Federal Board of Revenue is pleased to direct that the following further amendment shall be made in the Customs Rules, 2001.
Government of Pakistan
(Revenue Division)
Federal Board of Revenue
****
Islamabad, the 24th February, 2014.
NOTIFICATION
(CUSTOMS)
S.R.O.121(I)/2014.- In exercise of the powers conferred by section 219 of the
Customs Act, 1969 (IV of 1969), the Federal Board of Revenue is pleased to direct that
the following further amendments shall be made in the Customs Rules, 2001, namely:–
In the aforesaid Rules, under Chapter XXI, for the Sub-Chapter VII, the
following shall be substituted, namely:-
“Sub-Chapter VII
Transit under Customs Computerized System
- Scope.-The provisions of this sub-chapter shall be for the purposes of
Afghanistan-Pakistan Transit Trade, for processing of transit trade cargo under
Customs Computerized System, to and from Afghanistan, namely:-
(a) Afghan commercial cargo imported through Karachi Port, Port
Muhammad Bin Qasim, Gawadar Port or Sost;
(b) Afghan commercial cargo from Afghanistan to India through Wahga;
(c) Afghan commercial cargo from Afghanistan to other countries; and
(d) non-commercial cargo.
- Definitions. - (1) In this sub-chapter, unless there is anything repugnant in the
subject or context,-
(i) “Afghan transit group” means a section established in a Collectorate of
Customs or in the Directorate General of Transit Trade specifically to handle the
transit trade related affairs;
(ii) “AT-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 Afghanistan;
(iii) “Bill of lading” means the document issued by shipping line containing
details about the type, quantity, and destination of the goods;
(iv) “Border stations” means Chaman, Torkham, Sost, Wahga and any
other Customs station notified by the Board for the purposes of the Afghan
Transit Trade;
(v) “Bulk cargo” means heavy, oversize and bulk cargo (imported as non-
containerized) cargo and includes both dry and liquid bulk cargo;
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(vi) “Cargo” means goods including vehicles;
(vii) “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;
(viii) “Commercial transit cargo” means goods including vehicles imported
by private Afghan importers under valid jawaznama for transit across Pakistan
to Afghanistan under section 129 of the Act;
(ix) “Container” means standardised receptacle or loading unit of
international specifications for freight to enable (i) loading and unloading; (ii)
movements by one or more modes of transport, without intermediate reloading;
and (iii) locking and sealing;
(x) “Contracting parties” means Pakistan and Afghanistan;
(xi) “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,
and transport operators or their authorized representatives on Afghan
commercial vehicles, for an amount covering the duty and taxes on their
vehicles as per prescribed rules;
(xii) “Dangerous goods” means goods posing a significant risk to health and
environment, security and property when being transported or lying in storage;
(xiii) “Examination of goods” means the process of physical ascertainment
by Customs of nature, origin, condition, quantity and value with reference to
transit documents;
(xiv) “External user Registration Office” means the office designated by the
Ministry of Commerce and Industries, Islamic Republic of Afghanistan for
registration of Afghan Traders and other users with the Customs Computerized
System;
(xv) “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;
(xvi) “Inspection of goods” means the superficial process of confirmation
that the marks and numbers of bulk in open cargo and container number and
seal number of containerized cargo are in accordance with the particulars
provided in the goods declaration or bill of lading;
(xvii) “Jawaznama” means a license issued by the Ministry of Commerce,
Islamic Republic of Afghanistan to its nationals for trade of goods to and from
Afghanistan;
(xviii) “Licensing authority” means the Collector of Customs, Appraisement-
West, Karachi;
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(xix) “Mafinama” means a certificate issued by the Ministry of Finance,
Islamic Republic of Afghanistan to a non-commercial importer based in
Afghanistan for imports into Afghanistan;
(xx) “Non-commercial transit cargo” means all goods, other than the
Commercial transit goods, cargo of diplomatic missions, Afghan Government,
registered NGOs, UN agencies, European Commission but excluding the cargo
belonging to US Army, ISAF, NATO or other military forces stationed in
Afghanistan;
(xxi) “Office of departure” means any Customs office at which a Customs
transit operation commences;
(xxii) “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 Afghan Customs office on other side of the border, and
office of destination shall be Customs station inside Afghanistan where Afghan goods
declaration is filed;
(xxiii) “Office of destination” means any Customs office at which a Customs
transit operation is terminated;
(xxiv) “Prohibited goods” means the goods prohibited to be carried under the
transit trade under any law for the time being in force;
(xxv) “Prescribed transport route” means the land route prescribed by
Federal Board of Revenue for transportation of transit goods within the frontiers
of Pakistan;
(xxvi) “Sealing” means affixing of PCCSS seal on transit goods under
Customs General Order 4/2007 and issuance of transport note electronically;
(xxvii) “Shipper seal” means the seal affixed on container by the shipper from
the port of loading;
(xxviii) “System” refers to the Customs Computerized System that is in
operation in the Customs offices as per Board‟s instructions;
(xxix) “TAD” or “Temporary Admission Document”means a document
issued by a competent authority of one contracting party on a prescribed format
that allows vehicles registered in the territory of the other contracting party to
enter or exit or transit through its territory;
(xxx) “Transit goods” means the goods whether Commercial or Non-
commercial transited through Pakistan, to and from Afghanistan;
(xxxi) “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;
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(xxxii) “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, semi-trailers;
(xxxiv) “TIN” or “Tax Identification Number” means the 10-digit unique
number issued by Ministry of Finance, Islamic Republic of Afghanistan to
identify a specific taxpayer;
(xxxv) “User ID office" means the designated office in the Directorate General
Transit Trade for registration and issuance of users IDs to the Transit
Traders/user.
(xxxvi) “User ID” means a unique user identifier as may be allocated to an
importer intend to import goods in Afghanistan as per 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 to them in the Act or these rules.
- Filing of Goods Declaration for Afghan Transit cargo: (1) The transit goods
which are carried under the Customs transit shall not be subject to payment of import
or export duties and taxes provided the activities are in conformity with these rules.
(2) Afghan Transit cargo 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 / customs agent / bonded carrier. The importer‟s country‟s
name and address shall be of Afghanistan for goods intended to be imported for
Afghanistan.
(3) The trader or his authorized Customs agent shall file the Afghan Transit Goods
Declaration (hereinafter called AT GD) online in the Customs Computerized System at
the office of departure through User ID. The User ID shall be issued as per procedure
prescribed by the Directorate General of Transit Trade.
(4) The AT GD shall be accompanied by scanned copy of exemption certificate
(mafinama) issued by the relevant Afghan Authority for Afghan Transit Trade (ATT)
non-commercial goods;
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(5) The original invoice, packing list, bill of lading, jawznama and other relevant
documents shall be submitted to the customs by the importer on demand.
- Processing of Afghan Transit cargo at the Office of departure at Seaports
(Karachi/ Port Muhammad Bin Qasim/Gawadar).– (1) After filing of GD, all
consignments of transit goods shall be inspected to verify the shipper seal and
container No. declared in GD. The weighment and scanning of each transit
consignment shall be mandatory subject to the availability of scanner and weigh bridge
at the relevant office of departure. Where scanning is not possible, such as in case of
oversized, bulk and break-bulk cargo, such goods may be examined, if required.
In case any discrepancy is noticed during scanning the same shall be marked
for examination subject to the approval from respective AC/DC.
(2) 5% GDs shall be selected through selectivity criteria by Customs officers for
mandatory examination. The selected consignments shall be examined hundred
percent.
(3) The Appraising Officer shall scrutinize the GD, the scanning report, wherever
available, and the examination report, if the examination has been conducted and
satisfy himself that,-
(a) the GD is in order;
(b) the PCT heading is as per the declaration of the goods;
(c) correct value is determined under the Act, for the purposes of depositing
financial security ; and
(d) the goods allowed for transit are in accordance with the prevalent law and
prescribed procedure,
Provided that he may request for more information/documents from the trader
through „call documents‟ utility if the information submitted by him is insufficient for the
correct assessment of the transit goods.
(4) The Principal Appraiser/Appraising Officer shall initiate online „request for
examination‟ if required. The request shall be approved/ rejected by the
Deputy/Assistant Director, Afghan Transit through his user ID in the system. The
Deputy/Assistant Director (Examination and Processing) shall have the authority to
mark any GD for examination on the grounds of suspicion. Upon approval of the
examination request, the GD shall be marked to the Examining Officer of the
concerned shed/terminal for examination:
Provided that in case of any suspicion or on receipt of credible information any
consignment of transit goods shall be examined/re-examined by the orders of the
officer of Customs not below the rank of Deputy/Assistant Director of Customs.
(5) The Examining Officer shall conduct the examination of transit goods to
ascertain their nature, origin, condition, quantity and value with reference to the
declarations made in this regard in the transit documents filed with the Customs. The
examination report along with the images of the consignment shall be fed in the
system.
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(6) In cases where financial security is required to be furnished by the trader, the
system shall calculate the amount of the security required and mark the GD to the
concerned designated officer/ official for securing the financial security and feeding the
relevant information in the system through his user ID. If no discrepancy is found/
reported in the AT GD, the Appraising Officer may complete the assessment and allow
it out of Customs charge electronically:
Provided that in case where some discrepancy has been found, the AT GD
shall be marked to the concerned Principal Appraiser for further necessary action
under the law including initiation of legal proceedings. The importer shall have the right
to file 1st and 2nd review in the system against the findings of the officer concerned. The
security officer shall detach the financial security and enter particulars in the system.
(7) Upon completion of all Customs formalities, the GD shall be assigned to the
carrier for feeding of carrier information including truck number, driver‟s name, and
other particulars as required by the system. Before the cargo is allowed „Gate out‟ by
the Terminal operator or the Customs staff, as the case may be, it shall be presented
to the Customs Containerized Sealing Unit (CCSU) or the Customs sealing staff for
affixing of seals and feeding of the seal number and other relevant information in the
system. The tracking and monitoring devices will be fixed on the transit goods in
accordance with the prescribed procedure.
(8) The sealing staff shall verify the installation of the same and upload images of
the seals, tracking devices, vehicles, and the containers (wherever applicable) in the
system and shall generate the Transport note on the prescribed format (Appendix-I)
for handing over to the carrier. Each copy of the Transport note shall be signed by the
Customs sealing staff. One copy shall be retained by the sealing staff, one copy shall
be handed over to the driver of the transport unit who will submit the same to the gate
in staff of the office en route and last copy shall be retained by the representative
carrier for his record.
(9) The Terminal operator or the Customs staff, as the case may be, shall allow
„Gate out‟ to the cargo in transit on receipt of the „SVM‟ (Seal Verification Mechanism)
message through EDI. Where there is no licensed Terminal operator and/or EDI
messaging has not yet been established, the Customs staff shall allow „Gate out,‟ on
completion of the sealing event in the system.
(10) The Terminal operator shall enter the weight of the container/bulk/break-bulk
cargo at the time of „Gate out‟ for onward communication to the Customs
Computerized System through EDI. Upon the completion of Gate out event, Terminal
operator shall send „GTO‟ message to the Customs Computerized System.
- Processing of Afghan Transit goods at the Office of departure at land border
stations (Torkham/Chaman/etc.).– The Afghan cargo entering into Pakistan through
land border stations shall be processed in the following manner:
(i) The carrier declaration shall be uploaded electronically in the system by a
person authorized by the Customs specifying the description and quantity of goods,
their destination and registration number of vehicles wherever applicable:
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Provided that in case of Afghan commercial vehicles, the Transport operator or
his authorized agent shall first apply and obtain the Temporary Admission Document
(TAD) as per the procedure specified in rule 482.
(ii) The vehicle transporting the transit goods shall be allowed „Gate in‟ in the
system by the Terminal operator or Customs staff as the case may be after filing of the
carrier declaration/IGM.
(iii) The Goods Declaration filed by or on behalf of the Afghan trader/user shall be
processed in the same manner as prescribed in these rules in the light of relevant
documentation.
(iv) Upon completion of all Customs formalities including weighment and scanning
(whenever made available). The GD shall be assigned to the Customs sealing staff for
sealing as per prescribed procedure. The sealing staff shall affix the seals, enter the
sealing information and upload images of the seals, tracking devices, vehicles, and the
containers (wherever applicable) in the system directly in the system, and generate
triplicate copies of “Transport note” to these rules. Each copy of the Transport Note
shall be signed by the Customs Sealing staff and transporter or his authorized
representative; one copy shall be retained by the Sealing staff, one copy shall be
handed over to the driver of the transport unit, who will submit the same to the
designated customs staff of the Office en route and last copy shall be retained by the
trader or his representative for his record.
(v) The Terminal operator or the Customs staff, as the case may be, shall allow
„Gate out‟ to the cargo in transit on receipt of the „SVM‟ (Seal Verification Mechanism)
message through EDI. Where there is no licensed Terminal operator and/or EDI
messaging has not yet been established, the Customs staff will allow „Gate out,‟ on
completion of the sealing event in the system.
- Physical Customs inspection at Office of Departure.- (1) The Terminal
operator or the Customs staff, as the case may be, assigned to „Gate out‟ shall verify
the seal and container/truck number declared in the GD.
(2) All containers of transit goods shall be fitted with tracking and monitoring
devices at the office of departure from a tracking company duly approved by the Board.
(3) All containers of transit cargo shall be scanned at the office of departure subject
to the availability of the scanning facilities.
(4) The Customs authorities at the office of departure may require transit goods
consigned from or destined to the territory of the Afghanistan to be transported under
Customs escort while in the territory of the Pakistan in very exceptional cases such as
where the goods are precious or highly susceptible to misuse of transit facility. The
approval for this measure must come from an officer not below the rank of Director,
Transit Trade after recording reasons in writing.
(5) All packages containing transit goods destined for Afghanistan shall indelibly
bear the marks and numbers “IN TRANSIT TO AFGHANISTAN”. Any difference in
marks and numbers, or in case marks and numbers are not clearly visible, shall be
pointed out by the Customs staff, in case of absence of marks and number “IN
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TRANSIT TO AFGHANISTAN”, the same must be marked on the goods under
Customs supervision.
- Transportation of goods.-(1)Transportation of transit goods by transport
operators shall be allowed in containers of international specifications as per provisions
of Afghanistan Pakistan Transit Trade Agreement, 2010 (APTTA).
(2) Oversized, heavy and bulky transit goods, vehicles and live animals may be
transported in open transport units provided sealing requirements are fulfilled as per
prescribed procedure.
(3) Imported transiting vehicles may be allowed in roll-on and roll-off carriers.
(4) Exports of perishable goods (fruits and vegetable) in transit may be transported
in open trucks or other transport units in accordance with the prescribed procedures.
(5) Change of conveyance en-route shall be allowed, in exceptional circumstances
such as accident or any other break down etc. with the prior written approval of the
Deputy or Assistant Director having jurisdiction
(6) Transportation of the cargo from the port of entry to the port of exit in a safe and
secure manner shall be the responsibility of the concerned authorized carrier.
- Eligibility of a transport operator: (1) A Transport operator is eligible to file
application with the licensing authority for the grant of li