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Tag: Pakistan Customs

  • 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.

  • Determination of values for imports and exports under Customs Act

    Determination of values for imports and exports under Customs Act

    The Federal Board of Revenue (FBR) has recently issued updates to the Customs Act, 1969, incorporating changes introduced through the Finance Act, 2019. The amendments primarily focus on the determination of customs values for the collection of duties and taxes on imports or exports of goods under Section 25 of the Customs Act.

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  • Auction of confiscated diesel oil, heavy motor cycles on Sept 17 at Sukkur

    Auction of confiscated diesel oil, heavy motor cycles on Sept 17 at Sukkur

    KARACHI: Pakistan Customs has announced auction of confiscated high speed diesel oil and heavy motor cycles on September 17, 2019 lying at State Ware House, Sukkur.

    The customs authorities announced to auction of 250,280 liters confiscated high speed diesel oil, which is available in 15 different lots.

    The authorities also announced the auction of following heavy motor cycles and dismantled motor vehicles:

    01. Honda Sports Motor Cycle 1137CC Model 2004

    02. HYONSUNG heavy motor cycle 250CC Model 2007 (Made in USA)

    03. SUZUKI Heavy Motor Cycle GSX-R1000 (Made in Japan) 1000CC, Model 2017

    04. KAWASAKI Heavy Motor Cycle 399CC Model 2010

    05. YAMAHA Heavy Motor Cycle 649CC Model 2003 (Made in Japan)

    06. Suzuki Scooty Model 2002

    07. Mitsubishi Pajero Jeep (Dismantled)

    08. Toyota Hiroof Vagan (Dismantled)

    09. Honda Scooty Motor Cycle Model 2004 (02)

    10. Suzuki Scooty (02)

    11. Different parts of Suzuki Sierra Jimmy Jeep.

    12. HARLEY DAVIDSON (Japan) Heavy Motor Cycle

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  • FBR decides to update units of measurement for trade facilitation

    FBR decides to update units of measurement for trade facilitation

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to update the units of measurements in order to facilitate trade. FBR chairman Syed Shabbar Zaidi has issued instructions to customs authorities, said a statement on Friday.

    It said that this exercise is likely to be completed in week’s time and new units of measurement shall be notified and difficulties faced by the importers/exporters regarding unit of measurements will get addressed.

    It will also result in ease of doing business.
    In order to bring the national trade data in conformity with international standards, the units of measurement (UoM) are made uniform in accordance with the guidelines of World Customs Organization (WCO).

    This uniformity not only helps in collection, comparison and analysis of trade statistics but also simplify the process of assessment resulting in speedy clearance of goods.

    The standard units of measurements were previously notified by the Federal Board of Revenue in the year 2012.

    Despite the fact that these need to be revisited and updated on regular basis, no exercise to this effect was carried out in the last seven (7) years.

    After the issuance of new CGO all field formations of Customs will be directed to adopt standard units of quantity/measurement (UoM) expressed therein and accordingly, the importers/clearing agents/shipping agents will be required to fill invoices/documents in line with new UoM.

  • Pakistan, Saudi Customs to exchange intelligence based information

    Pakistan, Saudi Customs to exchange intelligence based information

    ISLAMABAD: The customs authorities of Pakistan and Saudi Arabia have agreed to further explore intelligence based information to strengthen mutual cooperation.

    A five-member delegation of Saudi Customs Authority visited Federal Board of Revenue (FBR), to discuss various matters of mutual interest and assistance, a statement said on Tuesday.

    The Saudi Customs delegation was headed by Muhammad AlNuaim, Deputy Governor of Security Affairs. Pakistani side was headed by Shabbar Raza Zaidi, Chairman, FBR.

    Muhammad Javed Ghani, Member (Customs-Policy), Jawwad Uwais Agha (Member-Operations) and other senior officers of Pakistan customs also participated in the meeting.

    Both sides shared their experiences in law enforcement domain and further explored avenues of future cooperation in following areas of mutual interest:

    1. Exchange of Information, on real time basis, between both countries regarding values of goods originating from both countries;

    2. Exchange of intelligence based information to effectively control illicit flow of currency;

    3. Development of authorized economic cooperation program between both countries;

    4. Profiling of advance passenger information;

    5. Cooperation between Saudi Customs and Pakistani Customs in order to arrest the senders and recipients of drugs;

    6. Exchange of post seizure and arrest investigations;

    7. Designation of contact officers for mutual cooperation;

    8. Capacity building for automation/harmonization of customs procedures.

    It was underscored that the menace of narcotics, smuggling and under invoicing/over invoicing are the primary sources of illicit financial flows (IFFs) which is inherently a global phenomenon.

    It was mutually agreed that no country can cope with these cross border challenges without ensuring international cooperation.

    Therefore, there is a dire need for both brotherly countries to support each other by all possible means of cooperation through international forums as well as Customs to Customs Cooperation under Mutual Assistance Agreements.

    AlNuaim expressed that the Saudi government give great value to its brotherly relations with the government of Pakistan.

    He informed that the Saudi government has recently introduced new monetary limits on currency which so far are not well known to the visitors from Pakistan.

    He requested to share this information by launching a public awareness campaign in this regard.

    Javed Ghani, Member (Customs-Policy) ensured cooperation and informed that the control of currency smuggling is one of the prime priorities of present regime.

    Therefore, declaration of currency has now been made mandatory and FBR has taken various legal and administrative actions to improve interdictory regime against currency smuggling.

    Jawwad Uwais Agha gave brief details of the National Single Window (NSW) and told the delegates that this initiative provides a complete framework for intra agency cooperation in Pakistan.

    The delegation was apprised that at national level, Risk Based Mitigation Secretary (RBMS) has been evolved after taking due input from all stake holder agencies including Federal Investigation Agency (FIA), Anti Narcotics Force, Airport Security Force and Pakistan Customs.

    Under RBMS, a totally new institutional apparatus has been setup with a dedicated Directorate, namely, Cross Border Currency Movement (CBMC) within the Directorate General of Customs Intelligence & Investigation to address the risks of cash smuggling.

    This measure has turned out very successful as in FY 2018-2019 total 487 million rupees were seized under its intelligence sharing against 157 million rupees in the FY 2017-2018.

    The Saudi delegation appreciated these efforts and showed keen interest in the project of National Single Window, National Targeting Centre and Advance Passenger Information Systems (APIS).

    Both sides unanimously agreed that there exists huge scope for enhanced cooperation between both the countries which will help them to address a wide range of problems originating from currency smuggling, narcotics and mis-declarations.

  • Customs stops goods removal from EPZ without authority

    Customs stops goods removal from EPZ without authority

    In a bid to tighten regulatory oversight and prevent unauthorized movement of goods, Pakistan Customs has barred customs agents from removing goods from Export Processing Zones (EPZ) without a proper authority letter issued by the relevant investor or importer.

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  • FBR directs IR, Customs offices to ensure taxpayer friendly environment

    FBR directs IR, Customs offices to ensure taxpayer friendly environment

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday directed all offices of Inland Revenue and Pakistan Customs to ensure a clean and friendly environment in the offices across the country.

    The FBR directed that all the offices of Inland Revenue and Pakistan Customs should maintain the highest level of cleanliness.

    Sitting areas for visitors should be clean and well lit. Janitorial staff should be directed to maintain the cleanliness of offices and washrooms for officers, staff and visitors.

    Parking space for officers should be clearly market and there should be reserved parking space for visiting taxpayers, tax practitioners, lawyers, chartered accountants and other visitors. The concerned officers should carry out periodic inspection of their respective premises and take necessary steps to ensure a clean working environment.

    As FBR and its field formations receive a very large number of visitors on a daily basis, the concerned staff should extend necessary courtesy and respect to visiting taxpayers.

    All sitting areas specified for visitors should have ample seating arrangements with availability of clean drinking water.

    Keeping in view the overall security situation, each field office must chalk out a detailed security plan which must be strictly adhered.

    The FBR further said that all security cameras should be made operational and video feed must be constantly monitored.

    The FBR also directed the offices to contribute towards tree plantation campaign of the government by planting trees in their offices and residential colonies. The respective staff be directed to ensure maintenance and care of the green areas.

    The FBR would conduct spot visit of field offices to verify compliance of the directions.

  • Procedure issued to sanction sales tax refund claims of importers

    Procedure issued to sanction sales tax refund claims of importers

    ISLAMABAD: Federal Board of Revenue (FBR) issued procedure for sanctioning refund claims on sales tax collected against imported goods.

    The FBR issued SRO 918(I)/2019 on Thursday to amend Sales Tax Rules, 2006.

    A new rule 34A is inserted related to sanction of refund claims of import-related sales tax by the collectorates of customs.

    The FBR said that sales tax refund filed by an importer for import-related sales tax paid in excess due to inadvertence, error or misconception, or as result of a competent adjudication or appellate authority, claimed within the period as prescribed under section 66 of the Act, may be decided and allowed by the concerned officer of Customs, not below the rank of an Assistant Collector subject to sub-rules (2) and (3) below.

    (2) In the case of registered person while applying for refund to the concerned Customs Collectorate, the applicant must endorse a copy of the refund application to the Refund Division of the concerned RTO or LTU. The concerned Collectorate of Customs shall not process the claim unless a confirmation from suchInland Revenue office, that no adjustment or payment of the amount claimed in refund has been made, has been received.

    The concerned RTO or LTU on receipt of a reference from Collectorate of Customs shallcommunicate such confirmation, or otherwise, within thirty days of receipt of the reference.

    (3) In case of an unregistered importer, the refund shall be processed by the concerned Customs Collectoratewithout prior reference to RTO or LTU.

    (4) The sales tax refund files after issuance of refund payment order by the relevant Customs officer shall be sent through proper channel, in the case of registered person to the RTO or LTU concerned, and in the case of unregistered person to the nearest RTO where the customs station is located. The refund sanctioning authority of the Customs Collectorate shall mention the number and date, etc. of RTO’s or LTU’s confirmation of regarding non-adjustment of tax involved or non-payment of refund, if applicable, in his sanction order.

    (5) On receipt of such sanction order from Customs Collectorate by the concerned officer-in-charge in RTO or LTU, he shall make the entry of the sanction order in the Computerized System, and after obtaining permission of the Commissioner concerned, generate RPO of the sanctioned amount for electronic transmission to CSTRO. The amount of such sales tax refund shall be debited from the head of sales tax (on imports).

  • FBR imposes major penalty on four customs officials

    FBR imposes major penalty on four customs officials

    KARACHI: Federal Board of Revenue (FBR) has imposed major penalty on four customs officials for misconduct and inefficiency.

    The FBR on Monday issued four different office orders to imposed major penalty including demotion to lower grade and compulsory retirement.

    The FBR imposed the major penalty of “Reduction to the lower post of UDC” upon Qamar Jamal, Appraising Officer (BS-16), Model Customs Collectorate of Port Muhammad Bin Qasim. The FBR found the official guilty of misconduct and inefficiency.

    The FBR imposed the major penalty of “Reduction to the lower post of Appraising Officer” upon Amir Ahmad Samoo, Principal Appraiser (BS-16), Model Customs Collectorate of Appraisement-West, Karachi. The FBR found the official guilty of misconduct and inefficiency.

    The FBR imposed the major penalty of “Compulsory Retirement” upon Rao Muhammad Aslam, Appraising Officer/ (Examiner) (BS-16), Model Customs Collectorate of Appraisement-East, Karachi. The FBR found the official guilty of misconduct and inefficiency.

    The FBR imposed the major penalty of “Reduction to a lower post of UDC” upon Nasir Iqbal, Inspector (BS-16) (Posted as Examining Officer) in Model Customs Collectorate (Appraisement-West), Karachi. The FBR found the official guilty of misconduct and inefficiency.