Amendment in the Customs Rules, 2001 [EFS Rules, 2021]
GOVERNMENT OF PAKISTAN
REVENUE DIVISION
FEDERAL BOARD OF REVENUE
tl
Islamabad, the oJ March, 2025
NOTIFICATION
s.n.O.lo/ 0)12025.- In exercise of the powers conferred by section 219 of the Customs
Act, 1969 (IV of 1969), section 50 olthe Sales Ta-x Act, 1990, section 40 of the Federal Excise
Act. 2005 and section 237 ofthe Income Tax Ordinance. 2001 (XLX ol200l), the Federal Board
of Revenue is pleased to direct that the following further amendments shall be made in the Customs
Rules. 2001, the same having been previously published vide Notification No. S.R.O 204(Di2025,
dated 25th February, 2025. as required by sub-section (3A) of section 2 l9 ofthe Customs Act. I 969
(IV of 1969), namely:-
In the aforesaid Rules, in Chapter XL. -
(l ) in rule 871.
(i)
in clause (a), the expression "or as approved by Engineering Development
Board (EDB)" shall after six months from commencement of this
Notification be omitted:
(ii) in clause O, the expression "or as approved by the EDB" shall after six
months from commencement of this Notification be omitted;
(iii) in clause (m), after the words "for acquisition", the words "except iron and
steel scrap lalling under the respective headings of Pakistan Customs
Tariff '. shall be inserted;
(iv) clause (n) shall be omitted; and
(v)
for'clause (u), the following shall be substituted. namely:-
$
"(u) "regulatory authority" means Collector of Customs, in whose
, jurisdiction the place of business or manufacturing unit of the
applicant, duly registered under the Sales Tax Act, 1990, is located.
ln case an applicant has multiple manufacturing facilities in different
jurisdictions, the Collector in whose jurisdiction, the head office of
the applicant or principal manufacturing unit is located shall be the
regulatory authority.":
(2) in rule 872, in sub-rule (l). after the words "following persons", the expression ",
except persons engaged in import of iron and steel scrap falling under the respective
headings ofPakistan Customs Tariff," shatl be inserted.
(3)
in rule 874,
1,
(i)
in sub-rule (4), for the expression "perthe claimed percentage ofproduction
to be exported i.e.. Category A or B, which shall be subject to review by the
Regulatory Collector after one year" the expression "in Category 82" shall
be substituted;
(ii)
fbr sub-rule (5) and the table. the following shall be substituted. namely: -
"(5) Al applicant showing a poor compliance profile, i.e., having
one or more contravention cases adjudged against him or having pending
recovery cases or pending criminal proceedings, the authorization granted
shall on providing opportunity of defence be suspended immediately and
the Regulatory Collector may initiate proceedings for cancellation of the
authorization besides other legal action.": and
(iii)
sub-rule (6) shall be omitted;
(4) in rule 875, in sub-rule (2), after clause (viii), the following new clause shall be inserted,
namely:-
"(viiia) the list ofvendors in accordance with the requirements laid down in rule 882;";
(5)
in rule 876. in sub-rule (1). -
(0
for clause (a). the follouing shall be substituted, namely:-
"(a)
Category A:
(i)
indemnity bond as set out in Appendix-lll and PDC for
$
manufacturers-cum-exporters having minimum export value
/-z'
of USD 20 million or above in last two years;
(i i) manul'acturers-cum-exporters having exports value less than
USD 20 million in last two years, shall fumish indemnity
bond as set out in Appendix-Ill and PDC equivalent to the
average annual duty & taxes of input goods used in exports
in last two years, and bank guarantee or revolving bank
guarantee shall be lumished for any excess duty & taxes
being defened or remitted:"
(b) for clause (b), the following shall be substituted, namely:-
2
"(b)
Category 81: For manufacturer-cum-exporters with a self-
owned manufacturing flacility, indemnity bond as set out in Appendix-
Ill and PDC equivalent to the average annual duty & taxes of input
goods used in exports in last three years, and bank guarantee or
revolving bank guarantee shall be fumished for any excess duty &
taxes deferred or remitted; and lor manufacturer-cum-expofiers with a
rented production facility, bank guarantee or revolving bank guarantee
covering their annual requirement:",
(c)
in clause (c), for the words "Revolving Insurance", the word "Bank",
shall be substituted and thereafter the expression "for manufacturers
with self-owned manufacturing facility covering their annual
requirement, Revolving Bank Guarantee for manufacturers with
rented production facilit,v" shall be omiued;
(d)
for clause (d), the following shall be substituted, namely:-
"(d) Category Cl: For manufacturers with a self-owned
manufacturing facility. indemnity bond as set out in Appendix-lll and
PDC equivalent to the average duty & taxes of input goods used in
indirect exports in last three years and bank guarantee or revolving
bank guarantee shall be fumished for any excess duty & taxes defened
z) $' or remitted. and lor manufacturers with a rented production facility
and commercial exporters. bank guarantee or revolving bank
guarantee covering their annual requirement;"; and
(e)
in clause (e). for the words "Revolving Insurance", the word "Bank"
shall be substituted and thereafter the expression "with a self-owned
manufacturing tacility,' and Revolving Bank Guarantee for
manufacturers with rented production facility" shall be omitted.
(6) in rule 877.-
(i) sub-rule (2) and (3) shall be omitted:
(ii)
for sub-rule (4), the following shall be substituted, namely:-
"(4) Within seven days of the receipt of the application, the case
shall be referred to relevant Collectorate oflnput Output Coefficient
Organization (IOCO) for determination of production capacity and
input output ratios within sixty days. The Collector IOCO shall
ensure that the application is processed within 60 days ofthe date of
receipt in IOCO:
3
Provided that in case the IOCO fails to process the case
within sixty days, the user shall be allowed acquisition of 25o/o of
the value of input goods involved as declared against a bank
guarantee. The provisional permission shall be subject to
modification once the IOCO finalizes its assessment of the
production capacity and input output ratios and the same shall be
uploaded in the WeBOC or PSW System by IOCO or Regulatory
Collector."l
(iii)
for sub-rule (5), the following shall be substituted, namely:-
"(5)
In case the production capacity and input output ratios
have already been determined by IOCO or EDB, as the case may be,
the Regulatory Collector shall process the authorization on the basis
ofalready determined production capacity and input output ratios.";
(iv)
fbr sub-rule (6). the lollowing shall be substituled, namely:-
I
"(6) The Chief Collector (Exports & IOCO) shall monitor all
2 $' pending cases to ensure their timely processing within 60 days.";
(v) in sub-rule (9). the words "including the Engineering Development
Board" shall afler six months from commencement of this
Notifi cation be omitted:
(vi) (ll),
in sub-rule the expression "as well as by EDB on sectoral
basis" shall after six months from commencement of this
Notification be omitted;
(vii)
sub-rules (13) and (14) shall be omitted; and
(viii)
after the sub-rule ( l4), omitted as aforesaid, the lollowing new- sub-
rule shall be inse(ed, namely:-
''(15) No authorization under this rule shall be issued
without determination ofproduction capacity and input output ratios
by IOCO, except as provided in the proviso to sub-rule (4).";
(7)
after rule 877. the following new Rule shall be inserted, namely:-
4
*877(A).
Drawal of samples.- The customs computerized system may assign
Goods Declarations filed under these rules for drawal of samples on computerized
selectivity criteria:
Provided that the Regulatory Collector or the Collector of Customs in whose
jurisdiction the imports or exports are being made. may also authorize the drawal of
samples by an officer not below the rank of Assistant Collector.
(2)
Three samples of imported input goods or output goods meant for export
shall be drawn at the time of import or export, respectively, duly signed by concemed
Assistant Collector or Deputy Collector and EFS authorization number and date shall
be endorsed thereon. Out of the drawn samples. one will be handed over to the EFS
user or his authorized agent, second will be retained by the drawing Collectorate and
the third will be sent to the Regulatory Collectorate. The Assistant Collector or Deputy
Collector incharge ofconcemed Customs station. shall inform the Regulatory Collector
about the cases where any discrepancy is reported against the El'S user in accordance
with law:
Provided that the Regulatory Collector may also authorize an officer not below the
rank of Assistant Collector to visit the premises ol the EFS user to draw samples, in
addition to already drawn samples."
(8)
in rule 878.-
(a)
for sub-rule (3). the lollowing shall be substituted, namely:-
\>4
"(3) The authorization of the value ofinput goods shall be uploaded
/-) for each year based on annual estimated requirement determined by IOCO.
a--'' The uploading of the authorization lor the subsequent year shall be subject
to satisfaction ol Regulatory Collector that no action under the Acts is
pending against the user and the user has submitted all reconciliation
statements as set out in Appendix-1V.": and
(b)
sub-rule (4) shall be omitted;
(9)
in rule 879. after sub-rule (4), the following new sub-rule shall be inserted, namely:-
"(5) The Regulatory Collector, upon satisfaction that the input goods have
been illegally removed from the premises or disposed-off or retained beyond the
utilization period or failed to achieve the value addition in the utilization period as
required under these rules. shall immediately proceed to encash the PDC or Bank
Guarantee. as the case may be.";
5
10)
( in rule 880,-
(i)
in sub-rule (2), for the word "thirty", the word "seven" shall be substituted;
(iD
after sub-rule (3). the following new sub-rules shall be inserted, namely:-
"(3A) 1'he Regulatory Collector may conduct the stock-taking of
inputs through an officer not below the rank of Assistant Collector. at any
time during the utilization period.
(3B)
The user shall ensure proper traceability of inputs through
proper inventory records which shall be made available to the officer not
below the rank of Assistant Collector undertaking stock-taking as specified
in sub-rule (3A).": and
(iii) in sub-rule (4), after the expression "information, audit", the expression "
stock-taking". shall be inserted. and thereafter, after the words "been
uploaded in time." the expression "or the input goods are not accounted
for." shall be inserted.;
1)
(1 in rule 882,
(i)
lor sub-rule (2), the following shall be substituted, namely:-
*(2)
'I'he
user with past export performance may apply online to
the Regulatory Collector, in the WeBOC or PSW system, as per the
prescribed format as set out in Appendix-V, to remove input goods out of
-
his premises for partial manufacture or processing by a vendor duly declared
at the time of fiting his application for grant of authorization, having in-
house manufacturing facility to perform the stated manufacturing process
at the premises of the vendor which are geo-tagged in the WeBOC
registration database:
Provided that the processing period by vendor shall not exceed sixty
days from the date ofremoval ofgoods from the user premises."; and
(iD
after sub-rule (2). the following new sub-rules shall be inserted. namely:-
"(3) All details related to the goods removed from the premises
including quantity and description, particulars of the vendor. registration
number of the vehicle and outward gate pass, shall be led into the system
by the EFS user on the same day.
6
(4)
The vendor shall not be changed or added except with prior
permission of the Regulatory Collector concemed.";
(12)
for rule 883, the following shalI be substituted, namely:-
"883. Utilization period.- The input goods acquired under these rules shall be
utilized within 9 months extendable in exceptional circumstances by a committee to be
constituted by the Board.";
(13)
Inrule 884, for the first and second proviso, the following shall bs substituted, namely:-
"Provided that for supplies against intemational tenders or to exempt projects or
sectors in Pakistan, the user shall be required to file a declaration in WeBOC system";
(14)
In rule 885, in sub-rule (2A), for the words "revolving insurance", the word "Bank".
shall bs substituted;
(15)
in rule 886.
(i) in sub-rule (3), after the words "B grade goods", the expression "not more
than 5% of the total production" shall be inserted and for full stop at the
end, a colon shall be substituted and thereafter the following proviso shall
be added, namely:-
r)
"Provided that in case of l'actory rejects or B grade are more than
5% ofthe total production. the Goods Declaration shall be assessed as if the
goods are imported into Pakistan in standard condition."t and
(ii)
in sub-rule (4). after the words "sales tax", the expression ", or any other
leviable duty and taxes" shall be inserted;
16)
( in rule 887,
(i)
in sub-rule (1), clause (a) shall be omitted; and
(ii)
sub-Rule (4) shall be omitted;
(17)
in rule 892. sub-rule (3) shall be omitted: and
(18)
in rule 893. in sub-rule (1).-
a) for the words "as under", the expression "on annual basis for all
categories:- shall be substituted'
7
b) clauses (a). (b). (c) and (d) shall be omitted, and
c)
for the second proviso, the following shall be substituted, namely:-
"Provided further that the system may assign the audit to the
regulatory Collector instead of the Directorate ofPost Clearance Audit."
IF.No.5(7)EP/20 I 9-Pt]
afiq
Secretary licy)
8