Draft Amendment in the Customs Rules, 2001

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

****

Islamabad, the 5" July, 2021.

NOTIFICATION

(Customs)

S.R.O. 813 (1)/2021.- 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), 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), is hereby published for information of all persons likely to be affected

thereby and, as required under sub-section (3A) of section 219 of the Customs Act, 1969 (IV of

1969), 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. Objections or suggestions 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 XXIX,-

in rule 696, in clause (d), after the word "amount", the expression " on the

format prescribed in Appendix-I" shall be inserted; and

in rule 716, after sub-rule (3), the following Appendix shall be added, namely:-

"Appendix-I

[see rule 696(d)

INSURANCE GUARANTEE FOR ADMISSION TO THE TIR

PROCUDURE

Guarantee No:

Date of Issue:

Date of Expiry:

Amount PKR: 15,000,000/-

The Director

Directorate General of Transit Trade,

Custom House,

Karachi.

Subject:

SUBMISSION OF INSURANCE GUARANTEE OF

PKR:15,000,000 (RUPEES: FIFTEEN MILLION) TO BE

PRODUCED BY APPROVED ,TIR TRANSPORT

OPERATOR IN ACCORDANCE WITH CLAUSE (xxvi) of

the TIR RULE 689 & CLAUSE (d) OF TIR RULE 696 (1)

Dear Sir,

WHEREAS, according to the provisions of rule 696(1)(d) of Transports

Internationaaux Routiers (TIR) Rules issued vide SRO 1066 (1)/2017 dated

20.10.2017 and the amending SRO 1433 (1)/2020 dated 30.12.2020 or any

other amendment made from time to time by the Federal Board to Revenue

(FBR) one of the prerequisite condition for TIR admission is that the applicant

has to furnish a Supplementary Financial Guarantee (from an "A" rated

Insurance Company) of Fifteen Million in terms of clause (xxvi) of sub — rule

(1) of TIR Rule 689 in favor of the Director, Directorate General of Transit

Trade, Pakistan Customs, Karachi.

AND WHEREAS Messer's

(Name of TIR

Operator) having their registered office at

(hereinafter referred to as a TIR Operator) will have goods in transit under TIR

Carnets, after TIR Admission Approval granted by National Authorization

Committee (NAC), which requires submission of this "Financial Insurance

Guarantee" in accordance with the International Transport of Goods under

cover of TIR Carnets (TIR) Rules issued vide S.R.O. 1066 (1)/2017 dated 20.

1. 2017, amended vide S.R.O. 1433 (1)/2020 dated 30.12.2020.

AND WHEREAS, for the coverage of adjudged fine and penalty in

case of any irregularity in respect of TIR Operations in Pakistan, an amount of

PKR 15,000,000/- (Rupees: Fifteen Million only) has been determined in

terms of Sub-rule (d) of Rule 696 (I) of S.R.O. 1066 (I)/2017 dated

20.10.2017 as the amount of the supplementary financial guarantee required to

be submitted in favor of the Director Transit Trade Karachi for the admission

as approved TIR Transport Operator.

Now, the condition of this guarantee is such that if in case, the goods

allowed transit under the TIR Carnet(s), issued to TIR Transport Operator, are

either lost or stolen in Pakistan or before reaching at destination are declared

as TIR Operation Termination in Pakistan or cannot otherwise be accounted

for by the TIR Carnet holder, and such goods become liable to "fine and

penalty" after due process of law and adjudication in term of Rule 708 and as

provide in Rule 709 the Director, Directorate General of Transit Trade,

Pakistan Customs, Custom House, Karachi can enforce this guarantee to

recover the adjudged amount of fine and penalty.

1. NOW, THEREFORE, on behalf of M/s.

(TIR Transport Operator), we, (Insurance Company)

do hereby bind ourselves with the President of Pakistan to pay to the Director,

Directorate General of Transit Trade Karachi, the aforesaid guaranteed amount

or any part thereof on being demanded by the Director, Directorate General of

Transit Trade, Customs House, Karachi.

1. We M/s.

or 1

their successor shall pay to the Director, Directorate General-of Transit Trade,

Pakistan Customs, Custom House, Karachi (A), PKR:15,000,000/- (Rupees:

Fifteen Million Only) or part thereof, as demand, immediately on lodging of

such demand by the Director, Directorate General of Transit Trade, Customs

House, Karachi (B), failing which an additional amount of the demand at the

rate of 20% per annum shall be also be paid by us from the date of demand

made to us till the payment is actually made to the Director Transit Trade.

1. The company issuing this guarantee also undertakes:

That the TIR operator shall pay to you the guaranteed amount in

lump sum after demand.

That the TIR operator shall also pay to you the surcharge due on

the involved amount at the rate 20% per annum.

That in the event of any default on the part of the TIR operator to

pay the guaranteed amount on demand along with the surcharge

due as aforesaid. We M/s. shall pay

to you the same immediately upon demand by the Director,

Directorate General of Transit Trade. On receipt of demand from

the Director, Directorate General of Transit Trade, it shall be

considered by us as conclusive evidence of non — payment of the

government dues plus surcharge, if payable by the TIR operator.

That we do hereby agree and declare that in the event of any default

in the payment of any sum stated above, it may without prejudice to

any other remedy which may be available to you, be recovered by

you under section 202 of the Customs Act, 1969.

That notwithstanding anything contained in the foregoing, the

guaranteed amount or any part thcreof and surcharge, as aforesaid,

shall immediately become payable to you.

1. Additional conditions of this guarantee are as follows:

(i) This Insurance Guarantee shall be enforceable notwithstanding any

change in the name of the Insurer or merger with any other insurance

company.

(ii) This Insurance Guarantee shall be enforceable for import, export and

transit goods under TIR regime to cross border either by Sea, Land or

Air.

(iii)This Insurance Guarantee shall cover TIR operations within the

territorial limits of Pakistan and shall be en — cashable in Pakistan for

ensuring the fulfillment of any obligation arising out of Customs transit

operation within the territorial limits of Pakistan.

This Insurance Guarantee shall remain in force till the time all above

mentioned outstanding liabilities of the TIR Transport Operator are

completely discharged to the entire satisfaction of the Director Transit,

Directorate of Transit Trade, Pakistan Customs, Custom House,

Karachi.

It is agreed that the above guarantee amount or demanded part thereof

may be recovered under Section 202 of the Custom Act, 1969, and

rules made thereunder in the case the Insurance Insurer fails to pay the

said amount.

9.

Insurance Guarantee is in accordance with the TIR Carnets (TIR) Rules

of Pakistan as mentioned above and shall remain in force for one year from its

date of issuance till the date of expiry mentioned above. This guarantee is

extendable for subsequent consecutive term or terms on the request and desire

of customer according to the law and procedures.

IN WITNESS WHEREOF we have M/s. this

day of

caused this insurance guarantee to be signed

under the official stamp in by the authorized of:-

Officer

Manager

Witness:

CNIC No:

CNIC No:".

[C. No.1(22)/T&BT/20151

>Art;

Secretary (Law & Procedure)