Amendments in the Customs Rules, 2001.

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

Islamabad, the 13th June, 2009.

NOTIFICATION

(CUSTOMS)

S.R.O. 498 (I)/2009.- In exercise of the powers conferred under section 219 of

the customs Act, 1969 (IV of 1969), the Federal Board of Revenue is pleased to

direct that the following further amendments shall be made in the Customs Rules,

2001, namely:-

In the aforesaid Rules, for chapter VIII, the following shall be substituted,

namely:-

“CHAPTER VIII”

CUSTOMS AGENTS LICENSING

1. Definitions.- In this chapter, unless there is anything repugnant in the

subject or context,-

(a) “customs Agent” means a person granted a customs agent

licence by the licensing authority to carry out customs business

under these rules;

(b) “customs business” means activities involving transactions

with the Customs department concerning the entrance or

clearance of any conveyance in a Customs Station or Area or

Port or any customs related clearance activities or importation or

exportation of goods or baggage, including their classification

and valuation, the payment of duties, taxes, or other charges

assessed or collected by the Customs on goods by reason of its

importation, exportation, transit or transshipment or refund,

rebate, or drawback thereof and includes the preparation of

documents or forms in any format and the electronic

transmission of documents, invoices, bills, or parts thereof,

intended to be filed with the Customs in furtherance of such

activities or any other activity relating to the Customs Act, 1969

(IV of 1969) or rules made thereunder;

(c) “Form” means a form appended to this chapter;

(d) “licence” means a licence granted under this Chapter to act as

a Customs Agent;

(e) “licensee” means a person to whom a Customs Agent licence

has been granted under this chapter; and

(f) “licensing Authority” means the Collector of Customs or any

officer not below the rank of Assistant Collector authorized by

Collector to act as licensing authority under this Chapter.

1. Application.- An applicant may submit an application in form “A” along

with the following documents to the licensing authority with a treasury challan for two

thousand rupees as application processing fee which shall be non-refundable,

namely:-

(a) NTN Certificate;

(b) tenancy agreement or ownership documents in respect of

business address;

(c) copy of CNIC (verification of CNIC shall be got conducted by the

Collectorate from NADRA);

(d) photographs (4 x Passport Size).

1. Eligibility to file application.- A candidate is eligible to file application

with the licensing authority if he is,-

(a) a citizen of Pakistan;

(b) not below 21 years of age;

(c) a graduate from a recognized university;

(This condition of minimum qualification shall be applicable for

licenses which are issued after coming in to force of these rules)

(d) having adequate knowledge of computer to handle the goods

declaration (GD) in PRAL or PACCS etc;

(e) not convicted by any court of law.

1. Qualification test.- (1) The licensing Authority on receipt of the

application shall forward the name alongwith particulars to the office of Directorate

General of Training and Research or any other independent educational institution

nominated by Board, as the case may be, for including the name of intending person

as candidate for a written examination with a view to ascertain his knowledge about

English language, computers and the Customs Law and Procedure. This

examination shall be conducted simultaneously at Karachi, Lahore and Islamabad

twice a year in July and January:

Provided that if the applicant is a retired BS-14 or above officer of Customs

having more than ten years service and subject to condition that he has not been

removed from the service on disciplinary grounds, he may be exempted by the

collector from the above mentioned test on case to case basis after conducting his

interview.

(2) The Licensing Authority shall not consider an application for the grant

of licence if the applicant fails to secure at least fifty per cent marks in the written

examination.

1. Approval of licence.- On qualifying the test, the licensing Authority

shall issue approval letter in form “B” for issuance of licence subject to the following,

namely:-

(a) deposit as security in the shape of defense saving certificate for

rupees three hundred thousand only for operating in one

customs station and rupees seven hundred thousand only, for

operating on a country wide basis, in the shape of Defence

Saving Certificates pledged to the Collector of Customs; and

(b) execute a bond in Form “C” for ensuring good conduct and to

follow custom rules and regulations and for recovery of any

amount adjudged against him or ordered to be paid by him.

1. Licence and its conditions.- (1) The Licensing Authority may, on

fulfilling all the conditions under these rules, grant a non-transferable licence in form

“D” for a period initially for two years which shall be renewable after every two years

subject to the prescribed conditions.

(2) The license shall neither be transferable nor can be sub-let and no

licensee shall, except with the prior approval of the licensing Authority, bring about a

change in the composition of the company, proprietorship or firm, as the case may

be.

(3) Change of status of firm from proprietorship to partnership shall be

allowed on submission of partnership deed duly attested by notary public and on

successful passing of interview to be conducted by the licensing authority or any

officer authorized in this behalf.

(4) Retirement of partner shall be allowed on submission of an additional

undertaking that the existing partner may take the responsibility of all previous and

future act of the company and shall be responsible for payment of any outstanding

government dues accrued on the company before and after retirement of the partner.

(5) Dissolution of partnership shall be allowed on submission of dissolution

deed and an under taking that the person continuing the firm shall be responsible for

the payment of all or any outstanding government dues accrued in the name and title

of the firm.

(6) Change of directorship in case of a company shall only be allowed if

duly approved by the Security Exchange Commission of Pakistan.

(7) The licensee shall provide sales tax registration number before

commencing of his business after getting the license.

(8) In the case of the death of an individual licensee, the license may be

re-issued to his legal heir if he fulfills the criteria prescribed in rules 92, 93 and 94.

The new licensee shall execute a fresh bond for the purpose however the licensing

Authority may allow the transfer of the security deposit held in the name of the

deceased licensee to the name of new licensee, subject to the liabilities attached to

such deposit.

(9) The licensing Authority may, in anticipation of the passing of test or

training and examination, as the case may be, grant a provisional license for a

maximum period of six months or till such time a fresh examination is conducted on

fulfilling conditions laid down in rules 92 and 95.

(10) A license shall be valid for one or all Collectorates, as the case may be,

for a period of two years, which shall be renewable after every two years unless

revoked earlier in accordance with the provisions of this Chapter.

(11) In case the licence or a custom permit is lost or damaged, a duplicate

copy thereof may be issued on a written request by the licensee, duly supported by

the documentary evidence and on payment of fee of five thousand rupees.

1. Renewal of Licence.- (1) An application for the renewal of the licence

shall be made to the licensing Authority, two months before its expiry alongwith the

following documents, namely:-

(a) an affidavit to the effect that no case of tax fraud and criminal case

has been finalized from the court of law or tribunal against the

licensee or any of the partners, as the case may be;

(b) information about total number of declarations filed showing

declarations of imports and exports separately and detail of cases

made out against him;

(c) proof of payment of renewal fee which shall be rupees two

thousand for renewal of license for two years; and

(d) certificate of participation (for each year) in mandatory course from

Directorate-General of Training and Research (Custom, Sales Tax

and Federal Excise ).

(2) The licensing Authority may refuse to renew the licence if it finds that,-

(a) the licensee has failed to apply for renewal of licence within the

prescribed time; or

(b) the licensee has become insolvent or bankrupt or is convicted in

cases of tax fraud and criminal cases under any law for the time

being in force; or

(c) the licensee becomes mentally retarded or lunatic; or

(d) the licensee’s previous performance has not been satisfactory; or

(e) the licensee had violated any applicable law or acted in a dishonest

manner; or

(f) the previous record of business showed involvement of licensee in

any of the offences mention in the Act; or

(g) the licence has been revoked under these rules; or

(h) the licensee, in the previous period of validity of licence, has failed

to file sufficient number of declarations and conduct customs

business, as prescribed by the Collector.

1. Authorization to sign the documents on behalf of licensee.-(1) A

licensee may authorize not more than three permit holders to sign Customs

documents on his behalf.

(2) Such authorization shall be in Form "E" and shall be valid only when

accepted by the licensing Authority or an officer authorized on his behalf.

1. Issuance of permits.- (1) The licensee shall apply to the licensing

Authority in Form "F" for the grant of Customs permit to such clerks as he employs

for conducting business at the Custom House, Customs Station, Port or Airport.

(2) Such applications shall bear a court-fee stamp, of the value of fifty

rupees and shall be accompanied by three passport size photograph of the clerks

whose permits are applied for and such employee has passed at least higher

secondary school certificate (intermediate) examination and holds valid CNIC.

(3) A customs permit shall not be transferable and shall be valid for the

person for whom it is issued.

(4) A Customs permit shall be issued on form “G” and shall be valid for

one year unless suspended or earlier revoked in accordance with these rules.

(5) The licensee shall apply for the renewal of the Customs permit of his

clerk at least one month before the expiry of the permit.

(6) The licensee shall inform the licensing Authority immediately in case

the services of any permit holder are terminated and surrender the Customs permit

to the licensing Authority for cancellation.

(7) A customs permit shall be liable to be revoked or suspended at any

time by the licensing Authority for any irregularity, misbehavior or for any other

reason for which a licence may be revoked or suspended.

(8) The customs permit shall always be carried by the person to whom it

has been issued and shall be produced before appropriate officer of Customs on

demand.

(9) The licensee shall be responsible for all acts of his authorized

representative or any person holding a customs permit on his behalf.

1. Customs agent to attend course.- All customs Agents licensed under

these rules shall attend once in each financial year a mandatory Custom Agents

Course of six days from the Directorate-General of Training and Research (Custom,

Sales Tax and Federal Excise to be conducted in batches at Karachi, Lahore and

Islamabad). A fee of rupees two thousand may be charged by the Directorate

General as fee of course. The curriculum of the course shall be prescribed by the

Directorate-General of Training and Research (Custom, Sales Tax and Federal

Excise).

1. Maintenance of records.- (1) Each licensee shall maintain, and

preserve, complete records of its financial transactions and of all customs

documents handled by it and copies of all correspondence, bills accounts,

statements and other papers relating to the customs business for a period specified

under section 211 of the Act.

(2) The records specified in sub-rule (1) above shall be made available for

examination at any time to any officer of customs or sales tax authorized or deputed

by the licensing authority under the Act or the rules made there under and no

licensee shall refuse access to or taking extracts from the record nor shall conceal,

remove or destroy any part of the record.

1. Responsibilities of licensee.- A licensee shall,-

(a) file customs declarations in the prescribed manner and procedure

giving detailed description of each item as mentioned in the Customs

Tariff;

(b) make himself available at the time of examination of the goods

drawing representative sample, counting, weighing etc as and when

required for any such purpose;

(c) be responsible for any or all other documents signed by him or his

employee or on his behalf or on behalf of his client;

(d) provide complete information and documents as and when required

after clearance of the consignments;

(e) pay the evaded amount of duties and taxes in case it is established

that evasion has taken place because of his negligence, failure to

perform his functions as prescribed under the law or because of

connivance or willful act of its employee or permit holder;

(f) furnish an authorization from each of the company, firm or individual,

as the case may be, by whom he is employed to act as their customs

Agent;

(g) not represent a client before an officer of customs in any matter which

the licensee dealt as an officer or employee of the customs or of the

facts of which he gained knowledge while in Government service;

(h) not appear, act or plead in any proceedings under sections 179, 193,

194 A or 196 of the Act, for and on behalf of any person other than

the person for whom it acted as licensee in relation to maters out of

which the proceedings have arisen;

(i) where he knows that a client has not complied with the law or has

made any error or omission in any document immediately bring the

matter of such non-compliance, error or omission to the notice of the

appropriate officer of Customs;

(j) exercise due diligence to ascertain the correctness of any information

which he imparts to the custom department or to a client with

reference to any customs business;

(k) not withhold information relating to any customs business from the

customs or from a client who is entitled to such information;

(l) promptly pay to Government, when due, all sums received for

payment of any duty, tax or other debt or obligation owing to the

Government and promptly render account to its client regarding any

money received from him for Government, or received from it in

excess of Governmental, or the other charges properly payable in

respect of the client in its customs business;

(m) not attempt to influence the conduct of any officer of customs in any

matter pending before the custom house, custom station, port or

airport by the use of force, intimidation, false accusation, duress

thereof or by offering any special inducement or promise of

advantage, any gift or favor or other thing of value;

(n) not procure or attempt to procure, directly or indirectly, information

from the customs records or other Government sources of any kind to

which access is not granted by proper authority;

(o) not employ in any capacity, with power of attorney, by delegation or

otherwise.-

(i) any individual whose application for licence or customs permit

has been refused;

(ii) any individual whose licence or permit has been revoked or

whose conduct as a partner, manager, director, officer or

employee has been the cause of the revocation of the licence

or permit, for the promotion of or in connection with, the work

relating to the licence;

(p) produce the actual importer or exporter whenever required and

declare his computerized national identity card number, actual office

address along with telephone number, tax number and e-mail

address;

(q) inform promptly the customer about the objection raised by

documents or declaration required under the law and bring the matter

to the notice of appropriate officer of customs in writing immediately;

and

(r) report immediately to the customs about suspected financial

transactions like money laundering or proceeds of crime by its client;

1. Action in case of violations.- (1) The licensing Authority may revoke

or suspend a license or permit of any Customs Agent for one or more than one of

following reasons, namely:-

(a) the licensee has made or cause to be made in any application for any

license or permit under this chapter, or report filed with the customs,

any statement which was, at the time and in light of the

circumstances under which it was made, false or misleading with

respect to any material fact, or has omitted to state in any such

application or report;

(b) the licensee has been convicted at any time for larceny, theft,

robbery, extortion, forgery, counterfeiting, fraud concealment,

embezzlement, fraudulent conversion, or misappropriation of funds;

(c) the licensee has knowingly employed, or continues to employ, any

individual who has been convicted of any offence referred to under

clause (b);or

(d) the licensee has, in the course of its customs business, with intent to

defraud, in any manner ,willfully and knowingly deceived, misled or

threatened any client or prospective client.

(e) violation by the licensee of any provision of Act or the rules,

regulations, notifications, instructions or orders issued there under;

(f) aiding or abetting any individual, firm or company, as the case may

be, for violation of any provision of the Act or the rules or regulations

made there under;

(g) negligence or inefficiency of the licensee in the discharge of its

obligations;

(h) unsatisfactory conduct of the licensee while transacting customs

business or in relation to any person who has entrusted it with any

customs business;

(i) failure of the licensee to comply with any of the bond executed by him

under this chapter;

(j) concealing, removing or destroying by the licensee of its financial and

customs business records or refusing to allow an officer of customs to

inspect them and take extracts there from;

(k) attempt by the licensee to influence the conduct of any employee in

the custom house, custom station, port or airport by the use of force,

intimidation, false accusation, duress, bribery or by offering any

special inducement or gift;

(l) failure of the licensee to exercise due diligence and due care to

apprehend and forestall an untrue declaration in respect of

description, content, sort, classification, origin, quality or value of the

imported or exported goods by its client;

(m) withholding by the licensee of any information, document or other

evidence from an officer of customs which is likely to prevent any

fraud or evasion of customs duties and other taxes or dues and the

circumvention or contravention of any restrictions imposed by any law

for the time being in force;

(n) the licensee has defaulted in making payment of duties and taxes

received from their client in time, if any;

(o) the licensee’s previous performance has not been satisfactory or has

not been true to the customs or towards his clients; or

(p) the licensee’s previous record of customs business due to his being

concerned in any customs offence is not free from reasonable doubt.

(2) In case of revocation of a licence under sub-rule (1), the licensing

Authority may, after issuing show cause notice to the licensee, forfeit the whole or

part of the security deposited by the licensee under rule 95 for the settlement of any

duty, taxes or any other charges due from him.

(3) The Collector or the licensing Authority, as the case may be, shall not

pass any order under sub-rules (1) and (2) to revoke the license or permit unless the

licensee is informed in writing regarding the allegations and opportunity of hearing is