Karachi, January 10, 2024 – The Federal Board of Revenue (FBR) in Pakistan has powers to cancel customs registration for non-compliance to ensure compliance with prevailing laws in the tax year 2024.
In a recent update to the Customs Act, 1969, the FBR has delegated powers to customs authorities to cancel the registration of the Pakistan Customs Computerization System for users found in violation of the established regulations.
Under the amended Customs Act, customs authorities, acting under Section 155F, now possess the authority to cancel the registration of any user of the Customs Computerized System found guilty of the following:
(a) Non-Compliance with Registration Conditions: If a registered user fails to comply with any condition of registration imposed by the Collector under sub-section (3) of section 155C of the Customs Act.
(b) Contravention of Conditions Related to Unique Identifier: If a registered user fails to comply with or acts in contravention of any conditions imposed by the Collector under sub-section (3) of section 155D of the Customs Act concerning the use and security of the registered user’s unique identifier.
(c) Conviction of an Offence under the Customs Act: If a registered user has been convicted of an offence under the Customs Act.
Upon satisfaction of any of these conditions, the Collector of Customs is empowered to cancel the registration of the concerned person as a registered user. The cancellation will be communicated through a written notice to the affected party, outlining the reasons for the cancellation.
In exceptional circumstances, the Collector of Customs has the authority to immediately suspend the use of the unique user identifier of any person upon receipt of a complaint or information about a violation of any provisions of the Customs Act. This suspension, however, is subject to a subsequent review process.
The affected party is entitled to a fair hearing, and the Collector of Customs must, after providing an opportunity for the concerned individual to be heard, pass an order confirming or otherwise the suspension of the unique user identifier. Furthermore, a person aggrieved by the cancellation or confirmation of suspension can appeal within thirty days of receiving the order.
The appeal process involves presenting the case to the Chief Collector, who has the authority to annul, modify, or confirm the order passed by the Collector of Customs. This multi-tiered review process ensures that decisions are fair, transparent, and subject to thorough scrutiny.
These amendments are part of the government’s broader efforts to streamline customs procedures, enhance accountability, and curb any potential misuse or non-compliance within the Customs Computerization System. By granting authorities the power to cancel registrations for non-compliance, the FBR aims to maintain the integrity of the customs processes and uphold the principles of transparency and accountability in trade-related activities during the tax year 2024.
