Karachi, February 9, 2024 – In a bid to curb the misuse of the Baggage Rules, Pakistan Customs is actively seeking enhanced powers to confiscate goods imported in commercial quantities.
The Collectorate of Customs (Enforcement) Karachi has recommended amendments to Rule 17, as outlined in SRO 666(I)/2006, specifically targeting the confiscation of goods imported in the name of overseas Pakistanis.
The move comes in response to an own-motion investigation initiated by the Federal Tax Ombudsman (FTO) into the potential misuse of the Baggage Rules facility. The FTO’s findings emphasized that the clearance of goods brought in commercial quantities under the Baggage facility should not be denied based solely on Rule 17, in conjunction with Rule 2(c) and SRO 499(I)/2009 dated June 13, 2006.
Pakistan Customs, through the Collectorate of Customs (Enforcement) Karachi, has informed the Federal Board of Revenue (FBR) about the proposed changes aimed at empowering Customs officials to take decisive action against the importation of goods exceeding personal use limits.
Addressing concerns related to passport misuse, the collectorate clarified that, as a clearance formation, they are bound by current regulations and cannot refuse the clearance of goods imported in commercial quantities solely based on the income status of the passport owner.
The FTO, recognizing the need for a comprehensive solution, recommended that the FBR instruct the Member (Customs Policy) to thoroughly examine the proposals put forth by the collectorate of Enforcement, Karachi, and the Directorate of Intelligence and Investigation, Karachi. The FTO suggested that the FBR should then incorporate any tenable changes in the relevant rules, procedures, or SROs in accordance with the law.
In response, the FBR has directed the Member (Customs Policy) to diligently scrutinize the proposals and, if deemed appropriate, integrate any necessary changes into the existing rules and procedures. A compliance report is expected from the FBR by July 15, 2024.
The move to seek expanded powers by Pakistan Customs reflects the authorities’ commitment to ensuring the fair and lawful use of the Baggage Rules facility. By addressing potential loopholes and instances of misuse, the Customs department aims to uphold the integrity of the regulatory framework while facilitating legitimate imports by overseas Pakistanis.
As the FBR evaluates the proposed changes, stakeholders are keenly observing the potential impact on trade dynamics and the broader customs landscape. Striking the right balance between facilitating commerce and preventing misuse will be crucial in fostering a transparent and efficient trade environment in Pakistan.
