Amendment in the Customs Rules, 2001
Government of Pakistan
(Revenue Division)
Federal Board of Revenue
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Notification
Islamabad, the 28th March,2024
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S.R.O. 0)t2024.- The lollowing 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 (lV of
I 969), section 50 of the Sales Tax Act, 1990 (VII of 1990), section 40 ofthe Federal
Excise Act,2005 and section 237 of the Income Tax Ordinance,200l (XLIX of
2001), is hereby published for information ofall persons likely to be affected thereby
and, as required by sub-section (3A) of section 2 1 9 of the Customs Act, I 969 (lV of
1969), notice is hereby given that objections or suggestions thereon, ifany, may for
consideration of the Board be sent within filleen days of publication of the
amendments notification in the official Gazette. Any objections or suggestions
which may be from any person, before the expiry ofthe aforesaid period, shall be
taken into consideration by the Federal Board of Revenue, namely:-
DRAFT AMENDMENTS
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, components, is
L,,. either converted into another distinct article or product or is so
) changed, transformed or reshaped that it becomes capable ofbeing
put to use differently or distinctly and includes any process
incidental or ancillary to the completion of a manufactured
product";
(2)
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:
"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 alter detailed scrutiny' as
iequired under clause (a), may grant authorization at his own
without referring the case to Chief Collector'";
(3) in rule 875, in sub-rule (2), in sub clause (ii) after the word "facility"
theexpression..,dulydeclaredintheSalesTaxRegistrationandin
case there are more than one manufacturing facilities, al1 such facilities
must be incorporated in Sales Tax Registration" shall be added;
(4) in rule 88i, in sub-rule (1), after the word "PSW", the expression "The
plant, machinery and equipment shall be installed in the premises
ieclared under iule 875 and the information shall be uploaded in the
WeBOC or PSW System by the Regulatory Collector' The Regulatory
/hfv Collector or an officer authorized by him in this behalf, may conduct
snap check, audit or reconciliation of the installation plant, machinery
.quip-.ttt. The value of acquisition of machinery & spares shall
unO
not .*.."d 50o/o of the value of exports during the preceding year'"
shall be added;
(s) in rule 886, in sub-rule (3), after the word "condition", occurring at the
end,theexpression..andtheinformationshallbeuploadedinthe
WeilOC o. i'SW System by the Regulatory Collector'" shall be added;
(6) in rule 892,-
(a) in sub-rule (1), for the full stop at the end a colon shall be
substituted and thereafter 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
*The
(b) in sub-rule (3), after the word "year", the expression
Regulatory Collector or an offtcer authorized by him in this behalf
shail scrutinize the reconciliation statement' In case of any
discrepancy in the reconciliation statement (including imports not
commensuiate with export performance or non-utilization of
D1
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
(7) in rule 897, after sub-rule (3), the following new sub-rule shall be
added, namely:-
"(3A) The WeBOC/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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lF.No.3( 1 )EP/2024-251
(F e Samad)
Sec (Export Policy)