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Tag: Customs Act 1969

  • FBR explains dutiable goods imported into Pakistan

    FBR explains dutiable goods imported into Pakistan

    KARACHI: Federal Board of Revenue (FBR) has defined dutiable goods imported into Pakistan under Customs Act, 1969.

    The FBR issued Customs Act, 1969 updated June 30, 2019 and explained goods dutiable under Section 118 of the Act.

    Section 18: Goods dutiable

    (1) Except as hereinafter provided, customs duties shall be levied at such rates as are prescribed in the First Schedule or under any other law for the time being in force on,-

    (a) goods imported into Pakistan;

    (b) goods brought from any foreign country to any customs station, and without payment of duty there, transshipped or transported for, or thence carried to, and imported at any other customs-station; and

    (c) goods brought in bond from one customs station to another. 105(1A) Notwithstanding anything contained in sub-section (1), customs duties shall be levied at such rates on import of goods or class of goods as are prescribed in the Fifth Schedule, subject to such conditions, limitations and restrictions as prescribed therein.

    (2) No export duty shall be levied on the goods exported from Pakistan.

    (3) The Federal Government may, by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods imported or exported, as specified in the First Schedule at a rate not exceeding one hundred per cent of the value of such goods as determined under section 25 or, as the case may be, section 25A.

    (4) The regulatory duty levied under sub-section (3) shall –

    (a) be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and

    (b) be leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.]

    (5) The Federal Government may, by notification in the official Gazette, levy an additional customs-duty on such imported goods as are specified in the First Schedule, at a rate not exceeding thirty-five per cent of value of such goods as determined under section 25 or, as the case may be, section 25A:

    Provided that the cumulative incidence of customs-duties leviable under sub-sections (1) and (5) shall not exceed the rates agreed to by the Government of Pakistan under multilateral trade agreements.

    (6) The additional customs-duty levied under sub-section (5) shall be,-

    (a) in addition to any duty imposed under sub-sections (1) and (3) or under any other law for the time being in force; and

    (b) leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the official Gazette in which such notification appears is published at any time after that day.

    Related Stories

    FBR lists prohibited items for import, export

  • FBR lists prohibited items for import, export

    FBR lists prohibited items for import, export

    KARACHI: Federal Board of Revenue (FBR) has issued list of items that are prohibited for clearance of import or export under Customs Act, 1969.

    The FBR issued Customs Act, 1969 updated till June 30, 2019 (incorporating changes brought through Finance Act, 2019) and explained Section 15 related to prohibition.

    Section 15

    Prohibitions:- No goods specified in the following clauses shall be brought into or taken out of Pakistan, namely:-

    (a) counterfeit coins, forged or counterfeit currency notes, and any other counterfeit product;

    (b) any obscene book, pamphlet, paper, drawing, painting, representation, figure, photograph, film, or, article, video or audio recording, CDs or recording on any other media;

    (c) goods having applied thereto a counterfeit trade mark within the meaning of the Pakistan Penal Code, 1860 (Act XLV of 1860), or a false trade description within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout-Designs of Integrated Circuits Ordinance, 2000 (XLIX of 2000), the Registered Designs Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001);

    (d) goods made or produced outside Pakistan and having applied thereto any name or trade mark, being or purporting to be the name or trade mark of any manufacturer, dealer or trader in Pakistan, unless,-

    (i) the name or trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place outside Pakistan; and

    (ii) the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark, and in the same language and character as the name or trade mark;

    (e) goods involving infringement of copyright, layout-design of integrated circuits, industrial designs, patents within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Designs Ordinance, 2000 (XLV of 2000), and the Patents Ordinance, 2000 (LXI of 2000), respectively; and

    (f) goods made or produced outside Pakistan and intended for sale, and having applied thereto, a design in which copyright exists under the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout –Designs of Integrated Circuits Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001), in respect of the class to which the goods belong or any fraudulent or obvious imitation of such design, patent, copyright except when the application of such design has been made with the license or written consent of the registered proprietor, right holder of the design, patent or copyright, as the case may be:

    Provided that offences relating to goods imported or exported in violation of Intellectual Property Rights shall, notwithstanding any thing contained in any other law for the time being in force, be adjudicated under section 179 by the appropriate officer of customs.

    Section 16

    Power to prohibit or restrict importation and exportation of goods.- The Federal Government may, from time to time, by notification in the official Gazette, prohibit or restrict the bringing into or taking out of Pakistan of any goods of specified description by air, sea or land.

    Section 17

    Detention, seizure and confiscation of goods imported in violation of section 15 or section 16.- Where any goods are imported into, or attempted to be exported out of, Pakistan in violation of the provisions of section 15 or of a notification under section 16, such goods shall, without prejudice to any other penalty to which the offender may be liable under this Act or the rules made there under or any other law, be liable to detention, for seizure or confiscation subject to approval of an officer not below the rank of an Assistant Collector of Customs, and seizure for confiscation through adjudication, if required.

    It may be mention here that the ministry of commerce through SROs 927 and 928 dated August 9, 2019 imposed complete ban on trade with India.

  • FBR proposes retaining machinery for five years by EPZ investors for duty, tax free disposal

    FBR proposes retaining machinery for five years by EPZ investors for duty, tax free disposal

    KARACHI: Federal Board of Revenue (FBR) has proposed retaining period of machinery to five years imported by exporters for disposing of without duty and taxes.

    The FBR through SRO 805(I)/2019 proposed amendments to Customs Rules, 2001 and proposed to enhance the retaining period of machinery for manufacturers having facility within Export Processing Zones to five years in order to dispose of without duty and taxes.

    According to proposed amendments, the investors in EPZ shall retain machinery for a period of five years from the date of its import into the zone.

    Further the investors in EPZ shall be allowed to dispose of machinery in the tariff are after filing goods declaration subject to fulfillment of conditions of Import Policy Order upon payment of duty and taxes on the following terms, namely:

    01. If sold or otherwise disposed of before the expiration of three years from the date of import in EPZ, full duty and taxes would be applicable.

    02. If sold or otherwise disposed of after three and before four years from the date of import in EPZ, about 75 percent of duty and taxes would be applicable.

    03. If sold or otherwise disposed of after four and before five years from the date of import in EPZ, about 50 percent of duty and taxes would be applicable.

    04. If sold or otherwise disposed of after five years from the date of import of EPZ the exporter/investor would enjoy free of duty and taxes.

    The FBR also proposed amendment to the rules regarding licensing for operating a warehouse. As per the proposed amendments the documents and condition is as:

    “The site plan of the proposed warehouse indicating the location of the premises and the details of the total area, covered area and the area proposed to be utilized for the manufacturing area of facility and for storing and bonded warehoused input goods and manufactured goods therefrom for exports, and spate other storage areas for duty paid input goods, manufactured goods there from, factory rejects and wastages, for domestic local sales, in case of a manufacturing bond.

    Another amendment in this regard is as:

    “In case of manufacturing bond, the applicant shall apply to the Regulatory Authority designated by the Collector of Customs having jurisdiction in which the unit is registered under the Sales Tax Act, 1990, and in case there are more than one unit of a proprietor, he shall apply to the Regulatory Authority designated by the Collector of Customs where the head office of the applicant is registered under Sales Tax Act, 1990.”

  • Powers to form Customs tribunal shifted to Prime Minister

    Powers to form Customs tribunal shifted to Prime Minister

    KARACHI: The Finance Bill 2019 has proposed to shift the powers to form Customs Appellate Tribunal from the federal government to the Prime Minister.

    According to interpretation by EY Ford Rhodes Chartered Accountants Firm, the Finance Bill 2019 sees to substitute Section 194 of Customs Act, 1969, which empowers the federal government to form, regulate and conduct the affairs of the Appellate Tribunal.

    “The Bill seeks to shift these powers to the Prime Minister,” it added.

    The Appellate Tribunal shall consist of a Chairman, judicial and accountant members.

    The terms and conditions of appointment of the chairman and judicial and technical members (this may be referred to accountant members) are proposed to be determined by the Prime Minister.

    Further, the appointment of a technical member shall be for a period of two years. The Bill seeks to explain the criteria for appointment of judicial members and accountant members as under:

    A judicial member of the Appellate Tribunal shall be appointed, unless such person:

    (a) has been a judge of a High Court;

    (b) has exercised the powers of a District Judge and is qualified to be a judge of the High Court; or

    (c) is or has been an advocate of a High Court and is qualified to be appointed as a judge of a High Court:

    Further, the person who is or has been an advocate of High Court shall not be appointed as judicial member unless selected in accordance with the Civil Servants Act, 1973 (LXXI of 1973) and the Federal Public Service Commission Ordinance, 1977 (XLV of 1977).

    An accountant member of the Appellate Tribunal shall be appointed, unless such person:

    (a) is an officer of Pakistan Customs Service equivalent in rank to the Member of FBR or Chief Collector of Customs or Director General; or

    (b) is a Collector or Director or Chief of the FBR having at least three years’ experience in that position.

  • Finance Bill 2019: GD filing limit reduced to 10 days

    Finance Bill 2019: GD filing limit reduced to 10 days

    KARACHI: The government has reduced the goods declaration filing limit from 15 days to 10 days by proposing amendment to Section 79 of Customs Act, 1969.

    The Finance Bill 2019 has proposed reduction in time limit of filing GD from 15 days to 10 days.

    Presently Section 79 of Customs Act, 1969 is as:

    79. Declaration and assessment for home consumption or warehousing or transshipment

    (1)The owner of any imported goods shall make entry of such goods for home consumption or warehousing or transshipment] or for any other approved purposes, within fifteen days of the arrival of the goods, by,-

    (a) filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe; and

    (b) assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:

    Provided that if, in case of used goods, before filing of goods declaration, the owner makes a request to an officer of customs not below the rank of an Additional Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:

    Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.

    Explanation.- For the purposes of this clause, the assessment and paying of duty, taxes and other charges in respect of transshipment shall be at the port of destination.

    (2) If an officer, not below the rank of Additional Collector of Customs, is satisfied that the rate of customs duty is not adversely affected and that there was no intention to defraud, he may, in exceptional circumstances and for reasons to be recorded in writing, permit, substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.

    (3) An officer of Customs, not below the rank of Assistant Collector of Customs, may in case of goods requiring immediate release allow release thereof prior to presentation of a goods declaration subject to such conditions and restrictions as may be prescribed by the Board.

    The Bill, however, also proposed the penalty for non-filing of the declaration within the stipulated time is proposed to be amended from Rs15,000 to Rs5,000 per day for the initial five days of default and at a rate of Rs10,000 per day for each day of default thereafter.

  • Finance Bill, 2019: 10 years imprisonment for money laundering through foreign trade

    Finance Bill, 2019: 10 years imprisonment for money laundering through foreign trade

    KARACHI: In a determined effort to combat money laundering through foreign trade, the government has unveiled strict measures, including up to 10 years imprisonment for offenders and the confiscation of implicated consignments. These proposed reforms are detailed in the Finance Bill 2019, aiming to amend the Customs Act, 1969.

    (more…)
  • Customs law amended to recover unpaid amount from exporters

    Customs law amended to recover unpaid amount from exporters

    KARACHI: The government has put a check on exporters related to unpaid amount of duty and taxes at the time of export clearance and amended law to recover the same.

    Through Finance Bill 2019, it is proposed to amend Section 32(3)(A) of Customs Act, 1969 to apply this check on exporters.

    Sub-section (3A) of Section 32 deals with the issuance of show cause notice in the situation where any duty, taxes or charge has not been levied, short-levied or erroneously refunded, discovered as a result of an audit or examination of an importer’s accounts or by any other means.

    The Finance Bill 2019 seeks to extend the application of this section to exporters as well.

    The existing law under Section 32(3)(A) said:

    Notwithstanding anything contained in sub-section (3), where any duty, taxes or charge has not been levied or has been short-levied or has been erroneously refunded and this is discovered as a result of an audit or examination of an importer’s accounts or by any means other than an examination of the documents provided by the importer at the time the goods were imported, the person liable to pay any amount on that account shall be served with a notice within five years of the relevant date requiring him to show cause why he should not pay the amount specified in the notice:

    Provided that if the recoverable amount in a case is less than one hundred rupees, the Customs authorities shall not initiate the aforesaid action.

  • Collectors’ power to determine customs values withdrawn

    Collectors’ power to determine customs values withdrawn

    KARACHI: The government has withdrawn the power of Collector of Customs in determination of customs value on his own motion through Finance Bill 2019.

    The Finance Bill 2019 proposed to withdraw the powers of the collector of customs to determine customs valuations on his motion under Section 25A(1) and Section 25A(3) of Customs Act, 1969.

    The collector of customs presently has powers to determine the customs values under Section 25A.

    The sub-section 1 of Section 25A states: Notwithstanding the provisions contained in section 25, the Collector of Customs on his own motion, or the Director of Customs Valuation on his own motion or on a reference made to him by any person or an officer of Customs, may determine the customs value of any goods or category of goods imported into or exported out of Pakistan, after following the methods laid down in section 25, whichever is applicable.

    The sub-section 3 of Section 25A states: In case of any conflict in the customs value determined under sub-section (1), the Director-General of Customs Valuation shall determine the applicable customs value.

    The powers of determining customs values have now been proposed to be available with Director of Customs Valuation.

    Analysts said that this proposal in the Finance Bill 2019 would provide relief to import in clearance of consignments. They said that many arbitrary decisions of Collector have created hassles for the importers in the past and consignments were stuck up for a long time.

  • Maintaining five-year record of international trade mandatory under Customs Act

    Maintaining five-year record of international trade mandatory under Customs Act

    KARACHI: Importers, exporters and other stakeholders related to international trade are required to maintain transactions record for at least past five years.


    According to Customs Act, 1969 the stakeholders of international trade are required to maintain record under the following section:

    Section 211: Maintenance of record


    Sub-Section (1): All importers, exporters and claimants of duty drawback, refunds or any notified concessions, terminal operators, owners of the warehouses, customs agents and the licensed customs bonded carriers, transport operators and tracking companies, carrying out business under this Act or rules made thereunder or under any other law, directly or indirectly, relating to international trade, shall be required to maintain and keep records and correspondence concerning import, export and transit trade transactions.


    Sub-Section (2) The records required under sub-section (1) shall be kept for a period not less than five years in such form as the Board may by notification in the official gazette, specify.


    Sub-Section (3): The provision of sub-section (1) shall not be applicable to the baggage of the passengers and crew of the conveyance and to the recipients of gifts.

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  • FBR launches Urdu version of Customs Act

    FBR launches Urdu version of Customs Act

    Islamabad – The Federal Board of Revenue (FBR) has taken a significant step towards accessibility and transparency by launching the first Urdu version of the Customs Act, 1969.

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