Tag: Federal Board of Revenue

The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.

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.

October 10, 2019

FBR updates sales tax rates on mobile phones on import, local supply

KARACHI: Federal Board of Revenue (FBR) has updated sales tax rates on import or local supply of mobile phones to be applicable for Tax Year 2020 (July 01, 2019 to June 30, 2020).

The FBR issued Sales Tax Act, 1990 updated up to June 30, 2019 incorporating changes brought through Finance Act, 2019.

The FBR updated NINTH SCHEDULE of the Sales Tax Act, 1990 to prescribe sales tax rates on mobile phones.

The Table:

S.No.	Description/ Specification of goods	Sales Tax on import or local supply	Sales tax chargeable at the time of registration (IMEI number by CMOs)	Sales tax on supply (payable at the time of supply by CMOs)
1.	Subscriber Identification Module (SIM) Cards			Rs250
2	Cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer, at the rate as indicated against each category:–
	A. Not exceeding US$ 30	Rs135	Rs135
	B. Exceeding US$ 30 but not exceeding US$ 100	Rs1,320	Rs1,320
	C. Exceeding US$ 100 but not exceeding US$ 200	Rs1,680	Rs1,680
	D. Exceeding US$ 200 but not exceeding US$ 350	Rs1,740	Rs1,740
	E. Exceeding US$ 350 but not exceeding US$ 500	Rs5,400	Rs5,400
	F. Exceeding US$ 500	Rs9,270	Rs9,270

LIABILITY, PROCEDURE AND CONDITIONS

(i) In case of the goods specified against S.No 1of the Table, the liability to charge, collect and pay tax shall be on the Cellular Mobile Operator (CMO) at the time of supply. In case of the goods specified against S.No 2, the liability to pay sales tax at the time of import shall be on the importer, and the liability to charge, collect and pay sales tax payable on supplies shall be on the Cellular Mobile Operator at the time of registering International Mobile Equipment Identity (IMEI) number in his system.

(ii) The Cellular Mobile Operators shall, if not already registered, obtain registration under the Sales Tax Act, 1990.

(iii) No IMEI shall be registered in his system by a Cellular mobile Operator without charging and collecting the sales tax as specified in the Table.
(iv) The Cellular Mobile Operator shall deposit the sales tax so collected through his monthly tax return in the manner prescribed in section 26 of the Sales Tax Act, 1990, and rules made thereunder.

(v) The Cellular Mobile Operator shall maintain proper records of all IMEI numbers registered for a period of six years, and such records shall be produced for inspection, audit or verification, as and when required, by an authorized officer of Inland Revenue.

(vi) The Pakistan Telecommunication Authority shall provide data regarding IMEI numbers registered with other Cellular Mobile Operators to prevent double taxation on the same IMEI number in case of switching by a subscriber from one operator to another, and to provide data regarding registration of IMEI numbers to the Board on monthly basis.

(via) The sales tax as indicated in column (3) of the Table above shall be paid by the importer, in case of imports and by the manufacturer, in case of locally manufactured cellular mobile phones.

(vii) No adjustment of input tax shall be admissible to the Cellular Mobile Operator or any purchaser of cellular mobile phone against the sales tax charged and paid in terms of this Schedule.

(viii) The tax specified in column (4) of the Table shall be charged, collected and paid with effect from such date as may be specified by the Board and the sales tax specified in column(3) shall stand withdrawn from the date so specified.

The FBR said that notwithstanding anything contained in any other law for the time being in force, the levy, collection and payment of sales tax under Notification No. S.R.O. 460(I)/2013, dated the 30th May, 2013, shall be deemed to always have been lawfully and validly, levied, collected and paid.

October 10, 2019

RTO-II Karachi to assess incomes of lawyers, doctors, CAs, other professionals

KARACHI: Regional Tax Office (RTO) – II Karachi has been authorized to assess incomes of professionals including lawyers, doctors, chartered accountants etc. for assessment of their incomes and enforce income tax returns.

The Federal Board of Revenue (FBR) has revised jurisdiction of Chief Commissioner and Commissioners of Inland Revenue, RTO-II Karachi.

The Zone-I of the RTO-II, Karachi has been assigned jurisdiction over: (i) lawyers, advocates, auditors and chartered accountants, legal consultants, architects and engineers; (ii) doctors, hakeems, homeopathic, doctors, hospitals, clinics, laboratories, diagnostic centers, X-Ray centers, CT-Scans centers, MRI centers, ultrasound centers, nursing homes etc.

Under Section 114 of Income Tax Ordinance, 2001 the filing of income tax returns is mandatory for persons registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan.

The zone has also been assigned jurisdiction over: (iii) chemicals and dyes manufacturers, importers, exporters, distributors and wholesalers; (iv) pharmaceutical manufacturers, importers, distributors/wholesalers including drug stores and chemists.

The FBR said that the commissioner of Zone I of RTO-II Karachi would have jurisdiction over all cases or classes of cases, persons or classes of persons of non-corporate sector including individuals and association of persons (AOPs) of mentioned above sectors other than those specifically assigned to Large Taxpayers Unit (LTU)/LTU-II Karachi, Corporate RTO Karachi or RTO-III or any other zone of RTO-II Karachi whose place of business is situated in the areas falling within the limits of former Baldia Town, Jamshed Town, Liaquatabad Town, Orangi Town, Saddar Town, SITE Town and within the limits of Clifton Cantonment, Karachi Cantonment, Kimari Cantonment and Manora Cantonment.

The Zone-III of the RTO-II, Karachi has been assigned jurisdiction over falling under: education/training/vocational institutions; real estate developers, contractors, dealers builders and cooperative housing societies; travel agents, hajj and umrah operators and visa and immigration consultants.

The FBR has also assigned jurisdictions on various sectors to remaining zones of the RTO-II Karachi.

October 9, 2019
Tax rate on interest income for Tax Year 2020

KARACHI: Federal Board of Revenue (FBR) issued tax rate to be imposed on interest income during Tax Year 2020.

The FBR issued Income Tax Ordinance, 2001 updated up to June 30, 2019 incorporating changes brought through Finance Act, 2019.

The Section 7B of the Income Tax Ordinance, 2001 explained the application of income tax on profit on debt derived by a person during a tax year.

Section 7B: Tax on profit on debt

Sub-Section (1): Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IIIA of Part I of the First Schedule, on every person, other than a company, who receives a profit on debt from any person mentioned in clauses (a) to (d) of sub-section (1)of section 151.

Sub-Section (2): The tax imposed under sub-section (1) on a person, other than a company, who receives a profit on debt shall be computed by applying the relevant rate of tax to the gross amount of the profit on debt.

Sub-Section (3): This section shall not apply to a profit on debt that –

(a) is exempt from tax under this Ordinance; or

(b) exceeds thirty six million Rupees.

Division IIIA of Part I of the First Schedule for the rate of tax for profit on debt imposed under section 7B shall be—

1. Where profit on debt does not exceed Rs.5,000,000: the tax rate shall be 15 percent

2. Where profit on debt exceeds Rs.5,000,000 but does not exceed Rs.25,000,000: the tax rate shall be 17.5 percent

3. Where profit on debt exceeds Rs.25,000,000 but does not exceed Rs. 36,000,000: the tax rate shall be 20 percent

Section 151 explains persons receiving profit on debt

Section 151: Profit on debt:

Sub-Section (1) Where –

(a) a person pays yield on an account, deposit or a certificate under the National Savings Scheme or Post Office Savings Account;

(b) a banking company or financial institution pays any profit on a debt, being an account or deposit maintained with the company or institution;

(c) the Federal Government, a Provincial Government or a Local Government pays to any person profit on any security other than that referred to in clause (a) issued by such Government or authority; or

(d) a banking company, a financial institution, a company referred

to in sub-clauses (i) and (ii) of clause (b) of sub-section (2) of section 80, or a finance society pays any profit on any bond, certificate, debenture, security or instrument of any kind (other than a loan agreement between a borrower and a banking company or a development finance institution) to any person other than financial institution.

October 9, 2019
Refunds of customs duties to be claimed within one year

KARACHI: Federal Board of Revenue (FBR) has said that the refunds against customs duties would be paid if claims have been made within one year.

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

The FBR explained through Section 33 of the Act that refunds f customs duties would be paid if claims had been made within one year.

Section 33: Refund to be claimed within one year.

Sub-Section (1): No refund of any customs-duties or charges claimed to have been paid or over-paid through inadvertence, error or misconstruction shall be allowed, unless such claim is made within one year of the date of payment.

Sub-Section (2): In the case of provisional payments made under section 81, the said period of one year shall be reckoned from the date of the adjustment of duty after its final assessment.

Sub-Section (3): In the case where refund has become due in consequence of any decision or judgment by any appropriate officer of Customs or the Board or the Appellate Tribunal or the Court, the said period of one year shall be reckoned from the date of such decision or judgment, as the case may be.

Sub-Section (3A): The claim filed under this section shall be disposed of subject to pre-audit within a period not exceeding one hundred and twenty days from the date of filing of such claim:

Provided that the said period may, for reasons to be recorded in writing, be extended by the Collector of Customs for a period not exceeding ninety days.

Sub-Section (4): No refund shall be allowed under this section, if the sanctioning authority is satisfied that the incidence of customs duty and other levies has been passed on to the buyer or consumer.

Sub-Section (5): For the purpose of this section, the Board may, by notification in the official Gazette, specify the jurisdiction and powers of the officers of Customs to sanction refund in terms of amount of Customs duty and other taxes involved.

Section 34: Power to give credit for, and keep account-current of duties and charges.

An officer of customs, not below the rank of Assistant Collector of customs may, in the case of any mercantile firm or public body, if he so thinks fit, instead of requiring payment of customs duties or charges as and when they become due, keep with such firm or body an account-current of such duties and charges, which account shall be settled at intervals of not exceeding one month, and such firm or body shall make a deposit or furnish a security sufficient in the opinion of that officer to cover the amount which may at any time be payable by it in respect of such duties or charges.

October 9, 2019
How taxpayers fail in filing returns by due date, KTBA questions FBR

KARACHI: A body of tax practitioners has questioned Federal Board of Revenue (FBR) that how taxpayers fail to file returns for tax year 2019 on September 30, 2019 when the tax authorities extend the date ahead of cutoff time.

The Karachi Tax Bar Association (KTBA) in a letter to FBR chairman referring the Circular No. 14 of 2019 dated September 30, 2019 whereby the due date for filing the returns of income had been extended till October 31, 2019 in respect of Individuals and AOPs, and Companies following Special Tax Year.

“At the outset, regarding the construction of the above mentioned Circular, it is pertinent that it was communicated to the taxpayers around 9:30 pm on September 30, 2019 whereas the deadline was up to 12:00 am.

“The extension has purportedly been announced on account of alleged ‘failure of the taxpayers’ to file the returns of income by the due date of September 30, 2019 as the Circular states that the taxpayers (Individuals, AOPs and Companies) “failed to file their income tax returns/ statements.”

On behalf of its members, the bar takes serious exception to the use of this uncalled for statement for, the said extension was necessitated due to the FBR’s failure to timely issue the final forms of returns of income.

Even after issuance of SRO 979(I)/2019 on 02 September 2019, it took couple of more days for the FBR to upload these forms on IRIS and after the same having been uploaded, were carrying certain system issues/ technical glitches as well as interpretational matters.

These were duly intimated by the Bar vide its letter dated 20 September 2019.

The tax bar is of the view that instead of blaming the taxpayers who “could not file” the income tax returns by September 30, 2019 on account of the above discussed reasons, the Board acknowledging the same would have allowed the taxpayers without blaming them, due time of ninety days to file the income tax returns.

As regards the extension allowed to the companies, it is tainted with an unprecedented condition of payment of 95 percent of admitted income tax liability by September 30, 2019.

“This condition of payment of 95 percent tax liability is completely unheard and couldn’t be found to have existed anywhere under any provision of the Income Tax Ordinance, 2001 including the very section 214A under which the aforesaid Circular has been issued.”

Besides the debate of any legality, what needs to be emphasized here remain that had there been any patent or latent intention of the Board to extend the due date only for those Companies which would have paid 95 percent of their income tax liability, the same should have been communicated clearly well before the last date of filing to provide necessary time to them to deposit the income tax demanded at the eleventh hour.

What however, has been witnessed that the above Circular, with this irrational condition, was issued at the eleventh hour and came as a surprise, when the extended banking hours had already been lapsed.

It was therefore, impossible for anyone to fulfill the condition even if they were forced too. Thought it was reported in the news media that the FBR had issued a Circular letter on this topic of payment of 95 percent income tax before availing extension in time, however the said Circular letter was never made public.

Besides the above pandemonium, what needs emphasis here is that legal and permissible time period for filing the return of income in terms of section 118 of the Ordinance has not been allowed to Companies for, the final SRO for Companies was issued on September 06, 2019 allowing only twenty four (24) days to them for filing the return of income.

It is, therefore, a strange condition in the first place and that too without any legal footing hence it would be all just and bona fide that the due number of days, which are ninety (90) from the issuance date of the final forms of return of income are allowed to the taxpayers including Companies without any pre-condition levied upon.

October 8, 2019
List of consumer items for 17 percent sales tax on retail price
KARACHI: The Federal Board of Revenue (FBR) has issued list of consumer items on which sales tax at the rate of 17 percent is chargeable on the basis of printed retail price.

The FBR issued Sales Tax Act, 1990 updated till June 30, 2019 incorporating amendments brought through Finance Act, 2019.

The FBR explained that taxable supplies and import of goods specified in the Third Schedule shall be charged to tax at the rate of seventeen percent of the retail price or in case such supplies or imports are also specified in the Eighth Schedule, at the rates specified therein and the retail price thereof, along with the amount of sales tax shall be legibly, prominently and indelibly printed or embossed by the manufacturer, or the importer, in case of imported goods, on each article, packet, container, package, cover or label, as the case may be.

Following is Third Schedule to Sales Tax in which consumer items are mentioned for collection of sales tax on the basis of printed retail price:
- Fruit juices and vegetable juices.
- Ice Cream.
- Aerated waters or beverages.
- Syrups and squashes.
- Cigarettes.
- Toilet soap
- Detergents
- Shampoo
- Toothpaste
- Shaving cream
- Perfumery and cosmetics.
- Tea
- Powder drinks
- Milky drinks
- Toilet paper and tissue paper
- Spices sold in retail packing bearing brand names and trade marks
- Shoe polish and shoe cream
- Fertilizers
- Cement sold in retail packing
- Mineral/bottled water
- Household electrical goods, including air conditioners, refrigerators, deep freezers, televisions, recorders and players, electric bulbs, tube-lights, electric fans, electric irons, washing machines and telephone sets.
- Household gas appliances, including cooking range, ovens, geysers and gas heaters.
- Foam or spring mattresses and other foam products for household use.
- Paints, distempers, enamels, pigments, colours, varnishes, gums, resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in retail packing
- Lubricating oils, brake fluids, transmission fluid, and other vehicular fluids sold in retail packing.
- Storage batteries excluding those sold to
- Automotive manufacturers or assemblers
- Tyres and tubes excluding those sold to automotive manufacturers or assemblers
- Motorcycles
- Auto rickshaws
- Biscuits in retail packing with brand name
- Tiles
- Auto-parts, in retail packing, excluding those sold to automotive manufacturers or assemblers.
October 8, 2019
No income tax on employee share schemes

KARACHI: Federal Board of Revenue (FBR) has said that the value of a right or option to acquire shares under an employee share scheme granted to an employee shall not be chargeable to tax.

The FBR issued Income Tax Ordinance, 2001 up to June 30, 2019 under which it explained the taxability on employee share scheme through Section 14 of the Ordinance.

Section 14: Employee share schemes

Sub-Section (1): The value of a right or option to acquire shares under an employee share scheme granted to an employee shall not be chargeable to tax.

Sub-Section (2): Subject to sub-section (3), where, in a tax year, an employee is issued with shares under an employee share scheme including as a result of the exercise of an option or right to acquire the shares, the amount chargeable to tax to the employee under the head “Salary” for that year shall include the fair market value of the shares determined at the date of issue, as reduced by any consideration given by the employee for the shares including any amount given as consideration for the grant of a right or option to acquire the shares.

Sub-Section (3): Where shares issued to an employee under an employee share scheme are subject to a restriction on the transfer of the shares —

(a) no amount shall be chargeable to tax to the employee under the head “Salary” until the earlier of —

(i) the time the employee has a free right to transfer the shares; or

(ii) the time the employee disposes of the shares; and

(b) the amount chargeable to tax to the employee shall be the fair market value of the shares at the time the employee has a free right to transfer the shares or disposes of the shares, as the case may be, as reduced by any consideration given by the employee for the shares including any amount given as consideration for the grant of a right or option to acquire the shares.

Sub-Section (4): For purposes of this Ordinance, where sub-section (2) or (3) applies, the cost of the shares to the employee shall be the sum of —

(a) the consideration, if any, given by the employee for the shares;

(b) the consideration, if any, given by the employee for the grant of any right or option to acquire the shares; and

(c) the amount chargeable to tax under the head “Salary” under those sub-sections.

Sub-Section (5): Where, in a tax year, an employee disposes of a right or option to acquire shares under an employee share scheme, the amount chargeable to tax to the employee under the head “Salary” for that year shall include the amount of any gain made on the disposal computed in accordance with the following formula, namely:—

A—B

where —

A is the consideration received for the disposal of the right or option; and

B is the employee’s cost in respect of the right or option.

Sub-Section (6): In this sub-section, “employee share scheme” means any agreement or arrangement under which a company may issue shares in the company to —

(a) an employee of the company or an employee of an associated company; or

(b) the trustee of a trust and under the trust deed the trustee may transfer the shares to an employee of the company or an employee of an associated company.

October 7, 2019
Bashirullah Khan given anti-benami initiative charge

ISLAMABAD: Federal Board of Revenue (FBR) on Monday assigned additional charge of Director General Anti-Benami Initiative to Dr. Bashirullah Khan, a BS-21 officer of Inland Revenue Service (IRS).

The FBR notified posting and transfers of following officers of IRS:

01. Dr. Bashirullah Khan (Inland Revenue Service/BS-21) who is currently posted as Chief Commissioner-IR, Regional Tax Office, Rawalpindi has been assigned the additional charge of the post of Director General, Anti-Benami Initiative, Islamabad in addition to his own duties, relieving Asim Ahmed (IRS/BS-21) presently posted as DG, I&I-IR, Islamabad.

02. Hassan Zulfiqar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue Inland Revenue (Appeals-I), Islamabad from the post of Commissioner-IR, Benami Zone-I, Islamabad.

03. Khalid Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-V) Regional Tax Office II, Lahore from the post of Commissioner-IR, Benami Zone-II, Lahore.

04. Muhammad Faisal Mushtaq Dar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue Benami Zone-I, Islamabad from the post of Commissioner-IR, Inland Revenue (Appeals-I), Islamabad.

05. Amir Abbas Khan (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue (OPS) Benami Zone-II, Lahore from the post of Commissioner-IR, (OPS) (West Zone) Regional Tax Office, Islamabad

The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

October 7, 2019
Date of determination of import duty rate under Customs laws

KARACHI: Federal Board of Revenue (FBR) has explained determination of rate of import duty under Customs Act, 1969.

The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019. Section 30 of the Act explained date of determination of rate of import duty.

Section 30: Date of determination of rate of import duty

The rate of duty applicable to any imported goods shall be the rate of duty in force;

(a) in the case of goods cleared for home consumption under section 79, on the date on which a goods declaration is manifested under that section; and

(b) in the case of goods cleared from a warehouse under section 104, on the date on which a goods declaration for clearance of such goods is manifested under that section:

Provided that, where a goods declaration has been manifested in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is delivered at the port of first entry:

Provided further that, in respect of goods for the clearance of which a goods declaration for clearance has been manifested under section 104, and the duty is not paid within seven days of the goods declaration being manifested, the rate of duty applicable shall be the rate of duty on the date on which the duty is actually paid:

Provided further that in case of the goods illegally removed from the warehouse, the rate of duty shall be the rate prevalent either on the date of in-bonding or detection of case or date of payment of the duty and taxes, whichever is higher:

Provided further that in case of exercising option for redemption of fine in lieu of confiscation of the goods seized during anti-smuggling operations, the rate of duty shall be the rate prevalent either on the date of seizure or date of payment of duty and taxes, whichever is higher:

Provided further that the Board, with approval of the Federal Minister-in-charge may, by notification in the official Gazette, for any goods or class of goods, specify any other date for the determination of rate of duty.

Explanation:- For the purpose of this section “manifested” means that when a machine number is allocated to goods declaration and is registered in Customs record.

Section 30A: Date of determination of rate of duty for clearance through the Customs Computerized System

Subject to the provisions of section 155A, the rate of duty applicable to any imported or exported goods if cleared through the Customs Computerized System, shall be the rate of duty in force on;-

(a) the date of payment of duty;

(b) in case the goods are not chargeable to duty, the date on which the goods declaration is filed with Customs.

Provided that where a goods declaration has been filed in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is filed at the customs-station of first entry:

Provided further that the Board, with approval of the Federal Minister-in-charge may, by notification in the official Gazette, specify any other date for the determination of rate of duty in respect of any goods or class of goods.

Section 31: Date for determination of rate of duty on goods exported

The rate and amount of duty applicable to any goods exported shall be the rate and amount chargeable at the time of the delivery of the goods declaration under section 131:

Provided that where the export of any goods is permitted without a goods declaration or in anticipation of the delivery of such a declaration, the rate and amount of duty applicable shall be the rate and amount chargeable on the date on which loading of the goods on the outgoing conveyance commences:

Provided further that the Board, with approval of the Federal Minister-in-charge may, by notification in the official Gazette, for any goods or class of goods, specify any other date for determination of the rate of duty.

Section 31A. Effective rate of duty

(1) Notwithstanding anything contained in any other law for the time being in force or any decision of any Court, for the purposes of section 30, 30A and 31, the rate of duty applicable to any goods shall include any amount of duty imposed under section 18,18A and 18C and the amount of duty that may have become payable in consequence of the withdrawal of the whole or any part of the exemption or concession from duty whether before or after the conclusion of a contract or agreement for the sale of such goods or opening of a letter of credit in respect thereof.

(2) For the purpose of determining the value of any imported or exported goods, the rate of exchange at which any foreign currency is to be converted into Pakistan currency shall be the rate of exchange in force on the date immediately preceding the relevant date referred to in sections 30, 30A or 31.

October 7, 2019