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Tag: Customs Act 1969

  • FBR explains amendments to Customs Act 1969

    FBR explains amendments to Customs Act 1969

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued explanation of amendments in the Customs Act, 1969 made through Finance (Supplementary) Act, 2022.

    The FBR issued Customs Circular No. 01 of 2022 to explain the changes.

    Power to determine the customs value:

    Under Section 25A of the Customs Act, 1969, both the Collector of Customs and the Director Valuation were authorized to determine the Customs Value of imported or exported goods on his own motion or on a reference made to him by any person after following the methods laid down in Section 25 of the Customs Act 1969. However, in order to being uniformity, the role of Collector of Customs has been omitted and now the powers under section 25A have been entrusted with the respective Director of Customs Valuation to bring standardization in the process of fixation of values of goods.

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    Review of the value determined:

    The post of Member Customs (Policy) and the Director General of Customs Valuation are both administrative in nature. Therefore, on the principle of natural justice, amendment has been made in section 25D so that appeal against the decision of DG valuation should not lie before the Member Customs (Policy) and should be taken up at judicial fora to redress the grievances.

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    Checking of goods declaration by the Customs:

    Limiting the checking of goods declaration within three years of its clearance under Sub-section (1) of Section 83 of the Customs Act, 1969 is uncalled for as the time limit aspect has already been dealt under Section 32 of the Customs Act, 1969. Accordingly, section 80 has been amended.

    Provisional determination of liability:

    Corporate guarantee is the instrument in which the guarantor is the entity or the individual submitting the guarantee whereas in case of bank guarantee or pay order the issuing bank is the guarantor. In order to secure government revenue “Corporate Guarantee” has been omitted from section 81 of the Customs Act, 1969, retaining only bank guarantee and pay order for the purpose.

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    Appeals to the Appellate Tribunal:

    The powers of Member (Customs Policy) with regard to hearing of appeals against the decision/order of DG valuation has been withdrawn. Now, instead of filing appeal before the Member Customs (Policy) against the order/decision of DG Valuation, Section 194A has been amended so that the aggrieved party may file appeal before the Appellate Tribunal.

    Reference to High Court

    The amendment in this section 196 is the consequential effect of the amendment proposed in Section 25D of the Customs Act, 1969, whereby the powers of Member (Customs Policy) with regard to hearing of appeals against the decision/order of DG valuation have been omitted/withdrawn.

    READ MORE: FBR posts 30% growth to collect Rs3.35 trillion

  • Law authorizes customs officials to X-Ray suspects for detection of concealed goods

    Law authorizes customs officials to X-Ray suspects for detection of concealed goods

    KARACHI: Customs authorities have been empowered to screen or X-Ray bodies of suspected persons for detection of concealed goods.

    According to Customs Act, 1969, an officer not below the rank of an assistant collector of customs can order to screen or X-Ray a person for detection of concealed goods.

    Section 160 of the Act explained regarding the power to screen or X-Ray bodies of suspected persons for detecting secreted goods.

    (1) Where the appropriate officer has reason to believe that any person liable to search has any goods liable to confiscation secreted inside his body, he may detain such person and produce him without unnecessary delay before an officer of customs not below the rank of an Assistant Collector of Customs.

    (2) The aforesaid officer, if he has reasonable grounds for believing that such person has any such goods secreted inside his body and that it is necessary to have the body of such person screened or X-Rayed, may make an order to that effect , or else discharge such person forthwith, except where he is held on any other grounds.

    (3) Where the aforesaid officer orders such person to be screened or X-Rayed, the appropriate officer shall, as soon as practicable, take him to a radiologist possessing such qualifications as may be recognized by the Federal Government for that purpose and such person shall allow the radiologist to screen or X-Ray his body.

    (4) The radiologist shall screen or X-Ray the body of such person and forward his report thereon, together with any X-Ray picture taken by him to the aforesaid officer without unnecessary delay.

    (5) Where on the basis of a report from a radiologist or otherwise, the aforesaid officer is satisfied that any person has any goods liable to confiscation secreted inside his body, he may direct that suitable action for bringing such goods out of his body be taken on the advice and under the supervision of a registered medical practitioner and such person shall be bound to comply with such direction:

    Provided that in the case of a female no such action shall be taken except on the advice and under the supervision of a female registered medical practitioner.

    (6) Where any person is brought before an officer of customs not below the rank of an Assistant Collector of Customs as aforesaid, he may direct that pending completion of all action under this section such person be detained.

    (7) No person shall be subjected to screening or X-Ray if he confesses that goods liable to confiscation are secreted inside his body and of his own consent agrees to suitable steps being taken to bring out such goods.

  • Customs to confiscate properties acquired through proceeds of smuggling

    Customs to confiscate properties acquired through proceeds of smuggling

    ISLAMABAD: Customs authorities have been empowered to confiscate properties that are acquired through proceeds of smuggling.

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  • Key changes to customs laws amended through Finance Bill 2020

    Key changes to customs laws amended through Finance Bill 2020

    ISLAMABAD: The government has announced major changes to Customs Act, 1969 through Finance Bill, 2020.

    EY Ford Rhodes Chartered Accountants highlighted the key changes to Customs Act, 1969 that are amended through Finance Bill, 2020.

    Following are the key changes introduced through Finance Bill, 2020:

    • Procedure to obtain advance ruling has been prescribed along with revision in the definition of advance ruling
    • The penalties related to smuggling are proposed to be more rationalized along with the change in the definition of smuggling, to broaden its scope.
    • It is proposed to decide cases related to smuggling by the ATIR within a period of thirty days.
    • Exemption of customs duties on imports for setting up new industries in erstwhile FATA area is proposed to be extended up to year 2023.
    • Concessions available to Special Economic Zones are proposed to be enhanced.
    • Tariff protection is proposed for domestic industry by increasing / levy of regulatory duty on import of items which are locally manufactured.
    • Customs duty on 90 Tariff lines are proposed to be reduced from 11 percent to 3 percent and 0 percent for the purpose of Tariff rationalization under National Tariff Policy, 2019.
    • To boost exports and to secure domestic manufacturing sector, duties on more than 40 tariff lines are proposed to be exempted or reduced.
    • Reduction in regulatory duty on several items is proposed to discourage the smuggling of goods and to decrease the cost of doing business in several sectors.
    • Extension in exemption period, which was due to be expired on 20 June 2020, from customs duties on import of goods including edible oils and oil seeds covered under COVID-19 relief package.
    • Exemption / reduction in customs duty is proposed to be available to the manufacturers, subject to IOCO quota determination, in respect of the following-
    • Exemption – Butyl Acetate, Syringes and saline infusion sets, buttons, raw material for beverage can manufacturing and import of machinery, equipment and other project related items for setting up of internet cable landing station.
    • Reduction – Raw material for manufacturing of interlining/bukram, wire rod, food packaging.
    • Additional customs duty is proposed to be reduced on those tariffs lines on which customs duty is applicable at 0 percent, including on Palm Stearin for incentivizing soap manufacturing industry.
    • Regulatory duty on Hot Rolled Coils (HRC) of Iron and steel falling under PCT Codes 7208 and 7225 & 7226 respectively is proposed to be reduced from 12.5 percent and 17.5 percent to 6 percent and 11 percent respectively.
    • Exemption in duties & taxes on import of dietetic foods for children with inherited metabolic disorders, diagnostic kits for cancer and corona virus, Ready to use Supplementary Foods (RUSF), lifesaving drug Meglumine Antimonite for treatment of leishmaniasis.
  • Customs law amended related to burden of proof

    Customs law amended related to burden of proof

    ISLAMABAD: The Finance Bill 2020 has made amendments to Customs Act, 1969 and made it mandatory for a person alleged of any offence is required to prove that property acquired by him is not from proceed of crime.

    The Finance Bill 2020 proposed to amend Section 187 of Customs Act, 1969. Following amendment has been proposed (changes in red):

    187. Burden of proof as to lawful authority etc.- When any person is alleged to have committed an offence under this Act and any question arises whether he did any act or was in possession of anything with lawful authority or under a permit, license or other document prescribed by or under any law for the time being in force, the burden of proving that he had such authority, permit, license or other document shall lie on him:

    “Provided that any person, alleged to have committed an offence under this Act, shall bear the burden of proof that any property owned by him in his name or someone else name was not acquired from the proceeds of such crime:

    Provided further that the procedure for forfeiture of such property shall be prescribed by the Board under the rules.”;

  • Concealment of currency, gold in baggage to be treated as smuggling

    Concealment of currency, gold in baggage to be treated as smuggling

    ISLAMABAD: The Finance Bill 2020 has made amendments to Customs Act, 1969 and defined any concealment of currency or gold in passengers’ baggage shall be treated as smuggling.

    In this regard amendment made to Section 139 of Customs Act, 1969 through Finance Bill, 2020 issued on Friday.

    (Note: Amendments in red)

    139. Declaration by passenger or crew of baggage.- (1) The owner of any baggage whether a passenger or a member of the crew shall, for the purposes of clearing it, make a verbal or written declaration of its contents in such manner as may be prescribed by rules to the appropriate officer and shall answer such questions as the said officer may put to him with respect to his baggage and any article contained therein or carried with him and shall produce such baggage and any such articles for examination:

    Provided that where the Customs Computerized System is operational, all declarations and communications shall be electronic.

    “(2) Where any passenger or a member of the crew makes a false declaration or fails to make such declaration as required under sub-section (1), he shall be guilty of an offence under this Act.”; and

    “(3) Notwithstanding the provisions of sub-section (2), where any person attempts to bring into or takes out of Pakistan, currency, gold, precious metals or stones, in any form, through concealment in baggage or circumventing customs controls at airports, sea-ports and land border custom-stations, he shall be guilty of an offence of smuggling within the meaning of clause (s) of section 2.”

  • Law tightened to prevent fiscal fraud on imported goods

    Law tightened to prevent fiscal fraud on imported goods

    ISLAMABAD: The Finance Bill, 2020 issued on Friday has proposed tightening customs law to prevent fiscal fraud on imported goods.

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  • No claim of compensation against customs officials

    No claim of compensation against customs officials

    KARACHI: An owner of goods has not entitled for claiming compensation from customs officials for any damage done during lawful detention.

    Customs officials said that in case any consignment is detained lawfully and during detention any damage occurred to the goods unintentionally then the owner of goods cannot claim compensation for such damage.

    They said that Section 216 of Customs Act, 1969 explained as:

    Section 216: No compensation for loss or injury except on proof of neglect or willful act

    No owner of goods shall be entitled to claim from any officer of customs compensation for the loss of such goods or for damage done to them at any time while they remain or are lawfully detained in any custom-house, customs area, wharf or landing place under the charge of any officer of custom, unless it be proved that such loss or damage was occasioned by gross negligence or willful act of such officer.

    Section 214: Remission of duty and payment of compensation to the owner in certain cases

    Where, on prosecution by the owner of any goods, an officer of customs is convicted of an offence connected with the removal of such goods from the warehouse without payment of duty, the whole of the duty on such goods shall be remitted, and, the Collector of Customs, shall, in accordance with the rules, pay to the owner due compensation for the damage caused to the owner by such offence.

    Section 215: Service of order, decision, etc

    Any order or decision passed or any summons or notice issued under this Act shall be served-

    (a) by tendering the order, decision, summons or notice or sending it by registered post or the courier service or by any other mode of transmission subject to acknowledgement receipt to the person for whom it is intended or to his agent; or

    (b) if the order, decision, summons or notice cannot be served in any manner provided in clause (a), by affixing it on the notice board of the custom-house; or

    (c) in case of electronic orders, decisions, notices or summons, when these have been sent to the recipient from the Customs Computerized System.

  • Tax Amendment Ordinance: highlights of changes in customs law

    Tax Amendment Ordinance: highlights of changes in customs law

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued salient features of to highlight amendments to Customs Act, 1969 made through Tax Law (Second Amendment) Ordinance, 2019.

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  • Customs officials empowered using firearms in the line of duty

    Customs officials empowered using firearms in the line of duty

    ISLAMABAD: The government has authorized customs officials to use firearms in the line of duty to prevent smuggling and other illegal activities.

    In this regard a new sub-section 3 has been inserted to Customs Act, 1969 through Tax Laws (Second Amendment) Ordinance, 2019.

    Federal Board of Revenue (FBR) on Wednesday issued ‘Tax Laws (Second Amendment) Ordinance, 2019’ have been promulgated through the presidential order.

    The new sub-section shall be read as follow:

    “(3) For the execution of the above, the officers or officials shall be empowered to use all necessary force including use of firearms subject to Section 97 of the Pakistan Penal Code, 1860 in the line of duty.”

    Under Section 164 of the Customs Act, 1969, the customs officials were empowered to stop and search conveyances.

    The Section 164 is read as:

    164. Power to stop and search conveyances.- (1) Where the appropriate officer has reason to believe that within the territories of Pakistan(including territorial waters) any conveyance has been, is being or is about to be, used in the smuggling of any goods or in the carriage of any smuggled goods, he may at any time stop any such conveyance or, in the case of an aircraft, compel it to land, and –

    (a) rummage and search any part of the conveyance;

    (b) examine and search any goods thereon; and

    (c) break open the lock of any door, fixture or package for making search.

    (2) Where in the circumstances referred to in sub-section (1)-

    (a) it becomes necessary to stop any vessel or compel any aircraft to land, it shall be lawful of any vessel or aircraft in the service of the Government while flying her proper flag or bearing flag marks and any authority authorized in this behalf by the Federal Government to summon such vessel to stop or the aircraft to land, by means of an international signal, code or other recognized means, and thereupon such vessel shall forthwith stop or such aircraft shall forthwith land, and if it fails to do so chase may be given thereto by any vessel or aircraft as aforesaid and if after a gun is fired as a signal, the vessel fails to stop or the aircraft fails to land, it may be fired upon;

    (b) it becomes necessary to stop any conveyance other than a vessel or aircraft, the appropriate officer may use or cause to be used all lawful means for stopping it or preventing its escape including, if all other means fail, firing upon it.

    The new sub-section shall be included:

    “(3) For the execution of the above, the officers or officials shall be empowered to use all necessary force including use of firearms subject to Section 97 of the Pakistan Penal Code, 1860 in the line of duty.”