Amendments in Customs Rules

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

Islamabad, the 14th July, 2007

NOTIFICATION

(CUSTOMS)

S.R.O.704(I)/2007.- In exercise of the powers conferred by section 219 of

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

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

2001, namely:-

In the aforesaid Rules, after CHAPTER XX at the end, the following new

chapter shall be added, namely:-

“CHAPTER XXI

Pakistan Customs Computerized System (PACCS)

Sub-Chapter I

Preliminary

1. Application of CHAPTER XXI.- Notwithstanding anything contained in these rules or any other

rules made under the Act, the provisions of this Chapter shall apply to customs-stations where the Pakistan Customs

Computerized System (PACCS) is operational to the extent applied and notified under section 155A of the Act.

1. Definitions.- (1) In this Chapter, unless there is anything repugnant in the subject or context,-

(i) “Authority” means the Export Processing Zones Authority established under the Ordinance;

(ii) “claimant” means a user who submits a refund claim through PACCS;

(iii) “Collector of Customs”, in relation to any Zone, means the Collector of Customs, who exercises

jurisdiction over such Zone;

(iv) “duty drawback” means repayment of import duty as envisaged in clause (c) of section 21 and sections

37, 39, 40 and 41 of the Act;

(v) “export” is as defined in Imports and Exports Controls Act 1950 (Act XXXXIX of 1950), and

includes passing into the territory of an Export Processing Zone duly authorized cargo from the tariff

area of Pakistan.

(vi) “FTN” means Free Tax Number issued by the Board to persons who are otherwise exempt from

holding National Tax Number (NTN) for the purposes of identification;

(viii) “import” is as defined in Imports and Exports Controls Act 1950 (Act XXXXIX of 1950), and

includes bringing out authorized cargo from the territory of an Export Processing Zone into the tariff

area of Pakistan

(ix) “industrial-undertaking” means an industrial-undertaking as defined in the Ordinance;

(x) “INTRA” means the Integrated Regulatory Authorities as envisaged in rule 527;

(xi) “investor” means an investor as defined in the Ordinance;

(xii) “KICTL” means the Karachi International Container Terminal Limited;

(xiii) “NTN” means National Tax Number issued by the Board;

(xiv) “Ordinance” means the Export Processing Zones Authority Ordinance, 1980 (Ord. IV of 1980);

(xv) PACCS user” means any person who possesses unique user identifier of PACCS.

(xvi) “password” means a password selected against each unique user identifier by, and only known to, the

user;

(xvii) “port of entry” means the first customs-port in Pakistan where imported goods are landed onto

Pakistan’s soil on arrival from abroad;

(xviii) “port of exit” means the last customs-port in Pakistan from where the goods depart for a destination

outside Pakistan;

(xix) “pre-pact” means depositing of money in advance by the users in a common account maintained by

the Collector, Model Collectorate of Customs, in consideration for discharge of their liabilities which

may accrue on account of clearances of cargo through PACCS and the money so deposited in this

account, remains property of the depositor and can be used to discharge liabilities as aforementioned

or may be withdrawn at will;

(xx) “refund claim” means an online application for claim of refund of the amount of duties and taxes except

income tax filed by a user;

(xxi) “refund reference number” means a reference number issued by PACCS confirming the filing of a

refund claim;

(xxii) “tariff area” means any area in Pakistan outside the limit of a Zone;

(xxiii) “terminal” means the KICTL or any other container terminal whereat PACCS is operational;

(xxiv) “Terminal Operator (TO)”, means any organization or establishment engaged in the receipt, discharge,

storage, custody, handling, delivery and loading of import, export, transit and transshipment of

containerized cargo by sea other than off-dock terminals;

(xxv) “unique user identifier” means a unique user identifier as may be allocated to any user under section

155D of the Act;

(xxvi) “user” means any person who is registered under section 155C of the Act for using PACCS on line;

(xxvii) “User ID Office” in relation to PACCS, means an office which issues unique user identifier; and

(xxviii) “Zone” means such area as is declared by the Federal Government to be a Zone under the Ordinance.

(2) The words and expressions used but not defined herein shall have the meaning assigned to them in the

Act or CHAPTER I of these rules.

Sub-Chapter II

Unique user identifier

1. Registration of users, etc.- (1) Any person interested or required to interact online with PACCS

may get himself registered as a user by submitting his application in Form-I to the Collector, Model Collectorate of

Customs, including any other information as may be required by him for the purpose:

Provided that in case of government department, embassy or an international organization, etc., it shall be

registered as user against the authority letter issued by the competent officer of that department, embassy or

organization, as the case may be.

(2) All users registered under sub-rule (1) shall, on individual basis, obtain a unique user identifier among

whom shall be the-

(a) persons involved in import, export, transit or transshipment through any container terminal;

(b) clearing agents representing a principal specified in clause (a).

(c) shipping agents dealing with vessels or cargo cleared through any container terminal;

(d) warehouse keepers or owners who receive or store cargo brought through any container terminal;

(e) ship chandlers engaged in business with vessels calling at container terminal; and

(f) government and semi-government departments including Board, Customs, Federal Excises, Sales

Tax, Income Tax, State Bank of Pakistan, and National Bank of Pakistan who are engaged in

regulating import, export, transit or transshipment of cargo through PACCS across the country.

1. User ID Office.- Unique user identifiers for PACCS may be obtained from User ID Offices

established for the purpose at designated places.

1. User to obtain unique user identifier.- The unique user identifier shall be obtained by the user

or his authorized representative who shall appear in person before the User ID Office along with the following

documents:

(a) Original NTN or FTN; provided that an individual holding NTN shall appear in person unless she

is a pardah observing lady or an elderly person in which case a family member may be authorized

to obtain the unique user identifier.

(b) Original Computerized National Identity Card of the person obtaining the unique user identifier.

(a) A pay order of rupees five hundred in favor of the Collector, Model Collectorate of Customs.

(d) Authority letter from the company, organization or institution, as the case may be; provided that

in case the person receiving ID is owner, director or head of any such company, organization or

institution, authority letter shall not be required.

(e) Employment letter or, ID of company, organization or institution relating to the person receiving

unique user identifier:

Provided that in case the user is clearing, shipping or warehouse agent, he shall present original license

issued by customs authorities in lieu of original NTN:

Provided further that in case the user is government department, embassy or an international organization,

etc., the authority letter in favor of person receiving it is issued by the head of that department, embassy or

organization, as the case may be, is produced.

1. Procedure for allocation of unique user identifier.- An officer of customs on duty at the User

ID Office shall enter into PACCS complete data and information as per set of original documents so received under

rule 426, retain its copies, return originals on the spot except the pay order and the authority letter, and proceed to

allocate the unique user identifier through the system after obtaining its proper receipt from the recipient who shall

be required to feed in the password of his choice for security reasons.

1. Changing of password.- A user shall be at liberty to change his password on line whenever he

wishes to do so.

1. Liability of user.- The user shall, in relation to the use of unique user identifier, be liable for any

contravention of these rules and provisions of CHAPTER XVI-A of the Act.

1. Additional allocation of unique user identifiers.- A user shall be entitled to obtain additional

unique user identifiers on payment of rupees five hundred for each unique user identifier which may be acquired

and allocated over the web, on line.

1. Disclosure of password.- In case the user has reason to believe that his password has been

disclosed, he may exercise the following options:

(a) if the user is able to log onto the system using his password that is believed to have been

disclosed, he may log onto the system and change the password; or

(b) in case the user is unable to log onto the system with the disclosed password, he may call on the

Customs Help Desk and request for resetting of his password, whereupon, an officer of customs

on duty after being satisfied from the profile of the user and based on the answers given by the

caller that the caller is the actual user, may reset the password, otherwise, the user or a person so

authorized by him shall have to appear before the User ID Office with his identification papers to

get his password reset.

Sub-Chapter III

Procedure of imports through PACCS

1. Procedure for imports.- Subject to the provisions herein laid down, the procedure for imports

including every activity there against online shall apply to CY FCL and CY LCL containers as may be operated

from any container terminal whereat PACCS is operational.

1. Filing of imports declaration.- Every declaration in relation to each consignment of imported

goods shall be filed with PACCS online by the importer or his agent which shall be deemed to have been submitted

to customs only where duties and taxes leviable thereon, if any, have been paid or discharged as self assessed by the

person declaring it.

1. Amendments to imports declaration.- No declaration made under rule 433 shall be amended

after the customs has started checking the declaration:

Provided that such declaration may be cancelled where-

(i) the goods have not arrived at the declared terminal on which PACCS is operational; or

(ii) clearance of goods or class of goods has explicitly been excluded from the purview of PACCS.

1. Examination of imported goods.- The Terminal Operator shall make arrangements for the

examination of imported goods so declared under rule 433 which includes their weighing, sampling, inspecting and

scanning, and shall render such other services related to the examination thereof in accordance with the

requirements of these rules.

1. Inspection or sampling by regulatory bodies of the Government: Government bodies involved

under their own laws to inspect imported cargo while the goods are at the terminal may do so and after necessary

inspection or obtaining samples, as the case may be, shall seal the container. They may acquire online access to

PACCS, whereby they will have the facility to issue the requisite certificates online related to consignments under

their respective laws.

1. Requirement of documents.- Where any documents are required for clearance of goods in

support of the declaration filed under rule 433, the customs shall, on line, specify the documents so required from

the importer or his agent who shall, as the case may be, produce such documents.

1. Assessment by customs authorities.- Where any declaration has been filed under rule 433 or

additional documents have been submitted under rule 437, the customs shall satisfy itself as to their correctness

including its value, classification, claim of exemption, payment of duties and taxes, and may re-assess the goods

during or after clearance.

1. Provisional clearance of imported goods.- Subject to rule 440, the imported goods may be

provisionally cleared as follows provided appropriate securities have been furnished:

(a) Valuation: The clearance of goods by the Clearance Collectorate shall be restricted to transaction

value method, identical goods method and similar goods method under section 25 of the Act, and

where detailed scrutiny is required and subsequent valuation methods are to be applied, the case

shall be forwarded to the Valuation Department on line while clearing the goods provisionally.

(b) Classification: Where any dispute regarding classification of goods cannot be resolved during

review, the case shall be forwarded to the Classification Center on line while clearing the goods

provisionally.

(c) Exemptions: Where any dispute regarding admissibility of exemption or concession claimed by

the importer in his declaration is not resolved during review, the goods shall be provisionally

cleared.

(d) Lab-tests: Where any chemical or other test is required to ascertain nature or specification of

goods, it shall be provisionally cleared pending any such test including lab-test provided no

restriction is imposed on such goods.

1. Finalization of provisional assessment.- The cases of valuation and classification forwarded to

the Valuation Department and Classification Centre under rule 439 shall respectively be finalized by them using

their respective unique user identifiers, and the cases of exemption and lab-test shall be finalized by the Collectorate

clearing the goods on the basis of assessment made by it where after the securities furnished by the importer shall

be released or en-cashed, as the case may be, by such Collectorate.

1. Review of assessments.- The importer or his agent may file request for a review to Customs

online giving detailed reasons for disagreement with Customs. Customs shall review the assessment on the basis of

submissions by the importer or his agent.

1. Release of imported goods.- Customs release message will be electronically communicated to

the importer, his agent and the Terminal Operator. The goods will be released by the Terminal Operator subject to

fulfilling of any condition specified by Customs in electronic message to the Terminal Operator. The Terminal

Operator shall submit all collected documents requisitioned through electronic message to Customs at the end of the

day.

Sub-Chapter IV

Procedure of exports through PACCS

1. Procedure for exports.- Subject to the provisions herein laid down, the procedure for exports

including every activity there against online shall apply to CY FCL and CY LCL containers as may be operated

from any container terminal whereat PACCS is operational.

1. Filing and validity of export Goods declaration: Every declaration in relation to each

consignment of to-be-exported goods shall be filed with PACCS online by the exporter or his agent which shall be

deemed to have been submitted to customs only where duties and taxes leviable thereon, if any, have been paid or

discharged through Pre-pact as self assessed by the person declaring it and after claiming duty drawbacks if any

Every export declaration shall be valid for a maximum period of fifteen days from its submission.

1. Amendments to exports Goods declaration: Subject to the following conditions, a declaration

for export filed under rule 444 may be amended by the exporter or his agent who initially filed the declaration:

(a) a Goods declaration for export once complete cannot be amended;

(b) Goods Declaration that has already been cancelled cannot be amended;

(c) information relating to a container that has already passed into the customs-area cannot be

amended;

(d’) New items may not be added to a Goods Declaration as amendment.

(e) an export declaration cannot be amended where its validity has expired and none of the containers

relating thereto have passed into the port;

Explanation 1.- An export declaration shall be deemed to be complete in case:

(i) all the containers relating to export declaration have passed into the port;

(ii) the exporter or his agent specifically completes the export declaration; and

(iii) Some of the containers in the Goods Declaration have passed into the port and the validity of the

Goods Declaration has expired. In such cases the exporter or his agent shall be at liberty to file a

new Goods Declaration for the remaining cargo on the same form E.

Explanation 2: Allow Loading shall only be granted to the containers for which the Goods Declaration are

complete.

1. Cancellation of export Goods declaration: An export goods declaration may be cancelled at

anytime by the exporter or his agent who initially filed such declaration provided no container declared there under

has passed into the customs-area before validity of the declaration has expired otherwise in that case the declaration

shall automatically stand cancelled on the expiry of the validity period.

1. Pass-in authorization of containers.- Soon after filing of the export goods declaration under rule 444, the

Terminal Operator shall be authorized online to allow pass-in of the containers as specified in such declaration

provided that each container is:

(a) accompanied with the consignment note as provided in CHAPTER XVIII; and

(b) sealed except the container falling under certain types where seals cannot be applied, like one

door open, open top, flat rack, etc.

1. Cut-off time for filing of export declaration or pass-in of cargo.- There shall be no cut-off time

for filing of export declaration or pass-in of the cargo into customs-area under PACCS and, with respect thereto, the

customs shall not summarily apply or waive off any process required under any law for the time being in force

allowing export of the cargo on the plea that any vessel is scheduled to depart, or involve itself with the particular

vessel on which a cargo is shipped from Pakistan, yet, exporters are encouraged to monitor and manage their own

schedules and to adhere to the cut-off timings as are given to them by the carriers or the Terminal Operator and the

decision whereto rests with the shipper and the carrier,.

1. Export cargo to bear numbered bullet seals.- Each container carrying export cargo shall bear

numbered bullet seal applied to the container before its pass-in and subject to rule 448, the Terminal Operator shall

not receive any such cargo without numbered bullet seal as indicated in the consignment note.

1. (1) Examination of export goods.- The Terminal Operator shall make arrangements for the

examination of export goods after the containers pass-in which includes their weighing, sampling, inspecting and

scanning in accordance with the requirements of these rules.

(2) Assessment by customs.- Where any goods declaration has been filed under rule 444 the customs shall

satisfy itself as to its correctness including its value, classification, claim of exemption, payment of duties and taxes,

re-payment of duty-drawback etc., and may re-assess the goods during or after release.

1. Review of assessment.- The exporter or his agent may file request for a review to Customs online giving detailed

reasons for disagreement with Customs. Customs shall review the assessment on the basis of submissions by the

exporter or his agent.

1. (1) Inspection or sampling by pre-shipment organizations, price checking or quality

assurance bodies: In case export cargo is to be inspected by a pre-shipment organizations, price checking or

quality assurance bodies, such bodies will complete their functions and issue their NOCs or certificates, if any, prior

to pass-in of the containers into Customs area.

(2) Inspection or sampling by regulatory bodies of the Government: Government bodies that are

involved under their own laws to inspect export cargo may do so prior to the pass-in