Draft of certain further amendments in the Customs Rules, 2001

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

****

Islamabad, the 22" June, 2021.

NOTIFICATION

(CUSTOMS)

S.R.O. 778

(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 ten 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 Federal Board of

Revenue, namely:-

DRAFT AMENDMENTS

In the aforesaid Rules,-

(I)

in rule 226, in sub-rule (9), in second proviso, for the full stop at the end, a

colon shall be substituted and thereafter the following new proviso shall

be added, namely:-

"Provided further that after expiry of utilization period, the input

goods may be put to auction as per customs laws and rules.";

(2) after rule 230, the following new rule shall be added, namely:-

"230A. Subcontracting from units of the tariff area.- Units

operating in a zone shall, subject to the law for the time being in force, be

allowed to undertake subcontracting from the units located in the tariff

area with the prior permission of the Collector of Customs on such

conditions, restrictions and limitations as may be prescribed by the

Collector or as otherwise provided in the Act or the rules made thereunder:

Provided that the investor at the time of applying for

subcontracting shall declare in his application about the process that he

intends to get done from a vendor, along-with particulars of the vendor.

The vendor shall have a valid sales tax registration being a manufacturer

and his name shall be appearing in the sales tax active taxpayers list. The

vendor shall have in-house manufacturing facility to perform the stated

manufacturing process. The vendor shall not be changed or added except

with prior permission of the Deputy Collector or Assistant Collector

concerned. Two sealed and signed samples of the goods shall be retained

at the time of the movement of the goods for vending and the same shalt

be handed over on arrival of the goods after the stated work has been

carried on the goods.";

(3) in rule 296, in sub-rule (1), in clause (g), in sub-clause (ii), after the Word

"tenders", the words "either to supply locally or to export abroad" shall be

inserted.

(4) in rule 305, for the word "twelve", the word "eighteen" shall be

substituted;

(5) in rule 342, after clause (d), the following new clause shall be added,

namely:-

"Op "export" includes supply of goods,—

by an indirect exporter to a direct exporter;

against international tenders either to supply locally or to

export abroad;

to projects or sectors entitled to import or purchase such

goods free of duties and taxes; and

to export processing zones;";

(6) in rule 343, in sub-rule (1), for clause (c), the following shall be

substituted, namely:-

"(c) banker's certificate directly forwarded by the bank to the

regulatory authority under sealed envelope regarding financial

transactions of the applicant during the last two years while in

case of newly incorporated companies bank certificate directly •

forwarded by the bank to the regulatory authority under sealed

envelope along-with the statement showing sufficient funds in the

bank account to cover the amount of duty and taxes leviable on

the purported imports under these rules;";

in rule 351, in sub-rule (2), in first proviso, after the word "certificate", the

words "as applied by the licensee" shall be inserted;

in rule 356,-

(a) for sub-rule (1), the following shall be substituted, namely;-

"(1) The bond to bond transfer of warehoused goods is

allowed on filing of declaration of such transfers by the licensee

(seller) and acceptance of the same through declaration by the

licensee (buyer) in WeBOC, provided intimation regarding such

transfers and indemnity bond as per Appendix-WI is also

submitted to the Collector or the regulatory authority. The seller

along-with buyer shall be responsible to ensure that warehoused

goods transferred have ultimately been exported. Security so

deposited shall only be released by the Collector after the goods

manufactured from transferred goods have been exported:

Provided that in case the transferor (seller) intends to

release his own indemnity bond, the same may be approved by the

Collectorate once properly executed indemnity bond is submitted

by the buyer to assume responsibility for export of goods

transferred under this section, which shall remain in possession of

customs Collectorate till such goods are exported."; and

(b) for sub-rule (3), the following shall be substituted, namely,-

"(3) In respect of a manufacturing bond, a licensee

(seller) is allowed to sell the warehoused goods to another licensee

(buyer) or a licensee under DTRE rules or Notification No. S.R.O.

327(1)/2008, dated 29th March, 2008, on declaration of such

transfers in WeBOC and acceptance of the same through

declaration in WeBOC by the buyer (licensee), within the validity

period of the seller subject to such extension as the Collector may

allow from the date of importation or purchase."; and

(9) in rule 457, after sub-rule (4), for the full stop at the end a colon shall be

substituted and thereafter the following new proviso shall be added,

namely;-

"Provided that the duty drawback claims marked by the

Risk Management System (RMS) for compliance check to the

Collector or designated officer shall be decided by the Collector or

designated officer within seven working days on F.I.F.0 basis.".

fC. No.2(5)L&P/2020j

(Wajt li)

11644 #.2 1Al

Secretary (Law & Procedure)