Draft amendments in Customs Rules, 2001(Chapter XXI, sub chapter VII - Transit under Customs Computerized System)

Government of Pakistan

Revenue Division

Federal Board of Revenue

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NOTIFICATION

(CUSTOMS)

Islamabad, the 15th April, 2022

S.R.O. 55o (1)/2022.- 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), is hereby

published for information of all persons likely to be affected thereby and, as required under

sub-section (3A) of the said section 219, notice is hereby given that objections or

suggestions thereon, if any, may for consideration of the Board be sent within fifteen 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 VII,-

(1) in rule 471, in sub-rule (1),-

after clause (ii), the following new clause shall be inserted, namely:-

"(iia) "approved off-dock terminals" means the off-dock terminals in

Karachi which have been approved for cross stuffing of Afghan

transit cargo by the Directorate of Transit Trade, Karachi,

keeping in view the adequacy of space, infrastructure, equipment

and over all preparedness for cross stuffing;";

after clause (x), the following new clause shall be inserted, namely:-

"(xa) "cross stuffing" means transfer of goods from one container to

another container or any other mode of transportation as per TIR

specifications, in the premises of the port or off-dock terminal

under customs supervision;";

for clause (xxix), the following shall be substituted, namely:-

"(xxix) "temporary admission document (TAD)" means a

document issued by a competent authority of one Contracting

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Party against a fee on a prescribed format to the vehicles

registered and licensed in the territory of the other contracting

party for international carriage of goods that allows them to

enter or exit or transit through the territory of the other

contracting party;";

(2) after rule 482, the following new rules shall be added, namely:-

482A. Procedure for issuance of TAD.- Notwithstanding the

provisions of rule 482, initially the following shall be procedure and

conditions laid down in this rule which shall be followed for issuance and

regulation of TAD, namely:-

(1) Pakistan Customs (Directorate of Transit Trade, Karachi) and

Afghanistan Ministry of Transport will share list of approved

transport operators (bonded carriers) and vehicles. When new

transport operators or vehicles are added to the list, other side

shall be informed via email, immediately. Both sides shall

nominate focal persons for the timely exchange of this

information;

the list of approved Afghan transport operators and their

registered vehicles shall be forwarded by Directorate of Transit

Trade, Karachi to the concerned officers in Embassy of

Pakistan, Kabul and consulate General of Pakistan at Kandahar

and Jalalabad and the list of approved Pakistani transport

operators (bonded carriers) and their registered vehicles shall

be forwarded by Afghan authorities to the concerned officers

in Embassy of Afghanistan or Consulate General of

Afghanistan, Islamabad, Karachi, Quetta, Peshawar and the

Directorate General of Transit Trade, Karachi;

the application for TAD as per Appendix-MA, along with

required documents, shall be collected on all working days at

window No. 5 of Pakistan Embassy Kabul and Pakistan

Consulate, Kandahar during 1100 to 1200 hours. Applications

for TAD as per Appendix-MB from Pakistani registered

vehicles shall be collected on all working days at Afghan

Consulate Generals, Quetta and Peshawar during 1000 to 1100

hours;

(4) at the time of issuance of TAD for an Afghani vehicle by

Pakistani authorities, its particulars shall be cross-verified with

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the data sent or forwarded by Directorate General of Transit

Trade, Karachi;

Trade Officer and Commercial Assistant, Commercial Wing,

Pakistan Embassy, Kabul and Commercial Wing, Pakistan

Consulate, Kandahar shall sign or issue the TAD for vehicles

registered in Afghanistan. The Transport Attaché, Afghan

Consulate Generals, Quetta and Peshawar Pakistan shall sign

and issue, on the format set out in Appendix-HIC the TAD for

vehicles registered in Pakistan. The Pakistan Consulate

Jalalabad shall issue TAD at a later date, once commercial

section officials are placed there, in consultation with the

Government of Afghanistan;

statement of TADs issued by Pak embassy shall be furnished

to the designated focal point of Pak Customs Peshawar and

Quetta on daily basis via email and Afghanistan side will

develop same system on their side;

TAD shall be issued against payment of fee of US $ 100/. The

TAD fee collected by Pakistan embassy or consulates in

Afghanistan shall be transferred to the account of Directorate

General of Transit Trade on monthly basis. However, no fee

shall be charged for the application form from the applicants.

Both sides shall ensure its free availability and shall also up

load the form on embassy or consulate websites which shall be

freely downloadable. A bar code having all the details of the

vehicles may be embossed on TAD;

TAD shall be issued within five working days of receipt of

applications;

validity of TAD shall be 180 days (06 months) having multiple

entries with maximum one time stay of 30 days in Pakistan

and Afghanistan;

the transport operators holding TAD can carry transit goods

and bi-lateral goods, but cabotage is not allowed and any truck

found transporting goods between two destinations inside the

territory of the contracting party shall be black listed;

the routes and crossing points where TAD will be valid are

given in Annex-IIID. The BCPs at Angoor Adda and

1Charlachi shall be operational only for bi-lateral trade whereas

BCPs at Torlcham, Ghulam Khan and Chaman shall be

operational for transit and bi-lateral trade;

TAD shall become valid from the date of issuance by the

embassy or consulate;

TAD shall be valid for one vehicle at a time and only for the

carrier to whom it was issued; it shall not be transferable to

other carriers;

Any unauthorized tampering in TAD by anyone shall render it

void and invalid.

Pakistan customs shall be entering each entry or exit journey

on the back page of TAD, same shall be done by Ministry of

Transport and Civil Aviation Afghanistan;

if the TAD is lost by the driver or owner of the vehicle, he shall

apply for new TAD;

if the TAD is lost in the home county, the driver or owner of

the vehicle shall first inform the police station and then apply

for a new TAD by providing a copy of the FIR, so that

embassies or consulates could inform the relevant authorities,

to cancel that TAD in their record;

if the TAD is lost in the territory of the other contracting party,

the driver or vehicle owner shall inform the transport or

customs authorities to be allowed for exit on the crossing

points. After entering the home country, the owner shall apply

for a new TAD by providing the proof (documents allowed him

cross the border) and copy of FIR lodged with the police;

if the vehicle goes missing, in the territory of the other

contracting party, the owner will be charged to pay duties and

taxes to be ascertained by the technical committee having

representatives from customs of both countries, on the basis of

depreciated value of the vehicle, as per prevailing laws;

following documents shall be filed by the applicant transport

operator for obtaining TAD:

(a) application form as per format given in Appendix HIA and

Appendix IIIB;

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expired TAD of the Vehicle (in original) this shall be

required after 180 days of operationalization;

copy of National ID Card or passport of the owner;

copy of registration book of the vehicle;

copy of license or authorization issued by Afghanistan

Ministry of Transport to Transport Operators of

Afghanistan for international carriage of goods or copy of

license or authorization issued by Pak customs to transport

operators of Pakistan for international carriage of goods;

fitness certificate of the vehicle. This shall be required for

Afghan vehicles after 180 days of operationalization; and

(g) . picture of the vehicle for record purpose;

The contracting parties shall, in accordance with their

respective laws, rules and regulations, grant multiple entry visa

valid for a period of one year, each stay not exceeding 30 days to

the drivers of the vehicles and the persons engaged in International

transit traffic operations who are subject to Visa requirement. In

exceptional circumstances such as illness or injury to person or

damage to vehicle, where the stay period of 30 days expires while

driver is still in the other contracting state, he or she shall refer the

case to the nearest office of Ministry of Interior for extension of the

duration of the stay. The Ministry of Interior will extend the stay

for a reasonable period.

The following documents shall be required for issuance

of multiple entry VISA to the driver or helper:

visa form;

authority letter by transport operator;

two (02) photographs of driver;

valid driving license of the driver; and

driver passport.

482B. The arrangement prescribed through rule 482A is a

temporary arrangement which will prevail till formalities under

Afghanistan-Pakistan Transit Trade Agreement, 2021 are finalized

and would cease to have effect from the date FBR notifies.";

(3) after rule 484Q, the following new rules shall be added, namely:-

"484R. Cross stuffing in Afghan transit cargo — General

provisions.- (1) Cross-stuffing of containerized cargo under Afghan transit

trade shall be allowed both inside seaport terminal where cargo arrived as well

as at any approved off-dock teiminals(ODT) at separately demarcated areas.

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(2) At the time of filing of GD the Customs Computerized System

(CCS) shall provide the option for cross stuffing. In case it is so opted, the

trader or his representative shall be asked by CCS to enter following

information:-

name of the seaports or ODT from a drop-down menu for

selection of one place;

marks and numbers of the new and empty container along with

name of the entity owning it (ODT, logistic company/bonded

carrier);

name of bonded carrier; and

vehicle number.

(3) Cross-stuffing shall take place under customs supervision from

one container to another container of the same size i.e., 20 feet into 20 feet

and 40 feet into 40 feet.

(4) Cross-stuffing may also be allowed into boxed vehicles approved

for transportation of cargo under TIR.

(5) The cross stuffing of cargo mentioned below shall be allowed

inside seaports only:

non-Containerized cargo;

controlled substances as listed in the prevailing APTTA

heavy packages which cannot be stuffed in the container; and

cargo of over-dimension, to be determined by Assistant or

Deputy Director (Examination), on case-to-case basis.

(6) The inter-port movement of cargo destined for ODT shall be

allowed through licensed bonded carriers.

(7) The terminal operator shall be responsible for the integrity,

security and proper cross stuffing of the cargo.

(8) The logistic companies, bonded carrier, clearing agents and

ODTs owning minimum of 25 containers compliant to Container Safety

Convention 1972, fitted with CSC plate, bearing maximum weight carrying

capacity and year of manufacture can register with customs for provision of

empty containers for cross-stuffing of transit cargo. The upper limit of tariff

and allied charges etc with respect to provision of this service shall be

determined by a Committee comprising of all Directors of Transit Trade in

consultation with the stakeholders and shall be notified by the Director,

Transit Trade, Karachi. Violation of tariff and allied charges so ascertained

shall result in de-registration of the entity.

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Whenever, a trader opts for cross stuffing facility, the CCS

system will invariably send message to Drug Enforcement Cell (DEC) of

respective Enforcement Collectorate for carrying out drug check on the empty

container as well as on the cargo and feed its report in the system.

Hereinafter the old container would mean the container from

which goods are to be cross stuffed and new/empty container means the one

in which goods have been cross stuffed.

484S. Cross stuffing of forward transit cargo at seaports.— (1) In

case trader or his representatives selects the option of cross stuffing at seaport

terminal, he shall also provide information about old container number(s),

new or empty container number(s), name of bonded carrier and the

registration number of vehicle. The CCCS shall generate three messages

simultaneously for the specific GD along with all the information provided by

the trader:-

import handling message to Terminal Operator to release the container

for cross stuffing;

message to a randomly selected examiner to supervise the cross

stuffing;

message to Drug Enforcement Cell (DEC) of respective Enforcement

Collectorate for drug check on the empty container as well as on the

cargo and to feed its report in the system.

The terminal operator shall arrange for the cross stuffing of the

transit cargo from the old container into the corresponding new or empty

container(s) in the Afghan Transit cross stuffing yard.

The cross stuffing shall be carried out in the presence of the

examiner to whom the GD is marked by CCS, an authorized representative of

the Afghan trader and staff of seaport Terminal.

The examiner shall ensure that cargo is cross stuffed from the

same container mentioned in GD to the same new or empty container the

information for which is available in the system.

During the course of cross stuffing, examiner shall compare the

items being cross stuffed with the packing list and also take photographs of

cargo.

After cross stuffing is done, examiner shall feed his report in the

CCS along with photographs of the cargo and shall affix the post cross stuffing

seal on the new container in which goods have been cross stuffed. After

feeding of the report the system will ask the examiner about any discrepancy

found. In case of Yes, the GD will be routed to the Appraising Officer for

further action as under the law i.e., framing contravention in case of mis-

declaration or rectification of the mistake with the approval of concerned

Assistant Director (AD) or Deputy Director (DD). In case of No, the GD shall

be auto-assessed.

After its auto-assessment the GD shall be routed to trader or his

representative to accept or contest the auto-assessment. The time to accept or

contest will be 12 hours. In case of no action at their end within 12 hours, the

system shall auto processed to put the GD out of charge. In case of any contest

by the trader, the GD will be routed to AD or DD for necessary action.

After completion of auto-assessment, the GD will be pushed to

the security officer for obtaining GD wise insurance guarantee or one time

Revolving Insurance guarantee.

The GDs, which will not be auto-assessed on account of non-

availability of matching valuation data in the system, will be pushed to

Assessment Officer (AO) for manual assessment.

After completion of customs formalities, the system shall mark

the GD to bonded carrier. Thereafter, the procedure prescribed in Rule 473 (9)

onwards and of sub-chapter VII of the chapter XXI of Customs Rules, 2001

shall apply.

The staff of terminal and gate officer of customs shall ensure that

after cross-stuffing, the empty containers shall be on door-off and gate out in

the empty one-door-off condition.

484T. Transportation of container from seaport to ODT for cross

stuffing.- (1) After successful manifestation of an Afghan transit cargo index

showing via port as an off-dock terminal or in case trader or his representatives

selects the option of cross stuffing at an ODT he shall also provide information

about old container number(s), new or empty container number(s), name of

bonded carrier and the registration number of vehicle. The CCS shall generate

four messages simultaneously for the specific GD alongwith all the

information provided by the trader:-

import handling message to terminal operator to release the

container(s) for cross stuffing at selected off-dock terminal;

message to the PCCSS sealing staff to execute pre-gate out

events;

message to a randomly selected examiner to supervise the cross

stuffing at selected ODT; and

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(d) message to Drug Enforcement Cell (DEC) of respective

Enforcement Collectorate for drug heck on the empty container

as well as on the cargo at ODT and to feed its report in the system.

The terminal operator shall make the container available to the

PCCSS staff after sending a 'pre-gate-out' message to system along with

relevant information including the name of the bonded carrier and the

container number. This message shall also be visible to the PCCSS staff

The PCCSS staff after verifying that permission for

transportation of cargo to the ODT has been allowed by the system, shall

physically verify the particulars of the bonded carrier and the container

number vis-a-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 verify the installation of the tracking

and monitoring devices and upload images of the seals, tracking devices,

vehicles, and the containers in the system.

The sealing staff shall also generate and print copies of

'Transport Note', from the System, in triplicate. Each copy of the 'Transport

Note' shall be signed by the 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

Off-dock terminal and the third 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 the terminal operator on feeding of PCCSS seal

information in the system.

Upon receipt of SVM, the terminal operator shall send "GTO"

message to the CCS 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 CCS shall relay this

message to ODT.

The transit cargo containers destined to ODT for cross-stuffing,

shall reach at the entry gate of the ODT within five hours from their time of

exit from a seaport. In case no electronic acknowledgment of the receipt of

cargo at ODT is received after the lapse of five hours of its departure from the

exit gates of the port of entry, the system shall compile report of all such

containers and generate an alert for the AD/DD examination for action.

The system shall block the bonded carrier in case of delayed

receipt of cargo beyond the prescribed time limit.

All other provisions of sub-chapter XV of Chapter XXI shall

apply mutatis mutandis.

484U. Receipt of forward AT cargo at ODT for its cross stuffing

and release.- (1) The PCCSS staff posted shall check the 'Transport Note'

and weighment slip and shall verify the seal of the container. The PCCSS staff

shall feed a container entry report (CER) for the incoming container in the

system and any discrepancy observed with respect to seal, weight, transport

note or any other aspect shall be recorded in it.

On arrival of container with seal intact, the ODT staff shall enter

`Gate-in' event in the system including gross weight of the container.

In case the customs seal affixed on a container is found broken

or tampered with, the respective container shall be examined 100% by the

Customs staff in the presence of off-dock terminal operator and a

representative of the bonded carrier; an invent