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Tag: Pakistan Customs

  • Pakistan Customs assures eliminating import barriers

    Pakistan Customs assures eliminating import barriers

    KARACHI: Pakistan Customs has assured commercial importers of eliminating import barriers and improve facilitations through online system WeBOC.

    Dr. Mohammad Nadeem Memon, Collector of Customs, has assured to solve the problems facing the commercial importers at the import level and also provide all possible facilities.

    He was talking to a delegation called by Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman and former Director of Pakistan Stock Exchange, Amin Yousuf BalgamWala. Amjad Yaqoob, Muhammad Idrees and Mohammad Sabir were also present in the meeting.

    The meeting discussed the issues with delegation including WeBOC and said that would be tried to resolve the difficulties of the members of the association on priority basis so that there would be no barrier to imports.

    Amin Yusuf Balgamwala, Chairman, PCDMA and former Director of Pakistan Stock Exchange informed about problems and said that PCDMA was always helping in customs price valuation for the last 30 years, but at the import level, commercial importers are facing various problems that need to be addressed.

    He requested to the collector of customs that PCDMA represents commercial importers across Pakistan and regional offices are established in Lahore and Faisalabad besides headquarters in Karachi, therefore, the recommendations of the association in the WeBOC should be accepted on regular basis and facilitate PCDMA members with regard to ID.

  • Pakistan Customs’ security, integrity at mercy of lappus

    Pakistan Customs’ security, integrity at mercy of lappus

    KARACHI: The sensitive data of Pakistan Customs and integrity of the department are totally at mercy of privately hired persons ‘lappus’ by Customs officers.

    These lappus are not only accessing sensitive data of Pakistan Customs but also doing all illegal work for their bosses, which is commonly known as ‘settlement’.

    The gravity of situation can be gauged with the recent example where a lappu auctioned of huge amount consignments where importer had paid duty and taxes.

    The customs authorities apprehended one person in the case, who was identified as lappu and was working and representing customs officers for the last five to six years.

    According to details a First Information Report (FIR) dated November 15, 2019 was lodged at Research and Development Department, Model Customs Collectorate of Appraisement (East) Customs House, Karachi.

    The FIR was lodged by Shakeel John, Appraising Officer following a crime of removing goods from Shaheen Container Yard after an illegal auction of goods.

    The FIR nominated persons included: Muhammad Zaki; Adeel Ahmed; Meer Rizwan Ali; and concerned staff and management of M/s Pak Shaheen Container Yard.

    In the case three lots of consignments were auctioned valuing over Rs12 million on which importer had paid duty and taxes.

    The importer namely Abid Japanwala made strong protest on illegal auction by customs authorities and demand recovery of his consignments.

    The text of relevant paragraphs of reply submitted by Pak Shaheen to the FIR stated:

    “… an LCL cargo bearing IGM No. 402/18 consisting of 10 pallets STC Copper Foil weighing 6053kgs was imported on 21.08.2018 by M/s. Paramount Radiators and forwarded to Pak Shaheen Container Terminal for clearance by the freight forwarders i.e. Facilities Shipping Agency.

    “Since the cargo was not cleared within the prescribed time period as per Section 82 of the Customs Act, 1969, an auction lot number PS-216-10-18 was assigned to it and the customs was informed accordingly on October 15, 2018.

    “On November 11, 2019, the importer namely Abid Japanwala approached the Terminal and informed that his cargo has been cleared by the customs and requested for rebate in storage charges as his cargo remained at the terminal for more than a year incurring heavy amount of storage charges.

    “On receipt of such request from Japanwala the record of the terminal was checked and it was found that, as per record, the said cargo was auctioned by the Customs and on November 08, 2019 the delivery was made to the bidder Babar Saleem through his agent Mir Rizwan Ali.

    “When Abid Japanwala was informed about the auction of his cargo, he showed his out of charge GD to the Head of Commercial Naveed Nabi Khan and appeared to be shocked and stated that how can his cargo be auctioned when he deposited the Customs duty.

    “After seeing the out of Charge GD, Abid Japanwala was informed that as per customs rules no duty paid consignment can be auctioned and that he should take up his case with Collector (East) directly.

    “He was also given a complete set of auction/delivery documents to take up his case with the Collector (East).

    “We were later informed that the importer approached the Collector (East) along with the auction documents provided by the terminal as it was feared that some unscrupulous element managed to play fraud depriving the importer of his consignment and depriving the client of demurrage charges.”

    The reply further pointed out:

    “… On November 15, 2019, the Customs apprehended one Zaki who was working with the Customs staff at the terminal since last five to six years as customs assistant commonly known as ‘lappu’ and during all these years h ad attained the status of focal person of Customs and for all practical purposes he was representing the customs official.

    “On November 16, 2019, Akmal Durrani, Assistant Collector posted at Pak Shaheen Terminal, called the concerned staff of Customer Services and interrogated them and also took the video recording of November 08, 2019 in which Zaki can been seen taking subject document from his car.”

    The detailed reply by Pak Shaheen Terminal helped the terminal operator to clear its position in this fraud. This resulted that interim challan presented by the customs authorities at the Special Judge Customs and Taxation, Karachi dated December 02, 2019 the name of Pak Shaheen was excluded from the case.

    The revelation of Pak Shaheen in its reply is eye opener for Federal Board of Revenue (FBR) and other relevant authorities that how privately hired persons or lappus were authorized access to customs records.

    This is also surprising that how these unauthorized lappus getting entry to terminal yard.

    The presence of lappus in Pakistan Customs is not new. The lappus are working for long time in the department and conducting official works on behalf of senior customs officials.

    It is commonly known that the customs officers hire these people for their ‘speed money’.

    The lappus as agent create win win situation for both customs officers and importers at the cost of national revenue. As facilitators lappus get huge commission beside their fixed income set by the customs officers.

    These lappus have direct interaction with importers on those consignments where misdeclaration made. The customs officers are no where or have no direct links in such illegal activities.

    The dangerous aspect of presence of lappus is access to sensitive data of Pakistan Customs, which has also strategic importance.

    Recently, Prime Minister Imran Khan pointed out massive corruption in Pakistan Customs. Although the prime minister quoted exaggerated amount but the instant case may be an example that how much the customs collectors are earning through illegal means.

    The Federal Board of Revenue (FBR) has issued many warnings to field formations to avoid the presence of unauthorized persons working within their jurisdictions. But all in vain as presence of lappus are still in the key places of Pakistan Customs.

    FBR chairman Shabbar Zaidi, in May 2019 soon after becoming chairman, while taking notice of presence of large number of visitors for making the entire clearance system doubtful, had ordered Customs Wing to strictly restrict, entry into Customs Houses, only to the concerned traders, their authorized representatives and members and relevant trade bodies/ associations.

  • Auction of confiscated motor vehicles to be held on Jan 09

    Auction of confiscated motor vehicles to be held on Jan 09

    KARACHI: Pakistan Customs has announced an auction of confiscated motor vehicles, set to take place at the Anti-Smuggling Organization (ASO) on January 09, 2019.

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  • Baggage false declaration to be treated as smuggled goods

    Baggage false declaration to be treated as smuggled goods

    KARACHI: Any misdeclaration or false declaration of baggage carrying by passengers or crew members shall be treated as smuggled goods and penalties will be applicable related to smuggled goods.

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  • FBR drafts rules for risk based customs clearance

    FBR drafts rules for risk based customs clearance

    ISLAMABAD: Federal Board of Revenue (FBR) has drafted Risk Management System Rules for customs clearance of cargo to comply with Trade Facilitation Agreement (TFA) of World Trade Organization (WTO).

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  • 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.

  • Border markets, warehouses to be established to contain smuggling: Member Customs

    Border markets, warehouses to be established to contain smuggling: Member Customs

    KARACHI: Pakistan Customs to set up border markets and border warehouses all border crossing of the country to contain smuggling, a top official of Pakistan Customs said.

    A statement released by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday quoted Jawwad Agha, Member Customs (Operations) as saying that on the instructions of the Prime Minister Imran Khan is being prepared under which border markets and border warehouse would be established at all border crossing of the country to contain the smuggling.

    Jawwad Agha in response to the FPCCI president suggestion regarding restoration of 20 days period for clearance of imported or exported goods from 15 days said that the period was reduced to 15 days due to avoid port terminal congestion.

    However, in case of default particularly for the LCL he agreed to consider downward revision of heavy penalty which at present Rs. 5000/- per day. Regarding reduction in utilization period from 24 monthsof input acquired for manufacture and export of output goods under DTRE, he informed that the time was reduced to boost the manufacturing and exports of goods and advised the importers to complete the cycle of manufacturing of goods within the stipulated time.

    In response to a suggestion for data exchange between Pakistani and Chinese customs agencies to curb under-invoicing, the Member Customs (Operations), FBR informed that during the Prime Minister’s visit to China the agreement has been signed and would be initiated soon.

    Engr. Daroo Khan Achakzai, FPCCI President in his recommendations said that in order to facilitate the exports, the government should introduce a new scheme for imports-cum-exports of packing material whereby a notified percentage of inputs may be allowed to be imported at zero rate duties against FOB value of exports of Previous year with flexibility to import any product among the notified list in any quantity within the overall entitlement of the exporter.

    Similarly Garment and Home Textile industry be facilitated by allowing duty free import of Accessories up to 10 percent of last year export performance, which should be added automatically in WeBOC of Manufacturer Cum Exporter ID after closing of 30th June every year on the basis of record available in WeBoc.

    Exporter should be allowed to use it in exports without the condition of mentioning these goods in Export goods declaration.

    However, if an Exporter is required to imports accessories/packing material in excess of 10% then he may use (SRO-492), (SRO 327-Export oriented unit) and (SRO 450-Manufacturing Bond). New Exporter may also use SRO 492(I)/2009 dated June 13, 2009 in first year to make their performance.

  • Pakistan, China agree to expedite customs clearance through green corridor

    Pakistan, China agree to expedite customs clearance through green corridor

    ISLAMABAD: Pakistan and Chinese customs authorities have agreed to expedite clearance of agriculture products under proposed green corridor at Sost-Khunjarab Border.

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  • Intelligence discovery of around Rs1bn evasion raises question on customs collectorates performance

    Intelligence discovery of around Rs1bn evasion raises question on customs collectorates performance

    KARACHI: Performance of customs officials in clearance of imported has become questionable following back to back detection of around Rs1 billion by intelligence wing.

    Directorate of Intelligence and Investigation (I&I) Customs pointed out tax avoidance of an amount of Rs221 million by Oil and Gas Development Company Limited (OGDCL) and recovered the same.

    In another case the intelligence directorate detected tax evasion of around Rs755 million by three importers of steel products.

    The sources said that the huge discovery of tax evasion and avoidance raised questions about the performance of customs officials posted at Customs collectorates in Karachi.

    The officials of customs intelligence have jurisdiction over those goods which were cleared by customs collectorates. The sources said that huge discovery of evasion and avoidance showed inefficiency of the customs staff posted at collectorates or something else.

    The sources said that in both the cases the intelligence was ascertaining the role of customs officials in evasion and avoidance.

    They said that in the case of OGDCL, the company wrongly claimed the exemption. However, the company paid the amount as pointed out by the intelligence directorate.

    However, in other case customs intelligence and investigation lodged around 26 FIRs two days ago against three importers for misusing SRO 655(I)/2006 dated June 26, 2006 for clearance of steel products.

    The said consignments were cleared by three model collectorates in Karachi where only one percent customs duty was paid instead actual payment of 20 percent duty.

    The sources said that the three importers jointly evaded around Rs755 million. They, however, said that the evasion was detected post clearance by the collectorates.

    The sources in customs intelligence and investigation said that they had jurisdiction over cases where consignments were allowed clearance after proper scrutiny of prevailing laws and applicable customs valuations.

    The sources further said that besides lodging FIRs against importers, the authorities had launched probe into the cases that why the consignments were not examined properly by the customs collectorates.

    As per the concessions the importers cum-manufactures had been allowed imports at reduced rate of duty for in-house value addition but in the instant cases the importers had sold the goods in the open market in the raw form.

    As per the FIRs the importers misdeclared the quality of steel products at the customs clearance stage.

  • Ministry’s approval must for liquor import for diplomatic bonded warehouse

    Ministry’s approval must for liquor import for diplomatic bonded warehouse

    KARACHI: The Import permission from Ministry of Commerce is necessary for the import of liquor for a diplomatic bonded warehouse.

    “A Muslim cannot import or deal in liquor in the diplomatic bonded warehouse,” according to explanation issued by Federal Board of Revenue (FBR) regarding Diplomatic Bonded Warehouse.

    “Liquor is allowed to Diplomats against the Exemption Certificates issued by the Ministry of Foreign Affairs.”

    Liquor can be purchased by diplomats according to the quantities mentioned in the exemption certificates issued by the Ministry of Foreign Affairs, it said.

    Privileged persons can purchase liquor according to the quota provided in the Model Rules and CGO.15/96 which is as under :-

    According to CGO.15/96, the Import / purchase of alcoholic beverage is restricted to US$ 200/= per family per month by expatriate employees of foreign or local companies, loan funded projects or media personnel.

    According to the Model Rules dated 15-04-1963 for customs concessions to privileged personnel arriving under various foreign aid programmes or projects, Import / purchase of liquor can be made as per following quota.

    The FBR said that Diplomatic Bonded Warehouse is the warehouse licensed under section 13 of the Customs Act, 1969 for warehousing the dutiable goods Imported exclusively for diplomats / privileged persons.

    A Bonded Warehouse License is issued under the provisions of section 13 of Customs Act,1969.

    However, in case of Diplomatic Bonded Warehouse, the licenses were issued with the prior approval of the Federal Board of Revenue (FBR).

    As provided under sub-section(2) of section 13 of the Customs Act,1969, an application for the grant of license shall be made in the prescribed form Annex-B along with following documents :-

    Map of the proposed area.

    Article and Memorandum of Association in case of company and copy of partnership deed in case of partnership firm.

    Certificate from a scheduled bank showing soundness of financial position.

    Income Tax Registration Certificate.

    Details of Directors and authorized persons.

    Certificate of Membership of Chamber of Commerce and Industry.

    Lease / Tenancy Agreement.

    Copies of National identity Card(s) & Character Certificate(s).

    Comprehensive Insurance Policy from an approved Insurance Company.

    Survey Certificate issued by the approved surveyor.

    Besides the requirements mentioned above, all other conditions required under the Customs Act,1969 or any other law for the time being in force shall also be fulfilled.

    The permission for Import of liquor is, however, granted to non-Muslims only.

    The diplomatic bonded warehouses are dealing in Import of goods Imported exclusively for the use of diplomats, foreign missions and privileged persons. As such, all such goods / items which are used by the diplomats, foreign missions and privileged persons can be imported.

    The goods are not imported against L/C. The Importer (holding diplomatic bonded warehouse license) Import goods on contract basis and store the same in his warehouse. Subsequently goods are sold to diplomats / privileged persons according to their requirement and exemption certificates issued by the Ministry of Foreign Affairs.

    The purchase will be made strictly according to the quota fixed by the Ministry of Foreign Affairs and quantities mentioned in the exemption certificate.

    Quota is allotted and purchases are authorized by the Ministry of Foreign Affairs.
    The strength of the diplomatic community in the country which benefits from the warehouses is maintained by the Ministry of Foreign Affairs.

    The licensee of a bonded warehouse cannot open its sub-office in other cities. Periodical stock taking is conducted.

    The audit is also carried out by the staff of the Director General, Revenue Receipt Audit on quarterly basis.

    Moreover, insurance policy is obtained from the bonders covering all risks including pilferage etc.

    Besides there are specific provisions in Chapter-XI and Chapter-XVIII of the Customs Act,1969.

    In case of detection of any pilferage or misuse of the facility, penal action under the relevant clauses of sub-section (1) of section 156 of the Customs Act,1969 can also be initiated.

    On first arrival in Pakistan a privileged person shall be allowed to import free of duty and taxes foodstuff and other consumable stores including liquors and tobacco up to C&F value of US$ 200/- under chapter III of SRO 450(i)/01.

    During the period of his assignment he shall be allowed to Import free of duty and taxes foodstuff and consumable stores including liquor and tobacco up to C&F value of US$ 150/- per month but the value of liquor will not exceed US $50/- per month.