Amendment in Transshipment Rules

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

Islamabad, the 26th August, 2020.

NOTIFICATION

(CUSTOMS)

S.R.O. 797 (I)/2020.- 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. 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,-

(1) in rule 326,-

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

“(ba) “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;”;

(ii) in clause (d), for the word “Central”, the word “Federal” shall be

substituted;

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

“(j) “oversized or heavy or bulky goods” means any heavy or

bulky object which because of its weight, size or nature

cannot be carried in a closed vehicle or closed container;”;

(iv) for clauses (q) and (r), the following shall be substituted, namely:-

“(q) “transshipment permit” means the authorization granted by

respective Directorate of Transit Trade (Transshipment

Section), for transshipment of goods or allowed under

Customs Computerized System; and

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“(r) “transshipment manifest” means manifest to be prepared

by the carrier in the prescribed form for submission to

respective Directorate of Transit Trade (Transshipment

Section), and to the appropriate officer of Customs at the

customs ports or stations of destination.”;

(2) in rule 327,-

(i) in sub-rule (3), the expression “The tracking device is not

mandatory for the prime movers or tractors of articulated

trailers or trailers.” shall be omitted;

(ii) after sub-rule (3) amended as aforesaid the following new

sub-rules shall be inserted, namely:-

“(3A) All transport units and conveyances used by the

transport operators for carrying transshipment goods shall be

properly secured, riveted, locked and sealed. The transport

units and conveyance used by the transport operators shall be

so constructed and equipped as to provide for the Customs

seals to be conveniently and effectively affixed thereon and

containing no concealed space where any goods could be

hidden. The transport units shall have a permanently installed

or fixed tracking device capable of showing the location of

the said vehicle or trailer at any given times as well as a track

of its route and stoppage etc. The transport unit shall be free

from all manufacturing defects so that no goods can be

removed from or introduced into the sealed portion of the

transport units capable of holding any goods should be

readily accessible for Customs inspection. The transport units

shall be individually registered with the vehicle registration

authority.

(3B) Each vehicle shall be equipped with the

tracking device from a tracking company duly approved by

the Board.

(3C) The Customs staff shall verify the satisfactory

working of the tracker and the identity of the containers and

vehicles used by the transport operators for carrying

transshipment goods.”;

(iii) after sub-rule (6), the following new sub-rule shall be inserted, namely:-

“(6A) The licensed bonded carrier/Transport

Operator shall be responsible that each container carrying

transshipment goods shall distinctly display the words

“GOODS UNDER TRANSSHIPMENT” written on

detachable plates affixed on the front and rear sides of the

container. While clamping the detachable plates on the rear

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side, it shall be ensured that the visibility / integrity of

machine readable seals remain unaffected.”;

(3) in rule 328,-

a) in sub-rule (1), for the words “reputable company”, the expression

“tracking company as licensed by the FBR” shall be substituted;

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

“(2) Bonded carrier license shall be issued by the respective

Director of Transit Trade in whose jurisdiction the business address of

the applicant is located for a period of two years on the

recommendation of committee comprising respective Director of

Transit Trade, Collector, Model Customs Collectorate (Enforcement

and Compliance) and Director, Intelligence and Investigation-

Customs of the jurisdiction, after seeking approval of the Director

General Transit Trade, on completion of formalities under the Customs

Rules, 2001. The license may be revoked at any time by the licensing

authority.”;

c) in sub-rule (6), for the words “concerned Collector of Customs” the

words “respective Director of Transit Trade” and for the words

“Collector of Customs”, the word “Director” shall be substituted;

(4) in rule 329,-

(a) in sub-rule (2), the expression “, using the transport route, as may be

prescribed by the Board, from time to time” shall be omitted;

(b) in sub-rules (4), (5), (6) and (7), for the expression “Assistant Collector

(Imports Section)”, the expression “Assistant Director

(Transshipment Section) shall be substituted;

(c) in sub-rule (6), in the first proviso, for the expression “Collector,

Model Customs Collectorate of Appraisement”, the expression

“Director Transit Trade” shall be substituted; and

(d) in sub-rule (8), for the expression “Customs or Sales Tax Collectorate

station”, the expression “Mobile Enforcement Unit or Transit Directorate”

shall be substituted;

(5) in rule 329-A, in sub-rule (1), in clause (c), after the word “seal”, the words “or

tracker” shall be inserted;

(6) in rule 330,-

(a) in sub-rule (1), for the word “Collector”, the word “Director” occurring

for two times shall be substituted;

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

“(2) The application shall be filed in the Transshipment

Section of the concerned Directorate of Transit Trade.”; and

(c) in sub-rule (5), for the word “Collector”, the word “Director”

occurring for two times shall be substituted;

(7) in rule 331,-

(i) in clause (a), for sub-clause (iii), the following shall be substituted,

namely:-

“(iii) in case of exceptional cases, if any problem is faced

for stuffing of any goods in container the carrier shall

approach the concerned Assistant Director

(Transshipment Section) who may allow

transshipment of such goods in loose form subject to

additional conditions, sealing and tracking

requirements and safeguards, as he deems

appropriate;”;

(ii) in clause (b), in sub-clause (vii), for the word “Collector”, the word

“Director” shall be substituted;

(8) in rule 333,-

(a) in clause (d), the word “and”, at the end shall be omitted; and

(b) in clause (e), for the full stop at the end, the expression “; and” shall be

substituted and thereafter the following new clause shall be inserted,

namely:-

“(f) Strategic goods as defined under UN Resolution

1540 and notified by SECDIV.”;

(9) for rule 334,-

(i) in the titled, after the word “person”, the words “and Tracker by the

FBR’s Licensed Tracking Company” shall be inserted;

(ii) for sub-rules (1) and (2), the following shall be substituted, namely:-

“(1) All transport units and containers carrying

transshipment goods shall be allowed clearance from the area of

delivery after installation of machine readable by Customs

Container Security Unit staff or authorised person and Tracking

device installed by tracking company duly licensed by FBR,

including over-dimension cargo, notified heavy cargo and goods

to be transshipped by Pakistan Railways except in cases where

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sealing is not possible as determined by the Assistant or Deputy

Director, Transit at the port of departure.;

(2) The container and vehicle shall be tracked by

Container Security Device (CSD) and Prime Mover Device

(PMD) installed by tracking company duly licensed by FBR, and

sealed with machine readable unbreakable seals with progressive

serial number by the CCSU or authorised person at the focal

points (entry), on first come, first served basis.”;

(iii) in sub-rule (7), for the words “other seals if applicable”, the words “and

tracking device mounted on container” shall be substituted;

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

“(8) In case the CCSU or authorised person finds the

seal broken or tampered with, or malfunctioning of

tracking device or finds the security of the cargo/container

compromised in any way detrimental to the revenue, or

safety or anti narcotics or anti terrorism concerns, the

matter shall be reported to the Incharge CCSU as well as to

the Director Transit having jurisdiction and Project

Director, Central Control Room as per procedure

prescribed by the Board as well as the concerned Assistant

Collector of destination for necessary action. Such

container shall be de stuffed/re stuffed only in the presence

of authorised officer of Customs of the concerned customs

station.”;

(v) for sub-rule (9), the following shall be substituted, namely:-

“(9) In case the vehicle, trailer, prime mover or railway

wagon or train meets with an accident or breakdown that

has caused or may cause the security and safety of the

bonded goods to be compromised, the driver of the

vehicle/representative of the carrier will immediately

inform the nearest Transit Monitoring and Response Center

(TMRC) or Director, Transit Trade and CCSU for necessary

action as per the procedure prescribed by the Board.

(i) The carrier shall bear all expenses incurred on

restuffing or repacking of bonded goods pilferaged or

damaged.

(ii) the carrier shall approach the nearest Transit

Monitoring and Response Center (TMRC) or Director,

Transit Trade for witnessing the shifting of goods in

another transport unit if necessitated. The carrier

shall shift the transshipment goods or container in the

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other transport unit in the presence of the officer

authorised by the said office. The officer incharge

shall issue a certificate to this effect to be produced

by the carrier at the destination and cause the re-

sealing of the container by CCSU or authorised person

and mounting of the tracking device on the

container.”;

(10) in rule 335,-

(a) in sub-rule (2), for the word “Collector”, the word “Director” shall be

substituted;

(b) in sub-rule (3), for the word ‘Collector”, the expression “the concerned

Director of Transit Trade” shall be substituted;

(c) in sub-rule (4), for the expression “Collector of Customs”, the

expression “Director of Transit Trade” shall be substituted;

(11) in rule 336,-

(a) in sub-rule (2), for the word “Custom”, the word “Transit” shall be

substituted;

(b) in sub-rules (3) and (4), for the word “import”, the word “transshipment”

shall be substituted;

(c) in rule (4), for the word “Collector”, the word “Director” shall be

substituted;

(12) for rule 337, the following shall be substituted, namely:-

“337. Checking of conveyance enroute.- An officer of Customs

not below the rank of Inspector, may, on reasonable suspicion regarding

substitution or attempt of substitution of goods, or interference with the

container and cargo contained therein which may in any way be

detrimental to the revenue, or safety anti narcotics, anti terrorism

concerns by tampering seals / tracker devices or containers while the

conveyance is en route, shall inform Incharge CCSU and nearest TMRC

about his suspicion and on receiving specific permission of Incharge

TMRC or Director of Transit Trade in whose jurisdiction the goods are

present are to be intercepted and check that the rivets, locks, seals, and

labels of the transport unit and the container are intact. Report of such re-

checking shall invariably be sent to CCSU by the concerned

Collectorate/ Director by fax/e-mail/courier as well as telephonically

within six hours of such interception.”;

(13) in rule 339,-

(i) for sub-rule (1), the following shall be substituted, namely:-

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