Karachi, January 7, 2024 – The Federal Board of Revenue (FBR) in Pakistan has recently released the updated Customs Act, 1969, outlining the procedural framework for customs clearance for home consumption during the tax year 2024.
This move is aimed at enhancing transparency and efficiency in the customs clearance process, ensuring compliance with import regulations and facilitating smoother trade transactions.
According to the newly issued act, when the owner of goods intended for home consumption has paid the import duty and other associated charges under sections 80 or 81, the appropriate officer may, upon satisfaction that the import adheres to regulations, issue an order for the clearance of the goods. Importantly, at customs-stations where the Customs Computerized System is operational, the system may facilitate the clearance of goods through system-generated clearance documents, streamlining the process for both the authorities and the importers.
However, the act also imposes a time limit on the payment of import duty and other charges. If the owner fails to settle these fees within ten days from the date of assessment under sections 80 or 81, they will be subject to a surcharge. The surcharge is set at the rate of KIBOR plus three percent on the import duty and other charges payable for the goods in question.
Furthermore, the Customs Act provides provisions for cases where an offense is detected in connection with imported goods that are not subject to outright confiscation. In such instances, the Collector of Customs may, upon receiving a written request from the owner of the goods, authorize the release of the goods. This release, however, is contingent upon the payment of duties, taxes, or other charges, and the provision of a bank guarantee or pay order to cover any potential penalties or fines that may be imposed on the goods at a later stage.
This procedural update aligns with the government’s ongoing efforts to streamline customs processes, promote compliance, and foster a conducive environment for international trade. By incorporating a computerized system for clearance documents and setting clear timelines for payment, the FBR aims to reduce bureaucratic hurdles and enhance the overall efficiency of customs clearance operations.
The business community has welcomed these changes, expressing optimism about the potential positive impact on trade operations. The streamlined procedures are expected to contribute to a more predictable and expedited customs clearance process, ultimately benefitting importers, exporters, and other stakeholders involved in international trade.
As the implementation of these new procedures unfolds, stakeholders will closely monitor their impact on trade dynamics and operational efficiency, providing valuable insights for potential further improvements in the future.
