ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a major relief for tourists visiting Pakistan by allowing them to bring their vehicles into the country without paying any customs duty or taxes, and retain them for a longer period. As per the new regulations, tourists can now keep their vehicles in Pakistan for up to six months, doubling the previous limit of three months.
(more…)Tag: Customs Rules 2001
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FBR proposes CPEC chapter in Customs Rules
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued draft customs rules for the introduction of a separate chapter on procedures for China Pakistan Economic Corridor (CPEC) related activities.
In this regard the FBR issued SRO 47(I)/2021 to make amendment in the Customs Rules, 2001.
Gwadar Tax Free Zone Rules have been introduced as a sub-chapter . According to these rules, an investor is required registration to operate under customs computerized system.
The FBR said that goods imported into a free zone shall be examined and assessed in accordance with the provisions of the Customs Act, 1969 and rules made thereunder. The exemption granted under the act and ordinance shall be applicable to plant, machinery, equipment, appratues and materials to be used solely within the limits of a free zone and to goods imported into the zone by the investors.
The FBR further said that entry of goods imported for free zone shall not be refused except when the goods are liable to restrictions or prohibitions imposed on grounds of public morality or order, public security, hygine or health or for sanitary or phyto-sanitary considerations, or relating to the protection of parents, trademarks, or intellectual property rights as envisaged in import policy order.
Hazardous goods may be allowed to be admitted to a free zone only when a safe area specially designed for its storage has been made available within the free zone to the satisfaction of the licensing authority and customs as well as such conditions under relevant national laws have been complied with.
The FBR said that duty and tax free vehicles shall be allowed to be imported by the concession holder and its operating company for construction, development and operating of Gwadar Port and free zone area under the regulatory mechanism. The regulatory mechanism for such vehicles, including the number and types importable, shall be devised by the ministry of Port and Shipping and FBR, in consultation with the provincial government if so required, and shall be notified by the FBR.
The FBR further said that goods, excluding petty items, from the tariff area shall be admitted into the zone upon completion of export formalities which are observed for export to foreign countries.
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Rules drafted to empower customs freeze smuggled assets
ISLAMABAD: Federal Board of Revenue (FBR) has drafted rules to empower customs officials to trace and freeze assets acquire by any person through proceeds of smuggling.
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FBR notifies rules for advance ruling
In a bid to enhance transparency and provide clarity in customs matters, the Federal Board of Revenue (FBR) has notified the rules for issuing advance rulings.
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Privileged personnel allowed duty, tax free car import
KARACHI: Federal Board of Revenue (FBR) has granted duty, tax free import of cars to privileged personnel on first arrival in Pakistan.
According to Customs Rules 2001 the expression “privileged personnel” means all foreign experts, consultants or technicians visiting and resident in Pakistan under a proper Aid Agreement in which provision for the application of these Customs concessions has been made.
The expression includes only such personnel as are either directly in the employment of the foreign aid giving Government or Agency or who serve in Pakistan under contract or agreement with such Government or Agency and whose salaries and travelling expenses to and from Pakistan are paid by the foreign Government or Agency.
It does not include personnel in the employment of the Federal or Provincial Government.
The following customs concessions shall be extended to the privileged personnel, namely:-
Import free of custom duty and sales tax of articles for the personal use of the privileged person or members of his family forming part of his personal and household effects including one car per family on his first arrival in Pakistan.
The time limit for import will be six months, extendable by the Collector of Customs for a maximum period of 25[eighteen] months from the date of the arrival of the person concerned;
In addition to the above, a privileged person shall be allowed to import on payment of duty and taxes foodstuff and consumable stores including liquor and tobacco up to a C&F value of two hundred U.S.$ per month but the value of liquor will not exceed one hundred U.S.$ per month.
However, import of alcoholic beverages shall be subject to Import Policy Order.
Note: The privileged personnel may import the monthly quotas prescribed in clauses (a) and (b) of rule 39, for a maximum period of six months at a time.
Articles imported customs-duty and sales tax free shall normally be re-exported and shall not be sold or otherwise disposed of within Pakistan except with the prior approval of the Government or in terms of the regulations prescribed by the Government.
If any other durable articles such as air-conditioners, refrigerators, deep freezers, VCR ,DVD, washing machines, etc., are disposed of in Pakistan, customs-duty and sales tax, etc., shall be payable on the original value at the rate applicable to the goods in question at the time of import.
The privileged personnel shall be responsible for the payment of customs-duty and sales tax and other charges before parting with the articles; provided that no customs-duty and sales tax shall be payable if sold after three years from the date of import.
In order to avail of the concessions under this chapter , a privileged personnel shall furnish to the Customs authorities a certificate duly signed by the Administrative Ministry of the Government of Pakistan concerned both in respect of personal and household effects, etc., imported on first arrival and subsequent monthly imports of foodstuffs, consumable stores, liquors, and tobacco in accordance with the prescribed quotas.
The Administrative Ministry concerned shall verify that the conditions in the rules have been satisfied before issue of the certificate.
The Administrative Ministry shall also be generally responsible to ensure that all the other conditions as per this chapter have been satisfied between the time of arrival and departure of privileged personnel:
Provided that a foreign employee of an industrial venture shall be entitled to import free of customs-duties and other taxes food stuff (excluding alcoholic beverages) upto C&F value of one hundred US $ per month subject to the condition that he shall produce a certificate from his employer to the effect that he has been employed in his industrial venture in Pakistan for a specific year.
The monthly quota may be imported for a period of six months at a time.
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Tourists allowed temporary import of vehicles
KARACHI: Tourists visiting Pakistan are allowed to import vehicles temporarily with certain conditions under Customs Rules 2001.
According to the customs rules, a tourist who imports a vehicle against carnet-de-passage or a bank guarantee may be given delivery thereof by the officer-in-charge of the Customs station of entry without payment of customs-duties for its retention in Pakistan for a period of three months.
However, such tourist is required to make a declaration at the Customs-station of entry to the effect that he will not constructively or substantially transfer the ownership of the vehicles to any other person during his stay in Pakistan:
Provided that if it is not practicable for the tourist to export such vehicle within the said period and he makes an application to the Federal Board of Revenue (FBR) before the expiry of that period to this effect, the FBR may extend that period not exceeding three months:
Provided further that if the same vehicle re-enters Pakistan within one year after its exit, whether in the name of the same tourist (non-Pakistani) or in the name of somebody else (non-Pakistani) temporary release shall not be allowed against carnet-de-passage or a bank guarantee for more than fourteen days except for vehicles operated by recognized foreign tour agencies which shall be allowed re-entry within one year for a period not exceeding three months at one point of time.
Where the export of such vehicle is not possible on grounds of health of the importer, or in circumstances beyond his control, or because of an accident in which the vehicle is involved, the FBR may extend the period not exceeding six months, in which case a fresh bank guarantee shall be furnished if the existing bank guarantee does not cover the period of extension:
Provided that if the importer wishes to retain such vehicle beyond period for which permission for retention has been allowed, he shall obtain an import permit from the Ministry of Commerce and shall pay the Customs-duties and taxes leviable thereon on the date of its import.
If a tourist imports a vehicle for passage through Pakistan to a foreign destination, the officer-in-charge of the Customs-station of entry may, in the absence of carnet-de-passage or a bank guarantee, allow the vehicle to pass through Pakistan without payment of customs duties under escort form the Customs station of entry to the Customs-station of exit on payment of escort charges to be determined by the respective Collector.
The particulars of the vehicle so allowed to pass through Pakistan shall be endorsed on the passport of the importer.
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Import of up to 25 motor vehicles allowed duty, tax free for EPZ investment
The government of Pakistan allowed import of up to 25 motor vehicles without duty and tax to investors making substantial contributions to export processing zones (EPZ).
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