Amendment in Customs Rules, 2001

Government of Pakistan

(Revenue Division)

Federal Board of Revenue

*+{.*

Notification

Islamabad, the lrEJuly, 2023.

S.R.O. q I 7 $\12023.- The following draft of certain further amendments in

the Customs Rules,2001, which is proposed to be made by the Federal Board of

Revenue in exercise of the powers conferred by section 219 of the Customs Act,

1969 (lV of 1969), section 50 ofthe Sales Tax Acq 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 under sub-section (3A) of the said section 2l9,rrotice is hereby

given that objections or suggestions thereon,, if any, may for consideration by the

Board be sent within fifteen days of publication of the draft amendments in the

official Gazette. Objections or suggestions which may be received from any person,

before the expiry ofthe aforesaid period, shall be taken into consideration by the

Board, namely:-

DRAFT AMENDMENTS

In the aforesaid Rules,-

(l)

in rule 871,-

(a)

in clause (i), after the word "company", the words "authorized

under these rules" shall be inserted;

(b) in clause (l), after the words "such exporter", the words

"authorized under these rules" shall be inserted;

(c)

in clause (k), the sub-clause (b), shall be deleted.

(d)

after clause (s), the following new clause (sa) shall be inserted:-

"(sa) "online market place" means an electronic interface

such as a market place, e-commerce platform, website

portal or similar means which facilitate export of goods,

including third party export."; and

(e) in clause (v), after the phrase "the head office ofthe applicant"

the phrase "or principle manufacturing unit" shall be inserted;

(2) in rule 874,-

(a)

in sub-rule ( I ), in clause (i), after the phrase "annual production"

the phrase "or exports with minimum value of USD 20 million,"

shall be inserted; and

(b)

in sub-rule (1), in clause (ii), after the phrase "being exported"

the phrase "excluding those having exports with minimum value

of USD 20 million" shall be inserted;

(3) in rule 875, in sub-rule (2), for clause (vii), the following shall be

substituted, namely:-

"(vii) export performance for last two or three years whichever is

applicable, supported by a summary of foreign exchange realized

through e-forms if applicable.";

(4) in rule 877,-

(a)

in sub-rule (4), after the word "input" occurring second time, the

word "output" shall be substituted for the word "out"; and

(b)

in sub-rule (5), for the full-stop at the end, a colon shall be

substituted and thereafter, the following provisos shal1 be added,

namely:-

"Provided that the Regulatory Collectorate shall issue

analysis certificate within 3 days of application by the user

provisionally as per declared input output ratios and wastages

pending final determination or revision by IOCO or EDB, as the

case may be;

Provided further that the quantity equivalent to hundred

percent capacity of the producing or manufacturing unit may be

approved provisionally by the Regulatory Collectorate, as

applied by the user. However, up to fifty percent quantity may

be allowed to be used by the time IOCO or EDB, as the case

may be, determines output and input ratios.";

(5) in rule 881, after sub-rule (2), the following new sub-rule shall be

added, namely: -

"(3) The Regulatory Authority, on submission of an application by

the EFS user, may allow sale or transfer of plant, machinery,

equipment and apparatus from one EFS user to another EFS user.

In case, both the units fall under jurisdictions of different

Collectorates, sale or transfer may be allowed subject to obtaining

no objection certificate from the destination Collectorate. Any

stated sale or transfer shall be subject to security and indemnity

bond for the remaining period as prescribed in Appendix-Vl

deposited at the time of import. After sale or transfer of plant,

machinery, equipment and apparatus, EFS user shall provide

certificate to the respective Collectorate to the effect that such sale

or transfer has been completed as per prescribed procedure and this

procedure shall apply mutatis mutandis in case of merger or

acquisition of EFS users.";

(6) after rule 883, the following proviso shall be inserted:-

"Provided that the said period may be extended for export ofoutput

goods only by the Chief Collector of respective jurisdiction for six

months' period in cases of exceptional circumstances and in case

of extension such fresh securities as mentioned in rule 876 covering

the extension period shall be obtained.";

(7)

in rule 885,-

(a)

for sub-rule (2),the following shall be substituted, namely:-

"(2) The user shall provide I-Form of nil remittance

value for input goods duly approved by the

authorized dealer concerned.";

(b)

after sub-rule (2), amended as aforesaid, the following clause

shall be inserted, namely:-

"(2A) At the time of import, the system shall debit the

of

revolving insurance guarantee balance the

importer or accept the Indemnity Bond and Post

Dated Cheque, as the case may be, for an amount

equivalent to the duties and taxes leviable on the

imported goods.";

(c)

for sub-rule 3, the following shall be substituted, namely:-

"(3 After the production ofthe output goods, the user

)

shall export the goods on submission of E-Form

equivalent to the service charges approved by the

authorized dealer."; and

(d)

after sub-rule 3, amended as aforesaid, the following new sub-

rules shall be added, namely:-

"(4)

On realization ofthe foreign exchange equivalent to

the service charges as per contract, the authorized

dealer will certifo and report the same to the State

Bank of Pakistan on R-Form.

(5) Subsequent to the realization of the foreign

exchange equivalent to the service charges as per

contract, certified by the authorized dealer to the

State Bank of Pakistan on R-Form, the revolving

insurance guarantee fumished by the importer shall

be credited or the indemnity bond and postdated

cheque shall be released, accordingly.";

(8)

in rule 886,-

(a)

in sub rule (4), after the words "paid on such wastage",, the

following expression shall be added:-

"on filing of a goods declaration which shall be assessed as

if the goods are imported into Pakistan in that condition";

(b)

in sub rule (4), for the words "Federal excise duty and sales

tax", the words "leviable duties and taxes" shall be

substituted; and

(c) in sub rule (4), after the words "before removal", a full stop

shall be inserted and the following expression shall be

omitted:-

"and the information is uploaded in the WeBOC or PSW

System by the Regulatory Collector.";

(e) in rule 887, in sub-rule (1), in clause (b), for the figure "'741",the

figure "872" shall be substituted;

( 10) in rute 888, in sub-rule (1)' in clause (a), for the figure "741", the

frgtre"872" shall be substituted;

(11) in rule 895, in clause (d), for the full-stop at the end, a colon shall

be substituted and thereafter the following proviso shall be added,

namely:-

"Provided that remission shall not be applicable in case of

insurable risks.";

(t2) after rule 898, the following new heading shall be added, namely:-

I"

"Sub-Chapter

Common Export Houseso'; and

(13)

after Appendix-V, the following new Appendix shall be added,

namely:-

"APPENDIX-VI

lSee Rule 881 (3)l

GOVERNMENT OF PAKISTAN

COLLECTORATE OF CUSTOMS

INDEMNITYBOND

(ON APPROPRIATELY STAMPED NON-JUDICIAL PAPER)

This deed of indemnity is made on the day of

20 between

M/s

who have registered office at

(hereinafter called the licensee which means and includes their successors,

administrators, executors and assignees) of the one part and President of Pakistan

through the Collector of Customs) (hereinafter called "the

Collector") ofthe other part:

1. Whereas, the Regulatory Authority has allowed us to remove plant,

machinery, equipment and apparatus from one EFS user to another EFS user, we

shall pay on demand all duties, taxes, drawbacks, repayments, rebates and refunds,

not levied or paid under the rules, on the procurement of plant and machinery which

are not accounted for to the satisfaction ofthe Regulatory Authority and to pay any

penalties imposed by the Regulatory Authority /adjudicating officer for violation of

these rules or the Acts;

3.

Now, these present witness that in pursuance of this BOND the licensee

M/s. hereby agrees to indemnif, the said Regulatory Authority or

adjudicating officer for loss of revenue to the extent of Rs.

(Rupees

) and also against costs and expenses which may be

incurred by the Regulatory Authority in recovery of the above amount ofrevenue.

4.

It is fuither agreed that the above amount may be recovered as arrears under

relevant sections of the Acts and the rules made thereunder if the licensee fails to

abide by any condition laid down in rules.

1. IN WITNESS WHEREOF, the parties hereto have put their respective hands

and seals on the day above written.

(Address)

(2)

(Name and permanent address)

For and on behalfofthe President

Witness No.1 Witness No.2

signature- ignature-

S

Name Name

Designation Designation

Full address Full address

CNICNo. CNIC No.

Note 1.- The witnesses shall be govemment servants in BPS-16 or above, or

Oath Commissioner, Notary Public or an Officer of a Scheduled Bank.

Note 2.- This bond shall be based upon proper collateral security in the shape of

NIT units, National Saving Certificates, Defense Saving Certificates

and such other securities which banks generally accept for extending

credit.".

(14)

in rule 902, in marginal heading, after the word "authorization", the

words "for common export house:" shall be inserted;

(15)

in rule 904, in marginal heading, after the word "from", the words

"common export" shall be inserted;

F.No.3(1)EP/2023

13 '

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( Aman)

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Secreta (Export Policy)