Amendment Rules 2001 (Addition of new chapter XLI i.e. Uzbekistan-Pakistan Transit Trade Rules)

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

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Islamabad, the 20th September, 2021

NOTIFICATION

(CUSTOMS)

s.R.o.19_,S6 (1)/2021.- The following draft of certain further amendments in the

Customs Rules, 2001, which the Federal Board of Revenue proposes to make in exercise of

the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the

Sales Tax Act, 1990, section 40 of the Federal Excise Act, 2005 and section 237 of the

Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published for information of all

persons likely to be affected thereby and, as required under sub-section (3A) of section 219 of

the Customs Act, 1969 (IV of 1969), notice is hereby given that objections or suggestions

thereon, if any, may for consideration of the Board be sent within fifteen days of publication

of the draft amendments in the official Gazette. Any objections or suggestions which may be

received from any person, before the expiry of the aforesaid period, shall be taken into

consideration by the Federal Board of Revenue, namely:-

DRAFT AMENDMENTS

In the aforesaid Rules, after Chapter XL, the following new Chapter XLI shall be

added, namely:-

"CHAPTER-XLI

TRANSIT REGIME IN PAKISTAN

UZBEKISTAN-PAKISTAN TRANSIT TRADE RULES

Sub-Chapter-I

Preliminary

(c

1. Scope.- The provisions of this chapter shall be for the purpose of

Uzbekistan-Pakistan Transit Trade Agreement, for processing of transit trade cargo under

Customs Computerized System, to and from Uzbekistan, namely:-

Uzbekistan's cargo imported through Karachi Port, Port Muhammad Bin

Qasim, Gwadar Port; and

Uzbekistan's cargo to other countries via Karachi Port, Port Muhammad Bin

Qasim, Gwadar Port;

1. Definitions.-(1) In this chapter, unless there is anything repugnant in the

subject or context,-

(i) "bill of lading" means the document issued by shipping line containing

details about the type, quantity, and destination of the goods;

"border stations" means Chaman, Torkham, Ghulam Khan, Taftan, Gabd,

Sost, and any other Customs station notified by the Board for the purposes of

the Transit Trade;

"bulk cargo" means cargo usually dropped or poured as solid or liquid, into a

bulk carrier's hold and includes dry and liquid bulk cargo;

"cargo" means goods including vehicles;

"carriers" means legal or natural person responsible for the transport of cargo

(goods including vehicles) by rail, road, either directly or by using a third

party, and by whom or in whose name a contract of carriage for hire or reward

has been concluded;

"container" means standardised receptacle or loading unit of international

specifications for freight to enable (i) loading and unloading; (ii) movement by

one or more modes of transport, without intermediate reloading; and (iii)

locking and sealing;

"contracting parties" means Pakistan and Uzbekistan;

"cross-border authorization" means a document issued after completion of

all customs formalities allowing the cross-border of vehicles transporting

transit cargo at land customs border stations;

"customs security" means encashable financial guarantee acceptable to

Customs, submitted by the traders or their authorised agents or brokers on

transit goods for an amount equivalent to the import levies of the host country,

as per prescribed rules;

"dangerous goods" means goods posing a significant risk to health and

environment, security and property when being transported or lying inside

storage;

"examination of goods" means the process of physical ascertainment by

Customs of nature, origin, condition, quantity and value with reference to

transit documents;

"external user registration office" means the office designated by the

Ministry of Investments and Foreign Trade, Republic of Uzbekistan for

registration of entities and other users based in Uzbekistan with the Customs

Computerized System in Pakistan;

"import duty and taxes" means the Customs duties and all other duties, taxes

and other charges levied in accordance with domestic legislation on or in

connection with the importation of goods, but not including the cost of

services rendered;

"inspection of goods" means the superficial process of confirmation that the

marks and numbers of bulk in open cargo and container number and seal

numbers of containerized cargo, are in accordance with the particulars

provided in the goods declaration or bill of lading;

"licensing authority" means the respective Director of Transit Trade, where

an applicant, based on his/her business address, has applied for issuance of

transport operator's license;

"Logistics Facilitation Center" means a transit office at Torkham, Chaman

8c Ghulam Khan regulating issuance of permits to Pakistani registered

transport operator and movement of foreign registered vehicles.

"office of departure" means any Customs office at which a Customs transit

operation commences;

"office en-route" means any Customs office through which goods in transit

pass during the course of a Customs transit operation.

Explanation.-If the office of departure is Karachi, the office en-route shall be

Torkham, Chaman and the Uzbek Customs office at their border, and office

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of destination shall be Customs station inside territory of Uzbekistan where

Goods Declaration is filed;

"office of destination" means any Customs office at which a Customs transit

operation is terminated;

"oversized and bulky cargo" means any heavy or bulky object including

animals which because of its weight, size or nature cannot be carried in a

closed vehicle or closed container;

(od) "prohibited goods" means the goods prohibited to be carried under the transit

trade under any law for the time being in force;

"prescribed transport route" means the land route prescribed Board for

transportation of transit goods within the frontiers of Pakistan;

"revolving insurance guarantee" means a revolving insurance guarantee

with one year validity to be submitted to the concerned Directorate of Transit

Trade to cover the leviable duty and taxes on transit goods while passing

through the territory of Pakistan;

"road transport permit" means a document issued by a competent authority

of one contracting party that allows vehicles registered in the territory of the

state of the other contracting party to enter or exit or transit through its

territory;

(m) "sealing" means affixing of PCCSS seal on transit goods under Customs

General Order 5/2020 and issuance of transport note electronically;

(ocvi) "system" refers to the Pakistan Customs Computerized System (CCS) that is

in operation in the Customs offices as per Board's instructions;

(xxvii) "transit group" means a section established in the Directorate General of

Transit Trade specifically to handle the transit trade related affairs;

(xxviii)"transit goods TG-GD" means the goods declaration filed electronically by

the importer or his authorized Customs agent under these rules for cargo

meant for transit to or from Uzbekistan;

"transit cargo" means goods including vehicles imported or exported by

Uzbekistan for transit across Pakistan under section 129 of the Customs Act,

1969;

"transit goods" means the goods whether commercial or non-commercial

transited through Pakistan, to and from Uzbekistan;

"transport note" means the duly prescribed document containing sealing

information generated by the Customs Containerized Sealing Unit (CCSU) or

the Customs sealing staff at port of entry;

(xinii) "transport operator (TO)" means Pakistan Railways or such other carrier

including a bonded carrier duly licensed by the Licensing authority or

Customs authorities of the Contracting parties, to carry out international

transport operations between the territories of the contracting parties, or

between its home country and to or from a third country through the territory

of the other contracting party;

(xxxiii)"transport unit" means aircrafts, freight containers of international

specifications transported by road, railway wagons or road vehicles including

trailers and semi-trailers;

(xxxiv)"TIN" or "tax identification number" means a unique number issued by

Ministry of Finance, Republic of Uzbekistan to identify a specific taxpayer;

(xxxv) "user ID office" means the designated office in the Directorate General

Transit Trade for registration and issuance of user IDs to the respective

Traders or users;

(xxxvi) "user ID" means a unique user identifier as may be allocated to a foreign

trader intending to transit his goods through territory of Pakistan as per

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procedure prescribed by the Directorate General of Transit Trade to access the

Customs Computerized System; and

(xxxvii) "vehicle" means any rigid road vehicle, articulated vehicle, unaccompanied

trailer or semi-trailer.

(2) The words and expressions used, but not defined herein, shall have the

meanings assigned there to its in the Act.

Sub-Chapter— II

Procedure for registration of users with CCS and issuance of user ID

1. Registration of foreign business and other users with Customs

Computerized System for issuance of user ED/Password.-(1) Directorate General Reforms

& Automation, Karachi shall generate one or more user IDs for the focal person of the

Ministry of Investments and Foreign Trade, Uzbekistan for registration of different categories

of users i.e., traders, government organizations, United Nations (UN) or Diplomatic Missions

based in Uzbekistan with Customs Computerized System (CCS).

(2)

The foreign entities i.e., traders, government organizations, United Nations

(UN) or Diplomatic Missions shall complete the requisite registration proforma (Annex-I)

which shall be submitted in the Customs Computerized System by the Ministry of

Investments and Foreign Trade, Uzbekistan electronically.

1. Issuance of user ID/Password to the users by CCS.-(1)On receipt of the

above requisite information, the CCS shall generate a user ID and password and forward it to

the applicant through his registered email address.

The user will be able to nominate upto three customs clearing agents/brokers

to handle his transit cargo in Pakistan.

A user can also nominate a transport operator for handling of cargo i.e., both

for filing of GD and transportation of transit cargo by the same logistic entity.

Sub-Chapter-III

Procedure for Commercial Vehicles transporting transit and bilateral trade goods

915.

Basis of entry of commercial vehicles.- (1) Vehicles transporting transit and

bilateral goods shall be licensed by the competent authorities of the contracting parties as

transport operator authorized to conduct international transportation.

(2)

Every vehicle while exiting or entering Pakistan shall carry valid permit issued

by the competent authority on the prescribed format (Annex-II).The vehicle details shall be

mentioned on the permit.

The permit shall be valid for one vehicle and for single round trip and only for

the transport operator to whom it is issued; it shall be non-transferable to other carriers or

third parties.

The period of validity of permit in the normal circumstances shall be 20 days

from date of entry i.e., equal to number of days allowed for stay in Pakistan in visa for each

trip. However, in exceptional circumstances, the vehicle can stay upto 90 days from date of

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entry into Pakistan under intimation to the Customs. No further approval will be required

from Customs on basis of principle of reciprocity, as agreed by the two contracting parties.

Permits submitted within the current calendar year shall be valid until 31st

January of the next year.

Permit shall also be required for empty run (deadheading).

1. Number of permits to be exchanged between the contracting parties. - (1)

Before the start of every calendar year, the competent authorities of the two contracting

parties shall exchange agreed number of permits for goods transport. Said permits must bear

a stamp of the competent authority of the State of the contracting party and the signature of

an authorized person issuing this permit.

The transport units, holding original permits shall not pay any entry

charges required from foreign transport units.

In case, the initial permits exchanged at the beginning of calendar year have

been utilized by a contracting party, it may request the other contracting party for issuance of

additional permits.

The transport units holding additional permits shall be liable to pay the

charges as per national regulation of the Host country.

The additional permits shall be marked with the words "outside quota" to

distinguish these, from those permits exchanged during the beginning of the year.

1. Exemptions from road transport permit.-(1) The permit referred to in rule-

915 above is not required for transportation of:

movable properties during resettlement;

materials and objects including art works intended for fairs and exhibitions;

(e) vehicles, live animals as well as various stocks and properties intended for

sporting events and circus shows;

theatrical decor and requisites, musical instruments, equipment and

accessories for filming, radio or TV broadcasts;

the bodies or ashes of the dead;

transporting for the purposes of humanitarian and medical aid, rescue

operation in response to natural disasters;

postal sending; and

by a vehicle where its total laden weight, including trailer do not exceed 3.5

tons.

(2) The permit referred to in rule-915 above is also not required for the passage of

a technical assistance's vehicle, intended for repair or towing of defective vehicles.

1. Issuance of permits to Pakistan registered vehicles transporting transit

and bilateral trade cargo.- (1) The Directorate of Transit Trade, Peshawar and Quetta shall

be authorized to issue and regulate permits at their respective land border customs stations.

(2) Permits received from competent authorities shall be kept at "Logistics

Facilitation Center" at Torkham, Chaman, Ghulam Khan or any other relevant customs

station.

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Permits shall be handed over to the vehicles of the registered transport

operators arriving at border customs stations on first come first served basis.

A vehicle carrying transit or export goods, after gate-in at border customs

station shall be assigned a sequence number by CCS for adding to the queue for handing over

of the duly filled permits by Logistics Facilitation Center.

The Logistics Facilitation Center shall keep the record of all the vehicle

permits handed over to the transport operators and shall communicate weekly data to the DG

Transit Trade and Board.

Pakistani vehicles destined to Uzbekistan shall also be required to possess

requisite authorization for transiting territory of Afghanistan as agreed between the two

countries i.e., Pakistan & Afghanistan.

Directorate General Transit Trade shall regulate the permits and coordinate

with Uzbek authorities for issuance of additional permits well in time.

1. Entry of Uzbekistan's registered vehicles transporting transit and

bilateral trade cargo into Pakistan.-(1) Uzbekistan's registered vehicles holding valid

permits and are being utilized for the transport of transit and bilateral trade cargo shall enter

Pakistan without the requirement of submission of any financial security for the duty and

taxes leviable on the vehicle, on the basis of reciprocity, as agreed by the two contracting

parties.

The Logistics Facilitation Center shall record particulars of both driver and

vehicle in the CCS and these details should be linked with the FIA's immigration module so

that driver can only exit Pakistan, if his vehicle, on return journey, has entered the border

Customs station and gate-in event has been recorded in the CCS and vehicle has completed

all customs formalities for exiting Pakistan.

Both Customs and FIA officials posted at the Customs border stations shall

carry out weekly reconciliation to ensure the implementation of the above mechanism and to

ascertain any overstayed vehicles.

A tracker shall be installed, on each vehicle upon entry into the territory of

Pakistan as per its national legislations.

In case of any exigency, a foreign driver can exit the country with the prior

approval of customs authorities. In these cases, the concerned transport operator shall request

customs authorities for a replacement driver, so that his details can be linked with the vehicle.

The vehicles of third countries can also transport transit and bilateral trade

cargo, if these vehicles have the requisite permits or authorizations.

The Logistics Facilitation Center shall keep the record of all the Uzbekistan's

vehicles entering Pakistan on permits and a weekly re-conciliation shall be carried out to

ensure compliance of these rules.

The system shall generate alerts for vehicles that have not exited Pakistan's

territory within the prescribed time for further necessary action by the concerned officer of

Customs. However, in cases of exceptional circumstances the said time limit may be

extended upto 90 days in the system, on intimation to the Customs by the carrier.

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1. Fuel accessories, toolkit etc.- (1) The fuel contained in the ordinary supply

tanks of vehicles temporarily imported shall be admitted without payment of import duties

and import taxes and free of import prohibitions and restrictions. Each contracting party may,

however, fix maximum quantities for the fuel so admitted into the territory in the supply

tanks of the vehicle temporarily imported.

The accessories, toolkit, and other articles that form the normal equipment of

the vehicle and the lubricants, maintenance supplies, and spare parts in reasonable quantities

for the repair of the vehicle, shall be exempted from import duties and taxes.

The contracting parties also agree to grant temporary admission for

maintenance and recovery vehicles and for parts.

1. Levies and charges on temporary imported vehicles.-(1) The Board may

through a general order levy charges, generally applicable for all traffic, including fees for

weighment, scanning and sealing by customs officials or those commensurate with the

administrative expenses for the costs of services rendered subject to the following:

containers of transit cargo shall be scanned at the office

of departure on the basis of selectivity criteria of Risk Management System

(RMS);

the scanning at the office en-route shall be done on the basis of Risk Management

System (RMS) including the alerts generated by the tracking company; and

weighment will be carried out at port of entry.

(2) All charges imposed on traffic in transit shall be applied in a non-

discriminatory manner.

1. Prohibition of internal transport and third country transport.-The

vehicles shall be prohibited from carrying. —

goods loaded in the territory of Pakistan for delivery at any other point

(cabotage); and

goods from or to another country (third country) than the operators home

country and to be delivered or picked up to or from the territory of Uzbekistan.

1. Identification marks.-(1) For vehicle and trailer in international traffic shall

be,

the name or the trademark of the manufacturer of the vehicle;

the manufacturer's production or serial number on the chassis or in the absence

of a chassis, on the body; and

the engine number of the vehicle if such a number is placed on it by the maker

(not for trailers).

(2) These identification marks shall be placed in accessible positions and shall be

easily legible. In addition, they shall be such that they cannot be easily altered or removed.

1. Registration certificate.-(1) Every vehicle shall carry a valid Certificate of

Registration (i.e., Vehicle License) issued by the competent authority of its home country.

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(2) The Certificate of Registration shall bear the following particulars:

a serial number, to be known as the registration number;

the date of first registration in the contracting party or the year of manufacture

of the vehicle;

the full name and complete postal address of the holder of the certificate;

the name or trademark of the manufacturer of the vehicle