Amendment in the Customs Rules, 2001 [EFS Rules, 2021]

Government of Pakistan

(Revenue Division)

Federal Board of Revenue

,1.***

Notification

Islamabad, the l4th May,2024.

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S.R.O.6rJ U)12024.- In exercise of the powers conferred by section 219 of

the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Acq 1990 (VII of

I 990), section 40 ofthe Federal Excise Act, 2005 and section 23 7 ofthe Income Tax

Ordinance, 200 1 (XLX of 2001 ), 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 456(I)12024

dated 28th March, 2024, as required by sub-section (3A) of section of section 219 of

the Customs Act, 1969 (IV of 1969), namely:-

In the aforesaid Rules,-

(l)

in rule 871, for clause (q), the following shall be substituted, namely:-

(q) "manufacture" includes any process in which an article singly or

in combination with other articles, materials or components, is

either converted into another distinct article or product or is so

changed, transformed or reshaped that it becomes capable of

being put to use differently or distinctly and includes any process

incidental or ancillary to the completion of a manufactured

product;";

(2) in rule 872, in sub-rule (l), in the first proviso, the full stop at the end,

a colon shall be substituted and thereafter the following new proviso

shall be added, namely:-

"Provided further that the EFS users shall import their goods

at the first port ofentry or from the ports or dry ports falling under the

jurisdiction of their Regulatory Collector.";

(3)

in rule 873, in sub-rule (1), in clause (b), for the full stop at the end a

colon shall be substituted and thereafter the following proviso shall be

added, namely:-

"Provided that where the applicant has no previous export

history, the firm contract shall be allowed subject to-

(a)

detailed scrutiny by the Regulatory Collectorate including but

not limited to financial viability, production capacity and

history oflocal supplies; and

(b)

mandatory approval of the Chief Collector for all firm

contracts above $ one million. However, where the applicant

has firm contract and submits a bank proof of advance

payment, the Regulatory Collector after detailed scrutiny, as

required under clause (a), may grant authorization at his own

without referring the case to Chief Collector."'

(4)

in rule 875,, in sub-rule (2), in clause (ii), after the word "facility", the

expression ", duly declared in the Sales Tax Registration and in case

there are more than one manufacturing facilities, all such facilities

must be incorporated in Sales Tax Registration" shall be added;

(5)

in rule 876, in sub-rule ( 1),-

(a)

in clause (b), after the words "Insurance Guarantee", the phrase

"or revolving bank guarantee" shall be inserted;

(b)

in clause (c), after the phrase "Insurance Guarantee", the words

"or revolving bank guarantee" shall be inserted;

(c)

in clause (d), after the phrase "lnsurance Guarantee", the words

"or revolving bank guarantee" shall be inserted;

(6) in rule 88 1, in sub-rule ( 1 ), for the expression "PSW:", the expression

"PSW. The plant, machinery and equipment shall be installed in the

premises declared under rule 875 and the information shall

be

uploaded in the WeBOC or PSW System by the Regulatory Collector.

The Regulatory Collector or an officer authorized by him in this

ry behalf, may conduct snap check, audit or reconciliation of the

installation plant, machinery and equipment. The value of acquisition

of machinery and spares shall not exceed 50% ofthe value of exports

during the preceding year." shall be substituted;

(7)

in rule 886, in sub-rule (3), after the word "condition", occurring at the

end, the expression "and the information shall be uploaded in the

WeBOC or PSW System by the Regulatory Collector." shall be added;

(8)

in rule 892,-

(a) in sub-rule (1), for the fulI stop at the end a colon shall be

substituted and thereafter the following proviso shall be added,

namely:-

"Provided that the new entrants in Export Facilitation

Scheme, not availing any previous export scheme, shall submit a

quarterly reconciliation statement within fifteen days of the end

of each quarter."; and

(b) in sub-rule (3), after the word "year" and "fullstop", the

expression "The Regulatory Collector or an officer authorized by

him in this behalf shall scrutinize the reconciliation statement. In

case ofany discrepancy in the reconciliation statement (including

imports not commensurate with export performance or absolute

non-utilization of previously imported input goods), the

Regulatory Collector may suspend authorization of input goods

by recording reasons of suspension in writing and such

suspension shall be fed into WeBOC or PSW. The Regulatory

Collector shall decide the case within thirty days of the suspension

failing which the suspension shall stand revoked" shall be added;

and

(9)

in rule 897, after sub-rule (3), the following new sub-rule shall be

added, namely:-

"(3A) The WeBOC or PSW shall develop an interface for the

Regulatory Collector or an officer nominated by him, for real-

time monitoring of the imports and exports of the user.".

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F.No.3 EP12024-25

1

(F le Samad)

(Export Policy)

Se