Section 2 of Customs Act, 1969 has defined various provisions of the act to better understand the law.
The Federal Board of Revenue (FBR) issued the Customs Act, 1969 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.
Following is the text of section 2 of the Customs Act, 1969.
2. Definitions. – In this Act, unless there is anything repugnant in the subject or context:-
(a) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, the Collector (Appeals) or the Appellate Tribunal;
(ai) ―advance ruling‖ means a written decision by the Board or any officer or a committee authorized by the Board, on the request of an applicant for determination of classification, origin or applicability of a particular relief or exemption on goods prior to their importation or exportation, valid for a specified period of time;
(aa) “agent” means a person licensed under section 207 or permitted to transact any business under section 208;‖
(aaa) “appellate tribunal” means the Customs Appellate Tribunal constituted under section 194;
(b) “appropriate officer”, means the officer of customs to whom such functions have been assigned by or under this Act or the rules made there under;
bb) “assessment” includes provisional assessment, reassessment and any order or assessment in which the duty assessed is nil;
(bba) “audit” means examination of books, records, documents, correspondence, stocks and inventory of goods relating to import, export and other business activities of the persons referred to in section 211, in order to ascertain their liability of duties and taxes and compliance with relevant laws and rules;
(bbb) “baggage” includes unaccompanied baggage but does not include motor vehicles;
(c) omitted.
(d) omitted.
(e) “Board” means the Central Board of Revenue established under the Central Board of Revenue Act, 1924 (IV of 1924), and on the commencement of Federal Board of Revenue Act, 2007, the Federal Board of Revenue established under section 3 thereof;
(ea) “carrier” means the person actually transporting goods or incharge of, or responsible for, the operations of the means of transport or the owner thereof;
(f) “coastal goods” means the goods transported in a vessel from one port in Pakistan to another, but does not include imported goods on which customs duty has not been paid;
(fa) “Collector” means Collector of Customs appointed under section 3 and includes any other officers equivalent in rank with any other designation appointed under this Act to perform specified functions in own jurisdiction;
(ff) “Collector (Appeals)” means a person appointed to be a Collector of Customs (Appeals) under section 3;
“controlled delivery‖ means supervised and coordinated operational activities that allow suspected consignments of prohibited and restricted goods, including items mentioned in section 2(s), to pass out of, through or into the territory of Pakistan, with a view to identifying persons involved in the commission of an offence cognizable under this Act;
(g) “conveyance” means any means of transport used for carrying goods or passengers such as a vessel, aircraft, vehicle or animal;
(h) “customs-airport” means any airport declared under section 9 to be a customs- airport;
(i) “customs-area” means the limits of the customs-station specified under section 10 and includes any area in which imported goods or goods for export are ordinarily kept before clearance by the customs authorities;
(ia) “Customs Computerized System” means a comprehensive Customs information technology system specified in Chapter XVI-A;
(ib) omitted.
(ic) ―Customs controls‖ means measures applied by the officers of customs or through Customs Computerized System to manage risks and ensure compliance.
(j) “customs-port” means any place declared under section 9 to be a customs-port;
(jj) omitted.
40(k) “customs-station” means any customs-station, customs-airport, an inland river port, land customs-station or any place declared as such under section 9;
(kk) “detain”, in relation to goods, means to prohibit the disposal or use of the goods, pending the finalization of any proceedings under this Act in relation to the goods or the owner thereof;
(kka) “documents” means a goods declaration, application for claim of refund, duty drawback or repayment of duty, import or export general manifest, passenger manifest, master bill of lading, bill of lading, airway bill, certificate of origin commercial invoice and packing list or similar other forms or documents used for customs clearance or making a declaration to Customs, whether or not signed or initialed or otherwise authenticated, and also includes,-
(i) any form of writing on material, data or information recorded, transmitted, or stored by means of a tape recorder, computer or any other device, and material subsequently derived from information so recorded, transmitted or stored;
(ii) a label, marking or other form of writing that identifies anything of which it forms part or to which it is attached by any means;
(iii) a book, map, plan, graph, or drawing; and
(iv) a photograph, film, negative, tape, or other device in which one or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced.
(kkb) “electronic duty drawback filing and payment system” means Electronic Duty Drawback Filing and Payment System as specified by the rules;
(kkc) ―electronic assessment‖ means assessment of a goods declaration in Customs Computerized System by an officer of Customs or by the computerized system according to the selectivity criteria;
(kkk) “export manifest” means export manifest delivered under sub-section (2) of section 53 and includes electronically filed export manifest;
(l) “goods” means all movable goods and includes-
(i) conveyance,
(ii) stores and materials,
(iii) baggage, and
(iv) currency and negotiable instruments;
(la) ―goods declaration‖ means a goods declaration filed under sections 79, 10439,121, 131, 139 42, 144 42 or 147 and includes a goods declaration electronically filed;
(lb) “import manifest” means import manifest delivered under section 43 or 44 as the case may be and includes electronically filed import manifest;
(Ic) “KIBOR” means Karachi Inter Bank Offered Rate prevalent on the first day of each quarter of the financial year.
ld “Vessel Intimation Report” or VIR‖ means an intimation regarding impending arrival of a vessel at a customs sea port, where the customs computerized system is operational, to the customs authorities in the form and manner b, by the carrier or his agent, as may be prescribed by rules;
41(m) Omitted;
(n) “master” when used in relation to any vessel, means any person, except a pilot or harbour master, having command or charge of such vessel;
(o) “officer of customs” means an officer appointed under section 3;
(p) “Pakistan customs-waters” means the waters extending into the sea to a distance of twenty-four nautical miles measured from the appropriate base line on the coast of Pakistan;
(pa) ”person” includes a local manufacturer, a company, an association, a body of individuals whether incorporated or not;
(q) “person-in-charge” means –
(i) in relation to a vessel, the master of the vessel;
(ii) in relation to an aircraft, the commander or pilot in charge of the aircraft;
(iii) in relation to a railway train, the conductor, guard or other person having the chief direction of the train;
(iv) in relation to any other conveyance, the driver or any other person having control of the conveyance;
(qa) “principal” means the owner of the goods or the person primarily responsible for making a declaration to Customs under this Act and includes the person in-charge of the conveyance, carrier, custodian of cargo, and the terminal operator;
“(qb) ―Risk Management System‖ means the systematic application of Customs Controls and Management Procedures on pre-arrival, Customs clearance processes and post clearance of goods and passengers, for identifying, analyzing, evaluating, monitoring, reviewing and treating the risk associated with them;
(qc) ―Risk Management Committee‖ means a committee headed by a BS-21 officer of Customs, constituted under the rules, to review functioning and supervise implementation of the Risk Management System and shall comprise as many BS-19 and BS-20 officers of Customs as may be notified by the Board;
(r) “rules” means the rules made under this Act;
(rr) “seize” means to take into custody, physically or otherwise, goods in respect of which some offence has been committed or is believed to have been committed under this Act or the rules, and all cognate words and expressions shall be construed accordingly;
(rrr) ―Selectivity Criteria‖ means the risk parameters determined by the Risk Management Committee constituted under the rules for the application of Risk Management System;
(s) “smuggle” means to bring into or take out of Pakistan, in breach of any prohibition or restriction for the time being in force, or in any way being concerned in carrying, transporting, removing, depositing, harbouring, keeping, concealing,retailing, or en route pilferage of transit goods or evading payment of customs-duties or taxes leviable thereon,-
(i) gold bullion, silver bullion, platinum, palladium, radium,
precious stones, antiques, currency, narcotics and narcotic and
psychotropic substances; or
(ii) manufactures of gold or silver or platinum or palladium or radium or precious stones, and any other goods notified by the Federal Government in the official Gazette, which, in each case, exceed 37,five hundred thousand rupees in value; or
(iii) any goods by any route other than a route declared under
section 9 or 10 or from any place other than a customs-station. and includes an attempt, abetment or connivance of so bringing in or taking out of such goods; and all cognate words and expressions shall be construed accordingly;
(ss) “Special Judge” means a Special Judge appointed under Section 185;
(sss) “Special Appellate Court” means a Special Appellate Court constituted under section 46 of the Prevention of Smuggling Act,1977;
(ssss) “surcharge” means an amount or charge required to be paid under sections 21A, 83,86,98 and 202A or any surcharge payable as such under this Act;
(t) “warehouse” means any place appointed or licensed under section 12 or section 13;
(u) “warehousing station” means a place declared as a warehousing station under section 11;
(v) “wharf” means any place in customs-port approved under clause (b) of section 10 for the loading and unloading of goods or any class of goods;
(w) “arrears” means the amount of any duty, surcharge, fine or penalty or any other amount which is adjudged or demanded through an adjudication order passed by the competent authority or the amount referred to in the notice under sub-section (2) of section 202 which is recoverable in full or in part and is not paid within the time prescribed;
(x) “default” means the failure to pay the outstanding arrears as defined in clause (w); and
(y) “defaulter” means the person and in the case of a company or firm every director or partner of the company or, as the case may be of the firm and of which he is a director or a partner of proprietor, and includes the guarantor who fails to pay outstanding arrears.
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