ISLAMABAD: The Federal Board of Revenue (FBR) has decided to allow a single vehicle owner to transport goods under transshipment rules.
(more…)Tag: transshipment
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Customs Rules tightened for International Transshipment
ISLAMABAD: Federal Board of Revenue (FBR) has tightened the monitoring of international transshipment of imported cargo from gateway port to a foreign port.
The FBR issued SRO 03(I)/2021 to amend Customs Rules, 2001.
The FBR amend Rule 510A regarding transshipment of imported cargo from gateway port to a foreign port and made it mandatory the weight, seal number and container number for international transshipment cargo.
The following procedure has been prescribed for the movement of the International Transshipment cargo other than LCL cargo through any sea port in Pakistan, which shall be distinctly manifested as such in the IGM or carrier declaration uploaded electronically in the Customs Computerized System by the shipping line (VOCCs/NVOCCs) having valid shipping agent licenses. 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;
(f) Name of foreign importer;
(g) Weight;
(h) Seal No.; and
(i) Container No.
The FBR made amendment to rule 510B and stated that the Terminal Operator (TO) after unloading shall store International Transshipment containers at a place earmarked for them in the notified premises of a seaport. Further, a complete trail of IT containers including the time, location where they are placed and subsequent movements shall be electronically reported and updated in the Customs Computerized System by the Terminal Operator so that the location of the said containers is traceable at any given point in time.
Further, the terminal operator shall deploy enough manpower to verify the shipper seals against the manifested seals and in case, a container is found without seal or with a different seal or any broken seal, such container shall be re-sealed and immediately released with the Customs seal in the presence of the custodian and same shall be recorded. The new seal number will be entered into the system before stacking of the container.
Rule 510D regarding delay in clearance of transshipment goods has been substituted. Following is the text of the substituted rule:
(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) If the goods stores for transshipment are not transshipment within thirty days of their 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. An extension of up to thirty days may be granted for the storage of such goods once a written request mentioning the reasons for delay in removal of goods in submitted to the concerned assistant collector of customs and such a request is approved by him.
(3) If goods still remain on the port after sixty days of their arrival, the shipping line shall be responsible to remove them immediately unless the delay is attributed to the port authorities. The goods shall only be allowed for auction or destruction by approval of the concerned collector of customs who shall only allow in extraordinary conditions where the shipping line shows its complete inability to ship them out. The said reasons shall be recorded in writing.
(4) In case of any hazardous material left at the port, the concerned shipping line shall have the responsibility to take the cargo back to the port of origin.
The Rule 510E has also be amended and substituted the following text:
“Execution of bond by shipping line: Shipping lines engaged in the business of international transshipment of containers and bulk cargo shall execute an indemnity bond for ensuring to follow customs rules and regulations.”
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Indemnity bond to be made mandatory for international transshipment facility
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued draft rules to make indemnity bond mandatory for shipping lines intending to use facility of international transshipment cargo within Pakistani sea ports.
The FBR issued draft rules through SRO 685(I)/2020 to amend Customs Rules, 2001.
According to the draft rules, shipping lines intending to use the facility of international transshipment would require to furnish an indemnity bond for an amount equal to the approximate value of goods expected to be imported in thirty days as security to ensure exit of goods outside the country within 30 days from the berthing of inward vessel.
The FBR said that the indemnity bond would be forfeited apart from other consequential penal action under the Customs laws, if the shipping line misuses the facilitation of international transshipment.
If goods still remain on the port after the expiry date including extended time allowed under the law, the shipping line would be responsible to remove the goods immediately unless the delay was attributed to the port authorities, the FBR added.
According the draft rules the shipping lines would also liable to submit complete details of Import General Manifest (IGM).
The shipping lines would require providing details, such as: port of loading; name of transshipment port of Pakistan; port of destination (final port of discharge at foreign destination); bill of lading number; name of foreign exporter; name of foreign importer; weight; seal number; and container number.
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FBR explains sealing of export TP cargo though Railways
KARACHI: Federal Board of Revenue (FBR) has issued procedure of sealing of export cargo under transshipment transported by Pakistan Railways.
Sealing at focal points (Entry) for transshipment containers and dry port export cargo containers transported by Pakistan railways:
I. The Custom Agent/carrier will lodge the TP application/ declaration in the Custom Facilitation Centre/ Transshipment Section of concerned Directorate of Transit Trade or electronically. After getting the delivery of the container, the Customs Agent/carrier will load the container on the Railways rolling stock/flat bed unit.
II. After loading, the railway staff will inform PCCSS at relevant Focal Point Entry giving container numbers.
III. The PCCSS officer will take the designated machine readable seal and check it for any defect. The bar code on the seal will be scanned by using the bar code reader, and in case bar code is accepted, Transport Note (single copy) in Form-A will be printed. In case the bar code is not validated, the defective seal will be returned to the box and a new seal number will be issued by the computer.
IV. Once the input operation for all the containers to be sealed is completed, the PCCSS officer will collect the designated and validated seals and accompany the railways staff to the train alongwith the Transport notes.
V. The PCCSS officer will place the, seal on the available slot on the door, making sure the correct number is placed on the correct container and that the container numbers correspond to the serial number of the bogie they are placed on.
VI. The Transport Note (Form-A) will be handed over to the driver/supervisor/railway official of the Transport Unit to be carried with the Transport Unit en route.
VII. In case the Transport Unit meets an accident en route or there is sufficient ground to believe that there is pilferage, replacement or substitution of ‘goods, the driver/carrier’s agent, or any enforcement unit of Customs, or the Collectorate of jurisdiction, ‘or any other person will inform the Incharge PCCSS, Special Checking Squads or any focal point. After checking veracity of the information, the Special Checking Squads or focal point, as the case may be, will inform the Incharge PCCSS through fax on Form-D and also on line immediately. The Incharge PCCSS will immediately record the discrepancy in register Form-C and may order stoppage of such Transport Unit and/or order any such action as deemed appropriate.
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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.
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Harsh penalties for pilferage of transshipped goods
KARACHI: Customs laws has defined harsh penalties for pilferage or replaced enroute of transshipment of goods without payment of duty.
Federal Board of Revenue (FBR) issued Customs Act, 1960 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019.
According to the customs laws
If any goods which are loaded for transshipment, are pilfered, replaced en-route or failed to reach the port of destination, or any person transships goods not allowed to be transshipped;
Then such goods and the conveyance illegally carrying these goods shall be liable to confiscation and any person including the custodian involved in the offence and the bonded carrier shall be liable to a penalty not exceeding ten times the value of the goods and he shall further be liable, upon conviction by a Special Judge, to imprisonment for a term not exceeding seven years.
If any person contravenes any rule relating to transshipment other than mentioned above;
Then such person including the custodian and the inland carrier shall be liable to penalty not exceeding five hundred thousand rupees or three times the amount of duties and taxes involved.
Under Section 121 of the Act, the transshipment of goods without payment of duty has been allowed.
Section 121: Transshipment of goods without payment of duty
Sub-Section (1): Subject to the provisions of section 15 and the rules, the appropriate officer may, on application by the owner of any goods imported at any customs-station and specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination, grant leave to transship the same without payment of duty, if any, chargeable on such goods with or without any security or bond for the due arrival and entry of the goods at the customs-station of destination:
Provided that at customs-station where the Custom Computerized System, is operational, the system may automatically authorize transshipment to other customs-station subject to risk selectivity criteria.
Sub-Section (2): The Board may, subject to rules and such conditions as it may deem fit to impose, authorize certain carriers to transport goods under the multimodal, scheme. Goods transported under the multimodal scheme shall be specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination and shall not –
(a) require distinct permission for transshipment from the customs-station of first entry into the country to be transported to the customs-station of destination. The principal carrier issuing the multimodal bill of lading or air way bill will be responsible for the sanctity of the cargo during transportation between the customs-station of first entry into the country to the customs-station of destination; and
(b) be subject to the risk management system at the customs station of first entry.
Sub-Section (3): The Board may, subject to such conditions as it may deem fit, grant license to any carrier to carry goods under the multimodal scheme.