Amendment in the Customs Rules, 2001 (sub chapter VII of chapter XXI - Transit under Customs Computerized System)

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

****

th

Islamabad, the 5 August, 2021.

NOTIFICATION

(CUSTOMS)

S.R.0.163 (1)/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.0 829(1)/2021, dated the 28th June, 2021,

namely:-

In the aforesaid Rules,-

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

in clause (iv), after the word "Wagha", the expression ",Ghulam

Khan" shall be inserted;

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

"(y) "bulk cargo" means cargo usually dropped or poured as solid

or liquid into a bulk carrier's hold and includes dry and liquid

bulk cargo;";

after clause (v), amended as aforesaid, the following new clause

(va) shall be inserted, namely:-

"(va) "oversized and bulky cargo", means any heavy or bulky

object including animals which because of its weight,

size or nature cannot be carried in a closed vehicle or

closed container;";

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

"(will) "licensing authority" means the respective Director of

Transit Trade, where an applicant, based on his/her

business address, has applied for issuance of transport

operator's license;";

in clause (xxvi), for the expression "Customs General Order

4/2007", the expression "Customs General Order No.03 of 2020"

shall be substituted;

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(0 in clause (xxxii), after the word "carrier", the words "or transport

operator" shall be inserted;

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

(g)

-(xxxvi) "User ID" means a unique user identifier as may be

allocated to a foreign trader intending to transit his

goods through territory of Pakistan as per procedure

prescribed by the Directorate General of Transit

Trade to access the customs computerized system;

and";

(2) for the rule 472, the following shall be substituted, namely:-

"472. Filing of goods declaration for transit cargo: (1)The transit

cargo shall not be subject to payment of import or export duties and taxes

provided the activities are in conformity with these rules.

The transit cargo shall be distinctly manifested as such in

the IGM or carrier declaration uploaded electronically in the Customs

Computerized System by the shipping line or its agent of customs agent of

bonded carrier. The importer's country's name and address shall be of the

said foreign country for which goods are intended to be imported.

The trader or his authorized customs agent shall file the

Goods Declaration online in the Customs Computerized System at the

office of departure through User ID.

The trader or his agent (customs agent or bonded carrier)

shall upload scanned copies of bill of lading, commercial invoice and

packing list at the time of filing of GD.

In case of commercial cargo, the trader or his agent

(customs agent or transport operator) shall ensure that sufficient-credit is

available against the face value of their revolving insurance guarantee

maintained with customs, to cover the leviable duty and taxes on transit

goods within territory of Pakistan.

In case of non-commercial cargo, the GD shall be

accompanied by scanned copy of exemption certificate issued by the

relevant authority of Government of Afghanistan. However, the Customs

authorities in Pakistan may require customs security from the bonded

carrier, if the non-commercial transit goods are of high value or sensitive

nature.",

(3) for rule 473, the following shall be substituted, namely:-

"473. Processing of transit cargo at the office of departure at

seaports Karachi, Port Muhammad Bin Qasim and Gwadar.— (1) The

GD shall be filed by the trader or his authorized customs agent or the

bonded carrier, having valid clearing agent licence. In case, a GD is filed

by the trader or his customs agent, he shall nominate the bonded carrier at

the time of filing.

The bonded carrier or customs agent filing the GD, shall be

required to submit "revolving insurance guarantee" with the customs and

shall ensure that sufficient amount is available in their revolving insurance

guarantee to cover the leviable duty and taxes in the GD for customs

security. The GD will be assessed by the Customs Computerized System

(CCS) on pattern of GDs filed for local home consumption and the amount

equal to leviable duty and taxes will be deducted from the face value of

revolving insurance guarantee as customs security. Subsequently, the said

amount will be credited after completion of cross border formalities at the

border customs station.

After filing of GD, upto twenty (20) per cent consignments

of transit goods shall selected by the Risk Management System (RMS) for

scanning, while those consignments cleared by RMS will be forwarded to

the respective terminal operator for delivery and to the sealing officer for

sealing.

In case of over-sized, bulk and break-bulk cargo, where

scanning is not possible, such goods may be examined subject to approval

from respective Assistant or Deputy Director.

In case of any discrepancy noticed at the scanning, the said

container shall be marked for examination with specific remarks. The

selected consignments shall be examined hundred percent and the

examining officer shall compare the items examined with the packing list

494-r.

and feed his report in the CCS.

In case, no discrepancy is found during the examination,

the GD shall be forwarded to the respective terminal operator and sealing

officer for delivery and sealing of container respectively.

While in case of difference between the declaration and

goods found on physical examination, GD shall be marked by the

examiner 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 AD or DD.

Any transit GD marked as "Green" by RMS can only be

examined with prior written approval of the concerned Director of Transit

Trade.

Upon completion of all Customs formalities, the GD shall

be assigned to the bonded carrier for feeding of carrier information

including vehicle registration number or railway wagon number, driver's

name, and other particulars as required by the system. Before the cargo is

allowed "Gate out" by the Terminal operator or the Customs staff, as the

case may be, it shall be presented to the Customs Containerized Sealing

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Unit (CCSU) or the Customs sealing staff for affixing of machine-readable

seals and feeding of the seal number and other relevant information in the

system. Moreover, tracking device seal shall be affixed on the containers,

carrying transit cargo, by the tracking company licensed by the FIIR in

accordance with the prescribed procedure.

(10) The sealing staff shall verify the installation of the same

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

containers in the system and shall generate the Transport note on the

prescribed format (Appendix-I) for handing over to the carrier. Each copy

of the Transport note shall be signed by the Customs sealing staff One

copy shall be retained by the sealing staff, one copy shall be handed over

to the driver of the transport unit who will submit the same to the gate in

staff of the office en-route arid last copy shall be retained by the

representative carrier for his record.

The Terminal operator or the Customs staff, as the case

may be, shall allow "Gate out" to the cargo in transit on receipt of the Seal

Verification Mechanism (SVM) message through ED!. Where EDI

messaging has not yet been established, the Customs staff shall allow

"Gate out", on completion of the sealing event in the system.

The Terminal operator shall enter the weight of the

container, bulk, break-bulk cargo at the time of "Gate out" for onward

communication to the Customs Computerized System through EDI. Upon

the completion of Gate out event, Terminal operator shall send "GTO"

message to the Customs Computerized System.",

(4) for rule 474, the following shall be substituted, namely:-

"474. Processing of transit goods at the Office of departure at

land border stations (Torkham, Chaman, Ghulam Khan, Sost etc.).—

The transit cargo entering into Pakistan through land border stations shall

be processed in the following manner:

(0 The incharge of conveyance shall hand over IGM at zero

line of the border in triplicate to Customs, Frontier Corps

and terminal operator. The carrier declaration shall be

uploaded electronically in the system by a person authorized

by the Customs specifying the description and quantity of

goods, their destination and registration number of vehicles

wherever applicable:

Provided that in case of foreign registered

commercial vehicles, the Transport operator or his

authorized agent shall first apply and obtain the Temporary

Admission Document (TAD) as per the procedure specified

in rule 482;

(ii) the vehicle transporting the transit goods shall be allowed

"Gate in" in the system by the terminal operator or Customs

4

staff as the case may be after filing of the carrier declaration

or IGM;

the goods declaration filed by or on behalf of the foreign

trader or user shall be processed in the same manner as

prescribed in these rules in the light of relevant

documentation:

Provided that transit cargo coming from third

countries in terms of article-4(c) of Protocol Three, with

whom, the contracting parties have a transport agreement

may be allowed transit in the territory of Pakistan by the

Board on case to case basis;

upon completion of all Customs formalities including

integrated weighment and scanning (whenever made

available). The GD shall be assigned to the Customs sealing

--staff for sealing as per prescribed procedure. The sealing

staff shall affix the seals, enter the sealing information and

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

the containers (wherever applicable) in the system directly

in the system, and generate triplicate copies of "Transport

note" to these rules. Each copy of the Transport Note shall

be signed by the Customs Sealing staff and transporter or his

authorized representative; one copy shall be retained by the

Sealing staff, one copy shall be handed over to the driver of

the transport unit, who will submit the same to the

designated customs staff of the Office en route and last copy

shall be retained by the trader or his representative for his

record;

the terminal operator or the Customs staff, as the case may

be, shall allow "Gate out" to the cargo in transit on receipt

of the Seal Verification Mechanism (SVM) message through

EDT. Where there is no licensed Terminal operator and/or

EDT messaging has not yet been established, the Customs

staff will allow "Gate out", on completion of the sealing

event in the system.";

(5) for rule 475, the following shall be substituted, namely:-

"475. Physical Customs inspection at office of departure.- (1)

The Terminal operator or the Customs staff, as the case may be, assigned

to "Gate out" shall verify the seal and container/truck number declared in

the GD.

All containers of transit goods shall be fitted with tracking

and monitoring devices at the office of departure from a tracking company

duly approved by the Board.

Upto 20% containers of transit cargo shall be scanned at the

office of departure. In case of land border customs stations, all the

incoming transit cargo shall be weighed, scanned and examined

accordingly

The Customs authorities at the office of departure may

require transit goods consigned from or destined to the territory of the

foreign countries to be transported under Customs escort while in the

territory of the Pakistan in very exceptional cases such as where the goods

are precious or highly susceptible to niisuse of transit facility. The

approval for this measure must come from an officer not below the rank of

Director, Transit Trade after recording reasons in writing.";

(6) for rule 476, the following shall be substituted, namely:-

"476. Transportation of goods.-(1) Transportation of transit

goods by transport operators shall be allowed in containers of international

specifications.

Oversized, heavy and bulky transit goods, vehicles and live

animals may be transported in open transport units provided sealing

requirements are fulfilled as per prescribed procedure.

Imported transiting vehicles may be allowed in roll-on and

roll-off carriers.

Bulk Cargo, such as ship loads may be transported in open

sealable vehicles. While in case of liquid bulk cargo, it may be transported

in containerized flexi tanks or in bowsers or in containers of international

specifications.

Exports of perishable goods (fruits and vegetable) in transit

may be transported in open trucks or other transport units in accordance

with the prescribed procedures.

Change of conveyance en-route shall be allowed, in

exceptional circumstances such as accident or any other break down etc.

with the prior written approval of the Deputy or Assistant Director having

jurisdiction.

Transportation of the cargo from the port of entry to the

port of exit in a safe and secure manner shall be the responsibility of the

concerned authorized carrier.";

(7) in rule 478,-

in clause (a), for the expression, "Collector of Customs,

Appraisement-West,", the words "respective Director of Transit

Trade" shall be substituted; and

in clause (0, for the expression, "Collector of Customs,

Appraisement-West,", the words "respective Director of Transit

Trade" shall be substituted;

(8) for rule 479, the following shall be substituted, namely:-

"479. Renewal of licence.- While considering renewal of licences

issued to the transport operators under Chapter VIII of these rules, the

licensing authority shall also take into account the profile of the bonded

carrier based upon rating of the transporters linked with their compliance

to the rules and procedures which may include compliance to the time

lines, number of alerts generated or transit cargo carried safely without en-

route pilferage, number of contravention / seizure reports etc.";

(9) after rule 479, the following new rule 479A shall be inserted, namely:-

"479A. Allowing single transport vehicle owner to transport

transit goods.- The application on the prescribed format (Appendix-I1A)

for registration of a single vehicle for transport of transit goods shall be

submitted to the Directorate of Transit Trade in whose jurisdiction the

applicant is a resident or his vehicle is registered with Motor Registration

Authority (MRA). The transport of transit goods by owner of single

transport vehicle shall be allowed by the concerned Director of Transit

Trade subject to the following conditions:-

the unit is properly registered with the motor registration

authorities of Pakistan in the name of the owner, to be

verified by customs authorities;

he shall submit defence saving certificate duly pledged to

the concerned Director of Transit Trade or fumish Bank

Guarantee for Rupees One million as security for transport

operation of Transit goods, which shall be forfeited apart

from other consequential penal action under the Act and

Rules made there under, if the owner of the transport unit

violates of Custom Act, 1969 and the rules made

thereunder;

.(c) in cases where in transit cargo is transported by owner of

single vehicle transport, the revolving insurance guarantee

covering the leviable duty and taxes on transit goods shall

be submitted by the afghan importer or respective customs

agent or transport operator (Appendix-111));

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The prime mover or vehicle shall be fitted with the tracking

device by a tracking company duly licensed by the Board

under S.R.0 413(1)/2012 dated the 256 April, 2012.

the trip shall be completed within seven days from office of

departure to office en-route;

(0 the permission shall be given to such owner of the transport

vehicle for one year which shall be renewed if operations of

transportation of transit goods are found satisfactory;

the owner shall also submit an undertaking on a stamp

(x)

paper to the effect that he shall be responsible for safe

transportation of transit goods;

copies of such permission shall be sent to Directorate of

Reforms and Automation Karachi and concerned officers

of illictoms who will enter the particulars of the vehicles in

CCS;

The above provisions shall also be applied to the transport

operation of transit goods carried through Pakistan

Railways from Karachi to Azakhel Railway Stations, for

onward transportation to Torkham; and

in case of any violation of Customs laws/procedures,

institution of any criminal /civil case against the

owner/vehicle under any law, the permission shall be

terminated and name of the owner shall be blacklisted with

transmission to all field formations;

(10) in rule 480,-

in sub-rule (1), after the word "operator", wherever occurring, the

expression ", and driver" shall be inserted;

in sub-rule (2), after the words "duty cases on transit goods, the

expression ", along with fine and penalty as determined under

S.No. 64 and other entries relating thereto of sub-section 1 of

Section 156 of the Customs Act, 1969" shall be inserted;

(11) in rule 484-A, for sub-rule (1), the following shall be substituted, namely:-

"(1) The authorized Customs agents, brokers or transport

operators in Pakistan shall furnish financial security in the form of

revolving insurance guarantee for goods destined for territory of other

countries, from an insurance company, as per criteria prescribed by the

Directorate General of Transit Trade, on the prescribed format

(Appendix-IV) or any other form prescribed by the Board which shall be

valid for at least one year and shall be en-cashable in Pakistan, for

ensuring the fulfillment of any obligation arising out of Customs transit

operation between Pakistan and the contracting party.

The amount of financial security for transit operation shall

be determined by system on the basis of the assessment done by Customs

Computerized System at the office of departure so that it covers all import

levies.

Financial security is not obligatory in case of non-

commercial consignments and the respective bonded carrier transporting

non-commercial transit cargo shall be wholly responsible if goods are

pilfered en-route."; and

(12) after Appendix-II, the following new appendix shall be inserted, namely:-

"Appendix-IA

[See rule 479A]

APPLICATION FORM FOR REGISTRATION OF A SINGLE

VEHICLE FOR TRANSPORT OF TRANSIT GOODS

Photograph of the

owner

The Director,

Directorate of Transit Trade,

hereby apply for the registration of vehicle to

transport transit goods in terms of rule 479A of the Customs Rules, 2001 for a

period of one year. The particulars of the applicant and vehicle are given below:-

1 Name of owner

2 Nationality

3 Present address

4 Permanent address

5 CNIC No.

6 Vehicle Registration No.

7 Vehicle Make and Model

8 Vehicles Chassis No.

9 Vehicle Engine No.

10 Affidavit of good performance

I/We hereby declare that the particulars finished in this application

are correct and I/We have read the relevant Customs Rules and I/We agree

to abide by them.

Yours faithfully.

Name of applicant".

Appendix-LIB

[see rule 479A(c)]

(On appropriately stamped non-judicial paper)

REVOLVING INSURANCE GUARANTEE FOR IMPORTED GOODS IN-TRANSIT BY

OWNER OF SINGLE VEHICLE TRANSPORT

The Director of Transit Trade,

Directorate of Transit Trade

Custom House

Karachi.

Dear Sir,

WHEREAS Messers having their registered office at

(herein after referred to as the foreign importer / Customs Agent / Transport Operator) are

engaged in the clearance / transportation of transit cargo within territory of Pakistan.

AND WHEREAS leviable duty and t