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Tag: Customs Act 1969

  • 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.”

  • Convicted persons to display names at business places

    Convicted persons to display names at business places

    KARACHI: A person, who is convicted in an office of smuggling, is required to display notice of conviction for a period of three months.

    If the person fails to do so the he commits further offence.

    Under the updated Customs Act, 1969, the section 189 of the Act granted made it compulsory for a person who is convicted for the offence of smuggling to display the notice of conviction.

    Section 189: Notice of conviction to be displayed

    Sub-Section (1) Upon the conviction of any person for the offence of smuggling, the Federal Government may require him to exhibit in or outside, or both in and outside his place of business, if any, notices, of such number, size and lettering, and placed in such positions and containing such particulars relating to conviction as it may determine, and to keep them so exhibited continuously for a period not less than three months from the date of conviction; and, if he fails to comply fully with the requirement, he shall be deemed to have committed a further offence under this Act of the nature of the original offence for which he was convicted.

    Sub-Section (2): If any person so convicted refuses or fails to comply fully with any such requirement, any officer authorized in that behalf by an order of the Federal Government in writing may, without prejudice to any proceedings which may be brought in respect of any such refusal or failure, affix the notices in or outside, or both in and outside, the place of business of such person in accordance with the requirement of the Federal Government in pursuance of sub-section (1).

    Sub-Section (3): If, in any case, the Federal Government is satisfied that the exhibition of notices in accordance with the requirements of the provisions of sub-section (1) or sub-section (2) will not effectively bring the conviction to the notice of persons dealing with the convicted person, the Federal Government may, in lieu of, or in addition to any such requirement, require the convicted person to exhibit for such period, not being a period less than three months, on such stationery used in his business as may be specified in the requirement, a notice placed in such position and printed in type of such size and form and containing such particulars relating to the conviction as may be specified in the requirement; and, if he fails to comply fully with the requirement, he shall be deemed to have committed a further offence under this Act of the nature of the original offence for which he was convicted.

  • No legal proceeding against customs officials while exercising powers

    No legal proceeding against customs officials while exercising powers

    KARACHI: Customs laws protect officials from legal proceedings in case anything done in good faith while exercising powers.

    The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating amendment brought through Finance Act, 2019.

    Section 217 of the Customs Act, 1969 provides protection of action taken under the Act.

    Section 217: Protection of action taken under the Act

    Sub-Section (1) :No suit, prosecution or other legal proceeding shall lie against the Federal Government or any public servant for anything which is done or intended to be done in good faith in pursuance of this Act or the rules and notwithstanding anything in any other law for the time being in force no investigation or enquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or directions made or issued thereunder without the prior approval of the Board.
    Sub-Section (2): No suit shall be brought in any civil court to set aside or modify any order passed, any assessment made, any tax levied, any penalty imposed or collection of any tax made under this Act.

    Section 218: Notice of proceedings

    No proceeding in a court other than a suit shall be commenced against any officer of customs or any other person exercising any powers conferred or discharging any duties imposed by or under this Act for anything purporting to be done in pursuance of the provisions of this Act or the rules without giving to such officer or person a month’s previous notice in writing of the intended proceeding and of the cause thereof; or after the expiration of one year from the accrual of such cause:

    Provided that this section shall not be deemed to apply in the case of the prosecution of an officer of customs or such other person for an offence punishable under this Act.

  • Harsh penalties for pilferage of transshipped goods

    Harsh penalties for pilferage of transshipped goods

    KARACHI: Customs laws has defined harsh penalties for pilferage or replaced enroute of transshipment of goods without payment of duty.

    Federal Board of Revenue (FBR) issued Customs Act, 1960 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019.

    According to the customs laws

    If any goods which are loaded for transshipment, are pilfered, replaced en-route or failed to reach the port of destination, or any person transships goods not allowed to be transshipped;

    Then such goods and the conveyance illegally carrying these goods shall be liable to confiscation and any person including the custodian involved in the offence and the bonded carrier shall be liable to a penalty not exceeding ten times the value of the goods and he shall further be liable, upon conviction by a Special Judge, to imprisonment for a term not exceeding seven years.

    If any person contravenes any rule relating to transshipment other than mentioned above;

    Then such person including the custodian and the inland carrier shall be liable to penalty not exceeding five hundred thousand rupees or three times the amount of duties and taxes involved.

    Under Section 121 of the Act, the transshipment of goods without payment of duty has been allowed.

    Section 121: Transshipment of goods without payment of duty

    Sub-Section (1): Subject to the provisions of section 15 and the rules, the appropriate officer may, on application by the owner of any goods imported at any customs-station and specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination, grant leave to transship the same without payment of duty, if any, chargeable on such goods with or without any security or bond for the due arrival and entry of the goods at the customs-station of destination:

    Provided that at customs-station where the Custom Computerized System, is operational, the system may automatically authorize transshipment to other customs-station subject to risk selectivity criteria.

    Sub-Section (2): The Board may, subject to rules and such conditions as it may deem fit to impose, authorize certain carriers to transport goods under the multimodal, scheme. Goods transported under the multimodal scheme shall be specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination and shall not –

    (a) require distinct permission for transshipment from the customs-station of first entry into the country to be transported to the customs-station of destination. The principal carrier issuing the multimodal bill of lading or air way bill will be responsible for the sanctity of the cargo during transportation between the customs-station of first entry into the country to the customs-station of destination; and

    (b) be subject to the risk management system at the customs station of first entry.

    Sub-Section (3): The Board may, subject to such conditions as it may deem fit, grant license to any carrier to carry goods under the multimodal scheme.

  • Penalties for smuggling under Pakistan’s customs law

    Penalties for smuggling under Pakistan’s customs law

    KARACHI: Award of death sentence has been prescribed for smuggling of narcotic drugs under Customs law of Pakistan.

    The Federal Board of Revenue (FBR) updated Customs Act, 1969 updated till June 30, 2019 which explained penalties for different penalties.

    According Customs Act, 1969:

    • If any goods be smuggled into or out of Pakistan:

    Such goods shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding ten times the value of the goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding fourteen years and to fine not exceeding ten times the value of such goods:

    Provided that, in the case of such goods as may be notified by the Federal Government in the official Gazette, the sentence of imprisonment shall not be less than five years, and the whole or any part of his property shall also be liable to confiscation in accordance with the provisions of the Prevention of Smuggling Act,1977.

    • If the smuggled goods are narcotics drugs, psychotropic substances or controlled substances,-

    such goods shall be liable to confiscation and any person concerned in the offence shall be liable to –

    (a) if the quantity of the narcotic drug, psychotropic substance of controlled substance is one hundred grams or less;

    • imprisonment which may extend to two years, or with fine, or with both;
    • imprisonment which may extend to seven years and shall also be liable to fine;

    (b) if the quantity of the narcotic drug, psychotropic substance or controlled substance exceeds one hundred grams but does not exceed one kilogram;

    death or imprisonment for life, or imprisonment for a term which may extend to fourteen years and shall also be liable to fine which may be up to one million rupees;

    (c) if the quantity of the narcotic drug, psychotropic substance or controlled substance exceeds the limit specified in clause (b);

    Provided that, if the quantity exceeds ten kilograms the punishment shall not be less than imprisonment for life.

  • Importers require filing declaration within 10 days of goods arrival

    Importers require filing declaration within 10 days of goods arrival

    KARACHI: Importers are required to file goods declaration within 10 days of arrival of goods at the port of entry.

    The Federal Board of Revenue (FBR) issued Customs Act, 1969 update till June 30, 2019 incorporating changes brought through Finance Act, 2019.

    Prior to Finance Act, 2019 the importers were allowed to file goods declaration within 15 days.

    Section 79 of the Customs Act, 1969 described the filing of declaration and assessment.

    Section 79: Declaration and assessment for home consumption or warehousing or transshipment.-

    Sub-Section (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 ten 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.

    Sub-Section (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.

    Sub-Section (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.

  • Customs to secure deferential duty, taxes on provisional assessment

    Customs to secure deferential duty, taxes on provisional assessment

    KARACHI: Importers are liable to deposit bank guarantee against deferential amount assessed provisionally by customs authorities on those consignments, which required further examination.

    The Federal Board of Revenue (FBR) issued Customs Act, 1969 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019. The updated act explained through Section 81 the security of deferential amount in provisional determination liability.

    Section 81: Provisional determination of liability

    Sub-Section (1): Where it is not possible for an officer of Customs during the checking of the goods declaration to satisfy himself of the correctness of the assessment of the goods made under section 79 or 131, for reasons that the goods require chemical or other test or a further inquiry, an officer, not below the rank of Assistant Collector of Customs, may order that the duty, taxes and other charges payable on such goods, be determined provisionally:

    Provided that the importer, save in the case of goods entered for warehousing, pays such additional amount on the basis of provisional assessment or furnishes bank guarantee or pay order of a scheduled bank along with an indemnity bond for the payment thereof as the said officer deems sufficient to meet the likely differential between the final determination of duty, taxes and other charges over the amount determined provisionally:

    Provided further that there shall be no provisional assessment under this section if no differential amount of duty and taxes and other charges is paid or secured against bank guarantee or pay order.

    Sub-Section (2): Where any goods are allowed to be cleared or delivered on the basis of such provisional determination, the amount of duty, taxes and charges correctly payable on those goods shall be determined within six months of the date of provisional determination:

    Provided that the Collector of Customs or, as the case may be, Director of Valuation, may in circumstances of exceptional nature and after recording such circumstances, extend the period for final determination which shall in no case exceed ninety days:

    Provided further that any period, during which the proceedings are adjourned on account of a stay order or for want of clarification from the Board or the time taken through adjournment by the importer, shall be excluded for the computation of aforesaid periods.

    Sub-Section (3): On completion of final determination, the amount already paid or guaranteed shall be adjusted against the amount payable on the basis of final determination, and the difference between the two amounts shall be paid forthwith to or by the importer, as the case may be.

    Sub-Section (4): If the final determination is not made with the period specified in sub-section (2), the provisional determination shall, in the absence of any new evidence, be deemed to be the final determination.

    Sub-Section (5): On completion of final determination under sub-section (3) or (4), the appropriate officer shall issue an order for adjustment, refund or recovery of amount determined, as the case may be.

    Explanation.- Provisional assessment means the amount of duties and taxes paid or secured against bank guarantee or pay order.

  • Provisional release of offended imported goods

    Provisional release of offended imported goods

    KARACHI: The collector of customs has been empowered to allow provisional release of imported goods, on which any offence is detected, against duty and payment and submission of bank guarantee for penalty amount.

    The Federal Board of Revenue (FBR) issued Customs Act, 1969 updated till June 30, 2019 incorporating the changes brought through Finance Act, 2019.

    According to the Customs Act, 1969, where any offence is detected in respect of imported goods which are not liable to confiscation or needed for evidence at a later stage, the Collector of Customs may, on written request of owner of the goods, allow release of the same on payment of duty, taxes or other charges and furnishing bank guarantee or pay order against the amount of any penalty or fine which may be imposed on such goods.

    The FBR also explained the clearance for home consumption under Section 83 of the Act.

    It said that when the owner of any goods entered for home-consumption and assessed under section 80 or 81 has paid the import duty and other charges, if any, in respect of the same the appropriate officer, if he is satisfied that the import of the goods is not prohibited or in breach of any restrictions or conditions applying to the import of such goods, may make an order for the clearance of the same:

    Provided that, at customs-stations where the Customs Computerized System is operational the system may clear the goods through system generated clearance documents.

    (2) Where the owner fails to pay import duty and other charges within ten days from the date on which the same has been assessed under sections 80, or 81, he shall be liable to pay surcharge at the rate of KIBOR plus three percent on import duty and other charges payable on such goods.

  • Customs empowered to stop vessel departure till payment of dues

    Customs empowered to stop vessel departure till payment of dues

    KARACHI: Pakistan Customs has been empowered to refuse clearance of vessel until payment of dues including port dues and other charges and penalties.

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  • Repayment of drawback of export on imported goods explained

    Repayment of drawback of export on imported goods explained

    KARACHI: Federal Board of Revenue (FBR) has explained repayment of drawback of the export on imported goods under Customs Act 1969.

    The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019.

    Following are the provisions explaining the repayment of drawback:

    Section 35: Drawback of the export on imported goods

    Subject to the subsequent provisions of this Chapter and the rules, when any goods, capable of being easily identified, which have been imported into Pakistan and upon which customs-duties have been paid on importation, are exported to any place outside Pakistan or as provisions or stores for use on board a conveyance proceeding to a foreign territory, seven-eight of such duties shall be repaid as drawback, subject to the following conditions, namely:-

    (1) the goods are identified to the satisfaction of an officer of customs not below the rank of Assistant Collector of Customs at the customs-station, to be the same as had been imported, and

    (2) the goods are entered for export within two years of the date of their importation, as shown by the records of the custom-house or if such time is extended by the Board or the Collector of Customs for sufficient cause within such extended time:

    Provided that the Collector of Customs shall not extend the time beyond three years of the importation of such goods.

    Explanation.- For the purposes of this section, the goods shall be deemed to have been entered for export on the date on which the 3 [goods declaration] is delivered to the appropriate officer under section 131.

    Section 36: Drawback on goods taken into use between importation and exportation

    Notwithstanding anything contained in section 35, the repayment of duty as drawback in respect of goods which have been taken into use between their importation and subsequent exportation shall be made in accordance with the provisions of the rules made in that behalf.

    Section 37: Drawback on goods used in the manufacture of goods which are exported

    Where it appears to the Board that in respect of goods of any class or description manufactured in Pakistan and exported to any place outside Pakistan, a drawback of customs-duties should be allowed on any imported goods of a class or description used in the manufacture of such exported goods, the Board may, by notification in the official Gazette, direct that drawback shall be allowed in respect of such imported goods to such extent and subject to such condition as may be provided in the rules.

    Section 38: Power to declare what goods are identifiable and to prohibit draw-back in case of specified foreign territory

    (1) The Board may, from time to time, by notification in the official Gazette, declare what goods shall, for the purposes of this Chapter, be deemed to be not capable of being easily identified.

    (2) The 5[Federal Government ] may, from time to time, by notification in the official Gazette, prohibit the payment of drawback upon the exportation of goods or any specified goods or class of goods to any specified foreign port or territory.

    Section 39: When no drawback allowed

    Notwithstanding anything hereinbefore contained, no drawback shall be allowed-

    (a) upon goods which are required to be included in the export manifest and are not so included, or

    (b) when the claim is for drawback amounting, in respect of any single shipment, to less than or equal to hundred rupees, or

    (c) unless the claim for drawback has been made and established at the time of export.

    Section 40: Time of payment of drawback

    No such payment of drawback shall be made until the vessel carrying the goods has put out to sea or other conveyance has left Pakistan.

    Section 41: Declaration by parties claiming drawback

    Every person, or his duly authorized agent, claiming drawback on any goods duly exported, shall make and subscribe a declaration that such goods have been actually exported and have not been relanded and are not intended to be relanded at any place in Pakistan and that such person was at the time of entry outwards and export and continues to be entitled to drawback thereon.