowed to defer collection of customs duty. However, where deferment of customs duties is allowed by the FBR, a surcharge not exceeding KIBOR plus three percent per annum shall also be payable on the deferred amount from such date and in the manner as the FBR may be rules prescribed.

    Similarly, under Section 80 related to clearance of goods for home consumption, the act explained that where the owner fails to pay import duty and other charges within 10 days from the date on which the time same has been assessed under Section 80 or 80, he shall be liable to pay surcharge at the rate of KIBOR plus three percent on import duty and other charges payable on suchg goods.

    Section 86 related to submission of post-dated cheque and indemnity bond, the FBR said:

    When any such application has been made in respect of any goods, the owner of the goods to which it relates shall furnish an indemnity bond and post-dated cheque equivalent to the duty assessed under section 80 or section 81 or reassessed under section 109 on such goods,-

    (a) to observe all the provisions of this Act and the rules in respect of such goods;

    (b) to pay on or before a date specified in a notice of demand all duties, taxes, rent and charges payable in respect of such goods together with surcharge on the same from the date so specified at the rate of KIBOR plus three per cent per annum or such other rate as is for the time being fixed by the Board; and

    (c) to discharge all penalties incurred for violation of the provisions of this Act and the rules in respect of such goods.

    The Section 202A related to levy of surcharge, explained that notwithstanding anything contained in this Act and without prejudice to any other action that may be taken thereunder, if any person fails to pay the arrears within the prescribed time, he shall, in addition to the arrears, be liable to pay surcharge at the rate of KIBOR plus three per cent per annum, of the total amount of arrears.

  • Peshawar customs announces auction of confiscated mobile phones on Sept 27

    Peshawar customs announces auction of confiscated mobile phones on Sept 27

    ISLAMABAD: Model Customs Collectorate (MCC) Peshawar has announced public auction of confiscated mobile phones to be held on September 27, 2019 at State Warehouse.

    Following mobile phones will be offered for the auction:

    01. 55 pieces of SAMSUNG GALAXY CORE 2 DUOS (22 pieces) and SAMSUNG GALAXY J1 (33 pieces)

    02. 53 pieces SAMSUNG GALAXY J1 (23pieces) and SAMSUNG GALAXY CORE 2 DUOS (30 pieces).

    03. 1987 pieces of Q 3310 Mini Mobile Phones.

    04. 8 pieces of Q Mobile D4 Phone.

    05. 45 pieces of SAMSUNG MOBILE PHONE (J56SM-J510-F/DS).

    06. 800 pieces of Voice Mobile Phone V-105 (580 pieces), V-840 (60 pieces) and V-2426 (160 pieces).

    07. Total 04 pieces of NOKIA (107) Mobile Phone (02 pieces), G Five (Model 1226)=01-No & Q Mobile (H50) =01-No.

    08. Total 174 pieces of Q MOBILE (L9)

    09. 14 pieces of Q MOBILE Phone (L7).

    10. 06 pieces of Q MOBILE Phone XL3000 =01-No & Q Mbile E2000 PARTY=05-Nos.

    11. Total 481 pieces of Nokia 1134 Mobile Phones =119-Nos, 1110 116-Nos, 1035 80-Nos, 944 45-Nos, 1136 62-Nos & 1133 59-Nos.

    12. 05 pieces of Samsung Galaxy Alpha Mobile Phones =04-Nos and IPhone GSM=01-No.

    13. 05 pieces of Q Mobile K-180.

    14. 22 pieces of Samsung G570F =18-Nos, Samsung G610F 01-No, Samsung G313 01-No Motorolla XT1030 01-No & HTC X200 01-No.

    15. 02 pieces of Samsung Galaxy Alpha SM-G580 F Mobile Phones.

    16. Total 117 pieces of Samsung Galaxy Core 2 Duos SM-G355H =112-Nos, Samsung Galaxy Note 4 01-No, Samsung Iphone =01 No, Samsung Galaxy Tab 5 02-Nos & Tab 4 01-No.

    17. 99 pieces of Q Mobile Commando 1.

    18. 64 pieces of Samsung Galaxy J5 23-Nos Galaxy J2 25-Nos & Samsung A3 (6) 16-Nos.

    19. 26 pieces of Nokia N1 616 Mobile Phone =01-No, Nokia N106 21-Nos, Nokia N1280 01-No & Nokia N1202 03-Nos.

  • Transfer of funds through misdeclaration included into punishable offences

    Transfer of funds through misdeclaration included into punishable offences

    KARACHI: Federal Board of Revenue (FBR) has included illegal transfer of funds through mis-declaration into the list of punishable offences.

    The FBR issued Customs Act, 1969 updated June 30, 2019 incorporating changes brought through Finance Act, 2019.

    The customs officials said that a new section 32C was introduced to Customs Act, 1969 through Finance Act, 2019 for including misdeclaration of value for illegal transfer of funds into or out of Pakistan as punishable offence under the customs law.

    Section 32C: Mis-declaration of Value for illegal transfer of funds into or out of Pakistan.

    (1) Without prejudice to any action that may be taken under this Act or any other law for the time being in force, if any person overstates the value of imported goods or understates the value of exported goods or vice versa, or using other means including short-shipment, over-shipment, with a view to illegally transferring funds into or out of Pakistan, such person shall be served with a notice to show cause within a period of two years from the date of detection of such mis-declaration as to why penal action shall not be initiated:

    Provided that if goods have not been cleared from customs, such goods shall also be liable to be seized:

    Provided further that a team consisting of Additional Collector, duly assisted by an expert in the relevant field and an officer of State Bank of Pakistan (SBP) as specified, shall submit a report in writing with evidence for the Chief Collector. The said report shall also be furnished to the SBP for action, if any, under the law regulated by SBP.

    (2) Any proceedings under this section, shall not be initiated, without the explicit approval of Board.

    The customs officials said that if any person commits offence under this section then such person shall be liable to penalty not exceeding two hundred thousand rupees or three times the value of goods in respect of which such offence is committed whichever is greater; and such goods shall be liable to confiscation.

    Further, upon conviction by a special judge the offender shall be liable to imprisonment for a term not exceeding five years and to a fine which may extend up to one million rupees.