Amendment in Customs Rules, 2001 [Chapter XIV, sub-chapter VII of chapter XXI and sub chapter XI of chapter XXV - Licensing of Border Carriers and Transport Operator]
Government of Pakistan
(Revenue Division)
Federal Board of Revenue
*****
NOTIFICATION
(Customs)
Islamabad, the Pt August, 2022.
S.R.0.4497 (1)/2022.- In exercise of the powers conferred by section 219 of
the Customs Act, 1969 (IV of 1969), the Federal Board of Revenue is pleased to
direct that the following further amendments shall be made in the Customs Rules,
2001, which, as required under sub-section (3A) of the said section 219, were
previously published vide Notification No.S.R.O. 803(1)/2022, dated the 16th June,
2022, namely:-
In the aforesaid Rules,-
in rule 329A, after sub-rule (3), the following new sub-rules shall
be added, namely:-
"(4) In case the clearing agent licence of the bonded
carrier issued under Chapter VIII of the Customs Rules 2001 is
suspended or revoked by the respective licensing authority, the
licence to operate as bonded carrier shall also stand suspended or
revoked and vice versa.
Appeal against an order passed under sub-rules (1)
(5)
and (2) of rule 329A may be filed before the Director General
Transit Trade, Karachi, within sixty days of passing of such
decision or order.";
in rule 478, for the preamble, the following shall be substituted,
namely:-
"478. Approval of licence.- On qualifying the criteria
mentioned in rule 477, licence shall be issued to the transport
operator by the respective Director of Transit Trade in whose
jurisdiction the business address of the applicant is located for a
period of two years on the recommendation of a committee
comprising the respective Director of Transit Trade, Collector of
Customs Enforcement and Director, Directorate of Intelligence
and Investigation-Customs of the jurisdiction, after seeking
approval of the Director General of Transit Trade. The licensing
authority shall issue approval letter for issuance of licence
subject to the following, namely:-";
(3) after rule 480, the following new rules shall be added, namely:-
"480A. Action in case of violations.- (1) The licensing
authority may revoke or suspend a licence or permission of any
transport operator for one or more than one of following reasons,
namely:-
the licensee has made or cause to be made in any
application for any licence or permission under this
chapter, or report filed with the customs, any statement
which was, at the time and in light of the circumstances
under which it was made, false or misleading with
respect to any material fact, or has omitted to state in
any such application or report; or
the licensee has been convicted at any time for larceny,
theft, robbery, extortion, forgery, counterfeiting, fraud,
concealment, embezzlement, fraudulent conversion, or
misappropriation of funds; or
the licensee is involved in any manner, including but not
limited to, abetting, facilitating, substitution or
replacement, removal, pilferage, tampering with
transport units or seals etc. of en route transshipment or
transit cargo; or
the licensee has knowingly employed, or continues to
employ, any individual who has been convicted of any
offence referred to under clause (b) and (c); or
the licensee, in the course of its customs business, with
intent to defraud, has in any manner, willfully and
knowingly deceived, misled or threatened any client or
prospective client; or
violation by the licensee of any provision of the Act or
the rules, regulations, notifications, instructions or
orders issued there under; or
aiding or abetting any individual, firm or company, as
the case may be, for violation of any provision of the
Act or the rules or regulations made thereunder; or
negligence or inefficiency of the licensee in discharge
of its obligations; or
unsatisfactory conduct of the licensee while transacting
customs business or in relation to any person who has
entrusted it with any customs business; or
failure of the licensee to comply with any condition of
the bond executed by him under this chapter; or
concealing, removing or destroying, by the licensee, of
its financial and customs business records or refusing to
allow an officer of customs to inspect them and take
extracts there from; or
attempt by the licensee to influence the conduct of any
(I)
employee in the custom house, custom station, port,
airport or en route transit or transshipment of cargo by
the use of force, intimidation, false accusation, duress,
bribery or by offering any special inducement or gift; or
failure of the licensee to exercise due diligence and due
care to apprehend and forestall an untrue declaration in
respect of description, content, classification, origin,
quality or value of the goods by its client and en route
transit/transshipment of cargo; or
withholding by the licensee, of any information,
document or other evidence, from an officer of customs
which is likely to prevent any fraud or evasion of
customs duties and other taxes or dues and the
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circumvention or contravention of any restrictions
imposed by any law for the time being in force; or
the licensee's previous performance has not been
satisfactory or has not been true to the customs or
towards his clients; or
the licensee's previous record of customs business due
to his being concerned in any customs offence is not free
from reasonable doubt.
In case of revocation of a license under sub-rule (1),
the licensing authority may, after issuing show cause notice
to the licensee, forfeit the whole or part of the security
deposited by the licensee under rule 478(a) for the settlement
of any duty, taxes or any other charges due from him.
The licensing authority shall not pass any order
under sub-rules (1) and (2) of rule 480A to suspend or revoke
the licence unless the licensee is informed in writing
regarding the allegations and opportunity of hearing is
afforded. While passing an order for revocation of licence,
the licensing authority may also direct forfeiture of the
security deposited by the licensee under rule 478(a):
Provided that where it is expedient in the public interest,
an immediate action is considered necessary against the
licensee, for, including but not limited to, abetting, having
knowledge of, tampering with transport units and seals
affixed thereto, facilitations, substitution, replacement,
removal, pilferage etc., during en route transit or
transshipment of cargo, the licensing authority may suspend
the licence forthwith, after recording reasons in writing,
pending final action under the Act and rules made there
under.
In case the clearing agent licence of the transport
operator issued under Chapter VIII of the Customs Rules
2001 is suspended or revoked by the respective licensing
authority, the licence to operate as transport operator shall
also stand suspended or revoked and vice versa.
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(5) Right to appeal. Appeal against an order passed
under sub-rules (1) and (2) of rule 480A may be filed before
the Director General Transit Trade, Karachi, within sixty
days of passing of such decision or order.";
(4) in rule 639,-
for the preamble, the following shall be substituted, namely:-
"639. Approval of licence.- On qualifying the criteria
mentioned in rule 638, license shall be issued to the transport
operator by the respective Director of Transit Trade in whose
jurisdiction the business address of the applicant is located
for a period of two years on the recommendation of a
committee comprising the respective Director of Transit
Trade, Collector of Customs Enforcement and Director,
Directorate of Intelligence and Investigation-Customs of the
jurisdiction, after seeking approval of the Director General
of Transit Trade. The licensing authority shall issue approval
letter for issuance of licence subject to the following,
namely:-"; and
in clause (a), for the words "Collector of Customs
Appraisement", the words "the respective Director of Transit
Trade" shall be substituted;
(5) in Appendix-IV, prescribed vide clause (b) of rule 639, for the
words "Collector of Customs Appraisement", the words
"respective Director of Transit Trade" shall be substituted; and
after rule 641, the following new rule shall be added, namely:-
"641A. Action in case of violations.- (1) The licensing
authority may revoke or suspend a license or permission of any
transport operator for one or more than one of following reasons:-
(a) the licensee has made or cause to be made in any
application for any license or permission under this
chapter, or report filed with the customs, any statement
which was, at the time and in light of the circumstances
under which it was made, false or misleading with
respect to any material fact, or has omitted to state in
any such application or report; or
the licensee has been convicted at any time for larceny,
theft, robbery, extortion, forgery, counterfeiting, fraud,
concealment, embezzlement, fraudulent conversion, or
misappropriation of funds; or
the licensee is involved in any manner, including but
not limited to, abetting, facilitating, substitution or
replacement, removal, pilferage, tampering with
transport units or seals etc. of en route transshipment
or transit cargo; or
the licensee has knowingly employed, or continues to
employ, any individual who has been convicted of any
offence referred to under clause (b) and (c); or
the licensee, in the course of its customs business, with
intent to defraud, has in any manner, willfully and
knowingly deceived, misled or threatened any client or
prospective client; or
violation by the licensee of any provision of the Act or
the rules, regulations, notifications, instructions or
orders issued there under; or
aiding or abetting any individual, firm or company, as
the case may be, for violation of any provision of the
Act or the rules or regulations made thereunder; or
negligence or inefficiency of the licensee in discharge
of its obligations; or
unsatisfactory conduct of the licensee while transacting
customs business or in relation to any person who has
entrusted it with any customs business; or
failure of the licensee to comply with any condition of
the bond executed by him under this chapter; or
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(k) concealing, removing or destroying, by the licensee, of
its financial and customs business records or refusing
to allow an officer of customs to inspect them and take
extracts there from; or
(I) attempt by the licensee to influence the conduct of any
employee in the custom house, custom station, port,
airport or en route transit or transshipment of cargo by
the use of force, intimidation, false accusation, duress,
bribery or by offering any special inducement or gift;
or
failure of the licensee to exercise due diligence and due
care to apprehend and forestall an untrue declaration in
respect of description, content, classification, origin,
quality or value of the goods by its client and en route
transit or transshipment of cargo; or
withholding by the licensee, of any information,
document or other evidence, from an officer of customs
which is likely to prevent any fraud or evasion of
customs duties and other taxes or dues and the
circumvention or contravention of any restrictions
imposed by any law for the time being in force; or
the licensee's previous performance has not been
satisfactory or has not been true to the customs or
towards his clients; or
the licensee's previous record of customs business due
to his being concerned in any customs offence is not
free from reasonable doubt.
In case of revocation of a license under sub-rule (1),
the licensing authority may, after issuing show cause notice to
the licensee, forfeit the whole or part of the security deposited by
the licensee under rule 639(a) for the settlement of any duty,
taxes or any other charges due from him.
The licensing authority shall not pass any order
under sub-rules (1) and (2) of rule 641A to suspend or revoke the
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license unless the licensee is informed in writing regarding the
allegations and opportunity of hearing is afforded. While passing
an order for revocation of license, the licensing authority may also
direct forfeiture of the security deposited by the licensee under
rule 639(a).
Provided that where it is expedient in the public interest, an
immediate action is considered necessary against the licensee, for,
including but not limited to, abetting, having knowledge of,
tampering with transport units and seals affixed thereto,
facilitations, substitution, replacement, removal, pilferage etc.,
during en route transit or transshipment of cargo, the licensing
authority may suspend the license forthwith, after recording
reasons in writing, pending final action under the Act and rules
made there under.
In case the clearing agent license of the transport
operator issued under Chapter VIII of the Customs Rules 2001 is
suspended or revoked by the respective Licensing Authority, the
license to operate as transport operator shall also stand suspended
or revoked and vice versa.
Right to appeal. Appeal against an order passed
under sub-rules (1) and (2) of rule 641A may be filed before the
Director General Transit Trade, Karachi, within sixty days of
passing of such decision or order.".
[C. No.10(18)L&P/2020j
(Muham1ad Rizwan)
Secretary (La w/& Procedure)
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