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
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
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
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.
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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.
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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
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.
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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.
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Customs announces auction of smuggled vehicles on Dec 11 at ASO Karachi
KARACHI: Pakistan Customs has announced auction of smuggled vehicles to be held on December 11, 2019 at Anti-Smuggling Organization (ASO) Office, Ghasbandar, Keamori, Karachi.
Following used vehicles will be auctioned on December 11, 2019:
01. Toyota Lexus Car – Reg No. UC-868 -Model-2006- (As per seat Belt) Chassis: JTHBG 963905034702 / Engine EMH-3 GR-FE158467 – 3485 cc. at State Warehouse-III- Near PICT Gate-Keamori
02. Toyota Harrier Jeep – Reg.No-JAA-454 – Model-1998 – 2999cc, Chassis No-MCU-10-0013510 – Engine No- IMZ-FE6688090. at State Warehouse-III- Near PICT Gate-Keamori
03. Toyota Mark-II Saloon Car / Reg. No-BBL-708 / Model-2000 / 1800 HP, Chassis No-JZX110-6000922 / Engine No-1JZ-075010, In Front of ASO HQ Ghasbandar East Eharf
04. Toyota AXIO-X car – White Colour – Reg.No.BFE-068 – 1496 cc – Model-2007, Chassis : NZE-141-6028039 / Engine : INZ-C0360547 at State Warehouse-III- Near PICT Gate-Keamori
05. Toyota Land Cruiser Jeep – Silver Colour Reg. No. BG-1131 – Model-1989 – 3400 cc, Chassis : BJ 60-023765 – Engine : 3B-1098887(As per Reg.Book). DIESEL at State Warehouse-III- Near PICT Gate-Keamori
05. Mercedes Benz Saloon Car – Black Reg. No- BFF-014 / – Model- 2007, Chassis No. WDD2193222A117436 / Engine No. 64292040471958 / 3200 CC at ASO NMB Wharf EW
06. Toyota Land Cruiser Jeep – P.White Reg.No. LZN-888 – Model – 1999 – 4663 CC, Chassis No-UZJ 100-0081129 / Engine No- 2 UZ-0132269. at ASO – NMB Wharf EW
07. Toyota Surf Jeep – White Reg.No.BF-9252 – Model-1998, Chassis No. RZN185-9019896 / Engine No. 3RZ-FE. At ASO – NMB Wharf EW
08. Toyota Hilux Surf Jeep – Reg. No. CJ-4242 (Sindh) – Model-1990 – 2446 CC, Chassis No LN130-0026273 / Engine No. 2L-2264058 at ASO – NMB Wharf EW
09. Nissan X-Trail 5 Door Jeep – Pearl White Reg. No. GR-621 – Model-2005 ( As per seat Belt Model-2000 ), Chassis No. NT 30-100374 – Engine No. QR 20 (DE) at ASO – NMB Wharf EW
10. Toyota Mark- X Car – Trim Reg. No. BFB – 837 – Model-2005 – 2499 CC, Chassis No. GRX 120-3007142 / Engine No. 4 GR-0093992 at ASO – NMB Wharf EW
11. Toyota Land Cruiser Jeep – ( Petrol ) White Reg. No. BF-5933 – Model-1995 – 4476 CC, Chassis No. FZJ 80-0109507 / Engine No. at ASO – NMB Wharf EW
12. Honda Civic Hybird Car Reg. No. AND-312 – Model-2008 – 1339 CC, Chassis No. FD 3-1203642 / Engine No. DAA-1984158 at ASO – NMB Wharf EW
13. Toyota PASSO car Reg. No. GS-6996 – Model-2010 – 996 CC, Chassis No. KGC 30-0044392 / Engine No. IKR 1144091 at ASO – NMB Wharf EW
14. Toyota AIXO Car Re.No. KCH-434 – Model-2006 – 1496 CC, Chassis No. NZE141-6003694 at ASO – NMB Wharf EW
15. Mercedes Benz Saloon Car (AG) – Reg.No. # AB 1001, Chassis No-WDB1240312B476728 at ASO – NMB Wharf EW
16. Toyota Hilux Surf Heep – Reg,No. UU-691 – Modle – 1992 – 240CC., Chassis – LN130-7022502 – Engine No-3244904 at ASO – NMB Wharf EW.
17. Toyota Mark-X Car Reg.No. BGD-647(Karachi) – Model – 2005 – 2499 CC, Chassis No. GRX120-004523 Engine No. 4 GR-0119104 at ASO – NMB Wharf EW.
18. Toyota RURIO Saloon Car Reg. No. BFA – 954 (Karachi) – Model – 2006 – 1496 CC – Colour Sky Blue., Chassis No. NCZ20-0051360 Engine No. 1NZB-240903 at ASO – NMB Wharf EW.
19. Honda Civic Hybird Car Reg. No. AXC – 614 – Model-2012 , Chassis No – JHMFD-36208S205131 – at ASO – NMB Wharf EW.
20. Toyota Surf Jeep – Reg.No. AFR-2019 – Model – 2000 – 2693 CC., Chassis No-RZN185-0040063 Engine No. 3RZ-FE at ASO – NMB Wharf EW.
21. Toyota VITZ Car Reg. No. AKV – 219 (Sindh) – Model – 2006 – 1296 CC., Chassis No. SCP90-5081452 at ASO – NMB Wharf EW.
22. Toyota AXIO Saloon Car – Reg.No. AWB-204 – Model – 2008 – 1496 CC, Chassis No. NZE141-6088775 Engine No. INZ – C837894 at ASO – NMB Wharf EW.
23. VITZ Car Rsg. No. BFB-648 (karachi) – Model – 2003 – 997 CC – White., Chassis No. SCP10-0432762 – Engine No. 1107800 at ASO – NMB Wharf EW.
24. Toyota Premio Car Reg. No. BFL-098 – Model – 2005, Chassis No. ZZT – 240-0096078 Engine No. IZZ-FE at ASO – NMB Wharf EW.
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FBR issues draft rules for movement of international transshipment cargo
ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued draft rules for the movement of international transshipment cargo through any sea port in Pakistan.
The FBR issued SRO 1538(I)/2019 for introducing draft rules and asked stakeholders to provide their comments within 15 days to finalize the rules.
Following are the rules to be inserted in the Customs Rules 2001:
Rule 510A: Transshipment of imported cargo from gateway port to a foreign port
The following procedure is prescribed for the movement of the International Transshipment (IT) cargo through any sea port in Pakistan, which shall be distinctly manifested as such in the IGM/carrier declaration uploaded electronically in the Customs Computerized System by the shipping line or its agent. Such manifest shall necessarily include the following information, namely:
(a) port of loading
(b) via port (name of the transshipment port of Pakistan)
(c) port of destination (final port of discharge at foreign destination)
(d) bill of lading (B/L) No
(e) name of foreign exporter, and
(f) name of foreign importer.
510B: Transshipment of containerized cargo
The unloading of IT containers of the transshipment of containerized cargo shall,-
(a) mode in presence of Preventive Officer and after unloading. IT containers shall be stored separately at a place earmarked for them in the notified premises of a seaport.
(b) the Preventive Officer shall examine the shipper seals of the IT containers and in case of any broken seal, such container shall be examined and immediately released with the Customs seal in the presence of the custodian and same shall be recorded.
(c) the cargo so unloaded from one vessel for storage for subsequent loading at another vessel shall not be allowed under any circumstances to be taken out of the bonded area. The terminal operator shall b e responsible for safe storage and security of the goods. In case of any pilferage, shortage, theft or damage to goods, the terminal operator shall be liable to make payment of duty and taxes leviable thereon and compensate the owner of goods.
(d) for loading of stored international destined cargo, master of the vessel or his authorized agent, or Non-Vessel Operating Common Carrier (NVOCC) shall electronically file an online declaration in Pakistan Customs Computerized System for International Transshipment (IT) against respective VIR/IGM and index to be loaded on a vessel for transportation to an international destination.
(e) this online declaration shall indicate complete details of the consignment and shall be filed with invoice, packing list, bill of lading and any other requirement document.
(f) no goods for international transshipment shall be loaded on a vessel until the system has allowed loading electronically. The computerized system may on the basis of Risk Management System (RMS) assign such online declaration to the assessing officers for documentary and physical inspection.
(g) International transshipment of cargo shall be effected within thirty days of inward berthing of vessel.
(h) if there is a reason to believe that the goods in violation of any prohibition or restriction have been brought for international transshipment, the same shall be examined and auctioned after the approval of the collector of customs, and
(i) after online allow of loading, goods shall be allowed to be loaded on to the ship under the Customs supervision. The preventive officer supervising the loading shall acknowledge the loading of such cargo. This record shall be reconciled with the copy of Export General Manifest.
510C. Transshipment of oversized, bulk and break bulk cargo
(1) Oversized, bulk and break-bulk cargo shall be examined by the Customs upon discharge and examination report along with the pictures of the cargo shall be uploaded in the Customs Computerized system against B/L. Upon filing of online declaration for transshipment, the details of the cargo shall be reconciled with the imported cargo.
(2) Partial transshipment of bulk or break bulk cargo shall be allowed against Online Bulk Transshipment Declaration having endorsement ‘partial transshipment’ containing details of total cargo arrived, quantity being transshipped and remaining quantity. The shipping line or its representative shall furnish a complete accountal of bulk or break cargo to the Assistant Collector (Import Section) within twenty four hours of the completion of transshipment. In case of liquid bulk cargo, the same shall be stored in the storage tank used exclusively for the international transshipment.
510D: Financial guarantee on transshipment goods
(1) The international transshipment goods shall not be subject to payment of import or export duties and taxes provided the activities are in conformity with these rules.
(2) Shipping line intending to use the facility of International Transshipment shall furnish a financial guarantee for the leviable duty and taxes of the goods as security to ensure exit of goods outside the country within thirty days from the berthing of inward vessel. The financial guarantee shall be forfeited apart from the other consequential penal action under the Customs Act, 1969 and the rules made there under, if the shipping line misuse the facilities of international transshipment.
(3) If a request for transshipment is not filed for the goods stored for transshipment within thirty days of its arrival, a notice shall be sent to the shipping line or its agent on the address given in the shipping documents for transshipment of goods from the port. If goods still remain on the port after expiry of sixty days of their arrival, the goods shall then be auctioned and unless the delay is attributable to the port authorities.
513E: Execution of Bond by Shipping Line
Shipping line shall execute a bond for ensuing to follow Customs Rules and regulations and for immediate removal of the goods from port in case the same is required by an officer not below the rank of Collector of Customs. The collector of customs, after recording the reason of such direction in writing, shall require the shipping line of immediate removal of transshipment cargo.
510F: Prohibition and Restrictions
The facility for international transshipment shall not be available to cargo containing arms and ammunition, explosive, radioactive materials, goods and technologies relating to Nuclear and Biological Weapons and restricted commodities under the UNSCC sanctions.