Amendments in the Customs Rules, 2001 (chapter XV-Warehousing)

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

****

th

Islamabad, the 16 August, 2021.

NOTIFICATION

(Customs)

S.R.0.105(I)/2021.- In exercise of the powers conferred by section 219 of the Customs

Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, section 40 of the Federal Excise

Act, 2005 and section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), 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.0 872(1)/2021, dated the 5th July, 2021, namely:-

In the aforesaid Rules, in Chapter XV,-

(1) in rule 342,-

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

"(ja) POL products includes petroleum, LNG, oil and lubricant

products;";

in clause (n), after semicolon, the word "and" shall be omitted and

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

"(o) "warehouse" means a common bonded warehouse, a

manufacturing bond, a private bonded warehouse or a public

bonded warehouse, a floating barge for warehousing and

transportation of POL products, licensed by the Collector or the

Regulatory Authority designated by the Collector, as the case may

be; and"; and

(c) after clause (o), amended as aforesaid, the following new clause (p), shall

be inserted, namely:-

"(p) "licensee" means any person who has been granted the license to

operate a warehouse under these rules.",

in rule 343, in sub-rule (1), in clause (a), for the semicolon, the colon shall be

substituted and thereafter the following proviso shall be added, namely:-

"Provided that in case of a floating barge to be licensed as a warehouse for

POL products, the particulars of such floating barge shall be filed along with the

application instead of the site plan;"; and

after rule 363, the following new rules shall be inserted, namely: -

"363A.Bonded warehousing and export of POL products.- (1) The

owner may store any imported POL products in a warehouse and export the same

in accordance with rules 363A to 363F.

At the time of arrival of goods at a port, the owner shall file goods

declaration through WeBOC system for in-bonding of the imported POL products

submitting the documents as required under the Act.

The securities in the shape of postdated cheques and indemnity

bond furnished by the owner under section 86 of the Act, at the time of

warehousing of POL products, shall continue to be in force notwithstanding the

transfer of the goods to any other person or firm unless the warehoused POL

products are exported by way of supply to conveyances as provisions and stores

as provided in section 106 of the Customs Act, without payment of any duties,

taxes or levies, as the case maybe.

Explanation.- Since the POL products, to be imported under this scheme,

will be shipped or supplied without foreign exchange remittances from Pakistan,

on account of cost of goods at the time of their imports, therefore, no Electronic

Import Form (EIF) shall be required at the time of filing of GD for their in-

bonding. Similarly, no EIF shall be required at the time of export.

(4) The owner of any POL products, warehoused in accordance with

the foregoing provisions of this rule, may export such POL products as provisions

and stores for conveyances proceeding to any foreign territory including by way

of direct sale or sale through a third party.

Explanation.- 'direct sale' — means that owner makes a direct sale to the

owner or charterer of the conveyance and deliver the POL products to such

conveyance. 'Sale through a third party' — means that the owner will:

issue sales invoice to a foreign entity other than the owner or

charterer of the conveyance; and

(ii) deliver POL products to a conveyance on the instructions of such

foreign entity.

363B. Submission of documents.- At the time of export as stores and

provisions for use on board a conveyance, the owner shall file all the relevant

documents including bunker delivery note, containing the following information-

name of receiving conveyance;

name of the POL product;

quantity;

delivery date;

(e) seal no of all samples taken while conducting bunker deliveries;

and signature of authorized official from the warehouse barge and

receiving conveyance (e.g. authorized individuals are captain or

chief engineer).

363C. Recording of volumes at the time of delivery and taking of

sample.- (1) Prior to delivery of POL products, the captain of the warehousing

barge in presence of receiving conveyance engineer shall note meter reading on

the barge and similarly, the receiving conveyance engineer shall note the meter

reading of the conveyance, in the presence of barge captain.

After noting the volumes in both barge and the receiving

conveyance as aforesaid, the delivery shall be made.

A sample shall be taken of the product being delivered and shall be

sealed; with individual reference seal number of both the barge and the receiving

conveyance. These samples shall be maintained by the owner and the conveyance

for a maximum period of four months, which are subject to laboratory testing in

the event of a dispute

A copy all documents of meter readings with signatures from both

warehousing barge and receiving conveyances taken pursuant to sub-rule (1) will

be sent to the appropriate officer.

Samples taken pursuant to sub-rule 3 will also be made available to

the Custom Officer by the custodian of the warehouse, in case of any audit.

363D. Release of securities furnished at the time of in-bonding of

imported goods.- Upon completion of ex-bonding of entire quantity of

warehoused goods covered by a GD (IB) in accordance with rule 363F above, the

securities furnished in the shape of postdated cheque and indemnity bond in

respect of such GD (IB) shall be released and returned to the owner.

Explanation.- A discrepancy in the quantity of POL product warehoused

and exported may arise on account of use of different measuring apparatus by the

receiving conveyances and the warehouse, sampling, spillage, evaporation or any

other circumstances. Accordingly, any discrepancy shall be dealt as per tolerance

limit defined by Ministry of Petroleum in this regard from time to time.

Access to appropriate officer.- The licensee shall be responsible

at all times to provide logistics from port and necessary means to ensure 24/7

access to appropriate officer(s) to the warehouse and any conveyance on which

the goods are to be exported, provided reasonable notice is given to the licensee to

make such arrangements.

Exemption from warehouse surcharge and development

surcharge.- (1) In terms of SRO 822(1)/91 dated 20thAugust 1991, POL

products as stores and provisions for use on board a conveyance are exempt from

additional customs duty leviable as surcharge under section 10 of the Finance Act,

1991 (XII of 1991).

(2) In terms of SRO 369W/2002 dated 15th June 2002, POL products

as stores and provisions for use on board a conveyance are exempt from special

customs duty leviable as Export Development Surcharge under section 11 of the

Finance Act,1991 (XII of 1991).".

[C. No.2(1)L&P/2020-Shelli

( Waji Ali )

Secretary (Law & Procedure)