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Tag: Pakistan Customs

  • No legal proceeding against customs officials while exercising powers

    No legal proceeding against customs officials while exercising powers

    KARACHI: Customs laws protect officials from legal proceedings in case anything done in good faith while exercising powers.

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

    Section 217 of the Customs Act, 1969 provides protection of action taken under the Act.

    Section 217: Protection of action taken under the Act

    Sub-Section (1) :No suit, prosecution or other legal proceeding shall lie against the Federal Government or any public servant for anything which is done or intended to be done in good faith in pursuance of this Act or the rules and notwithstanding anything in any other law for the time being in force no investigation or enquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or directions made or issued thereunder without the prior approval of the Board.
    Sub-Section (2): No suit shall be brought in any civil court to set aside or modify any order passed, any assessment made, any tax levied, any penalty imposed or collection of any tax made under this Act.

    Section 218: Notice of proceedings

    No proceeding in a court other than a suit shall be commenced against any officer of customs or any other person exercising any powers conferred or discharging any duties imposed by or under this Act for anything purporting to be done in pursuance of the provisions of this Act or the rules without giving to such officer or person a month’s previous notice in writing of the intended proceeding and of the cause thereof; or after the expiration of one year from the accrual of such cause:

    Provided that this section shall not be deemed to apply in the case of the prosecution of an officer of customs or such other person for an offence punishable under this Act.

  • Penalties for smuggling under Pakistan’s customs law

    Penalties for smuggling under Pakistan’s customs law

    KARACHI: Award of death sentence has been prescribed for smuggling of narcotic drugs under Customs law of Pakistan.

    The Federal Board of Revenue (FBR) updated Customs Act, 1969 updated till June 30, 2019 which explained penalties for different penalties.

    According Customs Act, 1969:

    • If any goods be smuggled into or out of Pakistan:

    Such goods shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding ten times the value of the goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding fourteen years and to fine not exceeding ten times the value of such goods:

    Provided that, in the case of such goods as may be notified by the Federal Government in the official Gazette, the sentence of imprisonment shall not be less than five years, and the whole or any part of his property shall also be liable to confiscation in accordance with the provisions of the Prevention of Smuggling Act,1977.

    • If the smuggled goods are narcotics drugs, psychotropic substances or controlled substances,-

    such goods shall be liable to confiscation and any person concerned in the offence shall be liable to –

    (a) if the quantity of the narcotic drug, psychotropic substance of controlled substance is one hundred grams or less;

    • imprisonment which may extend to two years, or with fine, or with both;
    • imprisonment which may extend to seven years and shall also be liable to fine;

    (b) if the quantity of the narcotic drug, psychotropic substance or controlled substance exceeds one hundred grams but does not exceed one kilogram;

    death or imprisonment for life, or imprisonment for a term which may extend to fourteen years and shall also be liable to fine which may be up to one million rupees;

    (c) if the quantity of the narcotic drug, psychotropic substance or controlled substance exceeds the limit specified in clause (b);

    Provided that, if the quantity exceeds ten kilograms the punishment shall not be less than imprisonment for life.

  • Business community demands Pakistan Customs to launch Authorized Economic Operator certification

    Business community demands Pakistan Customs to launch Authorized Economic Operator certification

    KARACHI: The business community has demanded Pakistan Customs of launching Authorized Economic Operators (AEO) certification program, which will enable business and industrial units to become trustworthy member of international supply chain.

    In view of its significance and importance, it is imperative that Pakistan Customs, being member of the World Customs Organizations, should immediately launch the AEO Certification program without further delays to rank among the countries having fully operational AEO program.

    AEO certificate will enable the business and industrial entities to become the trustful member of international supply chains and to comply high security standards.

    This was stated by Muhammad Jawed Bilwani, Focal Person, Authorized Economic Operators’ Stakeholders Group notified by Pakistan Customs & Chairman Pakistan Apparel Forum.

    Exchanging views in the first meeting of Authorized Economic Operators’ Stakeholders Group held on Wednesday at the PHMA House Karachi, he articulated that Pakistan Custom is envisaging a robust taxpayers facilitation program in their supply chain according to International Standards.

    Many countries have successfully introduced such programs under “Authorized Economic Operators (AEOs). Under the anticipated AEO program for Pakistan, eligible businesses will be recognized as credible clients and they will accrue various benefits, nationally and internationally, in accordance with their AEO status. AEO Stakeholders group will seek inputs and recommendations from the business and industrial community of Pakistan to successfully launch the AEO program from Pakistan.

    In a presentation to the AEO Stakeholders’ Group, Saeed Akram, Collector (Customs) briefed that the Pakistan Customs is the member of World Customs Organization which comprise of 182 members divided into six regions and responsible for processing of 98 percent of the international trade.

    The Customs role has been evolved and transformed from the Revenue Collection to Economic Development and Security with focus on Supply Chain.

    One of the pillars of WCO’s Framework of Standards to Secure and Facilitate global trade (SAFE) which is a partnership / cooperation program between customs and trade aiming to secure and facilitate global supply chain security through Mutual Recognition Agreements (MRAs).

    According to the World Customs Organization (WCO), an authorized economic operator (AEO) is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.

    Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.

    AEO is a voluntary program wherein any economic actor in the international supply chain having dealing with the Customs can participate. Currently, AEO program is operational in 83 countries while under-developed in 18 countries which includes Pakistan.

    To launch AEO program in Pakistan, the Government has introduced Section 212A of Customs Act, 1969 and also drafted Rules.

    The ECC has also approved summary for introduction of AEO in Pakistan and timeframe for launch of AEO/MRA is communicated to WCO while discussions with Business Community initiated to Finalize Recommendations.

    In another presentation, Sheeraz Ahmed, Additional Collector (Customs) highlighted that Comprehensive AEO Program has been conceived covering all sector directly dealing in international trade, mainly the exporters and importers.

    Proposed Benefits on AEO Certifications are Speedy green channel and high level of facilitation in imports / export consignments, thereby ensuing shorter cargo release time – Priority Placement, Assessment & Examination and Scanning on priority by giving front line of treatment, Facility of Direct Port Delivery (DPD) and/ or Direct Port Entry(DPE): Facility of self -sealing of export goods, Facility of deferred payment of duty/taxes, Automated disbursal of drawback amount within 72 hours of the clearance of export GD, 50 percent reduction in the quantum of required Bank Guarantee,

    Speedy completion of valuation, classification disputes/Investigations – issuance of special rulings, 24/7 clearances on request, if required, at all sea ports and airports, Single point of assistance to AEOs through designated relationship officer in relation to legitimate concerns, Access cards for hassle free entry to Custom Houses, terminals, off-dock terminals and dry ports.

    Benefits under consideration are account-based processing rather than transaction-by-transaction clearance of accounts; Low documentary and data requirements; Choice of location for control/clearance of goods at the premises of the authorized economic operator or another place authorized by customs; Faster clearance at transit points and fewer checks en-route; Prior notification and treatment in case of selection for physical controls; Priority use of non-intrusive inspection techniques when examination is required; Reduction of applicable fees or charges for AEOs; Deferred payment of duties, taxes, fees, and charges or periodic payment of duties/taxes; Tax privileges to be granted by speedier processing of tax refunds, drawback, and other permissions/authorizations; Extended Customs services beyond normal working hours; Priority response to request for rulings from Customs authorities; Eligibility for self-audit or reduced audit programmes etc.

  • FBR takes measures to improve trade facilitation in Balochistan

    FBR takes measures to improve trade facilitation in Balochistan

    KARACHI: Federal Board of Revenue (FBR) has taken measures to improve trade facilitation and curb smuggling in Balochistan. Accordingly a senior BS-21 officer of Pakistan Customs Service(PCS) has been specifically posted as Chief Collector, Balochistan with dedicated Collectorates for Enforcement and Appraisement.

    Model Customs Collectorate (Preventive), Quetta was established to curb the menace of smuggling. Dedicated anti-smuggling units have been set-up with the available manpower and logistics and tasked to man the long and porous Pak Afghan border.

    The FBR has also established Model Customs Collectorate, Appraisement Quetta to facilitate trade and to expedite customs clearances from dry port and customs border stations in Balochistan.

    On directives of Chairman FBR Syed Shabbar Zaidi, adequate staff has been posted in the far flung customs stations of Taftan, Panjgur and Chaman border in order to ensure immediate clearance of goods especially perishable items like dry / fresh fruits and vegetables and to ensure clearances through the WeBOC-Glo automated system.

    Member Customs Operations has instructed all customs formations operating in Balochistan to ensure speedy clearances while at the same time to curb the menace of smuggling and apprehend those involved in these illegal movement of goods.

  • Provisional release of offended imported goods

    Provisional release of offended imported goods

    KARACHI: The collector of customs has been empowered to allow provisional release of imported goods, on which any offence is detected, against duty and payment and submission of bank guarantee for penalty amount.

    The Federal Board of Revenue (FBR) issued Customs Act, 1969 updated till June 30, 2019 incorporating the changes brought through Finance Act, 2019.

    According to the Customs Act, 1969, where any offence is detected in respect of imported goods which are not liable to confiscation or needed for evidence at a later stage, the Collector of Customs may, on written request of owner of the goods, allow release of the same on payment of duty, taxes or other charges and furnishing bank guarantee or pay order against the amount of any penalty or fine which may be imposed on such goods.

    The FBR also explained the clearance for home consumption under Section 83 of the Act.

    It said that when the owner of any goods entered for home-consumption and assessed under section 80 or 81 has paid the import duty and other charges, if any, in respect of the same the appropriate officer, if he is satisfied that the import of the goods is not prohibited or in breach of any restrictions or conditions applying to the import of such goods, may make an order for the clearance of the same:

    Provided that, at customs-stations where the Customs Computerized System is operational the system may clear the goods through system generated clearance documents.

    (2) Where the owner fails to pay import duty and other charges within ten days from the date on which the same has been assessed under sections 80, or 81, he shall be liable to pay surcharge at the rate of KIBOR plus three percent on import duty and other charges payable on such goods.

  • Customs empowered to stop vessel departure till payment of dues

    Customs empowered to stop vessel departure till payment of dues

    KARACHI: Pakistan Customs has been empowered to refuse clearance of vessel until payment of dues including port dues and other charges and penalties.

    (more…)
  • SRO to save customs officers in mega gold scam challenged before FBR policy board

    SRO to save customs officers in mega gold scam challenged before FBR policy board

    ISLAMABAD: The Directorate General of Internal Audit (Customs) Lahore has challenged the issuance of SRO 1114(I)/2019 before the Policy Board of the Federal Board of Revenue (FBR) alleging the issuance of the notification was a bid to save senior customs officers in mega gold corruption cases.

    In a compliant on October 02, 2019 made to Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance and Revenue and Chairman FBR’s Policy Board and the other members of the FBR’s policy board that is constituted under Section 6 of the FBR Act, 2007, it has been alleged that the SRO has taken away from the Customs Internal Audit its capacity to detect customs officers’ corruption and resulting massive revenue loss.

    The SRO has been called a device to liberate the customs officers’ corruption and revenue losses from the fear of subsequent internal audit’s detection.

    According to the complainant i.e. Directorate General of Internal Audit (Customs) Lahore, the FBR has purported to act under certain provisions of Customs Act and Sales Tax Act which do not give the FBR any power to abolish any field formations.

    It is alleged that these provisions confer on FBR only the power to appoint officers in field formations and to define their powers and functions.

    It has been further alleged that two directorates of Internal Audit had been abolished in breach of FBR’s statutory obligations under FBR Act, 2007.

    According to the complainant, Section 4(1)(d) of FBR Act requires FBR to improve productivity in its field formations. Section 4(1)(g) of FBR Act requires FBR to take appropriate measures including internal controls to combat corruption within its field formations.

    Section 4(1)(j) of FBR Act requires FBR to introduce and maintain a system of accountability of performance, competence and conduct of its employees.

    It has been alleged that abolition of two directorates of internal audit and over burdening of the single directorate of Islamabad with the responsibility of Customs Internal Audit throughout the country is a measure against FBR’s statutory obligation to improve productivity in field formations.

    It is also a measure against the FBR’s statutory obligation to control corruption and to maintain a system of performance accountability of its officers and employees.

    The complainant questioned that why FBR has conceived a unique SRO of its own kind which has the effect of sheltering corruption and revenue losses from the fear of detection.

    It has been alleged in the complaint that the Directorate of Internal Audit Karachi has been abolished to shelter the customs officers posted in Karachi, who are normally responsible for 90 percent of the customs corruption and revenue losses which take place throughout the country in a year.

    It has been further alleged that the Directorate of Internal Audit Lahore has been abolished for more than one reason, all meant to shelter revenue losses from detection and to save corrupt customs officers from accountability.

    It has been alleged in the complaint that the struggle of Directorate of Internal Audit Lahore to recover a revenue loss of Rs60 billion in gold cases and the efforts of the Directorate to take gold cases against customs officers to a logical conclusion have resulted in its abolition just to serve the interests of senior customs officers involved in these cases.

    The gold case made by Internal Audit took a new beginning when in response to a new story published on June 11, 2018, the Federal Tax Ombudsman took suo moto cognizance of these cases involving a revenue loss of Rs60 billion and recommended disciplinary and criminal proceedings against the customs officers responsible for causing the revenue loss.

    The collector of five customs collectorates subsequently filed representations against FTO’s recommendations before the President of Pakistan. However, the Directorate of Internal Audit Lahore had pleaded the gold cases against the customs officers.

    The directorate of internal audit Lahore requested the FBR Policy Board that the operation of SRO may be immediately held in abeyance till determination of its legality and proper evaluation of its pro corruption consequences.

  • Customs officers authorized business access for audit

    Customs officers authorized business access for audit

    KARACHI: Customs officers have been authorized under customs laws to enter business premises to access records necessary for the purpose of audit.

    Federal Board of Revenue (FBR) issued Customs Act, 1969 updated up to June 30, 2019 incorporating amendments introduced through Finance Act, 2019.

    The Section 26B of the Act authorizes customs officers to access record for the purpose of audit.

    Section 26B: Access for the purposes of audit.-

    Sub-Section (1): The appropriate officer of Customs, after giving a notice in writing specifying the date of visit, shall have access to business or manufacturing premises, registered office or any other place where any goods, stocks, documents or records relating to the ongoing audit are kept or maintained. Such officer may inspect the goods, stocks, documents, records, data, correspondence, accounts, statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents required under any Federal or Provincial laws, maintained in any form or mode. Such an officer may take into his custody such documents, records or any part thereof, in such form as he may deem fit, against a signed receipt.

    Sub-Section (2): In all cases, except where it would defeat the purpose of the audit, a reasonable advance notice regarding a visit shall be given to the person concerned.

    Sub-Section (3): Whosoever causes any obstruction or fails to provide any documents, record, statement etc, as required under subsection (1), with an intention to defeat the purpose of the Act by way of destroying, altering or concealing any books, documents or records required to be maintained under this Act, shall be guilty of an offence under this section.

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  • Any person can takeover imported goods by offering higher customs value

    Any person can takeover imported goods by offering higher customs value

    KARACHI: In order to prevent under-invoicing and mis-declaration the customs authorities have powers to accept offer from any person to allow clearance at higher value than the declared by an importer for the same consignment.

    The Customs Act, 1969 has authorized the customs officials to allow such offer under Section 25C of the Act to takeover the imported goods.

    Section 25: Power to takeover the imported goods

    Sub-Section (1): If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the goods declaration, and the Collector of Customs is satisfied that the declared value is not the actual transactional value, he may after approval of the Board order the following without prejudice to any other action against the importer or his authorized agent, namely:-

    (i) entertain offer by any other person to buy these goods at substantially higher value than the declared customs value in the goods declaration and payment of customs duties and other leviable taxes thereon, provided such offer is accompanied by a pay order equal to twenty-five per cent of the amount of each such offer and duties and other taxes calculated in accordance with the offer;

    (ii) give an option in writing to the importer of such goods for clearance of imported goods at the customs value equal to such highest offer for purchase of goods and payment of customs duties and other taxes chargeable thereon; and

    (iii) in case the importer fails to clear the imported goods within seven days of the receipt of notice under clause (ii) above, the appropriate officer may takeover the goods on payment of customs value declared in the goods declaration and an amount equal to five per cent of such declared value;

    Sub-Section (2): The imported goods taken over under sub-section (1) shall be delivered to the offerer on submission of two pay orders, one equal to the customs value declared in the goods declaration plus five per cent in the name of importer and the other pay order equal to the remaining amount of value of imported goods and the amount of customs duties and other taxes leviable on the imported goods in the name of Collector of Customs;

    Sub-Section (3): In case the local buyer fails to take the delivery of the goods on payment of value and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-five per cent of the amount shall be fore-feited in favour of the Federal Government and imported goods shall be released to the importer as per customs value determined under sections 25 or 25A as the case may be.

  • FBR applies standard measurement units for customs clearance

    FBR applies standard measurement units for customs clearance

    ISLAMABAD: Federal Board of Revenue (FBR) has applied standard units of measurements (UoM) for customs clearance of consignments.

    The FBR issued Customs General Order (CGO) No. 15/ 2019 on Monday and directed all field formations of Customs to adopt standard units of quantity/measurement.

    The FBR said that the units of measurement have been revisited in terms of recommendations of the World Customs Organization (WCO) and international / national trading practices to maintain uniformity; improve collection, comparison and analysis of trade statistics and facilitate trade, based on the Harmonized System.

    The standard units of quantity were previously notified by the FBR on August 06, 2012. Due to adoption of HS-2017 version Pakistan Customs Tariff (PCT) codes have been created. Accordingly an updated CGO has been prepared to accommodate these changes.

    The standard units of quantity are:

    Weight – kilograms (kg), carat (carat)

    Length – meters (m)

    Area – square meters (m2)

    Volume – cubic meters (m3), liters (l)

    Electric power – 1,000 kilowatts hours (1,000 kWh)

    Numbers – pieces/items (u), pairs (2u), dozen (12), thousands of pieces / items (1,000 u), packs (u (jeu/pack)).

    The FBR applied these units of measurements on 7,354 PCT codes.