ISLAMABAD: The Federal Board of Revenue (FBR) is contemplating the imposition of charges for customs clearance services, a move empowered by Section 18D of the Customs Act, 1969.
The FBR has updated the Customs Act, 1969, incorporating amendments made through the Finance Act, 2021, and is considering the implementation of fees for various services associated with consignment clearance.
Section 18D of the Customs Act, 1969, grants authority to the Federal Board of Revenue, with the approval of the Federal Minister-in-charge, to levy fees and service charges. The Board can do so by issuing a notification in the official Gazette, imposing these charges subject to specific conditions, limitations, or restrictions deemed appropriate.
The services for which fees and service charges may be imposed include examination, scanning, inspections, sealing and desealing, valuation checks, or any other service or control mechanism provided by any formation under the control of the Board. This also encompasses ventures involving public-private partnerships. The rates for these charges will be specified in the notification issued by the Board.
This development aligns with the FBR’s ongoing efforts to streamline customs processes, enhance efficiency, and potentially generate additional revenue. By levying fees for various customs clearance services, the FBR aims to recover the costs associated with these services while also possibly discouraging unnecessary or frivolous customs requests.
The Customs Act, 1969, serves as the legal framework governing customs procedures in Pakistan. It is periodically updated to reflect changes in legislation, incorporating amendments made through finance acts. The latest update, as of June 30, 2021, includes revisions brought about by the Finance Act, 2021.
The proposed charges for customs clearance services fall within the broader context of reforms aimed at modernizing and optimizing the customs and taxation processes in Pakistan. By introducing a structured fee system, the FBR seeks to strike a balance between providing essential customs services and ensuring financial sustainability.
The imposition of fees for customs-related services is expected to bring greater transparency and accountability to the customs clearance process. It may also lead to more efficient resource allocation, allowing the FBR to invest in improving infrastructure, technology, and training for customs officials.
However, the FBR will need to carefully consider the economic implications of these charges, keeping in mind the potential impact on businesses engaged in international trade. Striking the right balance between facilitating trade and recovering costs through service charges will be crucial to the success of this initiative.
As the FBR moves forward with its considerations under Section 18D of the Customs Act, stakeholders, including businesses and industry associations, will likely be engaged to provide input and feedback on the proposed fee structure. This collaborative approach aims to ensure that the new charges align with the broader goals of promoting trade facilitation and revenue generation in Pakistan.
