Amendments in International Transshipment Rules

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

****

Islamabad, the 6th November, 2024.

NOTIFICATION

S.R.O.l1g9 (1)/2024.- 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, (VII of 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 the information of all persons

likely to be affected thereby and, as required by 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

seven 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, in Chapter XXI, in Sub-Chapter VIII-A,-

in rule 510B, in clause (c), after the words "bonded-area", the

expression ", except as provided in rules 510G, 510H, 5101 and

510J of this Sub-Chapter" shall be inserted.; and

after rule 510F, the following new rules shall be inserted, namely:-

"510G. Inter-port movement of international transshipment

cargo.

The inter port movement of international transshipment cargo

may only be allowed from any on-dock terminal of Karachi Port

and Port Muhammad Bin Qasim to another on-dock terminal of any

of the said ports, through authorized bonded carriers licensed under

Chapter XIV of these rules, as per procedure laid down in rules

51014, 5101 and 510K of this sub-chapter.

510H.Procedure for removal of international transshipment cargo

from the original port of entry or sending port terminal to another

terminal of departure or receiving terminal.- (1) The shipping line or

port terminal operator, for which the international transshipment cargo is

originally manifested, shall make a request in writing to the concerned

Collector of Customs for removal to any other terminal through the CCS,

which shall also be visible and accessible to Assistant or Deputy Collector

Inter Port Movement (IP), MIS and both the sending and receiving

terminals of the concerned Collectorates of Customs, who will allow or

disallow such request for the reasons to be recorded in the CCS, on

verifying the IGM and EGM or Vessel Departure Schedule in CCS

submitted by shipping line, its agent or the concerned terminal operator.

After verifications mentioned in sub-rule (1) above, the system shall

generate Customs release message for the terminal operator which

discharged the container and shall subsequently make it available to the

Customs sealing staff after sending a 'pre-Gate-out' message to CCS

along with relevant information including the name of the bonded carrier

and the container number. This message shall also be visible to the

Customs sealing staff.

Thereafter, the bonded carrier shall load that container on authorized

vehicle and report to the Customs sealing staff for sealing of the container.

The Customs sealing staff after verifying that permission for

transportation of cargo to the other receiving port terminal has been

allowed by the system, shall physically verify the particulars of the

bonded carrier and the container number vis-à-vis the information

received through the system, affix the PCCSS seal on the container and

feed the sealing information and the vehicle registration number in the

System.

The sealing staff shall also generate and print copies of 'Transport

Note', as specified in Appendix-I to this sub-chapter, from the System', in

triplicate. Each copy of the 'Transport Note' shall be signed by Customs

sealing staff and the bonded carrier or his representative. One copy of the

'Transport Note' shall be retained by the Customs sealing staff, the second

copy shall be handed over to the driver of the vehicle who shall submit the

same to the Gate-in staff at the concerned receiving port terminal and last

copy shall be retained by the representative of the bonded carrier for his

record.

A system generated Customs Seal Verification Message (SVM) shall

be communicated to both the port terminal operators on feeding of PCCSS

seal information in the system. The terminal operator shall perform 'Gate-

out' event only after receiving the Customs seal verification message. The

Gate-out message shall be communicated by the terminal operator to the

system which shall include the name of the bonded carrier, vehicle

registration number, container number, shipper's seal number, PCCSS

seal number and gross weight of the container. The sending terminal

operator shall also hand over the weighment slip to the bonded carrier for

record and onward presentation to the Customs staff posted at the

receiving port terminal.

The international transshipment containers moved out from the exit

gate of the port of entry shall reach at the entry gate of the receiving port

terminal within two hours, in case of same port. In case of inter port

movement between the terminals of Karachi Port and Port Muhammad

Bin Qasim, the said time limit shall be four hours. The system shall

automatically block the bonded carrier in case of delayed receipt of cargo

beyond the prescribed time limits.

In cases where the Assistant or Deputy Collector (IP) finds no

cogent reason for delayed receipt of the cargo beyond the prescribed time,

he shall recommend necessary legal action against the concerned bonded

carrier and port terminal operator to Assistant or Deputy Director of

Transit Trade for further action by the Licensing Authority.

1. Receipt of the departed cargo at receiving terminal.- (1) On

arrival of international transshipment consignment at the receiving port

terminal, the Customs sealing staff posted at the entry gate shall check the

'Transport Note' and weighment slip and shall verify the seal of the

container and enter or record the same in the system.

Upon receiving the cargo with seal intact, the receiving port terminal

shall enter `Gate-in' event in the system and conduct weighment of the

cargo and also enter the same in the system.

In case the Customs seal affixed on a container is found broken or

tampered with, the respective container shall be examined hundred per

cent by the Customs staff in the presence of port terminal operator and a

representative of the bonded carrier. An inventory of the goods contained

in such containers shall be prepared and signed by all witnesses. This

inventory shall be fed in the system for record and legal action if so

warranted.

In case, there is a difference or variation in gross weight recorded at

the port terminal of original entry or sending port terminal vis-à-vis the

weight found at the port of departure or receiving port terminal, the

Assistant or Deputy Collector IP shall proceed against the carrier as per

relevant law and rules. On the recommendations of Assistant or Deputy

Collector (IP), Assistant or Deputy Collector MIS shall allow and enter

such difference of weight in the manifest after payment of fine and

penalty as per law and rules.

In case no electronic acknowledgment of the receipt of cargo at

receiving port terminal is received after the lapse of time limits provided

in sub-rule (6) of Rule 510H, the CCS shall compile report of all such

containers and generate an alert for the Assistant or Deputy Collector

Inter-Port movement (IP) and MIS of the Collectorate of Customs having

jurisdiction at port of entry terminal for action.

The feeding of any amendment in Gate-in particulars at receiving port

terminal arising due to accident or break-down of the vehicle shall be

carried out on approval from the Assistant or Deputy Collector IP.

The Assistant or Deputy Collector IP shall carry out manifest

clearance electronically on daily basis for closure of IGM lines and

corresponding entries in the respective EGM, if required, proceed against

the concerned shipping lines or their agents, bonded carriers, terminals

and other concerned as per provisions of the Act and these rules.

510.1. Responsibilities of the carriers.- (1) Notwithstanding any other

action taken under the law and the procedure under these rules, the carrier

shall bear all expenses incurred on re-stuffing or re-packing of the goods

including the duty and taxes leviable on goods pilfered or damaged on

way from the sending port terminal to the receiving port terminal under

this procedure.

(2) The bank guarantee or defense saving certificates submitted by the

bonded carriers at the time of issuance of license under sub-rule (6) of rule

328 shall be taken into account for recovery of the amount of duties and

taxes, fine and penalty, if any, involved on the cargo during the course of

transportation from sending port terminal to the receiving port terminal in

case of any eventuality like damage, pilferage, theft, fire, accident etc.

Violation of rules. - In case of violation of the rules provided in

this sub-chapter, or any such violation is detected during inter port

movement of cargo from the sending port terminal to the receiving port

terminal, the carrier, the shipping lines or their agent and other concerned,

shall be jointly and severally responsible for duty and taxes involved and

the value diminished or any other liability arising out of any damage or

pilferage. They shall be liable to pay the duty and taxes as may be leviable

on such goods in addition to any other action as is authorized under the

Act or these rules.

Cross-stuffing of international transshipment cargo at Gwadar

Port. — (1) Cross-stuffing by way of transfer of international

transshipment goods from one container to another container, in the

approved places within Custom bonded premises, notified under sections

9 or 10 of the Act, at Gwadar Port, shall be allowed under customs

supervision.

The option of cross-stuffing of international transshipment cargo at

Gwadar Port shall be available to the owner of goods or his authorized

representative or shipping lines, through filing necessary details and

particulars of containers and cargo on line through the CCS.

Cross-stuffing of containerized international transshipment cargo shall

be allowed inside especially demarcated areas of the Gwadar port.

Cross-stuffing of containerized international transshipment cargo shall

take place under Customs supervision from one container to another

container of the same size i.e., twenty feet into twenty feet and forty feet

into forty feet.

Notwithstanding the restriction on LCL cargo provided in rule 510A

of this sub-chapter, the cross-stuffing of non-containerized international

transshipment cargo or LCL cargo shall be allowed into a 20 feet or 40

feet container at the custom bonded premises of Gwadar Port by entering

the particulars into CCS under customs supervision.

APPENDIX-I

[see rule 51011(4)1

TRANSPORT NOTE

IGM No. dated Index No. Via Port EGM No. date

(Information required against cargo removed from one port

terminal and destined to another port terminal of Karachi Port/

Port Muhammad Bin Qasim)

International TP No date

Destination Customs port terminal or station

(Information required for International Transshipment Cargo)

Discharged from Vessel/ IGM No. and Date Index No. Departing

Voyage Vessel/ Voyage

Marks and No. Container No. Vehicle No. Departing

Terminal

Tare Weight of ross Weight Net Weight Receiving

Conveyance Shipping Line

Seal numberof CCSU seal No. Quantity EGM No. and

Shipper/ Date

Container Yard

Description of Goods Nature of Packing

(Pallets, Packages, Cartons,

Cases, Bags, Bales, Sheets,

Pieces)

Name/ Telephone number of the Bonded Carrier

Certified that theCertifled that the Certified that the Certified that

details on thisabove mentioned above mentioned the above

document aregoods have been goods have been mentioned

correct. sealed in my received by goods have

presence. Customs on been received

with with seal intact. by Port

Signature

Signature withdate and stamp of Terminal

date and Stamp of Customs CC SU Signature with M/S on

the BondedOfficer at Port of date and Stamp with seal

Carrier sealing of Customs intact.

CCSU Officer at

destination port Signature with

terminal, date and

Stamp of

Customs

Officer and

authorized

representative

of receiving/

destination

port terminal.".

[C.No.1(14)T&BT/2024]

(Rizwan m Milt4

Secretary (Transit & Border Trade)