Customs Rules, 2001.

Chapter	Contents-	Page No.
I.	Definitions	455
II.	Baggage [Omitted][See SRO.666(I)/2006]
III.	Imports by Privileged personnel	456
IV.	Prior Release of consignments	457
V.	Auction & Auctioneers	461
VI.	Temporary importation of motor vehicles.	467
VII.	Re-export of frustrated cargo.	469
VIII.	Licensing	470
IX.	Valuation procedures	481
X.	Maintenance of Accounts/records.	490
XI.	Recovery of arrears	492
XII.	Exports 1.The draw back (same state goods)	510
	2. Duty drawback (claim payment)	512
	3. Export Processing Zones	515
	4. Omitted
	5. Release of raw hides for manufacture of exportable goods	520
	6. Omitted
	7. Duty and Tax Remission for exports.	524
	8. Determination of materials and fixation of rates (IOCO)	537
XIII	Deferment of duties	545
	1. Machinery
	2. Ships for scrapping
XIV.	Transshipment of goods	551
XV.	Warehousing procedures	569
XVI.	Landing and clearing of Parcel Rules	589
XVII.	Alternate Dispute Resolution.	591
XVIII	Transportation of Cargo	593
	1. Cargo Declaration	593
	2. Arrival and Departure of vessels	594
XIX	Reference to High Court	604
XX	Repayment of customs duty [Omitted]
XXI	Pakistan Customs Computerized System Customs Computerized System	606
XXII	Transport of POL products to Afghanistan	651
XXIII	ATA Carnet Rules	658
XXIV	Mutilation or Scrapping of Goods	689
XXV	Afghanistan – Pakistan Transit Trade Rules	690
XXVI	Shipping Agents Rules	724
XXVII	Disposal of Overstayed Non-Prohibited Bore arms and ammunition	737
XXVIII	Enforcement of Intellectual Property Rights (EIPR)	748
XXIX	Transports Internationaux Routiers (TIR) Rules	748
XXX	Appeals and Allied Matters	761
XXXI	Risk Management System Rules	770
S.No.	Subject	Old Notification No. and Date	Rules No.	Page No.
(1)	(2)	(3)	(4)	(5)

16 Common Bonded Warehouse 843(I)/98 dt. 23.07.1998 279-295

(Conventional)Rules (Omitted)

1. Duty and Tax Remission (DTRE) for Export S.R.O.185(I)/2001 dated 296-307 524

Rules. 21.3.2001

1. Determination of Imported Materials and S.R.O.186(I)/2001 dated 308-313 537

Fixation of Rates for Repayment or Duty 21.3.2001

Drawback Rules(IOCO).

19 Deferment of Import duties (Power, gas and 36(I)/94 dt.15.01.1994 314-321 545

energy Projects) Rules.

20 Deferment of Import Duty (ships for 245(I)/93 dt.31.03.1993 322-324 550

scrapping) Rules.

1. Transshipment S.R.O.286(I)/2007 dated 326-341 551

31.03.2007

1. Warehousing. 342-363 569
2. Landing and Clearing of parcels Rules. 364-376 589
3. Alternate Dispute Resolution. S.R.O.623(I)/2004, dated 377-386 591

19-07-2004

1. Transportation of cargo S.R.O.198(I)/2005 dated 387-391 593

8.2.2005

1. Arrival and Departure of vessels S.R.O.210(I)/2005 dated 392-419 594

28.2.2005

1. Reference to High Court S.R.O.563(I)2005, dated 420 604

06.06.2005

1. Repayment of Customs duty S.R.O.714(I)/2005 dated 421

13.7.2005

1. Pakistan Customs Computerized System S.R.O.704(I)/2007 dated 422-556 606

Customs Computerized System 14.07.2007

1. Transport of POL Products to Afghanistan S.R.O.943(I)/2007, dated 557-569 651

14.09.2007

1. ATA Carnet Rules S.R.O.1157(I)/2007 dated 570-591 658

08.11.2007

1. Mutilation or Scrapping of Goods S.R.O.449(I)/2011 dated 592-597 689

20.05.2011

1. Afghanistan – Pakistan Transit Trade Rules S.R.O.601(I)/2011, dated 598-652 690

13.06.2011

1. Shipping Agents Rules S.R.O.1220(I)/2015 dated 653-669 724

04.12.2015

1. Disposal of Overstayed Non-Prohibited S.R.O.209(I)/2016 dated 670-677 737

Bore arms and ammunition 09.03.2016

1. Enforcement of Intellectual Property Rights S.R.O.170(I)/2017 dated 688-686 748

(EIPR) 16.03.2017

454

1. Transports Internationaux Routiers (TIR) S.R.O.1066(I)/2017 dated 687-716 748

Rules 20.10.2017

1. Appeals and Allied Matters S.R.O.648(I)/2018 dated 717-737 761

24.05.2018

1. Risk Management System Rules S.R.O.1010(I)/2020 dated 738-739 770

04.02.2020

455

GOVERNMENT OF PAKISTAN

REVENUE DIVISION

CENTRAL BOARD OF REVENUE

NOTIFICATION

Islamabad, the 18th June, 2001.

(CUSTOMS)

S.R.O 450(I)/2001.- 94[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), the Federal Board of Revenue is pleased to make the

following rules, namely:-]

CHAPTER I

PRELIMINARY

1. Short title and commencement.-(1) These rules may be called the Customs Rules,2001.

(1A) Scope.- Unless specifically provided in the rules for Pakistan Customs

computerized System, 2005, these rules shall apply.

(2) They shall come into force at once.

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

(a) "account" means all books, records, correspondence, bank and other financial

statements;

(b) "Act" means the Customs Act, 1969 (IV of 1969);

(c) "appropriate officer" includes officers superior to an appropriate officer;

(d) "Collector", "Additional Collector", "Deputy Collector" and "Assistant Collector",

respectively, means Collector of Customs, Additional Collector of Customs, Deputy

Collector of Customs and Assistant Collector of Customs appointed under section 3

of the Act in relation to an area of his jurisdiction;

(e) "duties" includes customs-duty leviable under the First Schedule to the Customs Act,

1969;

(f) “importer” means a person who imports goods;

(fa) “Pakistan Customs Computerized System Customs Computerized System” means

the Customs Computerized System as defined in clause (ia) of section 2 of the

Customs Act, 1969 (IV of 1969);

(g) "related persons" means such persons only if,-

(i) they are officers or directors of one another's business;

(ii) they are legally recognized partners in business;

(iii) they are employer and employee;

(iv) one of them directly or indirectly controls the other;

(v) both of them are directly or indirectly controlled by a third person;

(vi) together they directly or indirectly control a third person; or

(vii) they are members of the same family; and

456

(viii) any person who directly or indirectly owns, controls or holds five per cent

or more of the outstanding voting stock or shares of business of both or each

of such related person.

Explanation I.- The expression "person" also includes a legal person.

Explanation II.- Persons who are associated in the business of one another and that one is the

sole agent or sole distributor or sole concessionaire, however described, of the other, shall be

deemed to be related for the purpose of these rules, if they fall within the criteria herein before

specified for related persons.

Explanation III.- One person shall be deemed to control another when the former is legally or

operationally in position to exercise restraint or direction over the other.

(h) “stay”, for Pakistani nationals, means the duration of continuous living abroad; and,

for foreign nationals, means the duration of their valid visa for stay in Pakistan;

(i) “vehicle” means a motor-car, motor-cycle, van, microbus, bus, pick-up, jeep, truck, self-

driven caravan and tractor with trailer or semi-trailer or caravan.

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

them in the Act or in the respective Chapters of these rules.

CHAPTER II

[Omitted]

CHAPTER III

PRIVILEGED PERSONNEL

1. In this chapter, the expression “privileged personnel” means all foreign experts, consultants

or technicians visiting and resident in Pakistan under a proper Aid Agreement in which provision for the

application of these Customs concessions has been made. The expression includes only such personnel as are

either directly in the employment of the foreign aid giving Government or Agency or who serve in Pakistan

under contract or agreement with such Government or Agency and whose salaries and travelling expenses to

and from Pakistan are paid by the foreign Government or Agency. It does not include personnel in the

employment of the Federal or Provincial Government.

CUSTOMS CONCESSIONS

1. The following customs concessions shall be extended to the privileged personnel, namely:-

(a) Import free of custom duty and sales tax of articles for the personal use of the privileged person

or members of his family forming part of his personal and household effects including one car per

family on his first arrival in Pakistan. The time limit for import will be six months, extendable

by the Collector of Customs for a maximum period of 25[eighteen] months from the date of the

arrival of the person concerned;

(b) 11[ Omitted;

457

(c) Omitted]

(d) in addition to the above, a privileged person shall be allowed to import on payment of duty

and taxes foodstuff and consumable stores including liquor and tobacco up to a C&F value of

two hundred U.S.$ per month but the value of liquor will not exceed one hundred U.S.$ per month.

80[However, import of alcoholic beverages shall be subject to Import Policy Order.]

Note: The privileged personnel may import the monthly quotas prescribed in clauses (a) and (b)

of rule 39, for a maximum period of six months at a time.

1. Articles imported customs-duty and sales tax free shall normally be re-exported and shall not be

sold or otherwise disposed of within Pakistan except with the prior approval of the Government or in terms of

the regulations prescribed by the Government.

1. If any other durable articles such as airconditioners, refrigerators, deep freezers, VCR ,DVD,

washing machines, etc., are disposed of in Pakistan, customs-duty and sales tax, etc., shall be payable on the

original value at the rate applicable to the goods in question at the time of import. The privileged personnel

shall be responsible for the payment of customs-duty and sales tax and other charges before parting with the

articles; provided that no customs-duty and sales tax shall be payable if sold after three years from the date of

import.

1. In order to avail of the concessions under this chapter , a privileged personnel shall furnish to the

Customs authorities a certificate duly signed by the Administrative Ministry of the Government of Pakistan

concerned both in respect of personal and household effects, etc., imported on first arrival and subsequent

monthly imports of foodstuffs, consumable stores, liquors, and tobacco in accordance with the prescribed

quotas. The Administrative Ministry concerned shall verify that the conditions in the rules have been satisfied

before issue of the certificate. The Administrative Ministry shall also be generally responsible to ensure that

all the other conditions as per this chapter have been satisfied between the time of arrival and departure of

privileged personnel:

Provided that a foreign employee of an industrial venture shall be entitled to import free of customs-

duties and other taxes food stuff (excluding alcoholic beverages) upto C&F value of one hundred US $ per month

subject to the condition that he shall produce a certificate from his employer to the effect that he has been

employed in his industrial venture in Pakistan for a tenure of ___ years, from _____ to ___. The monthly quota

may be imported for a period of six months at a time.

CHAPTER IV

PRIOR RELEASE

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

context,-

(i) "application" means an application filed under rule 44 of this chapter;

(ii) "appropriate officer" means an officer of Customs not below the rank of an Assistant

Collector appointed in this behalf;

(iii) "prior release" means the delivery of an urgent consignment prior to submission of a bill of

entry or a bill of export under the Act;

94[(iv) perishable goods” means goods that rapidly decay due to their natural characteristics, in

particular in the absence of appropriate storage conditions;

458

94[(v) "urgent consignment" means a consignment of 94[perishable goods] any of the following

goods imported for home consumption, or meant for export provided that the appropriate

officer of Customs is satisfied that these require immediate and rapid clearance as a matter of

priority, namely:-

(a) human body organs or any part thereof, blood and blood plasma;

(b) perishable medicines e.g., insulin, etc;

(c) life saving drugs in nominal quantities, duly supported by medical prescription;

(d) live animals and live plants;

(e) newspapers, journals and other news materials;

(f) radioactive materials;

(g) replacement parts of computers, machines and drilling equipment (e.g. drilling bits);

(h) any other goods, urgently required, with the approval of the Collector of Customs,

in writing, on case to case basis; and

(i) fertilizer imported by the Fertilizer Import Department, Ministry of Food and

Agriculture.

1. Application for prior release.- (1) The importer or exporter of urgent consignment shall

present an application, in triplicate, in the form as set out in Appendix I to this Chapter to the appropriate officer.

(2) The appropriate officer shall cause the application to be scrutinized with reference to

declarations made in the application, by taking into account the degree of urgency with which the goods are

needed, the nature and value of consignment and particular circumstances relating to it.

(3) The appropriate officer shall, after satisfying himself in this regard, accept the application for

prior release by making an endorsement to this effect on all the three copies of the application.

(4) After the application for prior release is accepted by the appropriate officer, the particulars of

the consignment shall be entered in a register, in the form as set out in Appendix II to this Chapter maintained

for this purpose, and the serial number of the register shall be taken as prior release number.

(5) The prior release number and date shall be endorsed on all copies of the application and the

prior release shall be deemed to have been allowed only after the entries in the register and endorsement of the

application have been recorded.

1. Admissibility of prior release.- (1) Prior release shall not be admissible in cases where Import

General Manifest or Export General Manifest, as the case may be, was filed two days or more prior to the

submission of application for grant of prior release.

(2) The facility of prior release shall be allowed to only those importers or exporters of urgent

consignments who have sufficient balance of amount available in their accounts maintained as current or personal

ledger accounts to pay the duties:

Provided that the importers or exporters, who are not maintaining such accounts shall be eligible to

avail the facility of prior release on furnishing a bank guarantee or a pay order of a sum equivalent to the duties

assessed provisionally by the appropriate officer and such pay order shall remain in the custody of the appropriate

officer and shall be utilized towards finalization of assessment.

(3) Bank guarantee shall stand discharged after all leviable customs-duties and taxes have been

deposited.

459

(4) No prior release shall be allowed if a previous case of the same importer or exporter is pending

finalization for more than fifteen days.

1. Manner of prior release in case of imported goods.- (1) A file for each application shall be

maintained and shall contain all relevant documents and correspondence relating to the respective clearance.

(2) The examination staff, deputed for the purpose, shall examine the urgent consignment on

priority and in compliance with the examination order and examination report shall be recorded on reverse of

the original application.

(3) The examining officer, if he is satisfied that the import of the goods is not prohibited or is not

in breach of any restrictions or conditions applicable to the import of such goods, may make an order for

provisional clearance of the same pending presentation of bill of entry.

(4) The examination staff shall also endorse the original and duplicate copies of application with

the words "examined", affix their signatures and shall return the duplicate to the importer.

(5) At the time of delivery of urgent consignment, the officer of Customs shall record the effect

of delivery under his signatures on original and duplicate copies of the application. The original copy of the

application shall be retained by such officer and forwarded at the earliest to the appropriate officer while the

duplicate copy of the application shall be returned to the importer to accompany the urgent consignment, and for

his record.

(6) The importer of urgent consignment shall, at the time of the prior release of such goods, present

a bill of entry for home consumption and other necessary documents to the appropriate officer and shall pay the

whole or differential amount of leviable duties, if any, within ten days of the prior release on the basis of which

the appropriate officer shall finalize the provisional assessment.

1. Manner of prior release in case of exported goods.- (1) A file for each application shall be

maintained and shall contain all relevant documents and correspondence relating to respective clearance.

(2) The examination staff, deputed for the purpose, shall examine the urgent consignment on

priority in compliance with the examination order and examination report shall be recorded on the original

application.

(3) The examining officer, having verified that the export of the goods is not prohibited or is not

in breach of any restrictions or conditions applicable to the export of such goods, may make an order for

provisional clearance of the same pending presentation of bill of export.

(4) The examination staff shall also endorse the original and duplicate copies of application with

the words "examined", affix their signatures and shall return them to the exporter.

(5) At the time of loading, the an officer of Customs shall record the effect of loading, under his

signatures, on the original and duplicate copies of the application. The original copy of application shall be

retained by such officer and shall be forwarded at the earliest to the appropriate officer while the duplicate copy

of application shall be returned to the exporter for his record.

(6) The exporter of urgent consignment shall, at the time of prior release of such goods, present a

bill of export and other necessary documents to the appropriate officer and shall pay the whole or differential

amount of leviable duties, if any, within ten days of the prior release on the basis of which the appropriate officer

shall finalize the provisional assessment.

460

Iqra surcharge @ 5%	Flood Relief surcharge @ 1%	Other Taxes if any	Remarks.
(10)	(11)	(12)	(13)

1. How many cases of prior release effected one week earlier or longer period are still outstanding

against the importer and the clearing agent.

1. The position of balance amount available in the deposit account (for commercial importer

only).

1. No, date and the amount of bank guarantee or pay order.
2. Reasons and justifications warranting prior release. (Please attach documents to prove urgency

leading to this request), if any.

Documents Attached:

1. Signature.
2. Name.
3. Designation.
4. Full address.
5. Tel. No. Office.
6. Clearing agent licence No. and date.
7. Report of the custodian about declaration in column no.17 above.
8. Order of the assistant collector of customs
9. P.R.reqn. No. and date.
10. Examination and assessment report.
11. Order of the principal appraiser/superintendent out of charge/allowed/not allowed.

Appendex II.

[See rule 44(4)]

FORM

S.No. Date of Description Quantity. Name