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Pakistan

The Customs Act, 1969, (IV of 1969) as amended up to June 30, 2010

 

 


GOVERNMENT OF PAKISTAN

REVENUE DIVISION

FEDERAL BOARD OF REVENUE
*****

THE CUSTOMS ACT, 1969 (IV OF 1969)

As amended up to 30th June, 2010

Published by:
Printing & Publishing Department
CPF, FBR, Islamabad.

CHAPTER 1
PRELIMINARY Section Page
Short title, extent and commencement. 1
Definitions. 1
CHAPTER II
APPOINTMENT OF OFFICERS OF CUSTOMS AND THEIR POWERS
Appointment of officers of customs. 8
The Directorate General (Intelligence and Investigation), 8
Customs and Federal Excise
Directorate General of Inspection and Internal Audit 8
Directorate General of Training and Research 8
Directorate General, Valuation and Post-Clearance Audit 8
Directorate General of Post Clearance Audit(PCA) 8
Powers and functioning of the Directorates, etc 8
Powers and duties of officers of customs. 9
Delegation of powers. 9
Entrustment of functions of the customs officers to
certain other officers. 9
Assistance to the officers of customs. 10
Exemption from service on jury or inquest or as
10
CHAPTER III
Declaration of customs-ports, customs-airports, etc. 12
Power to approve landing places and specify limits of
12
Power to declare warehousing stations. 12
Power to appoint or licence public ware-houses. 12
Power to license private ware-houses. 13
Stations for officers of customs to board and land. 13
Provision of accommodation at customs ports, etc. 13
CHAPTER IV
PROHIBITION AND RESTRICTION OF IMPORTATION AND EXPORTATION
Prohibitions. 14
Power to prohibit or restrict importation and
exportation of goods. 15
Detention, seizure and confiscation of goods imported
in violation of section 15 or section 16. 15
CHAPTER V
LEVY OF, EXEMPTION FROM, AND REPAYMENT OF, CUSTOMS-DUTIES
Goods dutiable. 17
Special customs duty on imported goods. 18
Omitted 18
Rates of duty and taxes and determination of 18
origin under trade agreements
Levy of fee and service charges. 19
General power to exempt from customs-duties. 19
Presumption that incidence of duty has been passed 19
on to the buyer
Rounding off of duty, etc. 20
Minimal duties not to be demanded.-20
Board’s power to grant exemption from duty in
exceptional circumstances. 20
Power to deliver certain goods without payment
of duty and to repay duty on certain goods. 20
Power to defer collection of customs-duty. 21
Re-importation of goods produced or manufactured
in Pakistan. 21
Temporary export of imported plant and machinery 21
Goods, derelict, wreck, etc. 22
Provisions and stores may be exported free of duty. 22
Determination of customs value of goods. 22
Powers to determine the customs value. 29
Omitted
29
Power to takeover the imported goods. 30
Review of the value determined 30
Obligation to produce documents and provide
information.
31
Conducting the audit 31
Access for the purposes of audit 32
Abatement allowed on damaged or deteriorated goods. 32
Allowing denaturing or mutilation of goods 33
Power to test and denature imported spirit. 33
Restriction on amendment of goods declaration. 33
Date of determination of rate of import duty. 33
Date of determination of rate of duty for clearance
through the Customs Computerized System. 34
Date for determination of rate of duty on goods exported 35
Effective rate of duty. 35
False statement, error, etc. 35
Fiscal fraud. 37
Compounding of offence 37
Refund to be claimed within one year. 37
Power to give credit for, and keep account-current of
duties and charges. 38
CHAPTER VI
DRAWBACK

Drawback of the export on imported goods. 49

Drawback on goods taken into use between importation
and exportation. 49

Drawback on goods used in the manufacture of goods
which are exported. 49

Power to declare what goods are identifiable and to
prohibit drawback in case of specified foreign territory. 49

When no drawback allowed. 50

Time of payment of drawback. 50
Declaration by parties claiming drawback.
50
CHAPTER VII
ARRIVAL AND DEPARTURE OF CONVEYANCE.
Arrival of conveyance. 51
Delivery of import manifest in respect of a vessel. 52
Delivery of import manifest in respect of a conveyance
other than a vessel. 53
Signature and contents of import manifest and
amendment thereof. 53
Duty of person receiving import manifest. 53
Bulk not to be broken until manifest, etc., delivered
and vessel entered inwards. 54
Power to require production of documents and
ask questions. 54
Special pass for breaking bulk. 54
Order for entry outwards or loading of goods to be
obtained before export goods are loaded. 54
No vessel to depart without port-clearance. 55
No conveyance other than vessel to leave without
55
Application for port-clearance of vessels. 55
Conveyances other than vessels to deliver documents
and answer questions before departure. 56
Power to refuse port-clearance to vessels or permission
for departure to other conveyance.
56
Grant of port-clearance or permission for departure. 57
Grant of port-clearance or permission for departure
on security of agent.
Power to cancel port-clearance or permission for
departure.
Exemption of certain classes of conveyance from certain
provisions of this Chapter. 58
CHAPTER VIII
GENERAL PROVISIONS AFFECTING CONVEYANCES AT CUSTOMS-STATIONS
Power to depute officer of customs to board
59
Officer to be received and accommodation to be
59
Officer’s powers of access, etc. 59
Sealing of conveyance. 59
Goods not to be loaded or unloaded or water-borne
except in presence of officer. 60
Goods not to be loaded or unloaded or passed on certain
days or at certain times. 60
Goods not to be loaded or unloaded except at approved
60
Power to exempt from sections 64 and 66. 60
Boat-note. 60
Goods water-borne to be forthwith landed or shipped. 61
Goods not to be transshipped without permission. 61
Power to prohibit plying of unlicensed cargo-boats. 61
Plying of ships of less than one hundred tons. 62
Responsibilities of person in charge or master of 62
a conveyance, agent and owner of the conveyance
CHAPTER IX
DISCHARGE OF CARGO AND ENTRY INWARDS OF GOODS
Discharge of cargo by vessels may commence on
receipt of due permission. 63
Discharge of goods by conveyances other than vessels. 63
Imported goods not to be unloaded unless entered in the
import manifest. 63
Procedure in respect of goods not unloaded by vessels
within time allowed. 63
Power to land small parcels and hold unclaimed parcels. 64
Power to permit immediate discharge. 64
Declaration and assessment for home-consumption or
65
Omitted. 66
Checking of goods declaration by the Customs 66
Omitted. 66
Provisional determination of liability 66
Omitted. 67
Procedure in case of goods not cleared or warehoused or
transshipped or exported or removed from the port within
twenty days after unloading or filing of declaration. 67
Omitted. 68
CHAPTER X
Clearance for home-consumption. 70
Omitted . 70
CHAPTER XI
WAREHOUSING
Application to warehouse. 72
Form of application. 72
Submission of post-dated cheque and indemnity bond 72
Forwarding of goods to warehouse. 72
Receipt of goods at warehouse. 73
Goods how warehoused. 73
Warrant to be given when goods are warehoused. 73
Access of customs officer to warehouse. 73
Power to cause packages lodged in warehouse to be
opened and examined. 74
Access of owners to warehoused goods. 74
Owner’s power to deal with warehoused goods. 74
Manufacture and other operations in relation to goods
in a warehouse. 75
Payment of rent and warehouse-dues. 75
Goods not to be taken out of warehouse except as
provided by this Act. 76
Period for which goods may remain warehoused. 76
Power to remove goods from one warehouse to
another in the same customs-station.
Power to remove goods from one warehousing station
to another.
Transmission of account of goods to officers at
of warehousing station of destination. 77
Remover may enter into a general bond. 78
Goods on arrival at customs-station of destination to
be subject to same laws as goods on first importation. 78
Clearance of bonded goods for home-consumption. 78
Clearance of warehoused goods for export. 78
Clearance of warehoused goods for export as provisions,
on a conveyance proceeding to foreign destination. 78
Application for clearance of goods. 79
Re-assessment of warehoused goods when damaged
or deteriorated. 79
Re-assessment on alteration of duty. 79
Allowance in case of volatile goods. 79
Duty on goods improperly removed from 79
warehouse or allowed to remain beyond fixed
time or lost or destroyed or taken as sample.
Encashment of post-dated cheque 80
Noting removal of goods. 80
Register of bonds. 80
Power to remit duties on warehoused goods lost
or destroyed.
80
Responsibility of warehouse-keeper. 81
Locking of warehouses. 81
Power to decide where goods may be deposited 81
in public warehouse, and on what terms.
Expenses of carriage, packing, etc., to be borne 81
by owner.
CHAPTER XII
TRANSHIPMENT
Chapter not to apply to postal articles. 84
Transshipment of goods without payment of duty. 84
Superintendence of transshipment. 84
Entry, etc., of transshipped goods. 85
Transshipment of provisions and stores from one
conveyance to another of the same owner without
payment of duty. 85
Levy of transshipment fees. 85
CHAPTER XIII
TRANSIT TRADE
Chapter not to apply to baggage and postal articles. 86
Transit of goods in the same conveyance. 86
Transport of certain classes of goods subject to
prescribed conditions. 86
Transit of goods across Pakistan to a foreign territory. 86
CHAPTER XIV
EXPORTATION OR SHIPMENT AND RELANDING
No goods to be loaded on a conveyance, till entry
outwards or permission granted.
Clearance for exportation. 87
Omitted 88
Bond required in certain cases before exportation. 88
Additional charge on goods cleared for export after
port-clearance granted. 88
Notice of non-loading or relanding and return of
duty thereon. 88
Goods relanded or transshipped from a conveyance
returning to a customs-station or putting into another
88
Conveyance returning to customs-station may enter
and land goods. 89
Landing of goods during repairs. 89
Frustrated cargo how dealt with. 89
CHAPTER XV
SPECIAL PROVISIONS REGARDING BAGGAGE AND GOODS IMPORTED OR EXPORTED BY POST
Declaration by passenger or crew of baggage. 91
Determination of rate of duty in respect of baggage. 91
Bona-fide baggage exempt from duty. 91
Temporary detention of baggage. 91
Treatment of baggage of passengers or crew in transit. 91
Label or declaration in respect of goods imported or
exported by post to be treated as entry.
91
Rate of duty in respect of goods imported or
exported by post.
CHAPTER XVI
Chapter not to apply to baggage. 93
Entry of coastal goods. 93
Coastal goods not to be loaded until bill relating
thereto is passed. 93
Clearance of coastal goods at destination. 93
Declaration concerning coasting vessel which has
touched foreign port. 93
Cargo book. 93
Coastal goods not to be loaded or unloaded except at
customs-port or coastal port. 94
Coasting vessel to obtain written orders before departure. 94
Application of certain provisions of this Act to
coastal goods. 94
Prohibition of the coastal trade of certain goods. 95
CHAPTER XVI-A
Application of the Customs Computerized System. 96
Access to the Customs Computerized System. 96
Registered users.
96
Registered users to be allocated unique user identifier. 96
Use of unique user identifier. 96
Cancellation of registration of registered user. 97
Customs to keep records of transmissions. 97
Confidentiality of information. 97
Unauthorized access to or improper use of the Customs
Computerized System. 98
Interference with the Customs Computerized System. 98
Offences in relation to the security of or unauthorized
use of unique user identifiers. 98
Audit or examination of records. 99
Requisition of documents. 99
Documents in foreign language. 99
Authorized officer may take possession of and retain
documents and records. 100
Obstructing access, altering, concealing, destruction
of record. 100
Electronic exchange of information and authentication 100
through the Customs Computerized System
Correction of clerical errors 100
CHAPTER XVII
OFFENCES AND PENALTIES
Punishment for offences. 102
Extent of confiscation. 147
CHAPTER XVIII
PREVENTION OF SMUGGLING POWERS OF SEARCH, SEIZURE AND ARREST ADJUDICATION OF OFFENCES
Power to search on reasonable ground. 151
Person to be searched may desire to be taken before
gazetted officer of customs or Magistrate.
Power to screen or X-Ray bodies of suspected persons
for detecting secreted goods.
Power to arrest. 152
Power to issue search warrant. 155
Power to search and arrest without warrant. 155
Power to stop and search conveyances. 157
Power to examine persons. 157
Power to summon persons to give evidence
and produce documents or things. 158
Person escaping may be afterwards arrested. 158
Seizure of things liable to confiscation. 158
Things seized how dealt with. 159
Procedure in respect of things seized on suspicion
by the police. 159
When seizure or arrest is made, reason in writing
to be given. 160
Power to detain packages containing certain
publications imported into Pakistan. 160
Procedure for disposal by High Court of applications
for release of packages so detained. 161
Power to require production of order permitting
clearance of goods imported or exported by land.
161
Power to prevent making or transmission of certain
signals or messages.
161
Power to station officers in certain factories. 162
Restriction on the possession of goods in certain areas. 162
Punishment of persons accompanying a person possessing
goods liable to confiscation.
Power of adjudication. 162
Omitted. 163
Issue of show-cause notice before confiscation of goods
or imposition of penalty. 163
Option to pay fine in lieu of confiscated goods. 163
Vesting of confiscated property in the Federal
164
Levy of penalty for departure without authority or 164
ailure to bring-to.
Power to try summarily. 164
Special Judges. 165
Cognizance of offences by Special Judges. 165
Special Judge, etc. to have exclusive jurisdiction. 166
185C. Provisions of Code of Criminal Procedure, 1898,
to apply. 167
Transfer of cases. 167
Place of sittings. 167
Appeal to Special Appellate Court. 167
Persons who may conduct prosecution, etc. 168
Detention of goods pending payment of fine or penalty. 168
Burden of proof as to lawful authority, etc. 168
Presumption as to documents in certain cases. 168
Notice of conviction to be displayed. 169
Power to publish conviction. 170
Imprisonment may be of either description. 170
Duty of certain persons to give information. 170
CHAPTER XIX
APPEALS AND REVISIONS
Appeals to Collector (Appeals). 177
193-A Procedure in Appeal. 177
Appellate Tribunal. 178
Appeals to the Appellate Tribunal. 178
Orders of Appellate Tribunal. 180
Procedure of Appellate Tribunal. 181
Powers of Board or Collector to pass certain orders. 183
Omitted. 183
Deposit, pending appeal, of duty demanded or
penalty levied. 183
Alternative Dispute Resolution. 183
Reference to High Court. 185
Exclusion of time taken for copy. 186
196-I Transfer of certain pending proceedings. 186
Definitions. 187
CHAPTER XIX-A
Customs control over conveyances and goods. 205
Power to open packages and examine, weigh or 205
measure goods.
Power to take samples of goods. 205
Owner to make all arrangements and bear all expenses. 205
Procedure for sale of goods and application of sales
206
Recovery of Government dues. 206
Levy of surcharge 208
Wharfage or storage fees. 208
Power to authorize expenditure 208
Issue of certificate and duplicates of customs’ document. 208
Amendment of documents. 209
Correction of clerical errors, etc. 209
Custom-house agents to be licensed. 209
Person to produce authority if required. 209
Liability of principal and agent. 209
Liability of agent appointed by the person-in-charge
of a conveyance.
210
Maintenance of record. 210
Access to the premises and records by the 210
Regulation of business in gold, etc. 211
Recovery of money upon certain documents. 211
Remission of duty and payment of compensation
to the owner in certain cases.
Service of order, decision, etc. 211
No compensation for loss or injury except on proof
of neglect or wilful act. 212
Protection of action taken under the Act. 212
Notice of proceedings. 212
Power to make rules. 212
Omitted 213
Savings. 213
Removal of difficulties. 213
Officers of customs to follow Board’s orders, etc. 213
Extension of time limit. 214
THE FIRST SCHEDULE 218
THE SECOND SHCEUDLE Omitted. 218
THE THIRD SCHEDULE 218
THE FOURTH SCHEDULE Omitted. 220

(i)

THE CUSTOMS ACT,1969

DECLARATION OF PORTS, AIRPORTS, LAND CUSTOMS-STATIONS, ETC.

Section Page

(ii) (iii) (iv) (v)

57

57

(vi)

(vii)

THE CUSTOMS ACT,1969

CLEARANCE OF GOODS FOR HOME-CONSUMPTION

Section Page

(viii)

76

77

(ix)

87

(x)

92

(xi)

PROVISIONS RELATING TO COASTAL

GOODS AND VESSELS Section Page

(xii) (xiii)

151

152

(xiv)

162

(xv)

SETTLEMENT OF CASES

196k
to
196u Omitted.

200

(xvi)

CHAPTER XX

MISCELLANEOUS Section Page

officers of Customs

(xvii)

211

(xviii)

1[Act No. IV of 1969]

[3rd March,1969]

An Act to consolidate and amend the law relating to Customs

Whereas it is expedient to consolidate and amend the law relating to the levy

and collection of customs-duties 1a[, fee and service charges] and to provide for other

allied matters:

It is hereby enacted as follows:

CHAPTER 1

PRELIMINARY

1. Short title, extent and commencement.

(1)
This Act may be called the Customs Act,1969.
(2)
It 2[extends] to the whole of Pakistan.
(3)
It shall come into force on such date as the 3[Federal Government] may, by notification in the official Gazette, appoint. 4[ ]

2. Definitions.-In this Act, unless there is anything repugnant in the subject or context:

5[(a) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, 6[the Collector (Appeals)] or the Appellate Tribunal;]

7(ai) “advance ruling” means classification determined by the Board or any officer, or committee authorized by the Board for the assessment of the goods intended to be imported or exported.‖]

8[(aa) “agent” means a person licensed under section 207 or permitted

to transact any business under section 208;‖

(aaa) “appellate tribunal” means the Customs 36[…..] Appellate Tribunal constituted under section 194;]

(b) 8a[“appropriate officer”, means the officer of customs to whom such functions have been assigned by or under this Act or the rules made there under;]

9[(bb) “assessment” includes provisional assessment, reassessment and any order or assessment in which the duty assessed is nil;

10[(bba) “audit” means examination of books, records, documents, correspondence, stocks and inventory of goods relating to import, export and other business activities of the persons referred to in section 211, in order to ascertain their liability of duties and taxes and compliance with relevant laws and rules;]

(bbb) “baggage” includes unaccompanied baggage but does not include motor vehicles;]

11[(c) omitted.

12(d) omitted].

(e) 12a[“Board” means the Central Board of Revenue established under the Central Board of Revenue Act, 1924 (IV of 1924), and on the commencement of Federal Board of Revenue Act, 2007, the Federal Board of Revenue established under section 3 thereof;]

13[(ea) "carrier" means the person actually transporting goods or incharge of, or responsible for, the operations of the means of transport or the owner thereof;]

(f) “coastal goods” means the goods transported in a vessel from one port in Pakistan to another, but does not include imported goods on which customs duty has not been paid;

14[(fa) “Collector” means Collector of Customs appointed under section 3 and includes any other officers equivalent in rank with any other designation appointed under this Act to perform specified functions in own jurisdiction;]

15[(ff) “Collector (Appeals)” means a person appointed to be a Collector of Customs (Appeals) under section 3;]

(g)
“conveyance” means any means of transport used for carrying goods or passengers such as a vessel, aircraft, vehicle or animal;
(h)
“customs-airport” means any airport declared under section 9 to be a customs-airport;
(i)
“customs-area” means the limits of the customs-station specified under section 10 and includes any area in which imported goods or goods for export are ordinarily kept before clearance by the customs authorities;

16[(ia) "Customs Computerized System" means a comprehensive Customs information technology system specified in Chapter XVI-A;

17[(ib) omitted].

(j) “customs-port” means any place declared under section 9 to be

a 18[customs-port]; 19[(jj) omitted].

(k) “customs-station” means any customs-port, customs-airport or any land customs-station;

20[(kk) “detain”, in relation to goods, means to prohibit the disposal or use of the goods, pending the finalization of any proceedings under this Act in relation to the goods or the owner thereof;]

21[(kka) “documents” means a goods declaration, application for claim of refund, duty drawback or repayment of duty, import or export general manifest, passenger manifest, bill of lading, airway bill, commercial invoice and packing list or similar other forms or documents used for customs clearance or making a declaration to Customs, whether or not signed or initialed or otherwise authenticated, and also includes,

(i)
any form of writing on material, data or information recorded, transmitted, or stored by means of a tape recorder, computer or any other device, and material subsequently derived from information so recorded, transmitted or stored;
(ii)
a label, marking or other form of writing that identifies anything of which it forms part or to which it is attached by any means;

(iii) a book, map, plan, graph, or drawing; and

(iv) a photograph, film, negative, tape, or other device in which one or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced.

(kkb) electronic duty drawback filing and payment system” means Electronic Duty Drawback Filing and Payment System as specified by the rules;]

22[(kkk) “export manifest” means export manifest delivered under subsection (2) of section 53 and includes electronically filed export manifest;]

(l) “goods” means all movable goods and includes

(i)
conveyance,
(ii)
stores and materials,

(iii) baggage, and

(iv) currency and negotiable instruments;

23[(la) ―goods declaration‖ means a goods declaration filed under sections 79, 104, 131, 139 or 144 and includes a goods declaration electronically filed;]

(lb) “import manifest” means import manifest delivered under section 43 or 44 as the case may be and includes electronically filed import manifest;]

35[(Ic) “KIBOR” means Karachi Inter Bank Offered Rate prevalent on the first day of each quarter of the financial year.]

(m)
“land customs-station” means any place including an inland river port declared under section 9 to be a land customs-station;
(n)
“master” when used in relation to any vessel, means any person, except a pilot or harbour master, having command or charge of such vessel;
(o)
“officer of customs” means an officer appointed under section 3;
(p)
“Pakistan customs-waters” means the waters extending into the sea to a distance of twelve nautical miles measured from the appropriate base line on the coast of Pakistan;

3

24[(pa) ”person” includes a company, an association, a body of individuals whether incorporated or not;

(q) “person-in-charge” means

(i)
in relation to a vessel, the master of the vessel;
(ii)
in relation to an aircraft, the commander or pilot in charge of the aircraft;

(iii) in relation to a railway train, the conductor, guard or other person having the chief direction of the train;

(iv) in relation to any other conveyance, the driver or any other person having control of the conveyance;

25[(qa) "principal" means the owner of the goods or the person primarily responsible for making a declaration to Customs under this Act and includes the person in-charge of the conveyance, carrier, custodian of cargo, and the terminal operator;

(r) “rules” means the rules made under this Act;

26[(rr) “seize” means to take into custody, physically or otherwise, goods in respect of which some offence has been committed or is believed to have been committed under this Act or the rules, and all cognate words and expressions shall be construed accordingly;]

(s) “smuggle” means to bring into or take out of Pakistan, in breach of any prohibition or restriction for the time being in force, or evading payment of customs-duties or taxes leviable thereon,27[(i) gold bullion, silver bullion, platinum, palladium, radium, precious stones, antiques, currency, narcotics and narcotic and psychotropic substances; or

(ii) manufactures of gold or silver or platinum or palladium or radium or precious stones, and any other goods notified by the Federal Government in the official Gazette, which, in each case, exceed 37[one hundred and] 28[fifty thousand rupees] in value; or

(iii) any goods by any route other than a route declared under section 9 or 10 or from any place other than a customs-station.] and includes an attempt, abetment or connivance of so bringing in or taking out of such goods; and all cognate words and expressions shall be construed accordingly;]

29[(ss) “Special Judge” means a Special Judge appointed under Section 185;

(sss) “Special Appellate Court” means a Special Appellate Court constituted under section 46 of the Prevention of Smuggling Act,1977;]

30[(ssss) “surcharge” means an amount or charge required to be paid under sections 21A, 83,86,98 and 202A or any surcharge payable as such under this Act;]

(t)
“warehouse” means any place appointed or licensed under section 12 or section 13;
(u)
“warehousing station” means a place declared as a warehousing station under section 11;
(v)
“wharf” means any place in customs-port approved under clause (b) of section 10 for the loading and unloading of goods or any class of goods 31[;]
32[(w) 33[***]arrears” means the amount of any duty, surcharge, fine or penalty 34[or any other amount] which is adjudged or demanded through an adjudication order passed by the competent authority or the amount referred to in the notice under subsection (2) of section 202 which is recoverable in full or in part and is not paid within the time prescribed;
(x)
“default” means the failure to pay the outstanding arrears as defined in clause (w); and
(y)
“defaulter” means the person and in the case of a company or firm every director or partner of the company or, as the case may be of the firm and of which he is a director or a partner of proprietor, and includes the guarantor who fails to pay outstanding arrears.]

LEGAL REFERENCE

1. For Statement of Objects and Reasons, see Gazette of Pakistan, 1969 Extraordinary (Rawalpindi), Page626, and for the report of the Select Committee see ibid, 1969 Extraordinary(Dacca), Page 199.

1a The comma and words “,fee and service charges” inserted vide FA, 2007.

2. This Act has been extended to the Federally Administered Tribal Areas, (subject to the modification that section 185 thereof shall have effect as if in sub-section (2), after the word “he” words “is a Political Agent or” were inserted by the Regulation No.1 of 1984.s.2.

3. Substituted for the words “Central Government” by the Finance Ordinance,1972(XXI of 1972), section 3, page 56 and Second Schedule S.1, page 76 with effect from 17th June,1972.

4 .i.e. the 1st day of January,1970, vide Notification published in Gazette of Pakistan,

Extraordinary, January,1970 Extraordinary, Page,1035. 5 Substituted by Finance Act, 1989 (V of 1989), S.5(1)(a), page 106.

  1. Omitted vide Finance Ordinance, 2000(XXI of 2000), S.4(1)(a), page 198 and inserted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(a), page 222.
  2. Inserted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(b), page 222.
  3. Inserted by Finance Act, 1989(V of 1989), S.5(1)(b), page 106.

8a. Substituted by the FA, 2007. Before substitution definition was as under:

appropriate officer” in relation to any functions to be performed under this Act,

means the officer of customs to whom such functions have been assigned by or under this Act;

  1. Inserted by Finance Act, 1989(V of 1989), S.5(1)(c), pages 106-107.
  2. Inserted by Finance Act, 2006.
  3. Omitted by Finance Act, 2006. At the time of omitting the clause (c) was as under:

(c)“bill of entry” means bill of entry delivered under section 79 11a[and includes electronic filing of bill of entry]; 11a Added by Finance Ordinance, 2001 (XXV of 2001) S.4(1), page 304.

12. Omitted by Finance Act, 2006. At the time of omitting the clause (d) was as under:“(d)“bill of export” means bill of export delivered under section 131 **[and includes electronic filing of bill of export];.**Added by Finance Ordinance, 2001 (XXV of 2001), S.4(1)(ii), page 305.

12a. Substituted by the FA, 2007. Before substitution definition was as under:“Board” means the Central Board of Revenue, constituted under the Central Board of Revenue Act, 1924;

  1. Inserted by Finance Act, 2003 (I of 2003), S.5(1)(a), page 20.
  2. Inserted by Finance Act, 2005

15. Inserted by Finance Act, 1989 (V of 1989), S.5(1)(a), page 107, Omitted by Finance Ordinance, 2000 (XI of 2000), S.4(1)(b), page 198 and inserted by Finance Ordinance 2002 (XXVII of 20020, S.4(1)(c). At the time of omission, clause (ff) was as under:―[(ff) ‖Collector (Appeals)‖ means a person appointed to be a Collector of Customs (Appeals) under section 3;]”

16. Inserted by the Finance Act, 1994 (XII of 1994), S.6(1), page 253 and substituted by Finance Ordinance, 2001 (XXV of 2001), S.4(1)(iii), page 305, substituted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(d), page 223 and substituted by Finance Act, 2003 (I of 2003), S.5(1)(b), page 20. At the time of substitution clause (ia) was as under:―[(ia) ―customs documents‖ includes bill of entry, bill of export, application for claim for refund, duty drawback and repayment of duty, baggage declaration form or similar other forms used for customs clearance and such documents electronically filed;]‖. ―[(ia) ―customs documents‖ include bill of entry, bill of export, application for claim for refund, duty drawback and repayment of duty, baggage declaration form or similar other forms used for customs clearance;]‖.

Substituted for clause (ia) as clauses (ia) and (ib) by FA, 2003 and omitted by Finance Act, 2006. At the time of omitting the clause (ib) was as under:

(ib) “customs documents” includes bill of entry, bill of export or goods declaration, applications for claim for refund, duty drawback and repayment of duty, baggage declaration form and documents such as bill of lading, commercial invoice and packing list or similar other forms or documents used for customs clearance and includes such documents electronically filed and system generated documents that are not required to be manually signed by the departmental officials;

  1. Substituted for the words “port for the shipment and landing of goods” by Finance Act, 1973 (L of 1973), S.9(1)(a), page 530.
  2. Inserted by the Finance Act, 1977 (XXX of 1977), S.9(1), page 301 and omitted by Finance Act, 2006. At the time of omitting the clause (jj) was as under:

[(jj) “customs-practitioner” means a person registered as a customs practitioner in accordance with the rules made by the Central Board of Revenue in this behalf];

17a.

6

  1. Inserted by the Finance Act, 1987 (VI of 1987), S.8(1)(a), page 33.
  2. Inserted by the Finance Act, 2006.
  3. Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(iv), page 305.

23. Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(v), page 305 and substituted by the Finance Act, 2003 and Finance Act, 2006. At the time of substitution was as under:23a. ―(la) import manifest means import manifest delivered under section 43 or 44 as the case may be and includes electronically filed import manifest;]‖. 23b Substituted by the Finance Act, 2006. At the time of substitution the clause (la) was as under:

23b 23c

[(la)"goods declaration" means a goods declaration filed under sections 79, [or] 131 23d[***] and includes goods declaration filed electronically;

23c. Substituted for the commas, figure and letter“79A”by the Finance Act, 2005 23d. Omitted the word, figure and letter “or 131A” by the Finance Act, 2005

  1. Inserted by Finance Act, 2005 (VII of 2005),S.3(1)(c)page 130..
  2. Inserted by the Finance Act, 2003 (I of 2003), S.5(1)(d), page 21. 26 Inserted by the Finance Act, 1987 (XI of 1987), S.8(1)(b), page 34.

27. Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(1), page 59. At the time of substitution was as under:

. ―[(a) gold bullion, silver bullion, precious stones, currency, manufactures of gold or silver or precious stones or any other goods notified by the 27a[Federal Government] in the official Gazette, in each case exceeding one thousand rupees in value; or

(b) any 27b[****] goods by any route other than a route declared under section 9 or

10 or from any place other than a customs station;]‖.

27a. Substituted for the words ―Central Government‖ by the Finance, 1972 (XXI of

1972), S.3, page 56 and Second Schedule S.1, page 76.

27b. The word ―other‖ omitted by the Finance Act, 1973 (L of 1973).

28 Substituted for the words “five thousand rupees” by the Finance Act, 1998 (III of 1998), S.4(1), page 39.

29. Inserted by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(1)(a), page 223

(w.e.f. 16th May, 1977)

  1. Inserted by the Finance Act, 2006..
  2. Replaced “full stop” by the Finance Act,1999(IV of 1999), S.10(1)(a), page 757.
  3. Added by the Finance Act, 1999 (IV of 1999), S.10(1)(a), page 757.
  4. Omitted the word “outstanding” by the Finance Act, 2006.
  5. Inserted by the Finance Act, 2006.
  6. Inserted by Finance Act,2009.
  7. The words “Excise and Sales Taxomitted by the Finance Act,2010.
  8. Inserted by Finance Act,2010.

THE CUSTOMS ACT,1969 CHAPTER II APPOINTMENT OF OFFICERS OF CUSTOMS AND THEIR POWERS 1[3. Appointment of officers of customs.-For the purposes of this Act, the Board may, by notification in the official Gazette, appoint, in relation to any area specified in the notification, any person to be

(a) a Chief Collector of Customs;
(b) a Collector of Customs;
(c) a Collector of Customs (Appeals);
(d) an Additional Collector of Customs;
(e) a Deputy Collector of Customs;
(f) an Assistant Collector of Customs;
(g) an officer of Customs with any other designation.]

1a[3A. Directorate General of Intelligence and Investigation, Federal Board of Revenue.-The Directorate General of Intelligence and Investigation shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

3B. Directorate General of Internal Audit.-The Directorate General of Internal Audit shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

3C. Directorate General of Training and Research.-The Directorate General of Training and Research shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.

2[3D. Directorate General of Valuation.-The Directorate General of Valuation shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

10[3DD. Directorate General of Post Clearance audit (PCA).-The Directorate-General of Post Clearance Audit(PCA) shall consist of a Directors-General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

3E. Powers and functioning of the Directorates, etc.-The Board may specify the functions, jurisdiction and powers of the Directorates specified in the preceding sections and their officers by notification in the official Gazette.]

4. Powers and duties of officers of customs.-An officer of customs appointed under section 3 shall exercise such powers and discharge such duties as are conferred or imposed on him by or under this Act 3[or the rules made thereunder]; and he shall also be competent to exercise all powers and discharge all duties conferred or imposed upon any officer subordinate to him:

Provided that, notwithstanding anything contained in this Act or the rules, the Board may, by general or special order, impose such limitations or conditions on the exercise of such powers and discharge of such duties as it thinks fit.

4[5 “Delegation of powers.-5(1)] The Board may, by notification in the official Gazette and subject to such limitations or conditions as may be specified therein, empower by name or designation

(a)
any Additional Collector of Customs or Deputy Collector of Customs to exercise any of the powers of a Collector of Customs under this Act;
(b)
any Deputy Collector of Customs or Assistant Collector of Customs to exercise any of the powers of an Additional Collector of Customs under this Act;
(c)
any Assistant Collector of Customs to exercise any of the powers of a Deputy Collector of Customs under this Act; and
(d)
any other officer of customs with any other designation. ]

6[(2) Unless the Board in any case otherwise directs, the Director General, Director, and Collector may authorize any officer to exercise within any specified area any of the powers of the Director General, Director, Collector or any other officer of Customs under this Act.]

7[6. Entrustment of functions of customs officers to certain other officers.-8(1)

The Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally, any functions of any officer of customs under this Act to any officer of the Federal Government, Provincial Government, State Bank of Pakistan and Scheduled Banks:

Provided that where any officer in performance of his functions under this section commits any offence under this Act, such officer shall, in addition to any other penalty which may be imposed under any other law for the time being in force, be liable to such punishment as is specified in sub-section (1) of section 156 for the offence committed by him.]

9[(2) No officer entrusted with any functions of any officer of customs under sub-section (1) shall interfere in any manner in the performance or discharge of any duty by an officer of customs in places notified under section 9.]

  1. Assistance to the officers of customs.-All officers of Central Excise, Police, and the Civil Armed Forces, and all officers engaged in the collection of land-revenue are hereby empowered and required to assist officers of customs in the discharge of their functions under this Act.
  2. Exemption from service on jury or inquest or as assessors.-Notwithstanding anything contained in any other law, no officer of the Board or Collector of Customs and no other officer of customs whom the Board or Collector of Customs deems it necessary to exempt on grounds of public duty, shall be compelled to serve on any jury or inquest or as an assessor.

LEGAL REFERENCE

1. Substituted by the Finance Act, 1996 (IX of 1996), S.4(1), page 469. Section 3 at the time of substitution was as under:

“3. Appointment of officers of Customs.-For the purposes of this Act, the Board may, by notification in the official Gazette, appoint, in relation to any area specified in the notification, any person to be

(a)
a Collector of Customs; **[(aa) a Collector of Customs (Appeals);]
(b)
a Deputy Collector of Customs;
(c)
an Assistant Collector of Customs; or
(d)
an officer of customs with any other designation.‖

**. Inserted by the Finance Act, 1989 (V of 1989), S.5(2)(a), page 107. 1a. Substituted by the FA, 2007, Before substitution sections 3A and 3B was as under:

1b[3A. The Directorate General (Intelligence and Investigation), Customs and Federal.-The Directorate General (Intelligence and Investigation), Customs and Federal Excise, shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint. 3B. Directorate General of Inspection and Internal Audit.-The Directorate General of Inspection and Internal Audit shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and

such other officers as the Board may, by notification in the official Gazette, appoint.‖

1b. Inserted by Finance Act, 2005

2. Substituted by the FA, 2007, Before substitution sections 3D was as under:

3D. Directorate General, Valuation and Post-Clearance Audit.-The Directorate General Valuation and Post-Clearance Audit shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official

Gazette, appoint.‖

  1. Inserted by Finance Act, 2006
  2. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(2), page 198. At the time of substitution section 5 was as under:

“5. Delegation of powers.-The Board, may by notification in the official Gazette, and subject to such limitation or conditions, if any, as may be specified therein, empower by name or designation

(a)
any 4a[Additional Collector] of Customs to exercise any of the powers of a Collector of Collector of Customs under this Act;
(b)
any 4b[Assistant Collector or Deputy Collector] of Customs to exercise any of the powers of a 4c[Additional Collector] of Customs under this Act;
(c)
any other officer of Customs to exercise any of the powers of an 4a[Assistant

Collector or Deputy Collector] of Customs under this Act.‖.

4a. Substituted for the words “Deputy Collector” by the Finance Act, 1996 (IX of 1996). 4b. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996). 4c. The brackets and figure “(1)” omitted by Customs (Amendment) Ordinance, 2000 (XLVI of 2000), S.2, page 651.

  1. Renumbered by Finance Act, 2005 (VII of 2005),S.3(3), page 131.
  2. Added by Finance Act, 2005 (VII of 2005), S.3(3),page 131.

7. Substituted by Customs (Amendment) Ordinance,1996 and Finance Act,1996(IX of 1996)S.4(2),Page 469. Earlier same amendment was made to the Customs (Amendment) Ordinance, 1995 (CXIV of 1995) and Customs (Amendment) Ordinance, 1996 (XVI of 1996), At the time of substitution section 6 was as under:6. Entrustment of functions of the customs officers to certain other officers.The Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally, any functions of any officer of customs under this Act to any officer of the 7a[Federal] or Provincial 7a[Government].‖. 7a. Substituted for the words ―Central Government‖ by Finance Ordinance, 1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76.

  1. Renumbered by Finance Act, 2004 (II of 2004), S.3(1), page 13.
  2. Added by Finance Act, 2004 (V of 2004), S.3(1), page.
  3. Inserted by Finance Act,2008 (I of 2008) Page 45)

CHAPTER III

DECLARATION OF PORTS, AIRPORTS,
LAND CUSTOMS STATIONS, ETC.

9. Declaration of customsports, customs airports, etc.-The Board may, by notification in the official Gazette, declare:

1[(a) the places which alone shall be customs-ports or customs-airports for the clearance of goods or any class of goods imported or to be exported;]

(b)
the places which alone shall be land customs-stations for the clearance of goods or any class of goods imported or to be exported by land or inland waterways;
(c)
the routes by which alone goods or any class of goods specified in the notification may pass by land or inland waterways into or out of Pakistan, or to or from any land customs-station or to or from any land frontier;
(d)
the places which alone shall be ports for the carrying on of coastal trade with any specified customs-ports in Pakistan; and
(e)
what shall for the purposes of this Act be deemed to be a custom house and the limits thereof.

10. Power to approve landing places and specify limits of customs-stations.

The Board may, by notification in the official Gazette:

(a)
specify the limits of any customs-station; and
(b)
approve proper places in any customs-station for the loading and unloading of goods or any class of goods.

11. Power to declare warehousing stations.-The Board may, by notification in the official Gazette, declare places to be warehousing stations at which alone public warehouses may be appointed and private warehouses may be licensed.

2[12. Power to appoint or licence public warehouses.-(1) At any warehousing station, the Collector of Customs may, from time to time, appoint or licence public warehouses wherein dutiable goods may be deposited without payment of customs-duty.

(2)
Every application for a licence for a public warehouse shall be made in such form as may be prescribed by the Collector of Customs.
(3)
A licence granted under this section may be cancelled by the Collector of Customs for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made there under, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.
(4)
Pending consideration whether a licence be cancelled under sub-section (3), the Collector of Customs may suspend the licence.]

13. Power to licence private warehouses.-(1) At any warehousing station, the Collector of Customs may, from time to time, licence private warehouses wherein dutiable goods may be deposited 3[without payment of customs-duty.]

(2 ) Every application for a licence for a private warehouse shall be made in such form as may be prescribed by the Collector of Customs.

4[(3) A licence granted under this Section may be cancelled by the Collector of Customs for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made there under, after the licensee has been given proper opportunity of showing cause against the proposed cancellation].

(4) Pending consideration whether a licence be cancelled under sub-section (3), the Collector of Customs may suspend the licence.

14. Stations for officers of customs to board and land.-The Collector of Customs may, from time to time, appoint, in or near any customs-port, stations or limits at or within which vessels arriving at or departing from such port shall bring to for the boarding or landing of officers of customs, and may, unless separate provisions therefore have been made under the Ports Act,1908 (XV of 1908) direct at what particular place in any such port vessels, not brought into port by pilots, shall anchor or moor.

5[(14-A. Provision of accommodation at Customs-ports, etc.-Any agency or person managing or owning a customs-port, a customs-airport or a land customs station shall provide at its or his own cost adequate accommodation to customs staff for offices, examination of goods, detention and storage of goods and for other departmental requirements to be determined by the Collector of Customs 6[and shall pay utility bills, rent and taxes in respect of such accommodation.]

LEGAL REFERENCE

1. Substituted by the Finance Act, 1973 (L of 1973), S.9(2), page 531, At the time of substitution clause (a) was as under:

―(a) the ports and airports which alone shall be customs ports or customs airports for the unloading of imported goods and loading of goods for export or any class of

such goods.‖.

2. Substituted by the Finance Act, 1990 (VII of 1990), S.6(1), page 34. At the time of substitution section 12 was as under:

12. Power to appoint public warehouse.-At any warehousing station, the Collector of Customs may, from time to time, appoint, public warehouses wherein

dutiable goods may be deposited without payment of customs duty.‖.

  1. Added by the Finance Ordinance, 2002 (XXVII of 2002), S.4(2), page 223.
  2. Substituted by the Finance Act, 1986 (I of 1986), page 10. At the time of substitution sub-section (3) was as under:

―(3) Every licence granted under this section may be cancelled on conviction of the licensee of any offence under this Act relating to warehouse, or for infringement of any

condition provided in the licence, or on the expiration of one month’s notice in writing given to the licence by the Collector of Customs.‖.

  1. Added by the Finance Ordinance, 1984 (XXVIII of 1984).
  2. Added by the Finance Ordinance, 2001 (XXV of 2001), S.4(2), page 305.

CHAPTER IV

PROHIBITION AND RESTRICTION OF
IMPORTATION AND EXPORTATION

1[15. Prohibitions.-No goods specified in the following clauses shall be brought into or taken out of Pakistan, namely:

(a)
counterfeit coins, forged or counterfeit currency notes, and any other counterfeit product;
(b)
any obscene book, pamphlet, paper, drawing, painting, representation, figure, photograph, film, or, article, video or audio recording, CDs or recording on any other media;
(c)
goods having applied thereto a counterfeit trade mark within the meaning of the Pakistan Penal Code, 1860 (Act XLV of 1860), or a false trade description within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout-Designs of Integrated Circuits Ordinance, 2000 (XLIX of 2000), the Registered Designs Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001), or goods imported or exported in contravention of the provisions of section 32;
(d)
goods made or produced outside Pakistan and having applied thereto any name or trade mark, being or purporting to be the name or trade mark of any manufacturer, dealer or trader in Pakistan, unless,
(i)
the name or trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place outside Pakistan; and
(ii)
the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark, and in the same language and character as the name or trade mark;
(e)
goods involving infringement of copyright, layout-design of integrated circuits, industrial designs, patents within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Designs Ordinance, 2000 (XLV of 2000), and the Patents Ordinance, 2000 (LXI of 2000), respectively; and
(f)
goods made or produced outside Pakistan and intended for sale, and having applied thereto, a design in which copyright exists under the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout Designs of Integrated Circuits Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001), in respect of the class to which the goods belong or any fraudulent or obvious imitation of such design, patent, copyright except when the application of such design has been made with the

licence or written consent of the registered proprietor, right holder of the

design, patent or copyright, as the case may be:

4[Provided that offences relating to goods imported or exported in violation of Intellectual Property Rights shall, notwithstanding any thing contained in any other law for the time being in force, be adjudicated under section 179 by the appropriate officer of customs.]

16. Power to prohibit or restrict importation and exportation of goods.-The 2[Federal Government] may, from time to time, by notification in the official Gazette, prohibit or restrict the bringing into or taking out of Pakistan of any goods of specified description by air, sea or land.

3[17. Detention, seizure and confiscation of goods imported in violation of section 15 or section 16.-Where any goods are imported into, or attempted to be exported out of, Pakistan in violation of the provisions of section 15 or of a notification under section 16, such goods shall, without prejudice to any other penalty to which the offender may be liable under this Act or the rules made there under or any other law, be liable to detention, for seizure or confiscation subject to approval of an officer not below the rank of an Assistant Collector of Customs, and seizure for confiscation through adjudication, if required.]

LEGAL REFERENCE

1. Substituted by the Finance Act, 2004 (II of 2004)S.3(2), page 13. At the time of substitution section 15 was as under:

“15. Prohibition.-No goods specified in the following clauses shall be brought, whether by air or land or sea, into Pakistan:

(a)
counterfeit coin;
(b)
forged or counterfeit currency notes;
(c)
any obscene book, pamphlet, paper, drawing, painting, representation , figure, photograph, film or article;
(d)
goods having applied thereto a counterfeit trade mark within the meaning of the Pakistan Penal Code (Act XLV of 1860), or a false trade description within the meaning of the Merchandise Marks Act,1889(IV of 1889);
(e)
goods made or produced outside Pakistan and having applied thereto any name or trade mark, being or purporting to be the name or trade mark of any manufacturer, dealer or trader in Pakistan unless
(i)
the name or trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place outside Pakistan; and
(ii)
the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark, and in the same language and character as the name or trade mark;
(f)
piece-goods manufactured outside Pakistan (such as are ordinarily sold by length or by the piece), unless the real length thereof in standard yards or other
measurement for the time being applying in Pakistan has been conspicuously stamped on each piece in Arabic numerals; and
(g)
goods made or produced outside Pakistan and intended for sale, and having applied thereto, a design in which copyright exists under the Patents and Designs Act of 1911(II of 1911), in respect of the class to which the goods belong or any fraudulent or obvious imitation of such design except when the application of such design has been made with the licence or written consent of the registered proprietor of the design;

Provided that the 1a[Federal Government] may, by an order in writing, exempt from the provisions of this section any goods or any class or description of

goods in transit to a foreign territory.‖

1a. The words “Central Government” substituted by the Finance Ordinance,

1972 (XXI of 1972), Section 3, page 56 and Second Schedule S.1, page 76 w.e.f. 17th June, 1972.

2. The words “Central Government” substituted by the Finance Ordinance, 1972 (XXI of 1972), Section 3, page 56 and Second Schedule S.1, page 76 w.e.f. 17th June, 1972.

3. Substituted by the Finance Act, 2005. At the time of substitution section 17 was as under:“17. 3a[Seizure] and confiscation of goods imported in breach of Section 15 or Section 16.-Where any goods ae imported into or attempted to be exported out of Pakistan in violation of the provisions of section 15 or of a notification under section 16, such goods shall, without prejudice to any other penalty to which the offender may be liable under this Act, or any other law, but subject to rules, be liable to 3a[seizure] and confiscation.‖.

3a. Substituted for the word “Detention” by the Finance Act, 1987 (VI of 1987), S.8(2), page 34.

4. Inserted by Finance Act, 2009

CHAPTER V

LEVY OF, EXEMPTION FROM, AND REPAYMENT OF, CUSTOMS-DUTIES

1[18. Goods dutiable.-(1) Except as hereinafter provided, customs duties shall be levied at such rates as are prescribed in the First Schedule or under any other law for the time being in force on,

(a)
goods imported into Pakistan;
(b)
goods brought from any foreign country to any customs station, and without payment of duty there, transshipped or transported for, or thence carried to, and imported at any other customs-station; and
(c)
goods brought in bond from one customs station to another.
(2)
No export duty shall be levied on the goods exported from Pakistan.

(3) The Federal Government may, by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods imported or exported, as specified in the First Schedule at a rate not exceeding one hundred per cent of the value of such goods as determined under section 25 1b[ or, as the case may be, section 25A].

(4)
The regulatory duty levied under sub-section (3) shall
(a)
be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and
(b)
be leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.]

2[(5) The Federal Government may, by notification in the official Gazette, levy an additional customs-duty on such imported goods as are specified in the First Schedule, at a rate not exceeding thirty-five per cent of value of such goods as determined under section 25 2a[ or, as the case may be, section 25A:]

2b[Provided that the cumulative incidence of customs-duties leviable under sub-sections (1), (3) and (5) shall not exceed the rates agreed to by the Government of Pakistan under multilateral trade agreements.]

(6)
The additional customs-duty levied under sub-section (5) shall be,
(a)
in addition to any duty imposed under sub-sections (1) and (3) or under any other law for the time being in force; and
(b)
leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the official Gazette in which such notification appears is published at any time after that day.]

3[18.A Special customs duty on imported goods.-The Federal Government may, by notification in the official Gazette, levy a special customs duty on the importation of such of the goods specified in the First Schedule as are of the same kind as goods produced or manufactured in Pakistan, at a rate not exceeding the rate of duty of excise leviable under the Central Excises and Salt Act,1944 (I of 1944), on the goods produced or manufactured in Pakistan:

Provided that the exemption of any goods from the whole or any part of the duty of excise for the time being in force shall not prevent the Federal Government from levying a special customs duty on the importation of goods of the same kind:

Provided further that, for the purposes of the Sales Tax 4[***] Act 1990 (VII of 1990), the special customs duty shall not constitute a part of the value of supply.]

5[18B. OMITTED.]

6[18C. Rates of duty and taxes and determination of origin under trade agreements.-(1) Whereunder a trade agreement between the Government of Pakistan and the Government of a foreign country or territory, duty at a rate lower than that specified in the First Schedule is to be charged on articles which are the produce or manufacture of such foreign country or territory, the Federal Government may, by notification in the official Gazette, make rules for determining if any article is the produce or manufacture of such foreign country or territory and for requiring the owner to make a claim at the time of importation, supported by such evidence as may be prescribed in the said rules, for assessment at the appropriate lower rate under such agreement.

(2)
Where in respect of any article, a preferential rate of duty is specified in the First Schedule, or is admissible by virtue of a notification under sub-section (1), the duty to be levied and collected shall be at the standard rate unless the owner of the article claims at the time of importation that it is chargeable with a preferential rate of duty, being the produce or manufacture of such preferential or free trade area, as is notified under sub-section (3) and the article is determined, in accordance with the rules made under sub-section (1) to be such produce or manufacture.
(3) For the purposes of this section and the First Schedule ―preferential area or free trade area‖ means any country or territory which the Federal Government may, by notification in the official Gazette, declare to be such area.
(4)
Notwithstanding anything contained in sub-sections (1) and (20, where the Federal Government is satisfied that, in the interests of trade including promotion

of exports, it is necessary to take immediate action for discontinuing the preferential rate or increasing the preferential rate to a rate not exceeding the standard rate, or decreasing the preferential rate, in respect of an article specified in the First Schedule, the Federal Government may, by notification in the official Gazette, direct discontinuation of, or increase or decrease, as the case may be, the preferential rate.]

6a[18D. Levy of fee and service charges.-The Federal Government may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, levy fee and service charges for examination, scanning, inspections, sealing and desealing, valuation check or in respect of any other service or control mechanism provided by any formation under the control of the Board, including ventures of public-private partnership, at such rates as may be specified in the notification.]

19. General power to exempt from customs-duties.-7[(1) The 8[Federal Government], subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, may, by notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon 9[and may remit fine, penalty, charge or any other amount recoverable under this Act] 10[:]

11[ OMITTED ]

12[(2) A notification issued under sub-section (1) shall be effective from the day specified therein, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.]

13[(3) Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms 1992 (XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court, no person shall, in the absence of a notification by the Federal Government published in the official Gazette expressly granting and affirming exemption from customs duty, be entitled to or have any right to any such exemption from or refund of customs duty on the basis of the doctrine of promissory estoppel or on account of any correspondence or admission or promise or commitment or concessionary order made or understanding given whether in writing or otherwise, by any government department or authority.]

14[19A. Presumption that incidence of duty has been passed on to the buyer.

Every person who has paid the customs duty and other levies on any goods under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such customs duty and other levies to the buyer as a part of the price of such goods.

19B. Rounding off of duty, etc.-The amount of duty, interest, penalty, fine or any other sum payable, and the amount of refund, drawback or any other sum due, under the provisions of this Act shall be rounded off to the nearest one hundred rupees and, for this purpose, where such amount is fifty rupees or more, it shall be increased to one hundred rupees and if such part is less than fifty rupees, it shall be ignored.]

14a[19C. Minimal duties not to be demanded.-Where the cumulative amount of all duties and taxes on a Goods Declaration is equal to, or less than, one hundred rupees, the same shall not be demanded.]

15[20. Board’s power to grant exemption from duty in exceptional circumstances.

Under circumstances of exceptional nature, the Board may, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by a special order in each case recording such circumstances, exempt any goods from payment of the whole or any part of the customs-duties chargeable thereon 16[and may remit fine, penalty, charge or nay other amount recoverable under this Act.]

21. Power to deliver certain goods with-out payment of duty and to repay duty on certain goods.-Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular cases by special order, authorize

(a) the delivery without payment of the customs-duties chargeable thereon of goods which are imported only temporarily with a view to subsequent exportation;

17[(ab) 86[Omitted]
18[(b) Omitted.
19[(c) the repayment in whole or in part of the customs-duties paid on the

importation of any goods which have been used in the production, manufacture, processing, repair or refitting in Pakistan of goods meant for exportation, or for supply to industrial units, projects, institutions, agencies and organizations, entitled to import the same at concessionary rates 20[:]

21[Provided that no repayment may be granted in a case in which the amount involved is less than one hundred rupees 22[; and]

23[(d) without prejudice to the provisions of clause (c), the Federal Government may, by notification in the Official Gazette, direct that drawback or repayment shall not be allowed in respect of any goods of specified description or may be allowed subject to such restrictions and conditions as may be specified in the notification.]

24[(21A. Power to defer collection of customs-duty.-25[(1)] Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular cases by special order, defer the collection of customs-duties either in whole or in part.

26[ (2) Where deferment of customs-duties is allowed by the Board under sub

26a,87

section (1), a surcharge not exceeding [KIBOR plus three] per cent per annum shall also be payable on the deferred amount from such date and in the manner as the Board may by rules prescribe.]

22. Re-importation of goods produced or manufactured in Pakistan.-If goods produced or manufactured in and exported from Pakistan are subsequently imported into Pakistan, such goods shall be liable to customs-duties and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value not so produced or manufactured are liable on the importation thereof:

27[Provided if such goods have been imported within one year of their exportation and have been consigned to the person in whose account they were exported and have not undergone any processing since their exportation], the appropriate officer not below the rank of 28[Assistant Collector or Deputy Collector] of Customs may admit the goods

29[(a) Where at the time of exportation of such goods, rebate, refund or drawback of any customs or excise duty or any other tax levied by the Federal Government or any tax, cess or duty levied by the Provincial Government was allowed on payment of customs duty equal to the amount of such rebate, refund or drawback as the case may be;]

(b)
where such goods were exported in bond, without payment of
(i)
the customs-duty chargeable on the imported materials, if any, used in the manufacture of the goods; or

(ii ) the excise duty chargeable on the indigenous materials, if any, used in the manufacture of such goods; or

(iii) the excise duty, if any, chargeable on such goods; or

(iv)
any other tax chargeable on the material used in the manufacture of such goods; or
(v)
any other tax chargeable on such goods,

on payment of customs-duty equal to the aggregate amount of all such duties and taxes calculated at the rates prevailing at the time and place of importation of goods; or

(c) in any other case, without payment of duty.

29a[22A. Temporary export of imported plant and machinery.-Imported plant and machinery, temporarily exported that have not undergone any alteration, renovation, addition or refurbishment, may be re-imported duty free subject to the specific or general terms and conditions the Board may by the rules prescribe.]

23. Goods, derelict, wreck, etc.-All goods, derelict, jetsam, flotsam and wreck, brought or coming into Pakistan, shall be dealt with as if they were imported into Pakistan.

24. Provisions and stores may be exported free of duty.-Goods produced or manufactured in Pakistan and required as provisions and stores on any conveyance proceeding to any foreign port, airport or station may be exported free of customs-duty,30[***] in such quantities as the appropriate officer may determine having regard to the size of the conveyance, the number of passengers and crew and the length of the voyage or journey on which the conveyance is about to depart.

31 31b

[25. [Value of imported and exported goods].-(1) Transaction Value.-The customs value of imported goods, subject to the provisions of this section and the rules, shall be the transaction value, that is the price actually paid or payable for the goods when sold for export to Pakistan:

Provided that

(a)
there are no restrictions as to the disposition or use of the goods by the buyer other than the restrictions which
(i)
are imposed or required by law;
(ii)
limit the geographical area in which the goods may be resold; or
(iii) do not affect the value of the goods;
(b)
the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;
(c)
no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment is made in accordance with the provisions of sub-section (2) (e); and
(d)
the buyer and seller are not related, or where the buyer and seller are related, that the transaction value is acceptable for customs purposes under the provisions of sub-section (3).
(2)
Subject to clause (b), in determining the customs value under sub-section(1),
(a)
there shall be added to the price actually paid or payable for the imported goods, if not already included in the price;
(i)
the cost of transport, excluding inland freight after importation, of the imported goods to the Port, Airport or place of importation;
(ii)
loading, unloading, and handling charges associated with the transport of the imported goods to the Port, airport or place of importation; and
(iii) the cost of insurance;
(b)
there shall also be added to such price, to the extent that they are incurred by the importer but are not included in the price actually paid or payable of the imported goods
(i)
commissions including indenting commissions and brokerage, except buying commissions;
(ii)
the cost of containers which are treated as being one for customs purposes with the goods in question; and
(iii) the cost of packing whether for labour or materials;
(c)
there shall also be added to such price the value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the importer or his related person free of charge or at reduced cost, for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable:
(i)
materials, components, parts and similar items incorporated in the imported goods;
(ii)
tools, dies, moulds and similar items used in the production of the imported goods;
(iii) materials consumed in the production of the imported goods; and (iv) engineering, development, artwork, design work and plans and sketches undertaken elsewhere than in Pakistan and necessary for the production of the imported goods;
(d)
there shall also be added to such price, royalties and licence fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable; and
(e)
there shall also be added to such price, the value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller;
(f)
if sufficient information is not available for any reason, with respect to any adjustments referred to above, the transaction value, of the imported goods shall be treated , for the purpose of sub-section (1), as the one that cannot be determined;
(3)
If the buyer and seller are related in terms of the rules the transaction value shall be accepted for the purposes of sub-section (1); whenever:
(a)
the examination of the circumstances surrounding the sale of the imported goods as demonstrated by the importer, indicate that the relationship did not influence the price; or
(b)
the importer demonstrates that such value closely approximates to one of the following Test Values occurring at or about the same time:
(i)
the transaction value in sales to unrelated buyers of identical or similar goods for export to Pakistan.
(ii)
the customs value of identical or similar goods as determined under the provisions of sub-section (7) (deductive value);

(iii) the customs value of identical or similar goods as determined under the provisions of sub-section (8) (computed value).

Provided that in applying the foregoing tests due account shall be taken of demonstrated differences in commercial levels, quantity levels, the elements enumerated in sub-section (2) and costs incurred by the seller in sales in which the seller and the buyer are not related that are not incurred by the seller in sales in which the seller and the buyer are related;

32[(4) Where, in relation to the goods being valued, the appropriate officer is of the opinion that the importer has not, for the purposes of clause (a) of sub-section (3), demonstrated that the relationship did not influence the price or, for the purposes of clause (b) of sub-section (3), that the declared price at which the goods are imported does not closely approximate to one of the test values mentioned therein, the appropriate officer shall inform the importer of his reservations in writing and give the importer an opportunity to justify the price difference. If the importer fails to justify the price difference, the customs value cannot be determined under the provisions of subsection (1).]

(5) TRANSACTION VALUE OF IDENTICAL GOODS.-If the customs value of the imported goods cannot be determined under the provisions of sub-section (1), it shall, subject to rules, be the transaction value of identical goods sold for export to Pakistan and exported at or about the same time as the goods being valued.

(a)
In applying the 33[provisions] of this sub-section, the transaction value of 34[the] identical goods in a sale at the same commercial level and substantially the same quantity as the goods being valued shall be used to determine the customs value of imported goods.
(b)
Where no sale referred to in clause (a) is found, the transaction value of identical goods sold at a different commercial level and/or in different quantities, adjusted to take account of differences attributable to commercial level and/or to quantity shall be used, provided that such adjustments can be made on the basis of demonstrated evidence which clearly establishes the reasonableness and accuracy of the adjustment, whether the adjustment leads to an increase or decrease in the value.
(c)
Where the costs and charges referred to in clause (a) of subsection (2) are included in the transaction value of identical goods, an adjustment shall be made to take account of significant differences in such costs and charges between the goods being valued and the identical goods in question arising from differences in distances and modes of transport.

35[(d) If, in applying the provisions of this sub-section, there are two or more transaction values of identical goods that meet all the requirements of this sub-section and clauses (b),(d),(e) and (f) of sub-section (13), the customs value of the imported goods shall be the lowest such transaction value, adjusted as necessary in accordance with clauses (b) and (c).]

36[(6) TRANSACTION VALUE OF SIMILAR GOODS.-If the customs value of the imported goods cannot be determined under the provisions of sub-section (5), it shall, subject to clauses (c), (d), (e) and (f) of sub-section (13) and rules, be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued, and the provisions of clauses (a), (b), (c) and

(d)
of sub-section (5) shall, mutatis mutandis, also apply in respect of similar goods.]
(7)
DEDUCTIVE VALUE.-If the customs value of the imported goods cannot be determined under sub-section (6), it shall, subject to rules, be determined as follows:
(a)
if the imported goods or identical or similar imported goods are sold in Pakistan in the condition as imported, the customs value of the imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods are so sold in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods, subject to the deductions for the following:
(i)
either the commission usually paid or agreed to be paid or the additions usually made for profit and general expenses in connection with sales in Pakistan of imported goods of the same class or kind;
(ii)
the usual costs of transport and insurance and associated
costs incurred within Pakistan; 37[and ] 38[(iii) Omitted.
(iv)
the customs duties and other taxes payable in Pakistan by reason of the importation or sale of the goods.
(b)
If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value shall, subject otherwise to the provisions of clause (a) of this sub-section, be based on the unit price at which the imported goods or identical or similar imported goods are sold in Pakistan in the conditions as imported at the earliest date after the importation of the goods being valued but before the expiry of ninety days after such importation.
(c)
If neither the imported goods nor identical nor similar imported goods are sold in the country of importation in the condition as imported, then, if the importer so requests, the customs value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the country of importation who are not related to the persons from whom they buy such goods, due allowance being made for the value added by such processing and the deductions provided for in clause (a).
(8)
COMPUTED VALUE.-If the customs value of the imported goods cannot be determined under sub-section (7), it shall, subject to rules, be based on computed value which shall consist of the sum of :
(a)
the cost of value of materials and fabrication or other processing employed in producing the imported goods;
(b)
an amount for profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to Pakistan; and
(c)
the cost or value of all other expenses as specified in clause
(a) of sub-section (2).
(9)
FALL BACK METHOD.-If the customs value of the imported goods cannot be determined under sub-sections (1),(5),(6),(7) and (8), it shall, subject to the rules, be determined on the basis of a value derived from among the methods of valuation set out in sub-sections (1),(5),(6),(7) and (8), that, when applied in a flexible manner to the extent necessary to arrive at a customs value.

valuation [may or may not] be applied in a sequential order except reversal of the

(10) Sub-sections (1), (5), (6), (7), (8) and (9) define how the customs
value of imported goods is to be determined 38a[***]. The methods of customs
38b

order of sub-section (7) and (8), at the importer’s request, if so agreed by Collector of the Customs.

(11)
Nothing contained in this section or the rules, shall be construed as restricting or calling into question the rights of the appropriate officer of customs to satisfy himself as to the truth or accuracy of any statement, information, document or declaration presented for customs valuation purposes.
(12)
An appropriate officer of Customs appointed by an order in writing by the Board, or Collector of Customs, on case to case basis, shall have free access to business premises, registered office, warehouses or any other place, where any stocks, business records or documents required under this Act are kept or maintained belonging to any person after serving notice to such person whose business activities are covered under this Act or who may be required for audit, inquiry or investigation in any offence committed under this Act by such person, his agent or any other person: and such officer may, at any time during the working hours, inspect the goods, stocks, records, data, documents, correspondence, accounts and statements and any other record or documents and may take into custody such records in whole or in part, in original or copies thereof against a signed receipt. The Board or Collector of Customs may also order for audit for ascertaining the correctness of declarations, documents records and value of imported goods. All searches and seizure of documents made under this subsection shall be carried out mutatis mutandis in accordance with the provisions of the Code of Criminal Procedure, 1898(Act V of 1898).
(13)
For the purposes of this section,
(a)
―customs value of imported goods‖ means the value of goods for the purposes of levying duties of customs and other taxes on imported goods;
(b)
―identical goods‖ means goods which are the same in all respects including physical characteristics, quality and reputation. Minor differences in appearance would not preclude goods otherwise conforming to the definition from being regarded as identical;
(c)
―similar goods‖ means goods which although not alike in all respects, have like characteristics and like component materials which enable them to perform the same functions and to be commercially interchangeable. The quality of the goods, their reputation and the existence of a trademark are among the factors to be considered in determining whether goods are similar;
(d)
the terms ―identical goods‖ and ―similar goods‖ do not include as the case may be, goods which incorporate or reflect engineering development, art work, design work, and plans and sketches for which no adjustment has been made under sub-section 2(c) (iv) because such elements were undertaken in Pakistan;
(e)
goods shall not be regarded as ―identical goods‖ or ―similar goods‖ unless they were produced in the same country as the

goods being valued;

(f)
goods produced by a different person shall be taken into account only when there are no identical goods or similar goods, as the case may be, produced by the same person as the goods being valued; and
(g)
―goods of the same class or kind‖ means goods which fall within a group or range of goods produced by a particular industry or industry sector, and includes identical or similar goods.

39[(14) OMITTED.]

(15) Customs value of exported goods.-The customs value of any exported goods shall be the value at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned having regard to the following provisions, namely:

(a)
that the goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported ; and
(b)
that the seller will bear all packing, commission, transport, loading and all other costs, charges and expenses (including any
92[regulatory duty which may be chargeable under sub-section (3) of section 18] incidental to the sale and to the delivery of the goods on board the conveyance in which they are to be exported and which will be included in the customs value;
(c)
that where goods are manufactured in accordance with any patented invention or are goods to which any protected design has been applied, the customs value shall be determined taking into consideration the value of the right to use design in respect of the goods;
(d)
that where goods are exported for sale, other disposal or use, whether or not after further manufacture, under a Pakistan trade

mark, the customs value shall be determined taking into consideration the value of the right to use the patent, design or trade mark in respect of the goods.

Explanation I.-A sale in open market between a buyer and a seller independent of each

other presupposes
(a) that the customs value is the sole consideration and sale is
between a buyer and seller independent of each other.
(b) that the customs value is not influenced by any commercial,
financial or other relationship, whether by contract or otherwise
between the seller or any person associated in business with him
and the buyer or an person associated in business with him other
than the relationship created by the sale itself.
(c) that no part of the proceeds of any subsequent resale, other
disposal or use of the goods will accrue, either directly or
indirectly, to the seller or any person associated in business with
him.
(d) that two persons shall be deemed to be associated in business
with one another if, whether directly or indirectly, either of them
has any interest in the business or property of the other or both
have a common interest in any business or property or some third
person has an interest in the business or property of both of them.
40[Explanation II. For the purposes of this sub-section, the expression ―prescribed

time‖ shall mean the time when the goods declaration is delivered under section 131 or when export of the goods is allowed without a goods declaration or in anticipation of the delivery of a goods declaration, the time when export of the goods commences.]

40a[25A. Power to determine the customs value.-(1) Notwithstanding the provisions contained in section 25, the Collector of Customs on his own motion, or the Director of Customs Valuation 88[on his own motion or]on a reference made to him by any person 88[or an officer of Customs], may determine the customs value of any goods or category of goods imported into or exported out of Pakistan, after following the methods laid down in section 25, whichever is applicable.

(2)
The Customs value determined under sub-section (1) shall be the applicable customs value for assessment of the relevant imported or exported goods.
(3)
In case of any conflict in the customs value determined under subsection (1), the Director-General of Customs Valuation shall determine the applicable customs value.]

93[(4) The customs value determined under sub-section (1) or, as the case may be, under sub-section (3), shall be applicable until and unless revised or rescinded by the competent authority.]

42[25B.Omitted.]

43[25C. Power to takeover the imported goods.-(1) If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the goods declaration, 44[and the Collector of Customs is satisfied that the declared value is not the actual transactional value, he may after approval of the Board] order the following without prejudice to any other action against the importer or his authorised agent, namely:

(i)
entertain offer by any other person to buy these goods at substantially higher value than the declared customs value in the goods declaration and payment of customs duties and other leviable taxes thereon, provided such offer is accompanied by a pay order equal to twenty-five per cent of the amount of each [such offer and duties and other taxes calculated in accordance with the offer];
(ii)
give an option in writing to the importer of such goods for clearance of imported goods at the customs value equal to such highest offer for purchase of goods and payment of customs duties and other taxes chargeable thereon; and

(iii) in case the importer fails to clear the imported goods within seven days of the receipt of notice under clause (ii) above, the appropriate officer may takeover the goods on payment of customs value declared in the goods declaration and an amount equal to five per cent of such declared value;

(2)
The imported goods taken over under sub-section (1) shall be delivered to the offerer on submission of two pay orders, one equal to the customs value declared in the goods declaration plus five per cent in the name of importer and the other pay order equal to the remaining amount of value of imported goods and the amount of customs duties and other taxes leviable on the imported goods in the name of Collector of Customs;
(3)
In case the local buyer fails to take the delivery of the goods on payment of value and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-five per cent of the amount shall be fore-feited in favour of the Federal Government and imported goods shall be released to the importer as per customs value determined under 44[sections 25 or 25A as the case may be.]

44a,94

[25D. Revision of the value determined.-Where the customs value has been determined under section 25A by the Collector of Customs or Director of Valuation the revision petition may be filed before the Director-General of Valuation within thirty days from the date of determination of customs value and any proceeding pending before any court, authority or tribunal shall be referred to the Director-General for the decision.]

45[26. Obligation to produce documents and provide information.-(1) Any person, as and when required, in writing, by an officer of customs not below the rank of an Assistant Collector, shall,

(a)
furnish information relating to importation, exportation, purchase, sales, transportation, storage or handling of any goods imported or exported;
(b)
produce for examination, documents or records that the appropriate officer considers necessary or relevant to the audit, inquiry or investigation under the Act;
(c)
allow the appropriate officer of Customs to take extracts from or make copies of documents or records; and
(d)
appear before an officer of Customs and answer any question put to him concerning goods, documents, records and transactions relating to the audit or inquiry or investigation.
(2)
The appropriate officer of Customs conducting an audit, inquiry or investigation as the case may be, under this Act, may require in writing any person, department, company or organization to furnish such information as is held by that person, department, company or organization which in the opinion of the appropriate officer is required for the completion of such audit, inquiry or investigation.
(3)
The Board may require in writing any person, department, company or organization, as the case may be, to provide information held by that person, department, company or organization, which in the opinion of the Board is required for purposes of formulation of policy or administering the laws of Customs, Sales Tax, Federal Excise or Income Tax.
(4)
Every person, department, company or organization shall furnish the information requisitioned by the Board or the appropriate officer within the time specified in the notice.]
46[26A. Conducting the audit.-(1) The appropriate officer of customs conducting any audit under this Act shall proceed in the manner as the Board may by rules prescribe.
(2)
Where any audit or inquiry or investigation is to be conducted for the purpose of ascertaining the correctness of any declaration or document or statement, for determining the liability of any person for duty, taxes, fees, surcharge, fines and penalties, or for ensuring compliance with all other laws administered by the customs, an appropriate officer of Customs may,
(a)
examine, or cause to be examined, upon reasonable notice, any record, or any statement or declaration or document described in the notice with reasonable specificity, which may be relevant to such audit, inquiry or investigation ;
(b)
summon , by giving a notice and reasonable time,
(i)
the person who imported, or exported or transported or stored or held under customs bond, or filed a goods declaration, drawback or refund claim;
(ii)
any officer, employee or agent of any person described in clause (a); and

(iii) any person having possession, custody or care of records and documents required to be kept under the Act, and any other person, as deemed proper, to appear before him at a reasonable time and to produce such records and documents as specified in the notice and to give such testimony under oath as may be relevant.

26B. Access for the purposes of audit.-(1) The appropriate officer of Customs, after giving a notice in writing specifying the date of visit, shall have access to business or manufacturing premises, registered office or any other place where any goods, stocks, documents or records relating to the ongoing audit are kept or maintained. Such officer may inspect the goods, stocks, documents, records, data, correspondence, accounts, statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents required under any Federal or Provincial laws, maintained in any form or mode. Such an officer may take into his custody such documents, records or any part thereof, in such form as he may deem fit, against a signed receipt.

(2)
In all cases, except where it would defeat the purpose of the audit, a reasonable advance notice regarding a visit shall be given to the person concerned.
(3)
Whosoever causes any obstruction or fails to provide any documents, record, statement etc, as required under subsection (1), with an intention to defeat the purpose of the Act by way of destroying, altering or concealing any books, documents or records required to be maintained under this Act, shall be guilty of an offence under this section.]
47[27. Abatement allowed on damaged or deteriorated goods.-(1) If before the examination of any imported goods the owner thereof informs 48[an officer of Customs not below the rank of] 49[Assistant Collector] in writing that the value of the goods as declared in the 50[goods declaration] has diminished as a result of some damage or deterioration sustained by them before or during unloading at the port of destination, an officer of Customs not below the rank of 49[Assistant Collector] may appraise the value of the damaged or deteriorated goods in the manner given in sub-section (2) and the owner shall be allowed abatement of duty in proportion to the diminution of value so appraised, whether duty is leviable ad valorem or otherwise.
(2)
For the purposes of this section, the value of damaged or deteriorated goods may be ascertained by either of the following methods at the option of the owner:
(a)
value may be appraised by an Officer of Customs not below the rank of 49[Assistant Collector] on the basis of physical examination of the goods; or
(b)
such goods may be sold by public auction or by tender or, with the consent of the owner, in any other manner and the gross sale proceeds shall be deemed to be the value of such goods inclusive of duties.]

51[(3) In the case of short-landing or short-shipment of goods, the appropriate officer may, if satisfied with regard to the bonafide of short-landing or short-shipment of goods, allow reduction in duty proportionate to the goods short-landed or short-shipped on first examination.]

52,95

[27A. Allowing mutilation or scrapping of goods.-At the request of the owner the mutilation or scrapping of goods as are notified by the Board, may be allowed, in the manner as prescribed by the rules and where such goods are so mutilated or scrapped they shall be chargeable to duty at such rates as may be applicable to the goods as if they had been imported in the mutilated form or as scrapped.]

28. Power to test and denature imported spirit.-When by any law for the time being in force a duty lower than that prescribed by 54[this Act] is imposed on denatured spirit, any such spirit imported into Pakistan may, subject to rules, be tested and if necessary adequately denatured by officers of customs, at the expense of the person importing the same, before the customs-duty is charged thereon.

55&55a

29. Restriction on amendment of [goods declaration].-Except as provided

56&56a

in section 88, no amendment of [goods declaration] relating to goods assessed for duty on the declared value, quantity or description thereof shall be allowed after such goods have been removed from the customs-area 57[or assigned a Customs Reference Number electronically, as the case may be].

58[30. Date of determination of rate of import duty.-The rate of duty applicable to any imported goods shall be the rate of duty in force;

(a) in the case of goods cleared for home consumption under section 79, on

59&59A

the date on which a [goods declaration] is manifested under that section; and

(b) in the case of goods cleared from a warehouse under section 104, on the

59&59A

date on which a [goods declaration] for clearance of such goods is manifested under that section:

59&59A

Provided that, where a [goods declaration] has been manifested in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is delivered 59B[at the port of first entry]:

60[Provided further that, in respect of goods for the clearance of which a

59/59A

[goods declaration] for clearance has been manifested under section 104, and the

59/59A

duty is not paid within seven days of the [goods declaration] being manifested, the rate of duty applicable shall be the rate of duty on the date on which the duty is actually paid 61[:]

62[Provided further that in case of the goods illegally removed from the warehouse, the rate of duty shall be the rate prevalent either on the date of in-bonding or detection of case or date of payment of the duty and taxes, whichever is higher:

Provided further that in case of exercising option for redemption of fine in lieu of confiscation of the goods seized during anti-smuggling operations, the rate of duty shall be the rate prevalent either on the date of seizure or date of payment of duty and taxes, whichever is higher:]

Provided further that the Federal Government may, by notification in the official Gazette, for any goods or class of goods, specify any other date for the determination of rate of duty.

Explanation:-For the purpose of this section ―manifested‖ means that when a machine

59&59A

number is allocated to [goods declaration] and is registered in Customs record.]

63[30A.Date of determination of rate of duty for clearance through the Customs Computerized System.-Subject to the provisions of section 155A, the rate of duty applicable to any imported or exported goods if cleared through the Customs Computerized System, shall be the rate of duty in force on;

(a)
the date of payment of duty;
(b)
in case the goods are not chargeable to duty, the date on which the goods declaration is filed with Customs 64[.]

65[

(c) Omitted.

Provided that where a goods declaration has been filed in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is filed at the customs-station of first entry:

Provided further that the Federal Government may, by notification in the official Gazette, specify any other date for the determination of rate of duty in respect of any goods or class of goods.]

31. Date for determination of rate of 66A[duty on goods exported].-The rate and amount of duty applicable to any goods exported shall be the rate and amount

59&59A

chargeable at the time of the delivery of the [goods declaration] under section

131:

59&59A

Provided that where the export of any goods is permitted without a [ goods

59&59A

declaration] or in anticipation of the delivery of such a [declaration], the rate and amount of duty applicable shall be the rate and amount chargeable on the date on which loading of the goods on the outgoing conveyance commences 66B[:]

67[Provided further that the Federal Government may, by notification in the official Gazette, for any goods or class of goods, specify any other date for determination of the rate of duty.]

68[31A. Effective rate of duty.-(1) Notwithstanding anything contained in any other law for the time being in force or any decision of any Court, for the purposes of section 30 69[,30A] and 31, the rate of duty applicable to any goods shall include any amount of duty imposed under section 18 89[,18A and 18C]. 70[Omitted] and the amount of duty that may have become payable in consequence of the withdrawal of the whole or any part of the exemption or concession from duty whether before or after the conclusion of a contract or agreement for the sale of such goods or opening of a letter of credit in respect thereof.

71[(2) For the purpose of determining the value of any imported or exported goods, the rate of exchange at which any foreign currency is to be converted into Pakistan currency shall be the rate of exchange in force on the date immediately preceding the relevant date referred to in sections 30, 30A or 31.]

32. 72[False] statement, error, etc.-(1) If any person, in connection with any matter of customs,

(a)
makes or signs or causes to be made or signed, or delivers or causes to be delivered to an officer of customs any declaration, notice, certificate or other document whatsoever, or
(b)
makes any statement in answer to any question put to him by an officer of customs which he is required by or under this Act to answer, 90[or]

90[(c ) submits any false statement or document electronically through automated clearance system regarding any matter of Customs.]

72[knowing or having reason to believe that such document or statement is false] in any material particular, he shall be guilty of an offence under this section.

(2)
Where, by reason of any such document or statement as aforesaid or by reason of some collusion, any duty or charge has not been levied or has been short-levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within 73[five] years of the relevant date, requiring him to show cause why he should not pay the amount specified in the notice.
(3)
Where, by reason of any inadvertence, error or misconstruction, any duty or charge has not been levied or has been short-levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within 74[three years] of the relevant date requiring him to show cause why he should not pay the amount specified in the notice 75[:].

76[Provided that if the recoverable amount in a case is less than one hundred rupees, the Customs authorities shall not initiate the aforesaid action.]

77[(3A)Notwithstanding anything contained in sub-section (3), where any duty or charge has not been levied or has been short-levied or has been erroneously refunded and this is discovered as a result of an audit or examination of an importer’s accounts or by any means other than an examination of the documents provided by the importer at the time the goods were imported, the person liable to pay any amount on that account shall be served with a notice within three years of the relevant date requiring him to show cause why he should not pay the amount specified in the notice 78[:]

79[Provided that if the recoverable amount in a case is less than one hundred rupees, the Customs authorities shall not initiate the aforesaid action.]

(4) The appropriate officer, after considering the representation, if any, of such person as is referred to in sub-section (2) or sub-section (3) shall determine 80[any amount payable by him under this Act,] which shall in no case exceed the amount specified in the notice, and such person shall pay the amount so determined.

(5)
For the purposes of this section, the expression ―relevant date‖ means
(a)
in any case where duty is not levied, the date on which an order for the clearance of goods is made;
(b)
in a case where duty is provisionally assessed under section 81, the date of adjustment of duty after its final assessment;
(c)
in a case where duty has been erroneously refunded, the date of its refund;
(d)
in any other case, the date of payment of duty or charge 96[;]
96[(e) in case of clearance of goods through the Customs Computerized
System, on self assessment or electronic assessment, the date of
detection.]

81[32A.Fiscal fraud.-(1) If any person, in connection with any matter related to customs

(a)
causes to submit documents including those filed electronically, which are concocted, altered, mutilated, false, forged, tempered or counterfeit to a functionary of customs;
(b)
declares in the 82[goods declaration] electronically filed customs declaration, the name and address of any exporter or importer which is physically non-existent at the given address;
(c)
declares in the 82[goods declaration] electronically filed customs declaration, an untrue information regarding 97[payment of duties and taxes through self-assessment,] description, quantity, quality, origin and value of goods;
(d)
alters, mutilates or suppresses any finding of the customs functionary on any document or in the computerized record; or
(e)
attempts, abets or connives in any action mentioned in clauses (a), (b),
(c)
and (d) above, he shall be guilty of an offence under this section.
(2)
Where, by any reason as referred to in sub-section (1) as aforesaid, any duty or tax charged or fee or fine and penalty levied under any provision of law has not been levied or has been short levied or has been refunded, the person liable to pay any amount on that account shall be served with a notice within a period of 180 days of the date of detection of such custom duty and tax fraud, requiring him to show cause as to why he should not pay the amount specified in the notice along with any other amount imposed as fine or penalty under the provisions of this Act.
(3)
The appropriate Adjudicating Officer, after considering the written or verbal representation of such person, may determine the amount of duty or tax chargeable or fee payable by such person which shall in no case exceed the amount specified in the notice and such person shall pay the amount so determined besides the fine or penalty or both.]

83[32B.Compounding of offence.-Notwithstanding anything contained in section 32 and 32A or any other provision of this Act, where any person has committed a duty or tax fraud, the Collector may, with the prior approval of the Board, either before or after the institution of any proceedings for recovery of duty or tax, compound the offence if such person pays the amount of duty or tax due along with penalty as is determined under the provisions of this Act.]

33. Refund to be claimed within 84[one year].-(1) No refund of any customs-duties or charges claimed to have been paid or over-paid through inadvertence, error or misconstruction shall be allowed, unless such claim is made within 84[one year] of the date of payment 91[:]

91[Provided that no refund shall be allowed under this section if the sanctioning authority is satisfied that incidence of customs duty and other levies has been passed on to the buyer or consumer.]

(2) In the case of provisional payments made under section 81, the said period of 84[one year] shall be reckoned from the date of the adjustment of duty after its final assessment.

34. Power to give credit for, and keep account-current of duties and charges.-An officer of customs, not below the rank of 85[Assistant Collector or Deputy Collector] of customs may, in the case of any mercantile firm or public body, if he so thinks fit, instead of requiring payment of customs duties or charges as and when they become due, keep with such firm or body an account-current of such duties and charges, which account shall be settled at intervals of not exceeding one month, and such firm or body shall make a deposit or furnish a security sufficient in the opinion of that officer to cover the amount which may at any time be payable by it in respect of such duties or charges.

LEGAL REFERENCE

1. Substituted by the Finance Act, 1975 (L of 1975), S.7(1), page 8. At the time of substitution section 18 was as under:

1a.18. Goods dutiable.-Except as hereinafter provided, customs duties shall be levied at such rates as may be prescribed under the Tariff Act, 1934 (XXXII of 1934) or under any other law for the time being in force on

(a)
goods imported into or exported from Pakistan;
(b)
goods brought from any foreign country to any customs-station, and without payment of duty, there transshipped or transported for, or thence carried to, and imported at, any other customs stations; and
(c)
goods brought in bond from one customs-station to another.‖.

1a. Substituted by Finance Act, 2005 (At the time of substitution section 18 was as under:1b Added by the Finance Act, 2007.

18. Goods dutiable.-(1) Except as hereinafter provided, customs-duties shall be levied at such rates as are prescribed in the First Schedule and the Second Schedule or under any other law for the time being in force on

(a)
goods imported into or exported from Pakistan;
(b)
goods brought from any foreign country to any customs-station, and without payment of duty, there transshipped or transported for, or thence carried to, and imported at any other customs-station; and
(c)
goods brought in bond from one customs-station to another.
(2)
The Federal Government may, on the recommendation, of the National Tariff Commission constituted under the National Tariff Commission Act,1990 (VI of 1990) (the Commission), provided the National Tariff Commission follows the same procedure as prescribed in the said Act by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods specified in the First Schedule at a rate not exceeding one hundred per cent of the value of such goods, as determined under section 25 or section 25B and may, by a like notification, levy a regulatory duty on all or any of the goods, exported from Pakistan:
(i)
at a rate not exceeding one hundred per cent of the value of the goods as determined under section 25 or section 25B, if such goods are specified in the Second Schedule; and
(ii)
at a rate not exceeding fifty per cent of the amount which represents the value of the goods as determined under section 25 or section 25B, if such goods are not specified in the Second Schedule.
(3)
The regulatory duty levied under sub-section (2) shall
(a)
be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and
(b)
be leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.]
(4)
Any notification issued under sub-section (2) shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued.
  1. Inserted by the Finance Act, 2006. 2a&2b. Added by the Finance Act, 2007.
  2. Inserted by Finance Act,1991 (XII of 1991), S.4(1), page 197.
  3. The brackets and words ―(Amendment)‖ Omitted by Finance Act,1993 (X of 1993), S.4(1),page 121.

5. Omitted by Finance Act,1999(IV of 1999),S.10(2), Page 758. At the time of omission section 18B was as under:“18B. Levy of service charges.-The Federal Government may, by notification in the official Gazette, levy a service charge equivalent to two per cent ad valorem on all such goods specified in the First Schedule to this Act as are subject to pre-shipment inspection.‖.

Provided that for the purposes of Sales Tax Act, 1990, such service charge shall not

constitute a part of the value of supply.‖.

  1. Inserted by Finance Act, 2005 6a Inserted by the Finance Act, 2007.
  2. Renumbered by Finance Ordinance,1979(XXX of 1979),S.6(2), Page 787 w.e.f. 28th June, 1979.
  3. The words “Central Government” substituted by Finance Ordinance, 1972 (XXXI of 1972 ), S.3, and Second Schedule S.1, page 76 w.e.f. 17th June, 1972
  4. Added by the Finance Act, 2005.
  5. Substituted for the words “full stop” by Customs (Amendment) Act, 1999 (II of 1999).
  6. Proviso added by the Customs (Amendment )Act,1999 and Proviso omitted vide Customs (Amendment) Ordinance, 2000 (XI of 2000), S.2, page 114. At the time of omission this was as under:

39 Provided that the Federal Government shall not exempt any goods imported

into Pakistan from the whole or any part of the customs duties chargeable thereon,

except in the following cases, namely:

(a)
For rectification of tariff anomalies on the recommendation of National Tariff Commission; or
(b)
for the fulfillment of an international obligation of the Government of Pakistan; or
(c)
for the purpose of national security.

12. Added by Finance Ordinance, 1979 (XXX of 1979), S.6(2), page 187. 13 Added by Customs (Amendment) Ordinance, 2002 (XXIV of 2002).

  1. Inserted by Finance Act, 2005. 14a. Inserted by the Finance Act, 2007.
  2. Omitted by Customs (Amendment) Act, 1999 (II of 1999) and added by Customs (Amendment) Act, 2000 (XI of 2000), S.3, page 114, at the time of omission section 20 was as under:
“20. Board’s power to grant exemption from duty in exceptional

circumstances.-Under circumstance of exceptional nature, the Board may, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by a special order in each case recording such circumstances, exempt any goods from payment of the whole or any part of the customs duties

chargeable there."‖

  1. Added by Finance Act, 2005.
  2. Inserted by the Finance Act, 2005.

18. Omitted by Customs (Amendment) Act, 1999 (II of 1999) . At the time of omission sub-clause (b) was as under:―(b) the delivery without payment of the whole or any part of the customs duties chargeable thereon of imported goods of such classes or description as it may prescribe, intended to be used in the production, manufacture, processing, repair or refining in Pakistan of goods of such classes or descriptions as it may prescribe;‖.

19 Substituted by Customs (Amendment) Act, 1999 (II of 1999). At the time of substitution clause (c) was as under:―(c) the repayment in whole or in part of the customs-duties paid on the importation of any goods of such classes or description as it may prescribed, which have been used in the production, manufacture, processing, repair or refitting in Pakistan of goods of such classes or descriptions as it may prescribe, provided such repayment shall not be made in respect of the class or description of goods for which drawback can be claimed under Section 37.‖.

  1. Substituted for the full stop by the Finance Act, 2005.
  2. Added by the Finance Act, 2005.
  3. Substituted for the full stop by the Finance Act, 2005.
  4. Added by the Finance Act, 2005.

24 Inserted by Finance Act, 1990 (VII of 1990), S.6(2), page 35. Omitted by Customs (Amendment) Act, 1999 (II of 1999) and inserted by Finance Ordinance, 2001 (XXV of 2001), S.4(3), page 305. At the time of omission this section was as under:“21-A. Deferment of collection of customs-duties.-Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular case by special order, defer the collection of customs-duties either in whole or in part.‖.

  1. Renumbered by the Finance Act, 2006.
  2. Added by the Finance Act, 2006.
    26a. For the word “fifteen” the word “fourteen” was substituted vide FA, 2007.

40

27. Substituted by Finance Act,1975(L of 1975),S.7(2), Page 9 w.e.f.7th June,1975.At the time of substitution the proviso was as under:―Provided if such goods have been imported within two years of their exportation 27a[(or within such further period not exceeding three years, as the Collector may allow in any case,)] and have continued to be the property of the person by whom or on whose account they were exported and have not undergone any processing since their exportation.‖. 27a. Inserted by the Finance Act, 1973(L of 1973)

28. Substituted “Assistant Collector” by F.A,1996(IX of 1996) S.4(6).Page 476.

29. Substituted by Finance Act,1973 (L of 1973, S.9(3), Page 531. At the time of substitution it was as under:―(a) where at the time of exportation of such goods, drawback of any customs or excise duty or any other tax levied by the 29a[Federal Government] or any excise duty levied by the Provincial Government was allowed, on payment of customs-duty equal to the amount of such drawback.‖. 29a. The words “Central Government” substituted by Finance Ordinance, 1972 (XXXI of 1972 ), S.3, and Second Schedule S.1, page 76.

29a. Inserted section 22A by the Finance Act, 2007. Omitted the comma and words “, excise duty and sales tax” by Finance Ordinance, 2002 (XXVII of 2002), S.4(3), page 223.

31. Substituted by the Finance Act, 1998 (III of 1998), S.4(II), page 39 at the time of substitution was as under:“25. Value of imported and exported goods.-(1) The value of any imported goods shall be taken to be the normal price, that is to say, the price which they would fetch, on the date referred to in section 30 on a sale in open market between a buyer and a seller independent of each other.

(2) The normal price of any imported goods shall be determined on the following

assumptions, namely:that the goods brought by sea or land are treated as having been delivered to the buyer at the port or place of importation, as the case may be, and that goods brought by air are treated as having been delivered to the buyer at the airport or place where they are unloaded in Pakistan or, if the aircraft first lands in Pakistan at some other airport or place without unloading the goods, at such other airport or place;

(b)
that the seller will bear freight, insurance, commission shall and all other costs, charges and expenses incidental to the sale and the delivery of the goods at that port, airport or place which will be included in the normal price;
(c)
that the buyer will bear any duties or taxes applicable in Pakistan which will not be included in the normal price.

(3) Where the imported goods to be valued

(a)
are manufactured in accordance with any patented invention or are goods to which any protected design has been applied; or
(b)
are imported under a foreign trade mark or are imported for sale, other disposal or use (whether or not after further manufacture) under a foreign trade mark;

the normal price shall be determined on the assumption that it includes the value of the right to use the patent, design or trade mark in respect of the goods.

41

(4)
The value of any exported goods shall be taken to be the normal price, that is to say, the price which they would fetch, at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned between a seller and a buyer independent of each other.
Explanation.-For the purposes of this sub-section, the expression ―prescribed time‖ shall mean the time when the bill of export is delivered under section 131 or, when export of the goods is allowed without a bill of export or in anticipation of the delivery of a bill of export, the time when export of the goods commences.
(5)
The normal price of any exported goods shall be determined on the following assumptions, namely:
(a)
that the goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported; and
(b)
that the seller will bear all packing commission, transport, loading and all other costs, charges and expenses (including any export duty which may be chargeable) incidental to the sale and to the delivery of the goods on board the conveyance in which they are to be exported and which will be included in the normal price.
(6)
where the exported goods to be valued
(a)
are manufactured in accordance with any patented invention or are goods to which any protected design has been applied; or
(b)
are exported for sale, other disposal or use under a Pakistan trade mark or are exported for sale, other disposal or use (whether or not after further manufacture) under a Pakistan trade mark, the normal price shall be determined on the assumption that it includes the value of the right to use the patent, design on trade mark in respect of the goods. Explanation I.-A sale in open market between a buyer and a seller
independent of each other presupposes
(a)
that the price is the sole consideration; and
(b)
that the price is not influenced by any commercial, financial or other relationship, whether by contract or otherwise between the seller or any person associated in business with him and buyer or any person associated in business with him other than the relationship created by the sale itself;
(c)
that no part of the proceeds of any subsequent resale, other disposal or use of the goods will accrue, either directly or indirectly, to the seller or any person associated to business with him. Explanation II.-Two persons shall be deemed to be associated in

business with one another if, whether directly or indirectly, either of them has any interest in the business or property of the other or both have a common interest in any business or property or some third person has an interest in the

business or property of both of them.‖.

31a. Substituted by the Finance Act, 1999 (IV of 1999), S.10(3), page 758. At the time of substitution section 25 was as under:“25. Value of imported and exported goods.-(1) Subject to the provisions of this section and the rules, the value of any imported goods shall be the transaction value, that is, the price actually paid or payable for the goods when sold or export to Pakistan.

(2) In determining the value under sub-section (1)

(a) there shall be added to the price actually paid or payable for

the imported goods:42

(i)
the cost of transport of the imported goods to the port, airport or place of importation;
(ii)
loading, unloading and handling charges or any other charges associated with or incidental to the transport of the imported goods to that port, airport or place of importation; and

(iii) the cost of insurance.

(b)
to the extent that they are incurred by the buyer but are not included in the price actually paid or payable for the imported goods, there shall also be added to such price
(i)
commission and brokerage, except buying commissions;
(ii)
the cost of containers which are treated as being one for customs purposes with the goods in question; and
(iii) the cost of packing whether for labour or materials;
(c)
the value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable, shall also be added to such price
(i)
materials, components, parts and similar items incorporated in the imported goods;
(ii)
tools, dies, moulds, and similar items used in the production of the imported goods; and
(iii) materials consumed in the production of the imported goods;
(d)
royalties and license fees related to the imported goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the imported goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable shall also be added to such price; and
(e)
the value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller shall also be added to the price actually paid or payable for such goods.

(3) The value of exported any goods shall be taken to be the normal price, that is to say, the price which they would fetch, at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned between a seller and a buyer independent of each other.

Explanation.-For the purposes of this sub-section, the

expression ―prescribed time‖ shall mean the time when the bill of

export is delivered under section 131 or; when export of the goods is allowed without a bill of export or in anticipation of the delivery a bill of export, the same when export of the goods commences;

(4)
The normal price of any exported goods shall be determined on the following assumptions; namely:
(a)
that the goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported; and
(b)
that the seller will bear all packing, commission, transport, loading and all other costs, charges and expenses (including any export duty when may be chargeable) incidental to the sale and to the delivery of the goods on board the conveyance in which they are to be exported and which will be included in the normal price.
(5)
Where the exported goods to be valued
(a)
are manufactured in accordance with any patented invention or are goods to which any protected design has been supplied; or
(b)
are exported for sale, other disposal or use, whether or not after further manufacture, under a Pakistan trade mark; the normal price shall be determined on the assumption that it includes the value of the right to use the patent, design or trade mark in respect of the goods. Explanation I.-A sale in open market between a buyer and a seller independent of each other presupposes
(a)
that the price is the sole consideration;
(b)
that the price is not influenced by any commercial, financial or other relationship; whether by contract or otherwise between the seller or any person associated in business with him other than the relationship created by the sale itself; and
(c)
that no part of the proceeds of any subsequent resale, other disposal or use of the goods will accrue, either directly or indirectly, to the seller or any person associated in business with him.

43

Explanation II.-Two person shall be deemed to be associated in business with one another if whether directly or indirectly, either of them has any interest in the business or property of the other or both have a common interest in any business or property or some third person has an interest in the business or

property of both of them.‖.

31b. For the words “Determination of Customs value of goods” the words Value of imported and exported goods” were substituted by the Finance Act, 2007.

32. .Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198. At the time of substitution sub-section (4) was as under:―(4) Where, in relation to the goods being valued, the appropriate officer is of the opinion that the declared price at which the goods are imported is different from test values as mentioned above, the appropriate officer shall inform the importer his reservations in writing and require the importer to justify the price difference. If the importer fails to justify the price difference, the transaction value shall be taken to be the one that cannot be determined under sub-section (1).‖.

33. Substituted by Finance Ordinance, 2000.. Inserted for the word “the” by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198.

  1. Added by the Finance Ordinance, 2000 (XXI of 2000),S.4(3)(ii), page 199.
  2. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198. At the time of substitution this sub-section (6) was as under:

44

  1. 38a. 38b.
  2. 40..

40a.

41.

THE CUSTOMS ACT,1969

―(6) Transaction value of similar goods.-If the customs value of the imported goods cannot be determined under the provisions of sub-section (5), it shall, subject to rules, be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued, and the provisions of clauses (b),

(c) and (d) of sub-section (5) shall mutatis mutandis also apply in respect of similar

goods.‖.

Added the word “and” by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), p.198.
Sub-clause (iii) omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I)p.198.
The words “under this Act” were omitted by the Finance Act, 2007.
For the words “are required to” the words “may or may not” were substituted by the
FA, 2007.

Omitted by Finance Act, 2005.
Amended by the Finance Act, 2006. At the time of amendments the Explanation II was
as under:

Explanation II.-For the purposes of this sub-section, the expression ―prescribed time‖ shall mean the time when the bill of export or goods declaration is delivered under section 131 or 131A or, when export of the goods is allowed without a bill of export or goods declaration] or in anticipation of the delivery of a bill of export or goods declaration, the time when export of the goods commences.

Substituted by the Finance Act, 2007. Before substitution the section 25A was as under:

41[25A. Powers to determine the customs value.-(1) Notwithstanding the provisions contained in section 25, the Collector of Customs on his own motion, or the Director of Customs Valuation on a reference made to him by any person, may determine the customs value of any goods or category of goods imported into or exported out of Pakistan after following the scheme and sequential order as laid down under section 25.

(2)
The customs value determined under sub-section (1) shall be the applicable customs value for assessment of the relevant imported or exported goods.
(3)
In case of any conflict in the customs value determined under sub-section (1), the Director-General of Customs Valuation shall determine the applicable customs value.]

Inserted by the Finance Act, 2006.

42. Inserted by Finance Act, 1988 and Omitted by Finance Act, 2004 (II of 2004), S.3(4), page 14. At the time of omission was as under:

25B. Determination of Value not covered by section 25.-(1) If the value of the imported goods cannot be determined under section 25, the value, subject to the rules, shall be the transaction value of identical goods sold for export to Pakistan and exported at or about the same time as the goods being valued.

(2)
If the value of the imported goods cannot be determined under sub-section (1), the value, subject to the rules, shall be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued.
(3)
If the value of the imported goods cannot be determined under sub-section (2), the value shall be determined as follows
(a)
if the imported goods or identical or similar imported goods are sold in Pakistan in the condition as imported, then the value of the imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods, are so sold in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons
from whom they buy such goods, subject to such deductions as may be provided in the rules; and
(b)
If neither the imported goods nor identical nor similar goods are sold for export to Pakistan then, if the appropriate officer so decides, the value shall be based on the unit price at which the imported goods, after processing, are sold in the greatest aggregate quantity to persons in the country of importation who are not related to the persons from whom they buy such goods, due allowance being made for the value added for all such processing and the deductions as may be provided in the rules.
(4)
If the value of the imported goods cannot be determined under sub-section (3), the value of imported goods shall be based on computed value as may be prescribed by the rules:
Provided that, at the request of the importer, the order of application of sub-sections (3) and (4) may be reversed, if so agreed by the appropriate officer.
(5)
If the computed value of the imported goods cannot be determined under subsection (4), the value shall be determined using reasonable means consistent with the principles and general provisions contained in section 25 and on the basis of data available with the Controller of Customs Valuation, due regard being given to the circumstances surrounding the sale.]

43. Inserted by Finance Act, 1979 and amended by the Finance Act, 2006. At the time of amendments the existing Section 25C was as under:“25A. Power to takeover the imported goods.-(1) If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the bill of entry or goods declaration, the Assistant Collector or any other higher officer of customs may order the following without prejudice to any other action against the importer or his authorised agent, namely:-]

(i)
entertain offer by any other person to buy these goods at substantially higher value than the declared customs value in the bill of entry 37[or goods declaration] and payment of customs duties and other leviable taxes thereon, provided such offer is accompanied by a pay order equal to twenty-five per cent of the amount of each value and duties and other taxes leviable on imported goods;
(ii)
give an option in writing to the importer of such goods for clearance of imported goods at the customs value equal to such highest offer for purchase of goods and payment of customs duties and other taxes chargeable thereon; and

(iii) in case the importer fails to clear the imported goods within seven days of the receipt of notice under clause (ii) above, the appropriate officer may takeover the goods on payment of customs value declared in the bill of entry 37[or goods declaration] and an amount equal to five per cent of such declared value;

(2)
The imported goods taken over under sub-section (1) shall be delivered to the offerer on submission of two pay orders, one equal to the customs value declared in the bill of entry or goods declaration plus five per cent in the name of importer and the other pay order equal to the remaining amount of value of imported goods and the amount of customs duties and other taxes leviable on the imported goods in the name of Collector of Customs;
(3)
In case the local buyer fails to take the delivery of the goods on payment of value and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-five per cent of the amount shall be fore-feited in favour of the Federal Government

and imported goods shall be released to the importer as per customs value determined

under section 25.‖

44. Substituted by the Finance Act, 2006. 44a. Section 25D inserted by the Finance Act, 2007.

45. Substituted by the Finance Act, 2006. At the time of substitution the section 26 was as under:“26. Power to require information to be furnished.-An appropriate officer may, by a requisition in writing, require any person concerned with the importation, exportation, purchase, sale, transport, storage or handling of any goods which are being or have been imported or exported to furnish such information relating to the goods as may be necessary for determining the legality or illegality of the importation or exportation of such goods, the value of such goods, the nature, amount and source of the funds or assets with which the goods were acquired and the customs duty chargeable thereon, or for deciding anything incidental thereto and to produce, and allow the officer to inspect and take extracts from or make copies of any invoice, bill of lading, book of account or other book or document of whatever nature relating to the goods.‖

  1. Inserted by Finance Act, 2006.
  2. Substituted by Finance Act, 1986
  3. inserted by Finance Act, 2006.
  4. By Finance Act, 2006, the words “ or Deputy Collector” were omitted..
  5. Substituted the words ”bill of entry” with the” words goods declaration” through Finance Act, 2006.
  6. Inserted by Finance Act, 2006.
  7. Added by Finance Act, 2005.
  8. Inserted by Finance Act, 2006.
  9. Substituted for the words, coma and figure by the Federal Laws (Remission & Declaration) Ordinance, 1981.
  10. Inserted by the Finance Act, 2003 (I of 2003), S.5(7)(a), page 22.
    55A. By the Finance Act, 2006 the words ”bill of entry or bill of export or” were omitted..
  11. Inserted by the Finance Act, 2003 (I of 2003), S.5(7)(b)(I) and (ii),, page 22.
    56A. By the Finance Act, 2006 the words “bill of entry or bill of export or” was omitted.
  12. Inserted by Finance Act, 2006.
  13. Substituted by Finance Act, 1972, Finance Act, 1998, and Finance Act, 1999.
  14. Substituted by the Finance Act, 2003.
    59A.. Omitted the words “bill of entry or” by the Finance Act, 2006.
    59B. Inserted by the Finance Act, 2002.
  15. Second proviso added by the Finance Act, 1979.
  16. Substituted for full stop by the Finance Act, 1992 (VII of 1992), S.6(3), page 114.
  17. Added by the Finance Act, 1992 (VII of 1992), S.6(3), page 114.
  18. Inserted by Finance Act, 2003.
  19. Semi colon and the word “and” omitted by the Finance Act, 2005.
  20. Clause (c ) omitted by the Finance Act2005.
    66A. By Finance Act, 2006, the words ”export duty” were substituted..
    66B. Substituted for full stop by Finance Act 1992.
  1. Added by Finance Act, 1992.
  2. Inserted by the Finance Act, 1988.
  3. Inserted by Finance Act, 2003.
  4. Omitted by Finance Act, 1991[section 2of the Finance Ordinance,1982(XII of 1982), and section 5 of the Finance Act,1985(I of 1985), and the anti-dumping or countervailing duty imposed under the Import of Goods (Anti-dumping and Countervailing Duties)Ordinance, 1983 (III of 1983)].
  5. Substituted by Finance Act, 2003.
  6. Substituted by the Federal Laws(Remission and Declaration) Ordinance,1981.
  7. Substituted for the word ”three” by the Finance Ordinance, 2000.
  8. Substituted by the Finance Ordinance, 2000.
  9. Substituted full stop by the Finance Act, 2005.
  10. Added by the Finance Act,2005.
  11. Inserted by the Finance Ordinance, 2000.
  12. Substituted full stop by the Finance Act, 2005.
  13. Added by the Finance Act, 2005.
  14. Substituted the words “ the amount of duty payable by him” by the FA, 2006.
  15. Inserted by the Finance Act, 2004.
  16. Substituted for the word “bill of entry or bill of export or” by the FA, 2006.
  17. Inserted by the Finance Act, 2005.
  18. Substituted by the Finance Act, 2005.
  19. Substituted for the words ―Assistant Collector‖ by the FA, 1996.
  20. Omitted by Finance Act,2008(I of 2008) (Page-45)
  21. The word ―Fourteen‖ substituted with word ―KIBOR plus three‖ by Finance Act,2009.
  22. Inserted by Finance Act,2009.
  23. Inserted by Finance Act,2009..
  24. The word ―or‖ and sub-clause (c) added by Finance Act,2009.
  25. The full stop substituted with colon and thereafter a new proviso added by Finance Act,2009.
  26. The words” export duty which may be chargeablesubstituted by Finance Act,2010.
  27. Added by Finance Act,2010.
  28. Substituted by Finance Act,2010. At the time of substitution the section 25D was as under:

47

25D. Review of the value determined.-Where the customs value has been determined by the Collector of Customs or Director of valuation or any other authority competent to do so, a review application shall lie before Director-General of Valuation and any proceeding pending before any court, authority or tribunal shall forthwith abate”.

95. Substituted by Finance Act,2010. At the time of substitution the section 27A was as under:

27A. Allowing denaturing or mutilation of goods.-At the request of the owner, 53 [ to be made before the filing of goods declaration,] the denaturing or mutilation or scrapping of imported goods, which are ordinarily used for more than one purpose, may be allowed, as prescribed by rules so as to render them unfit for one or more such purposes and where any goods are so denatured or mutilated or scrapped they shall be chargeable to duty at such rate as may be applicable if the goods had been imported in the denatured or mutilated

form or as scrap”.

  1. Inserted by Finance Act,2010.
  2. Inserted by Finance Act,2010.

CHAPTER VI

DRAWBACK

35. Drawback of the export on imported goods.-Subject to the subsequent provisions of this Chapter and the rules, when any goods, capable of being easily identified, which have been imported into Pakistan and upon which customs-duties have been paid on importation, are exported to any place outside Pakistan or as provisions or stores for use on board a conveyance proceeding to a foreign territory, seven-eight of such duties shall be repaid as drawback, subject to the following conditions, namely:

(1)
the goods are identified to the satisfaction of an officer of customs not below the rank of 1/2[Assistant Collector] of Customs at the customs-station, to be the same as had been imported, and
(2)
the goods are entered for export within two years of the date of their importation, as shown by the records of the custom-house or if such time is extended by the Board or the Collector of Customs for sufficient cause within such extended time:

Provided that the Collector of Customs shall not extend the time beyond three years of the importation of such goods.

Explanation.-For the purposes of this section, the goods shall be deemed to have been entered for export on the date on which the 3 [goods declaration] is delivered to the appropriate officer under section 131 4[*****].

36. Drawback on goods taken into use between importation and exportation.

Notwithstanding anything contained in section 35, the repayment of duty as drawback in respect of goods which have been taken into use between their importation and subsequent exportation shall be made in accordance with the provisions of the rules made in that behalf.

37. Drawback on goods used in the manufacture of goods which are exported.

Where it appears to the Board that in respect of goods of any class or description manufactured in Pakistan and exported to any place outside Pakistan, a drawback of customs-duties should be allowed on any imported goods of a class or description used in the manufacture of such exported goods, the Board may, by notification in the official Gazette, direct that drawback shall be allowed in respect of such imported goods to such extent and subject to such condition as may be provided in the rules.

38. Power to declare what goods are identifiable and to prohibit draw-back in case of specified foreign territory.-(1) The Board may, from time to time, by

notification in the official Gazette, declare what goods shall, for the purposes of this Chapter, be deemed to be not capable of being easily identified.

(2) The 5[Federal Government ] may, from time to time, by notification in the official Gazette, prohibit the payment of drawback upon the exportation of goods or any specified goods or class of goods to any specified foreign port or territory.

39. When no drawback allowed.-Notwithstanding anything hereinbefore contained, no drawback shall be allowed

(a)
upon goods which are required to be included in the export manifest and are not so included, or
(b)
when the claim is for drawback amounting, in respect of any single shipment, to less than 6[or equal to] hundred rupees, or
(c)
unless the claim for drawback has been made and established at the time of export.
  1. Time of payment of drawback.-No such payment of drawback shall be made until the vessel carrying the goods has put out to sea or other conveyance has left Pakistan.
  2. Declaration by parties claiming drawback.-Every person, or his duly authorized agent, claiming drawback on any goods duly exported, shall make and subscribe a declaration that such goods have been actually exported and have not been relanded and are not intended to be relanded at any place in Pakistan and that such person was at the time of entry outwards and export and continues to be entitled to drawback thereon.

LEGAL REFERENCE

  1. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S.4(6), page 476
  2. By the Finance Act, 2006, the words “or Deputy Collector” were omitted.
  3. Substituted for the words “bill of export” by the Finance Act, 2006.
  4. Added by Finance Act, 2004 (II of 2004), S.3(7), page 16 and omitted the word, figure and letter or 131Aby the Finance Act, 2005 .
  5. Substituted for the words “Central Government” by the Finance Ordinance, 1972, S.3, page 56 and Second Schedule S.1, page 76.
  6. Inserted by the Finance Act, 2007.

CHAPTER VII

ARRIVAL AND DEPARTURE OF CONVEYANCE

42. Arrival of conveyance.-(1) The person-in-charge of a conveyance entering Pakistan from any place outside Pakistan shall not cause or permit the conveyance to call or to land in the first instance at any place other than a customs-station.

(2) The provisions of sub-section (1) shall not apply in relation to any conveyance which is compelled by accident, stress of weather or other unavoidable cause to call, or land at a place other than a customs-station but the person-in-charge of any such conveyance

(a)
shall immediately report its arrival to the nearest officer of customs or the officer-in-charge of the police-station and shall on demand produce before him either the cargo book or the manifest or the log-book belonging to such conveyance;
(b)
shall not, without the consent of any such officer, permit any goods carried in the conveyance to be unloaded from, or any of the crew or passengers to depart from its vicinity;
(c)
shall comply with any direction given by such officer with respect ot any such goods; and no passenger or member of the crew shall, without the consent of any such officer, leave the vicinity of the conveyance:

Provided that nothing in this section shall prohibit the departure of any passenger of member of the crew from the vicinity of, or the removal of goods from, the conveyance where such departure or removal is necessary for reasons of health, safety or the preservation of life or property 1[ : ]

2[Provided further that the person in charge of a conveyance, that is en route to Pakistan from a point outside Pakistan shall, unless otherwise approved by the Collector,

(a)
give to the Customs, in such form and manner (for example, in an electronic form and manner) as may be approved in writing by the Collector (either generally or for a particular case or class of cases), such advance notice as may be prescribed for any or all of the following matters, namely:
(i)
the impending arrival of the conveyance;
(iii)
its voyage;
(iii)
its crew;
(iv)
its passengers;
(v)
its cargo for discharge within Pakistan whether commercial or non-commercial;
(vi)
its commercial cargo not intended for discharge wtihin Pakistan, if any;

(vii) the Customs station at which the conveyance will arrive; and

(b) or arriving within Pakistan, proceed directly to that Customs station unless directed elsewhere by an appropriate Customs officer.]

3[(3) The owner or operator of the conveyance, referred to in sub-section (1), or an agent of the owner, may provide the information referred to in paragraph (a) of that sub-section to the Customs on behalf of the person in charge of the conveyance:

Provided that the provisions of sub-section (1) and (2) shall apply to,

(a)
a conveyance that has arrived in Pakistan from a point outside Pakistan;
(b)
a conveyance departing from Pakistan for a point outside Pakistan;
(c)
a conveyance that is within Pakistan and that is carrying international cargo or international crew or any international passenger, whether or not the conveyance is also carrying domestic cargo;
(d)
any other conveyance that is within Pakistan and that a Customs officer has reasonable cause to suspect has been, or is about to be, involved in the commission of an offence under this Act or the importation or exportation of any dutiable, prohibited, restricted, notified or confiscated goods.

(4) The person in charge of, the owner of goods, any member of the crew of, any passenger on, a conveyance to which this sub-section applies, shall,

(a)
answer any question asked by a customs officer under this Act relating to the conveyance and its voyage and any persons or goods that are or have been carried by the conveyance; and
(b)
produce forthwith, at the request of any Customs officer, any documents within that person’s possession or control relating to any of those matter.]

4[43. Delivery of import manifest in respect of a vessel.-(1) The Board may, by notification in the official Gazette, fix a place beyond which no vessel arriving shall pass until an import manifest has been delivered to Customs or other person duly authorized to receive in such form, manner and time as the Board may prescribe.

(2)
On receipt of such import manifest the vessel may proceed to come beyond the fixed place. No pilot shall bring a vessel into customs-port without having been so authorized by Customs.
(3)
If any vessel arrives at any customs-port in which a place has not been so fixed, master of such vessel shall, within twenty-four hours after arrival of such vessel, deliver an import manifest to Customs in such form and manner as the Board may prescribe.
(4)
Notwithstanding anything contained in sub-section (3), an import manifest may be delivered in anticipation of the arrival of a vessel.]

44. Delivery of import manifest in respect of a conveyance other than a vessel.The person-in-charge of a conveyance other than a vessel shall 16[before arrival or], within twenty-four hours after arrival thereof at a land customs-station or customs-airport, as the case may be, deliver 16[or file electronically]an import manifest to the appropriate officer.

45. Signature and contents of import manifest and amendment thereof.-(1) Every manifest delivered under section 43 or section 44 shall be signed by the personin-charge of the conveyance or his duly authorized agent and shall specify all goods imported in such conveyance showing separately all goods, if any, intended to be landed, transshipped, transited or taken into another customs-station or to a destination outside Pakistan and stores intended for consumption at the customs-station or on the outward voyage or journey, and shall be made out in such form and contain such further particulars as the Board may from time to time direct5[:]

6[Provided that the Collector of Customs, through a special order, on such terms and conditions as he may deem fit to impose, may allow acceptance of digital signatures instead of manual ones, on electronically transmitted import manifest.]

(2)
The appropriate officer shall permit the person-in-charge of a conveyance or his duly authorized agent to correct any obvious error in the import manifest or to supply any omission which in the opinion of such officer results from accident or inadvertence, by furnishing an amended or supplementary import manifest 7[or by making an amendment electronically] and shall levy thereon such fees as the Board from time to time directs.
(3)
Except as provided in sub-section (2), no import manifest shall be amended.

46. Duty of person receiving import manifest.-The person receiving an import manifest under section 43 or section 44 shall countersign the same and enter thereon such particulars as the Collector of Customs from time to time directs 8[:]

9[Provided that no countersignatures shall be required in respect of an import manifest filed electronically.]

  1. Bulk not to be broken until manifest, etc., delivered and vessel entered inwards.-No vessel arriving in any customs-port shall be allowed to break bulk, until an import manifest has been delivered as hereinbefore provided or until copy of such manifest together with an application for entry of such vessel inwards, has been presented by the master to the appropriate officer and an order has been given thereon for such entry.
  2. Power to require production of documents and ask questions.-(1) When an import manifest is presented, the person-in-charge of a conveyance or his duly authorized agent, if required so to do by the appropriate officer, shall deliver to the officer the bill of lading or the bill of freight or a copy thereof for every part of cargo or goods laden on board, journey log-book and any port clearance, docket or other paper granted in respect of such conveyance at the place from which it is stated to have come, and shall answer all such questions relating to the conveyance, goods, crew and voyage or journey as are put to him by such officer.

(2) The appropriate officer may, if any requisition or question made or put by him under this section is not complied with or answered, refuse to grant permission to a vessel to break bulk and to other conveyance to land the imported goods, as the case may be.

49. Special pass for breaking bulk.-Notwithstanding anything contained in section 47 and subject to rules, the appropriate officer may grant, prior to receipt of the import manifest and the entry inwards of a vessel, a special pass permitting bulk to be broken.

50. Order for entry out-wards or loading of goods to be obtained before export goods are loaded.-(1) No goods other than passengers’ baggage and mail bags shall be loaded on a conveyance until

(a)
in the case of a vessel, a written application for entry of such vessel outwards, subscribed by the master of such vessel, has been made to the appropriate officer and an order has been given thereon for such entry; and
(b)
in the case of any other conveyance, a written application for authority to load the goods subscribed by the person-in-charge of the conveyance has been made to the appropriate officer and an order has been given thereon authorizing the loading.

(2) Every application made under this section shall specify the particulars as prescribed by the Board.

51. No vessel to depart without port clearance.-(1) No vessel, whether laden or in ballast, shall depart from any customs-port until a port-clearance has been granted by the appropriate officer.

(2) No pilot shall take charge of any vessel proceeding to sea, unless the master of such vessel produces a port-clearance.

  1. No conveyance other than vessel to leave without permission.-No conveyance other than a vessel shall depart from a land customs-station or customs-airport until a written permission to that effect has been granted by the appropriate officer.
  2. Application for port clearance of vessels.-(1) Every application for port-clearance shall be made by the master of a vessel at least twenty-four hours before the intended departure of the vessel:

Provided that the Collector of Customs or an officer authorized by him in this behalf may for special reasons to be recorded allow a shorter period for the delivery of the said application.

(2)
The master shall, at the time of applying for port clearance,
(a)
deliver to the appropriate officer an export manifest in duplicate in such form as may from time to time be prescribed by the Board signed by such master specifying all goods to be exported in the vessel and showing separately all goods and stores entered in the import manifest, and not landed or consumed on board or transshipped 10[:]

11[Provided that the Collector of Customs, through a special or general order, on such terms and conditions as he may deem fit to impose, may allow acceptance of digital signatures, in lieu of the manual ones, on electronically transmitted export manifest.]

12/13

(b)
deliver to the appropriate officer such [ goods declaration] or other documents as such officer acting under the general instructions of the Collector of Customs requires; and
(c)
answer such questions respecting the departure and destination of the vessel as are put to him by the appropriate officer.

(3) The provisions of section 45 relating to the amendment of import manifests shall, mutatis mutandis, apply also to export manifests delivered under this section or under section 54.

54. Conveyances other than vessels to deliver documents and answer questions before departure.-The person-in-charge of a conveyance other than a vessel or his duly authorized agent shall

(a)
deliver to the appropriate officer an export manifest in duplicate in such form as may from time to time be prescribed by the Board signed by the person-in-charge or the agent specifying all goods or stores entered in the import manifest, and not landed or transshipped or consumed on board the conveyance;
(b)
deliver to the appropriate officer such bills of export 14[or goods declaration] or other documents as such officer acting under the general instructions of the Collector of Customs requires; and
(c)
answer such questions respecting the departure and destination of the conveyance as are put to him by the appropriate officer.

55. Power to refuse port clearance to vessels or permission for departure to other conveyance.-(1) The appropriate officer may refuse to give port-clearance to a vessel or permission for departure to any other conveyance until

(a)
the provisions of section 53 or section 54, as the case may be, have been complied with;
(b)
all station or port dues and other charges and penalties payable in respect of such vessel, or by the owner or master thereof, or in respect of such other conveyance by the owner or person-in-charge thereof, and all taxes, duties and other dues payable in respect of any goods loaded therein, have been duly paid, or their payment secured by such guarantee, or by such deposit at such rate, as such officer directs;
(c)
where any export goods have been loaded without payment or securing payment as aforesaid of all taxes, duties and other dues payable in respect thereof or in contravention of any provision of this Act or the rules or of any other law for the time being in force relating to export of goods.
(i)
such goods have been unloaded, or
(ii)
where the appropriate officer is satisfied that it is not practicable to unload such goods, the person-in-charge or his duly authorized agent has given an undertaking secured by such guarantee or deposit of such amount as the appropriate officer may direct, for bringing back the goods to Pakistan;
(d)
the agent, if any, delivers to the appropriate officer a declaration in writing to the effect that he will be liable for any penalty imposed under clause 24 of the Table under sub-section (1) of section 156 and furnishes security for the discharge of the same;
(e)
the agent, if any, delivers to the appropriate officer a declaration in writing to the effect that such agent is answerable for the discharge of all claims for damage or short delivery which may be established by the owner of any goods comprised in the import cargo in respect of such goods.

(2) An agent delivering a declaration under clause (d) of sub-section (1) shall be liable to all penalties which might be imposed on the person-in-charge of such conveyance under clause 24 of the Table under sub-section (1) of section 156 and an agent delivering a declaration under clause (e) of sub-section (1) shall be bound to discharge all claims referred to in such declaration.

  1. Grant of port clearance or permission for departure.-When the appropriate officer is satisfied that the provisions of this Chapter relating to the departure of conveyance have been duly complied with, he shall grant a port-clearance to the master of the vessel or a written permission for departure to the person-in-charge of any other conveyance and shall return at the same time to such master or person-in-charge one copy of the manifest duly countersigned by the appropriate officer.
  2. Grant of port clearance or permission for departure on security of agent.

Notwithstanding anything contained in section 55 or section 56 and subject to rules, the appropriate officer may grant a port-clearance in respect of a vessel or permission for departure in respect of any other conveyance, if the agent furnishes such security as such officer deems sufficient for duly delivering within ten days from the date of such grant, the export manifest and other documents specified in section 53, or section 54, as the case may be.

58. Power to cancel port-clearance or permission for departure. (1) For the purpose of securing compliance with any provision of this Act or the rules or any other law, the appropriate officer may at any time, while the vessel is within the limits of any port or any other conveyance is within the limits of any station or airport or within Pakistan territory, demand the return of port-clearance or the written permission for departure, as the case may be.

(2) Any such demand may be made in writing or may be communicated to the person-in charge of the conveyance by wireless, and, if made in writing it may be served, by delivery to the person in-charge or his agent personally; or

(a)
by leaving it at the last known place of abode of such person or agent; or
(b)
by leaving it on board the conveyance with the person

appearing to be in-charge or command thereof.

(3) Where a demand for the return of a port-clearance or of a permission for departure is made as aforesaid, the port-clearance or permission shall forthwith become void.

59. Exemption of certain classes of conveyance from certain provisions of this Chapter.-(1) The provisions of section 44, 52, and 54 shall not apply to a conveyance, other than a vessel which carries no goods other than the baggage of its occupants.

(2) The 15[Federal Government] may, by notification in the official Gazette, exempt conveyances belonging to Government or any foreign Government from all or any of the provisions of this Chapter.

LEGAL REFERENCE

  1. Substituted for the full stop by the Finance Act, 2005
  2. Added by the Finance Act, 2005
  3. Added by the Finance Act, 2005

4 .Substituted by the Finance Act, 2003 (I of 2003), S.5(8), page 23. At the time of
substitution section 43 was as under:

43. Delivery of import manifest in respect of a vessel.-(1) The Board may, by notification in the official Gazette, fix a place in any river or port beyond which no vessel arriving shall pass until an import manifest has been delivered to the pilot, officer of customs or other person duly authorised to receive the same.

(2)
If in any river or port wherein a place has been fixed by the Board under this section, the master of any vessel arriving remains outside or below the place so fixed, such master shall, nevertheless, within twenty-four hours after the vessel anchors, deliver an import manifest to the pilot, officer of customs or other person duly authorised to receive the same.
(3)
If any vessel arrives at any customs-port in which a place has not been so fixed, the master of such vessel shall, within twenty-four hours after such vessel has anchored within the limits of the port, deliver an import manifest to the pilot, officer of customs or other person authoirsed to receive the same.
(4)
Notwithstanding anything herein before contained, the appropriate officer may allow an import manifest to be delivered in anticipation of the arrival of a vessel.‖.

5. Substituted for the full stop by the Finance Ordinance, 2001 (XXV of 2001), S.4($), page

305.

6. Added by the Finance Ordinance,2001(XXV of 2001),S.4(4),p-305&306.
7 Inserted by the Finance Act, 2003 (I of 2003), S.5(10), page 23.

  1. Substituted for the full stop by the Finance Act, 2003 (I of 2003), S.5(11), page 23.
  2. Added by the Finance Act, 2003 (I of 2003), S.5(11), page 23.
    1. Substituted for the full stop by the Finance Ordinance, 2001 (XXV of 2001), S.4(5), page
    2. 306.
  3. Added by the Finance Ordinance, 2001 (XXV of 2001), S.4(5), page 306.
    12 Inserted by the Finance Act, 2003 (I of 2003), S.5(12), page 23.
  1. By the Finance Act, 2006, the words “ bills of export or” were omitted.
  2. Inserted by the Finance Act, 2003 (I of 2003), S.5(13), page 23.
  3. Substituted for the words “Central Government” by the Finance Ordinance, 1972, S.3, page 56 and Second Schedule S.1, page 76.
  4. Inserted by Finance Act,2009..

CHAPTER VIII

GENERAL PROVISIONS AFFFECTING CONVEYANCES AT CUSTOMSSTATIONS

  1. Power to depute officers of customs to board conveyances.-At any time while a conveyance is in a customs-station or is proceeding towards such station, the appropriate officer may depute one or more officers of customs to board the conveyance, and every officer so deputed shall remain on board such conveyance for such time as the appropriate officer may consider necessary.
  2. Officer to be received and accommodation to be provided.-Whenever an officer of customs is so deputed to be on board any conveyance, the person-in-charge shall be bound to receive him on board and provide him with suitable accommodation and adequate quantity of fresh water.
    1. Officer’s power of access, etc. -(1) Every officer deputed as aforesaid shall have free access to every part of the conveyance and may
      1. cause any goods to be marked before they are unloaded from the conveyance;
      2. lock up, seal, mark or otherwise secure any goods carried in the conveyance or any place or container in which they are carried; or
      3. fasten down any hatchway or entrance to the hold.
      4. If any box, place or closed receptacle in any such conveyance be locked, and the key be withheld, such officer shall report the same to the appropriate officer, who may thereupon issue to the officer on board the conveyance, or to any other officer under his authority, a written order for search.
      5. On production of such order, the officer empowered thereunder may require that any such box, place or closed receptacle be opened in his presence; and if it be not opened upon his requisition, he may break open the same.

63. Sealing of conveyance.-Conveyances carrying transit goods for destinations outside Pakistan or goods from some foreign territory to a customs-station or from a customs-station to some foreign territory may be sealed in such cases and in such manner as may be provided in the rules.

64. Goods not to be loaded or unloaded or water-borne except in presence of officer.-Save where general permission is given under section 67 or with permission

in writing of the appropriate officer, no goods other than passengers’ baggage or ballast urgently required to be loaded for the vessel’s safety, shall be shipped or water-borne to be shipped or discharged from any vessel, in any customs-port, nor any goods except

passengers’ baggage shall be loaded in or unloaded from any conveyance other than a

vessel at any land customs-station or customs-airport except in the presence of an officer of customs.

65. Goods not to be loaded or unloaded or passed on certain days or at certain times.-Except with the permission in writing of the appropriate officer and on payment of such fees as may be prescribed by the Board no goods, other than passengers’ baggage or mail bags, shall in any customs-port be discharged, or be shipped or water-borne to be shipped or shall be loaded or unloaded or passed at any land customs-station or customs-airport

(a)
on any public holiday within the meaning of section 25 of the Negotiable Instruments Act,1881(XXVI of 1881), or on any day on which the discharge or shipping of cargo at customs-port or loading, unloading passage or delivery of cargo at any land customs-station or customs-airport, as the case may be, is prohibited by the Board by notification in the official Gazette; or
(b)
on any day except between such hours as the Board may, from time to time, by a like notification, appoint 1[:]

2[Provided that where the Customs Computerized System is in operation, all loading and discharge may be allowed by the Collector of Customs round the clock and on all days.]

66. Goods not to be loaded or unloaded except at approved places.-Save where general permission is given under section 67 or with permission in writing of the appropriate officer, no imported goods shall be unloaded or goods for export loaded at any place other than a place duly approved under clause (b) of section 10 for the unloading or loading of such goods.

67. Power to exempt from sections 64 and 66.-Notwithstanding anything contained in section 64 or section 66, the Board may, by notification in the official Gazette, give general permission for goods to be loaded at any customs-station from any place not duly appointed for loading and without the presence or authority of an officer of customs.

68. Boat-note.-(1) When any goods are water-borne for the purposes of being landed from any vessel and warehoused or cleared for home-consumption, or of being shipped for exportation on board any vessel, there shall be sent, with each boat-load or other separate despatch, a boat-note specifying the number of packages so sent and the marks or number or other description thereof.

(2)
Each boat-note for goods to be landed shall be signed by an officer of the vessel, and likewise by the officer of customs on board, if any such officer be on board, and shall be delivered on arrival to any officer of customs authorized to receive the same.
(3)
Each boat-note for goods to be shipped shall be signed by the appropriate officer and, if an officer of customs is on board the vessel on which such goods are to be shipped, shall be delivered to such officer, and if no such officer be on board, shall be delivered to the master of the vessel or to an officer of the vessel appointed by him to receive it.
(4)
The officer of customs who receives any boat-note of goods landed, and the officer of customs, master or other officer as the case may be, who receives any boat-note of goods shipped, shall sign the same and note thereon such particulars as the Collector of Customs may from time to time direct.
(5)
The Board may from time to time, by notification in the official Gazette, suspend the operation of this section in any customs-port or part thereof.
  1. Goods water-borne to be forthwith landed or shipped.-All goods waterborne for the purpose of being landed or shipped shall be landed or shipped without any unnecessary delay.
  2. Goods not to be transshipped without permission.-Except in cases of imminent danger, no goods discharged into or loaded in any boat for the purpose of being landed or shipped shall be transshipped into any other boat without the permission of an officer of customs.
  3. Power to prohibit plying of unlicensed cargo-boats.-(1) The Board may declare with regard to any customs-port, by notification in the official Gazette that, after a date therein specified, no boat not duly licensed and registered shall be allowed to ply as a cargo-boat for the landing and shipping of merchandise within the limits of such port.

(2) In any port with regard to which such notification has been issued, the Collector of Customs or other officer whom the Board appoints in this behalf, may, subject to rules and on payment of such fees as the Board may, by notification in the official Gazette, prescribe, issue licences for and register cargo-boats, or cancel the same.

72. Plying of ships of less than one hundred tons.-(1) Every boat belonging to a Pakistani ship and every other vessel not exceeding one hundred tons, shall be marked in such manner as may be prescribed by rules.

(2) Plying of all or any class or description of vessels of less than one hundred tons, whether in sea or inland waters, may be prohibited or regulated or restricted as to the purposes and limits of plying by rules.

3[72A. Responsibilities of person in charge or master of a conveyance, agent and owner of the conveyance.-The person in charge of the conveyance, master, agent for conveyance and owner of the conveyance shall jointly and individually be responsible to submit the following information to the Collector of Customs, namely:

(a)
loading or unloading of any container of package, etc., which is believed to contain any other goods or has different weight or quantity or freight than declared in the bill of lading or any other document in the knowledge of such person;
(b)
the name and full address with telephone number of the person who stuffed the goods in the container if he is other than the actual owner of the goods;
(c)
the name and full address with telephone number of the person who issued a consignment note or the house bill of lading in case of a person other than licenced by the customs as Customs agent; and
(d)
full details and photo copies of corrigendum or instructions issued by the owner of the goods or by the other persons for change in the name of consignee or consignor or destination or regarding weight, value, description and quantity of the goods loaded on the conveyance arriving or leaving Pakistan;]

LEGAL REFERENCE

CHAPTER IX

DISCHARGE OF CARGO AND ENTRY INWARDS OF GOODS

73. Discharge of cargo by vessels may commence on receipt of due permission.-When an order for entry inwards of any vessel which has arrived in any customs-port or a special pass permitting such vessel to break bulk has been given, discharge of the cargo of such vessel may be proceeded with.

74. Discharge of goods by conveyances other than vessels.-When on arrival of a conveyance other than a vessel at a land customs-station or customs-airport the personin-charge of such conveyance has delivered the import manifest under section 44 and the documents required under section 48, he shall forthwith take the conveyance or cause it to be taken to the examination station at the land customs-station or customs-airport and remove or cause to be removed all goods carried in such conveyance to the custom-house in the presence of the appropriate officer or some person duly authorized by him in that behalf.

75. Imported goods not to be unloaded unless entered in the import manifest.

(1)
No imported goods required to be shown in the import manifest shall, except with the permission of the appropriate officer, be unloaded from any conveyance at any customs-station unless they are specified in the import manifest or amended or supplementary import manifest for being unloaded at that customs-station.
(2)
Nothing in this section shall apply to the unloading of baggage accompanying a passenger or a member or a crew or mail bags.

76. Procedure in respect of goods not unloaded by vessels within time allowed.

(1)
(a) If any goods imported by a vessel (except such as have been shown in the import manifest as not to be unloaded) are not unloaded within such period as is specified in the bill of lading or if no period is so specified, within such number of working days, not exceeding fifteen, after entry of the vessel as the Board may from time to time by notification in the official Gazette appoint, or
(b)
if the cargo of any vessel, excepting a small quantity of goods, has been discharged before the expiration of the period so specified or appointed, the master of such vessel or, on his application, the appropriate officer may then carry such goods to the custom-house, there to remain for entry.
(2)
The appropriate officer shall thereupon take charge of, and grant receipts for, such goods; and if notice in writing has been given by the master of such vessel that goods are to remain subject to a lien for freight, primage, general average, or other charges of a stated amount, the appropriate officer shall hold such goods until he receives notice in writing that the said charges have been paid.
77. Power to land small parcels and hold unclaimed parcels.-(1) At any time after the arrival of any vessel, the appropriate officer may, with the consent of the master of such vessel, cause any small package or parcel of goods to be carried to the custom-house there to remain for entry in charge of the officers of customs, during the remainder of the working days allowed under this Act, for the landing of such package or parcel.
(2)
If any package or parcel so carried to the custom-house remains unclaimed on the expiration of the number of working days so allowed for its unloading, or at the time of clearance outwards of the vessel from which it was unloaded, the master of such vessel may give such notice as is provided in section 76, and the officer-in-charge of the custom-house shall thereupon hold such package or parcel as provided in that section.

78. Power to permit immediate discharge.-(1) Notwithstanding anything contained in sections 74,76 and 77, the appropriate officer in any customs-station to which the Board, by notification in the official Gazette, declares this section to apply, may permit the master of any vessel immediately on receipt of an order under section 47 or a special pass under section 49, or the person-in-charge of a conveyance other than a vessel on receipt of the import manifest, to discharge the goods imported by such conveyance, or any portion thereof, into the custody of his agent, if he be willing to receive the same, for the purpose of unloading the same forthwith

(a)
at the custom-house, or at any specified landing place or wharf; or
(b)
at any landing-place or wharf belonging to the port commissioners, port trust, railways or other public body or company; or
(c)
for giving it in the custody of such person as may be approved by the Collector of Customs.
(2)
Any agent so receiving such cargo or portion shall be bound to discharge all claims for damage or short delivery which may be established in respect of the same by the owner thereof, and shall be entitled to recover from such owner his charges for service rendered, but not for commission or the like, where any agent for the unloading of such cargo or portion has been previously appointed by the owner and such appointment is unrevoked.
(3)
The appropriate officer shall take charge of all goods discharged under clause (a) of sub-section (1) and otherwise proceed in relation thereto as provided in sections 76 and 82.
(4)
A public body or company or person at whose landing place or wharf or place of storage any goods are discharged under clause (b) or clause (c) of sub-section
(1)
shall not permit the same to be removed or otherwise dealt with except in accordance with the order in writing of the appropriate officer.

79. Declaration and assessment for home consumption or warehousing.

1[(1)The owner of any imported goods shall make entry of such goods for home consumption or warehousing or for any other approved purposes, within fifteen days of the arrival of the goods, by,

(a)
filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe ; and
(b)
assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:

11[Provided that if, in case of used goods, before filing of goods declaration, the owner makes a request to an officer of customs not below the rank of an Additional Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:]

Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.]

(2)
If an officer, not below the rank of Additional Collector of Customs, is satisfied that the rate of customs duty is not adversely affected and that there was no intention to defraud, he may, in exceptional circumstances and for reasons to be recorded in writing, permit, substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.
(3)
An officer of Customs, not below the rank of Assistant Collector of Customs, may in case of goods requiring immediate release allow release thereof prior to presentation of a goods declaration subject to such conditions and restrictions as may be prescribed by the Board.]

2[79A. Omitted.

3[80. Checking of goods declaration by the Customs.-(1) On the receipt of goods declaration under section 79, an officer of Customs shall satisfy himself regarding the correctness of the particulars of imports, including declaration, assessment, and in case of the Customs Computerized System, payment of duty, taxes and other charges thereon.

(2)
An officer of Customs may examine any goods that he may deem necessary at any time after the import of the goods into the country and may requisition relevant documents, as and when and in the manner deemed appropriate, during or after release of the goods by Customs;
(3)
If during the checking of goods declaration, it is found that any statement in such declaration or document or any information so furnished is not correct in respect of any matter relating to the assessment, the goods shall, without prejudice to any other action which may be taken under this Act, be reassessed to duty.
(4)
In case of the Customs Computerized System, goods may be examined only on the basis of computerized selectivity criteria.
(5)
The Collector may, however, either condone the examination or defer the examination of imported goods or class of goods and cause it to be performed at a designated place as he deems fit and proper either on the request of the importer or otherwise.]

4[80A. Omitted.]

5[81. Provisional determination of liability.-(1) Where it is not possible for an officer of Customs during the checking of the goods declaration to satisfy himself of the correctness of the assessment of the goods made under section 79, for reasons that the goods require chemical or other test or a further inquiry, an officer, not below the rank of Assistant Collector of Customs, may order that the duty, taxes and other charges payable on such gods, be determined provisionally:

Provided that the importer, save in the case of goods entered for warehousing, pays such additional amount on the basis of provisional assessment or furnishes bank guarantee 5a[or pay order] or a post-dated cheque of a scheduled bank along with an indemnity bond for the payment thereof as the said officer deems sufficient to meet the likely differential between the final determination of duty over the amount determined provisionally:

Provided further that there shall be no provisional assessment under this section if no differential amount of duty and tax is paid or secured against bank guarantee or post-dated cheque.

5b[(2) Where any goods are allowed to be cleared or delivered on the basis of such provisional determination, the amount of duty, taxes and charges correctly payable on those goods shall be determined within six months of the date of provisional determination:

Provided that the Collector of Customs or, as the case may be, Director of Valuation, may in circumstances of exceptional nature and after recording such circumstances, extend the period for final determination which shall in no case exceed ninety days12[:]

12[Provided further that any period, during which the proceedings are adjourned on account of a stay order or for want of clarification from the Board or the time taken through adjournment by the importer, shall be excluded for the computation of aforesaid periods.]

(3) On completion of final determination, the amount already paid or guaranteed shall be adjusted against the amount payable on the basis of final determination, and the difference between the two amounts shall be paid forthwith to or by the importer, as the case may be.

(4). If the final determination is not made with the period specified in subsection (2), the provisional determination shall, in the absence of any new evidence, be deemed to be the final determination.

13 [(5) On completion of final determination under sub-section (3) or (4), the appropriate officer shall issue an order for adjustment, refund or recovery of amount determined, as the case may be.]

Explanation.-Provisional assessment means the amount of duties and taxes paid or secured against bank guarantee or post-dated cheque.]

6[81A. Omitted].

7[82. Procedure in case of goods not cleared or warehoused or transshipped or exported or removed from the port within 8[twenty days] after unloading or filing of declaration.-If any goods are not cleared for home-consumption or warehoused or transshipped or are not loaded on the conveyance for export or removed from the port area within 8[twenty days] of their arrival at a customs station or within such extended period not exceeding 9[ten] days, an officer not below the rank of Assistant Collector may allow, and such goods may, after the due notice given to the owner if his address could be ascertained, or after due notice to the carrier, shipping or customs agent, custodian of the goods, as the case may be, if his address could not be ascertained, may be sold in auction or taken into custody by Customs and removed from the port to a Customs warehouse for auction under the order of the Assistant Collector notwithstanding the fact that adjudication of the case under section 179, or an appeal under section 193, or 196, or a proceeding in any court is pending:

Provided that

(a)
animals and perishable and hazardous goods may, with the permission of the appropriate officer, be sold or destroyed at any time;
(b)
arms, ammunition or military stores may be sold or otherwise disposed of at such time and place and in such manner as the Board may, with the approval of the Federal Government, direct;
(c)
in cases where goods are sold pending adjudication, appeal or decision of the court, the proceeds of sale shall be kept in deposit and if on such adjudication, or as the case may be, in such appeal or the decision of the court, the goods sold are found not to have been liable to confiscation, the entire sale proceeds, after necessary deduction of duties, taxes transportation and other charges or duties as provided in section 201, shall be handed over to the owner:

Provided further that where Customs removes such goods from the premises of

the custodian for disposal, the charges due to the custodian shall be paid subsequently

from the sale proceeds of the goods in the manner as provided under section 201:

Provided also that nothing in this section shall authorize removal for home consumption of any dutiable goods without payment of customs duties thereon.]

10[82A. Omitted.

LEGAL REFERENCE

1. By the Finance Act, 2006 sub-section (1) of section 79 was substituted. At the time of substitution, the section (1) of section 79 was as under:

(1) The owner of any imported goods shall make entry of such goods for home consumption or warehousing or for any other approved purpose by filing to the Customs a goods declaration containing correct and complete particulars of the goods and after having assessed, and, in case of the Customs Computerized System, paying his liability of duty, taxes and other charges thereon in such form and manner, as the Board may prescribe:

Provided that if, before filing a goods declaration to Customs, the owner makes a written request to the Collector of Customs or an officer designated that he is unable, for want of full information, to make a correct and complete declaration of any goods, then the Collector or the officer so designated, subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:

  1. 5a. 5b

THE CUSTOMS ACT,1969

Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.

Inserted by FA, 2003 and omitted by FA 2005.
Substituted by Finance Act, 2005.
Inserted by FA, 2003 and omitted by FA, 2005.
Substituted by the Finance Act, 2005.
Inserted by the Finance Act, 2007.
Substituted by the Finance Act, 2007. Before substitution it was as under:

―(2) Where any goods are allowed to be cleared or delivered on the basis of such provisional determination, the amount of duty, taxes and charges correctly payable on those goods shall be determined within nine months of the date of provisional determination:

Provided that the Collector of Customs may, in circumstances of exceptional nature and after recording such circumstances, extend the period for final

determination by not more than ninety days.‖

Inserted by FA, 2003 and omitted by FA, 2005.

Substituted by Finance Act,,2005.
By the Finance Act, 2006, substituted the words ―twenty days‖ with ―one months‖.

By the Finance Act, 2006, substituted the words ”ten” with “fifteen”.

Inserted by FA, 1996 and omitted by FA, 2005 At that time section 82A was as under:-.

82A. Procedure in case of goods not cleared or warehoused or transshipped or exported or removed from the port within one month after unloading through the Customs Computerized System.-Subject to the provisions of section 155A, at customs-stations with an operational Customs Computerized System, if any goods are not cleared for home consumption or warehoused or transshipped or are not loaded on the conveyance for export or removed from the port area within one month of their arrival at a customs-station or within such extended period as the appropriate officer may allow, such goods may, after the due notice given to the owner, if his address could be ascertained, or after due notice to the carrier, shipping agent, custodian of the goods, as the case may be, if his address could not be ascertained, may be sold in auction or taken into custody by Customs and removed from the port to a Customs auction warehouse for auction under the orders of the appropriate officer notwithstanding the fact that adjudication of the case under section 179, or an appeal under section 193, or 196, or a proceeding in any court of law in Pakistan, is pending:

Provided that

(a)
animals, perishable and hazardous goods may, with the permission of the appropriate officer, be sold at any time;
(b)
arms and ammunition or military stores may be sold or otherwise disposed of at such time and place and in such manner as the Board may, with the approval of the Federal Government, direct;
(c)
In cases where goods are sold pending any adjudication, appeal or decision of the court, the proceeds of sale shall be kept in deposit and, if on such adjudication (or, as the case may be, in such appeal or the decision of the court) the thing sold is found not to have been liable to confiscation, the entire sale proceeds, after necessary deduction of duties, taxes or dues as provided in section 201, shall be handed over to the owner:

Provided further that all auctions under this section shall be governed by the auction rules as notified by the Board and where Customs removes such goods from the premises of the custodian for disposal, the charges due to the custodian shall be paid subsequently from the sale proceeds of the goods in the manner as prescribed under section 201:

Provided further that nothing in this section shall authorize removal for home consumption of any dutiable goods without payment of customs-duties thereon;‖

11. Substituted by Finance Act,2010. At the time of substitution the proviso was as under:

―Provided that if, before filing a goods declaration, the owner makes a request to

an officer of customs not below the rank of an Assistant Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer, subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other

charges‖.

  1. Added by Finance Act, 2010.
  2. Added by Finance Act, 2010

CHAPTER X

CLEARANCE OF GOODS FOR HOME-CONSUMPTION

1[83. Clearance for home consumption.-(1) When the owner of any goods entered for home-consumption and assessed under section 2[****] 80 2[****] or 81 has paid the import duty and other charges, if any, in respect of the same the appropriate officer, if he is satisfied that the import of the goods is not prohibited or in breach of any restrictions or conditions applying to the import of such goods, may make an order for the clearance of the same:

Provided that, at customs-stations where the Customs Computerized System is operational the system may clear the goods through system generated clearance documents.

(2) Where the owner fails to pay import duty and other charges within 3[ten] days from the date on which the same has been assessed under sections 80, 80A or 81, he shall be liable to pay surcharge at the rate of 5[KIBOR plus three per cent] on import duty and other charges payable on such goods.]

4[83.A Omitted]

LEGAL REFERENCE

1. Re-numbered as sub-section (1) by the Finance Act, 1993 (X of 1993), S.4(iii), page 121 and substituted by the Finance Act, 2003 (I of 2003), S.5(19), page 27. At the time of substitution section 83 was as under:

“83. Clearance for home-consumption.-1a[(1) When the owner of any goods entered for home-consumption and assessed under section 80 has paid the import duty and other charges, if any in respect of the same, the appropriate officer, if he is satisfied that the import of the goods is not prohibited or in breach of any restrictions or conditions apply to the import of such goods, may make an order for the clearance of the same.

1b[(2) Where the owner fails to pay import duty and other charges under sub-section (1) within thirty days from the date on which the bill of entry is returned to him for payment of duty, he shall be liable to pay surcharge at the rate of fourteen percent per annum on import duty and other charges payable on such goods:

Provided that where the bill of entry is returned for payment of duty before the commencing day of the Finance Act, 1993, and the owner has not paid such duty before such commencing day, the date of return of such bill of entry shall be such commencing day.]

1a. Re-numbered as sub-section (1) by the Finance Act, 1993 (X of 1993). 1b. Added by the Finance Act, 1993 (X of 1993), S.4(iii), page 121.

2. Figures, letters and commas “79A, 80A” omitted vide Finance Act, 2005

By the Finance Act, 2006, substituted the word “thirty”.

4. Inserted by the Finance Act, 2000 (XXI of 2000),and. By the Finance Act, 2006 section 83A was omitted At that time section 83A was as under:-.

83.A Levy of additional duty.-Notwithstanding anything contained in this Act and without prejudice to any other action that may be taken under this Act, if any person fails to pay the dues recoverable under this Act within the prescribed time, he shall, in addition to the dues payable, be liable to pay additional duty at the rate of one and a half percent per month.

Explanation: For the purpose of calculating additional duty, the period of default shall be reckoned from the day following the due date on which the dues were required to be paid to the day preceding the date on which the same are actually paid.

5. The words ―fourteen per cent‖ substituted with the words ―KIBOR plus three per cent‖ by Finance Act,2009.

CHAPTER XI

WAREHOUSING

84. Application to warehouse.-When any dutiable goods have been entered for warehousing and assessed under section 1[*****] 80 1[*****] or 81] the owner of such goods may apply for leave to deposit the same in any warehouse appointed or licensed under this Act2[:]

3[Provided that the Collector of Customs, for reasons to be recorded in writing, may disallow the warehousing of goods or any class of goods or goods belonging to a particular importer4[:]

5[Provided further that, at customs-stations where the Customs Computerized System is operational the system may allow removal to warehouse through system generated clearance documents.]

85. Form of application.-Every such application shall be in writing signed by the applicant, and shall be in such form as may be prescribed by the Board.

6[86. Submission of post-dated cheque and indemnity bond.-(1) When any such application has been made in respect of any goods, the owner of the goods to which it relates shall furnish an indemnity bond and post-dated cheque equivalent to the duty assessed under section 80 or section 81 or reassessed under section 109 on such goods,

(a)
to observe all the provisions of this Act and the rules in respect of such goods;
(b)
to pay on or before a date specified in a notice of demand all duties, taxes, rent and charges payable in respect of such goods together with surcharge on the same from the date so specified at the rate of 35[KIBOR plus three per cent per annum] or such other rate as is for the time being fixed by the Board; and
(c)
to discharge all penalties incurred for violation of the provisions of this Act and the rules in respect of such goods.
(2)
Every such post-dated cheque shall be equivalent to the duties and taxes leviable on the goods or por5tion of the goods of one conveyance only.]
87. Forwarding of goods to warehouse.-(1) When the provisions of sections 85 and 86 have been complied with in respect of any goods, such goods shall be forwarded in charge of an officer of customs to the warehouse in which they are to be deposited.
(2)
A pass shall be sent with the goods specifying the name of the bonder and the name or number of the importing conveyance, the marks, numbers and contents of each package, and the warehouse or place in the warehouse wherein they are to be deposited.
88. Receipt of goods at warehouse.-(1) On receipt of the goods, the pass shall be examined by the warehouse-keeper, and shall be returned to the appropriate officer.
(2)
No package, butt, cask or other container shall be admitted into any warehouse unless it bears the marks and numbers specified in, and otherwise corresponds with, the pass for its admission.
(3)
If the goods be found to correspond with the pass, the warehouse-keeper shall certify to that effect on the pass, and the warehousing of such goods shall be deemed to have been completed.
(4)
If the goods do not so correspond, the fact shall be reported by the warehouse-keeper for the orders of the appropriate officer, and the goods shall either be returned to the custom-house in charge of an officer of customs or kept in deposit pending such orders as the warehouse-keeper deems most convenient.
(5)
If the quantity or value of any goods has been incorrectly stated in the 7[goods declaration], due to inadvertence or bona fide error, the error may be rectified at any time before the warehousing of the goods is completed, and not subsequently.

89. Goods how warehoused.-Except as provided in section 94, all goods shall be warehoused in the packages, butts, casks or other containers in which they have been imported.

90. Warrant to be given when goods are warehoused.-(1) Whenever any goods are lodged in a public warehouse or a licensed private warehouse, the warehouse-keeper shall deliver a warrant signed by him as such to the person lodging the goods.

(2)
Such warrant shall be in such form as the Board may from time to time prescribe, and shall be transferable by endorsement; and the endorsee shall be entitled to receive the goods specified in such warrant on the same terms as those on which the person who originally lodged the goods would have been entitled to receive the same.
(3)
The Board may, by notification in the official Gazette, exempt any class of goods from the operation of this section.
  1. Access of customs officer to 8[*] warehouse.-The appropriate officer shall have access to any 8[*] warehouse licensed under this Act.
  2. Power to cause packages lodged in warehouse to be opened and examined.
(1)
The appropriate officer may at any time by order in writing direct that any goods or packages lodged in any warehouse shall be opened, weighed or otherwise examined; and, after any goods have been so opened, weighed or examined, may cause the same to be sealed or marked in such manner as he thinks fit.
(2)
When any goods have been so sealed and marked after examination, they shall not be again opened without the permission of the appropriate officer; and, when any such goods have been opened with such permission, the packages shall, if he thinks fit, be again sealed or marked.

93. Access of owner to warehoused goods.-(1) Any owner of goods lodged in a warehouse shall, at any time within the hours of business, have access to his goods in the presence of an officer of customs, and an officer of customs shall, upon application for the purpose being made in writing to the appropriate officer, be deputed to accompany such owner.

(2) When an officer of customs is specially employed to accompany such owner, a sum sufficient to meet the expense thereby incurred shall, subject to rules, be paid by such owner to the appropriate officer, and such sum shall, if the appropriate officer so directs, be paid in advance.

94. Owner’s power to deal with warehoused goods.-(1) With the sanction of the appropriate officer and on payment of such fees as may be prescribed by rules, the owner of any goods may, either before or after warehousing the same,

(a)
separate damaged or deteriorated goods from the rest;
(b)
sort the goods or change their containers for the purpose of preservation, sale, export or disposal of the goods;
(c)
deal with the goods and their containers in such manner as may be necessary to prevent loss or deterioration or damage to the goods;
(d)
show the goods for sale; or
(e)
take such samples of goods as may be allowed by the appropriate officer with or without entry for home-consumption, and with or without payment of duty, except such as may eventually become payable on a deficiency of the original quantity.

(2) After any such goods have been so separated and repacked in proper or approved packages, the appropriate officer may, at the request of the owner of such goods, cause or permit any refuse, damaged or surplus goods remaining after such separation or repacking (or, at the like request, any goods which may not be worth the duty) to be destroyed, and may remit the duty payable thereon.

95. Manufacture and other operations in relation to goods in a warehouse.-(1) Subject to rules, the owner of any warehoused goods may, with the permission in writing of the Collector of Customs, carry on any manufacturing process or other operations in the warehouse in relation to such goods.

(2) Where in the course of any such operation or process there is any waste or refuse the following provisions shall apply, namely:

(a)
If the whole or any part of the goods produced by such operation or process are exported, no duty shall be charged on the quantity of the warehoused goods wasted or turned into refuse in the course of the operation or processing carried on in relation to the goods exported:
Provided that such waste or refuse is either destroyed or duty is paid on such waste or refuse as if it had been imported into Pakistan in that form;
(b)
If the whole or any part of the goods produced by such operation or process are cleared from the warehouse for home-consumption, duty shall be charged on the quantity of the warehoused goods wasted or turned into refuse in the course of the operation or processing carried on in relation to the goods cleared for home-consumption.

96. Payment of rent and warehouse dues.-(1) If goods be lodged in a public warehouse, the owner shall 9[unless exempted by an order of the Collector or an officer not below the rank of 10[Assistant Collector or Deputy Collector], authorized by him,] pay monthly rent and warehouse-dues at such rates as the Collector of Customs may fix.

(2)
A table of the rates of rent and warehouse-dues so fixed shall be placed in a conspicuous part of such warehouse.
(3)
If any demand for such rent or dues is not discharged within ten days of its presentation, the appropriate officer may, in the discharge of such demand (any transfer or assignment of the goods notwithstanding) cause to be sold, after due notice in the official Gazette, such sufficient portion of the goods as he may select.

(4) The proceeds of such sale shall be adjusted in accordance with section

201.

97. Goods not to be taken out of warehouse except as provided by this Act.-No warehoused goods shall be taken out of any warehouse, except on clearance for home-consumption or export, or for removal to another warehouse, or as otherwise provided in this Act.

11[98. Period for which goods may remain warehoused.-12{(1) Warehoused goods, other than perishable goods notified by the 11a[Board] , may remain in the warehouse for a period of 13[six months] following the date of their admission into the warehouse and perishable goods so notified may remain in the warehouse for a period of three months, following the said date:

Provided that the said period may, in case of non-perishable goods, be extended, on sufficient cause being shown by the owner of the warehoused goods and subject to the condition that he pays in advance surcharge on the duty and taxes involved at 14[one] per cent per month for the extended period

15[(a) by the Collector of Customs, for a period not exceeding 16[one] months in case of notified perishable goods and a period not exceeding 16[three] months in case of non-perishable goods; and

(b) subject to the condition that the extension in case of perishable goods shall be granted only if the goods are fit for human consumption.}

(2)
The Federal Government may, subject to such conditions, or restrictions as it may deem fit to impose, by notification in the official gazette, remit the whole or a part of the surcharge in case of any goods or category of goods and the Board, in circumstances of exceptional nature, may, subject to such conditions, limitations or restrictions, if any, as it may think fit to impose, by a special order in each case recording such circumstances remit the whole or a part of the surcharge.
(3)
Notwithstanding anything contained in sub-section (1), the Federal Government may, by notification in the official Gazette, limit the period for which 17[***] goods or class of 17[***] goods may remain in the warehouse:
Provided that such period shall not be less than one month.
(4)
When the licence of any warehouse is cancelled, the owner of any goods warehoused therein shall, within ten days of the date on which notice of such cancellation is given, or within such extended period as the appropriate officer may allow, remove the goods from that warehouse to another warehouse or clear them for home-consumption or exportation.]

99. Power to remove goods from one warehouse to another in the same customs-station.-(1) Any owner 18[or a manufacturer-cum-exporter duly authorized by such owner in respect] of goods warehoused under this Act may, within the period of their warehousing under section 98, and with the permission of the Collector of Customs, on such conditions and after giving such security, if any, as the Collector directs, remove goods from one warehouse to another warehouse in the same warehousing station.

(2) When any owner 18[or a manufacturer-cum-exporter duly authorized by such owner] desires to remove any goods, he shall apply for permission to do so in such form as the Board may prescribe.

100. Power to remove goods from one warehousing station to another.-(1) Any owner 18[or a manufacturer-cum-exporter duly authorized by such owner in respect] of goods warehoused at any warehousing station may, within the period of their warehousing under section 98, remove the same for the purpose of warehousing them at any other warehousing station.

(2) When any owner 18[or a manufacturer-cum-exporter duly authorized by such owner] desires to remove any goods for such purpose, he shall apply to the Collector of Customs in such form and manner as the Board may prescribe stating therein the particulars of the goods to be removed, and the name of the customs-station to which they are to be removed.

101. Transmission of account of goods to officers at warehousing station of destination.-(1) When permission is granted for the removal of any goods from one warehousing station to another under section 100, an account containing the particulars thereof shall be transmitted by the appropriate officer of the customs-station of removal to the appropriate officer of the customs-station of destination.

(2)
The person requiring the removal shall before such removal enter into a bond, with one sufficient surety, in a sum equal at least to the duty chargeable on such goods, for the due arrival and re-warehousing thereof at the customs-station of destination, within such time, as the Collector of Customs directs.
(3)
Such bond may be taken by the appropriate officer either at the customs-station of removal or at the customs-station of destination as best suits the convenience of the owner.
(4)
If such bond is taken at the customs-station of destination, a certificate thereof signed by the appropriate officer of such station shall at the time of the removal of such goods be produced to the appropriate officer at the customs-station of removal; and such bond shall not be discharged unless such goods are produced to the appropriate officer, and duly re-warehoused at the customs-station of destination within the time allowed for such removal or are otherwise accounted for to the satisfaction of such officer; nor until the full duty due upon any deficiency of such goods, not so accounted for, has been paid.

102. Remover may enter into a general bond.-The Collector of Customs may permit any person desirous of removing warehoused goods to enter into a general bond, with such sureties, in such amount and under such conditions as the Collector approves, for the removal, from time to time, of any goods from one warehouse to another, either in the same or in a different warehousing station and for the due arrival and re-warehousing of such goods at the destination within such time as the Collector directs.

103. Goods on arrival at customs-station of destination to be subject to same laws as goods on first importation.-Upon the arrival of warehoused goods at the customs-station of destination, they shall be entered and warehoused in like manner as goods are entered and warehoused on the first importation thereof, and under the laws and rules, in so for such laws and rules are applicable, which regulate the entry and warehousing of such last mentioned goods.

104. Clearance of bonded goods for home-consumption.-Any owner 18[or a manufacturer-cum-exporter duly authorized by such owner in respect] of warehoused goods may, at any time within the period of their warehousing under section 98, clear such goods for home-consumption by paying

(a)
the duty assessed on such goods under the provisions of this Act; and
(b)
all rent, penalties, 19[surcharge] and other charges payable in respect of such goods 20[:]

21[Provided that in case of manufacturer-cum-exporter duly qualified for claiming exemption under any notification issued under this Act, the ex-bonding of goods under this section shall be without payment of duties and taxes.]

105. Clearance of warehoused goods for export.-Any owner of warehoused good may, at any time within the period of their warehousing under section 98, clear such goods for export out of Pakistan on payment of all rent, penalties, 22[surcharge] and other charges payable as aforesaid but without paying any import duty thereon:

Provided that, if the 23[Federal Government] is of the opinion that warehoused goods of any specified description are likely to be smuggled back into Pakistan, it may, by notification in the official Gazette, direct that such goods shall not be exported to any place outside Pakistan without payment of duty or allow them to be exported subject to such restrictions and conditions as may be specified in the notification.

106. Clearance of warehoused goods for export as provisions, on a conveyance proceeding to foreign destination.-Any warehoused provisions and stores may be exported within the period of their warehousing under section 98 without payment of import duty for use on board any conveyance proceeding to a foreign territory.

107. Application for clearance of goods.-(1) An application to clear goods from any warehouse for home-consumption or for export shall be made in such form as the Board may prescribe.

(2) Such application shall ordinarily be made to the appropriate officer at least twenty-four hours before it is intended to clear such goods.

  1. Reassessment of warehoused goods when damaged or deteriorated.-If any goods upon which duties are levied ad valorem 24[or otherwise] are damaged or deteriorated due to an unavoidable accident or cause after they have been entered for warehousing and assessed under section 80 and before they are cleared for home-consumption, their value in the damaged or deteriorated state may be appraised 25[according to either of the methods provided in sub-section (2) of section 27], if the owner so desires, by an officer of customs and the duty leviable thereon shall be diminished in proportion to the diminution of their value and a new bond for twice the amount of the diminished duty may, at the option of the owner, be executed by him to replace the bond originally executed.
  2. Reassessment on alteration of duty.-If any goods have been entered for warehousing and assessed under section 26[*****] 80 27[*****] or 81] but the duty leviable thereon is subsequently altered, such goods shall be reassessed on the basis of the altered duty and a new bond shall be executed by the owner in accordance with the provisions of section 86 to replace the bond originally executed by him.

110. Allowance in case of volatile goods.-When any warehoused goods of such class or description as the Board having regard to the volatility of such goods and the manner of their storage may, by notification in the official Gazette, specify are, at the time of delivery from a warehouse, found to be deficient in quantity and the Collector of Customs is satisfied that such deficiency is on account of natural loss, no duty shall be charged on such deficiency.

111. Duty on goods improperly removed from warehouse or allowed to remain beyond fixed time or lost or destroyed or taken as sample.-In respect of goods specified hereunder the appropriate officer may demand and upon such demand the owner of such goods shall forthwith pay the full amount of duty chargeable on such goods together with all rent, penalties, 28[surcharge] and other charges payable in respect of them, namely:

(a)
Warehoused goods which are removed in contravention of section 97.
(b)
Goods which have not been removed from the warehouse within the time allowed for such removal under section 98.
(c)
Goods in respect of which a bond has been executed under section 86 and which have not been cleared for home-consumption or export or removed in accordance with the provisions of this Act and are lost or
destroyed otherwise than as provided in sections 94 and 95 or as mentioned in section 115, or are not accounted for to the satisfaction of the appropriate officer.
(d)
Goods which have been taken under section 94 as samples without payment of duty.

29[112. Encashment of post-dated cheque.-(1) Where the owner fails to clear bonded goods to the purposes specified in this Chapter within the warehousing period, the postdated cheque submitted under section 86 by the owner of goods may be got encashed after the expiry of warehousing period.

(2) In case the post-dated cheque is not enchased for any reason, the

Collector of customs or any officer designated by him may detain the owner’s goods

whether lying in any warehouse or freshly imported for public auction and adjustment of sale proceeds against the amount of duties, taxes surcharges, rents and penalties, etc., which may have become payable on goods warehoused but not cleared within the specified period and the surplus amount, if any, shall be disposed of in the manner provided in section 201.]

113. Noting removal of goods.-(1) When any warehoused goods are taken out of any warehouse, the appropriate officer shall cause the fact to be noted on the back of the bond.

(2) Every note so made shall specify the quantity and description of such goods, the purposes for which they have been removed, the date of removal, the name of the person removing them, the number and date of the 30[goods declaration] under which they have been taken away, if removed for exportation, or 30A[***] for home-consumption and the amount of duty paid, if any 31[:]

32[Provided that at customs-station where the Customs Computerized System is operational, the requirement of this section shall be completed in accordance with that system.]

114. Register of bonds.-(1) A register shall be kept of all bonds entered into for customs-duties on warehoused goods, and entry shall be made in such register of all particulars required by section 113 to be specified.

(2) When such register shows that the whole of the goods covered by any bond have been cleared for home-consumption or export, or otherwise duly accounted for, and when all amounts due on account of such goods have been paid, the appropriate officer shall cancel such bond as discharged in full, and shall on demand deliver the cancelled bond to the person who executed it or who is entitled to receive it.

115. Power to remit duties on warehoused goods lost or destroyed.-If any warehoused goods in respect of which a bond has been executed under section 86 and which have not been cleared for home-consumption are lost or destroyed by unavoidable accident or cause, the Collector of Customs may in his discretion remit the duties due thereon:

Provided that, if any such goods be so lost or destroyed in a 33[****]warehouse, notice thereof be given to the appropriate officer within forty-eight hours 34[****]of such loss or destruction.

    1. Responsibility of warehouse keeper.-The warehouse-keeper in respect of goods lodged in a public warehouse, and the licensee in respect of goods lodged in a private warehouse, shall be responsible for their due receipt therein and delivery therefrom, and their safe custody while deposited therein, accordance to the quantity, weight or gauge reported by the officer of customs who has assessed such goods, allowance being made, if necessary, for deficiency in quantity on account of natural loss as provided in section 110:
    2. Provided that no owner of goods shall be entitled to claim from the appropriate officer or from any keeper of a public warehouse, compensation for any loss or damage occurring to such goods while they are being passed into or out of such warehouse, or while they remain therein, unless it be proved that such loss or damage was occasioned by the willful act or neglect of the warehouse-keeper or of an officer of customs.
  1. Locking of warehouses.-(1) Every public warehouse shall be under the lock and key of both the warehouse-keeper appointed by the Collector of Customs, and the appropriate officer.

(2) Every private warehouse shall be under the lock and key of both the licensee and the appropriate officer.

  1. Power to decide where goods may be deposited in public warehouse, and on what terms.-The Collector of Customs may from time to time determine in what division of any public warehouse 34[or private warehouse], and in what manner, and on what terms, any goods may be deposited, and what sort of goods may be deposited in any such warehouse.
  2. Expenses of carriage, packing, etc. to be borne by owner.-The expenses of carriage, packing and storage of goods on their receipt into or removal from a public warehouse shall, if paid by the appropriate officer or by the warehouse-keeper, be chargeable on the goods and be defrayed by, and recoverable from, the owner, in the manner provided in section 112.

LEGAL REFERENCE

  1. Substituted for the figure ―80‖ by Finance Act,2003 (I of 2003), S.5(21)(a), page 28 and figures, letters and commas‖79A, 80A‖ omitted vide Finance Act, 2005.
  2. Substituted for the full stop by Finance Act,1990 (VII of 1990),S.6(5), page 35.
  3. Added by the Finance Act,1990(VII of 1990), A.6(5), page 35.
  4. Substituted for the full stop by Finance Act,2003 (I of 2003), S.5(21)(b) page 29.
  5. Added by Finance Act,2003 (I of 2003), S.5(21)(b), page 29.

6. Substituted by the Finance Act, 2005. At that time section 86 was as under:86. Warehousing bond.-(1) When any such application has been made in respect of any goods, the owner of the goods to which it relates shall execute a bond, binding himself in a penalty of twice the amount of the duty assessed under section 80 or section 81 or reassessed under section 109 on such goods,

(a)
to observe all the provisions of this Act and the rules in respect of such goods;
(b)
to pay on or before a date specified in a notice of demand all duties, rent and charges payable in respect of such goods together with surcharge on the same from the date so specified at the rate of two per cent per month or such other rate as is for the time being fixed by the Board; and
(e)
to discharge all penalties incurred for violation of the provisions of this Act and the rules in respect of such goods.
(2)
Every such bond shall be in such form as is from time to time prescribed by the Board, and shall relate to the goods or portion of the goods of one conveyance only.
(3)
Notwithstanding anything in sub-section (2), for the purposes of sub-section (1), the Collector of Customs may permit any importer to enter into a general bond in such amount and subject to such conditions, limitations or restrictions as the Collector of Customs may determine in respect of the warehousing of goods to be imported by shall continue in force notwithstanding the transfer of the goods to any other person or the removal of the goods to another warehouse or warehousing station: Provided that, where the whole of the goods or any part thereof are transferred to another person, the appropriate officer may accept a fresh bond from the transferee in a sum equal to twice the amount of duty assessed on the goods transferred and thereupon the bond executed by the transferer shall be deemed to be discharged to the extent to which the fresh bond has been executed by the transferee.
  1. By Finance Act, 2006 the words” bill of entry” was substituted,
  2. By Finance Act, 2006 the words” private” was omitted.
  3. Inserted by the Finance Act, 1973 (L of 1973), S.9(6), page 531.
  4. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996.,
  5. Substituted by the Finance Act, 1990 (VII of 1990), S.6(7), page 36. At the time of substitution section 98 was as under:

“98. Period for which goods may remain warehoused.-(1) Warehoused goods, other than consumer goods notified by the Central Board of Revenue, may remain in the warehouses for a period of [six months following the date of their admission into the warehouse and consumer goods so notified may remain in the warehouses for a period of three months] following the said date:

Provided that

(i)
the said period may, in case of non-perishable goods, be extended, on sufficient cause being shown by the owner of the warehoused goods and
subject to the condition that he pays in advance [surcharge] on the duty involved at two per cent per month for the extended period,
(a)
by the Collector of Customs for a period not exceeding six months; and
(b)
by the Board for such period at it may deem fit:
Provided further that in circumstances of exceptional nature, the Board, may, subject to such conditions limitations or restrictions, if any, as it may think fit to impose, by a special order in each case recording such circumstances, remit the whole or a part of the interest.
(ii)
when the licence of any private warehouse is cancelled, the owner of any goods warehoused therein shall within ten days of the date on which notice of such cancellation is given, or within such extended period as the appropriate officer may allow, remove the goods from that warehouse to another warehouse or clear them for home-consumption or exportation.‖.

(2) Notwithstanding anything contained in sub-section (1), the Federal Government may, by notification in the official Gazette, limit the period for which any consumer goods or class of consumer goods may remain in the warehouses:

Provided that such period shall not be less than one month.

11a Substituted the words “Central Board of Revenue” with the word “Board” by the FA,2007.

  1. Substituted by the Finance Act, 1998.
  2. Substituted for the words “one year” by the Finance Act, 2005.
  3. Substituted the word “ two” by Finance Act, 2004.

15. Substituted by the Finance Ordinance, 2001 (XXV of 2001), S.4(6), page 306. At the time of substitution this was as under:―(a) by the Collector of Customs, for a period not exceeding six months; and

(b) by the Federal Government or the Board, for such period as it may deem fit.‖.

  1. Substituted for the words “two” and “six” by Finance Act, 2005.
  2. Omitted the words “consumer” by the Finance Act, 1998 (III of 1998), S.4(V)(ii,
  3. Inserted by the Finance Act, 1999 (IV of 1999), S.10(6)(I), page 767
  4. Substituted for the word “interest” by the Finance Act, 1985(I of 1985), S.3(1).
  5. Substituted full stop by the Finance Act, 1999 (IV of 1999), S.10(8)(ii), page 767.
  6. Added by the Finance Act, 1999 (IV of 1999), S.10(8)(ii), page 767.
  7. Substituted for the word “interest” by the Finance Act, 1985 (I of 1985), S.3(1).
  8. Substituted for the words “Central Government” by the Finance Act, 1972.
  9. Inserted by the Finance Ordinance, 1986 (I of 1986), S.6(4)(a) page 11.
  10. Inserted by the Finance Ordinance, 1986 (I of 1986), S.6(4) (b), page 11.
  11. Substituted for the figure “80” by the Finance Act, 2003 (I of 2003), S.5(22), page 29.
  12. Omitted the figure “79A, 80A” by the Finance Act,2005.
  13. Substituted for the word “interest” by the Finance Act, 1985 (I of 1985), S.3(1).
  14. Substituted by Finance Act, 2005.
  15. By the Finance Act, 2006, the words “bill of export or” were omitted.

30A. By the Finance Act, 2006, the words “of the bill of entry or goods declaration, if removed” were omitted.

  1. Substituted full stop by the Finance Act, 2003 (I of 2003), S.5(23)(c), page
  2. Added by the Finance Act, 2003 (I of 2003), S.5(23)(c), page 29.
  3. The word “private” omitted by the Finance Act, 1990 (VII of 1990), S.6(8), page 37.
  4. By the Finance Act, 2006 the words “after the discovery” were omitted.
  5. The words “one per cent per month” substituted with the words “KIBOR plus three per cent per annum”, by Finance Act,2009.

84

CHAPTER XII

TRANSHIPMENT

1[120. Chapter not to apply to postal articles.-The provisions of this chapter shall not apply to goods imported by post.]

2[121. Transhipment of goods without payment of duty.-(1) Subject to the provisions of section 15 and the rules, the appropriate officer may, on application by the owner of any goods imported at any customs-station and specially and distinctly manifested at the time of importation as for transhipment to some other customs-station or foreign destination, grant leave to transship the same without payment of duty, if any, chargeable on such goods with or without any security or bond for the due arrival and entry of the goods at the customs-station of destination.

(2)
The Board may, subject to rules and such conditions as it may deem fit to impose, authorize certain carriers to transport goods under the multimodal, scheme. Goods transported under the multimodal scheme shall be specially and distinctly manifested at the time of importation as for transhipment to some other customs-station or foreign destination and shall not
(a)
require distinct permission for transhipment from the customs-station of first entry into the country to be transported to the customs-station of destination. The principal carrier issuing the multimodal bill of lading or air way bill will be responsible for the sanctity of the cargo during transportation between the customs-station of first entry into the country to the customs-station of destination; and
(b)
be subject to the risk management system at the customs station of first entry.
(3)
The Board may, subject to such conditions as it may deem fit, grant licence to any carrier to carry goods under the multimodal scheme.]

122. Superintendence of transhipment.-An officer of customs 3[may] be deputed free of charge to superintend the removal of transshipped goods from one conveyance to another 4[:]

5[Provided that nothing in this section shall apply to the goods transported under the multimodal scheme.]

6[123. Entry, etc., of transshipped goods.-(1) All goods transshipped under subsection (2) of section 121 to any customs-station shall, on their arrival at such customs-station, be entered in the same manner as goods on their first importation and shall be dealt with likewise.

(2) All goods being transshipped under sub-section (1) of section 121 from a customs-station of first entry into the country, where the Customs Computerized System is operational and the goods are determined to be high risk by the risk management system shall be dealt with under rules on the subject.]

  1. Transhipment of provisions and stores from one conveyance to another of the same owner without payment of duty.-Any provisions and stores in use or being carried for use on board a conveyance may, at the discretion of the appropriate officers be transshipped to another conveyance belonging wholly or partly to the same owner and present simultaneously at the same customs-station, without payment of duty.
  2. Levy of transhipment fees.-Subject to the rules, a transhipment fee on any goods or class of goods transshipped under this Act may be levied at such rates, according to weight, measurement, quantity, number, bale, package or container, as the Board may, by notification in the official Gazette, prescribe for any customs-station or class of customs-stations.

LEGAL REFERENCE

1. Section 120 substituted by the Finance Act, 1979 (XXX of 1979), S.6(7), page 188. At the time of substitution this was as under:

“120. Chapter not to apply to baggage or postal articles.-The provision of this

Chapter shall not apply to (a) baggage or (b) goods imported by post.‖.

2. Substituted by the Finance Act, 2003 (I of 2003), by the Finance Act, 2003 (I of 2003), S.5(25)(a), page 30. At the time of substitution section 121 was as under:

“121. Transhipment of goods without payment of duty.-Subject to the provisions of section 15 and the rules, the appropriate officer may, on application by the owner of any goods imported at any customs-station and specially and distincity manifested at the time of importation as for transhipment to some other customs-station or foreign destination, grant leave to tranship the same without payment of duty, if any, chargeable on such goods at the customs-station of transhipment and, in the case of goods to be transhipped to some other customs-station, with or without any security or

bond for the due arrival and entry of the goods thereat.‖.

  1. Substituted for the words and commas “shall, in every case,”by the Finance Act, 2003 (I of 2003), by the Finance Act, 2003 (I of 2003), S.5(25),(a) page 30.
  2. Substituted full stop by the Finance Act, 2003 (I of 2003), S.5(25)(b), page 30.
  3. Added by the Finance Act, 2003 ((I of 2003), S.5(25)(b), page 30.
  4. Substituted by the Finance Act, 2003 (I of 2003), S.5(26), page 30. At the time of substitution section 123 was as under:

“123, Entry, etc., of transhipped goods.-All goods transhipped under section 121 to any customs-station shall, on their arrival at such customs-station, be entered in the

same manner as goods on their first importation and shall be dealt with likewise.‖.

CHAPTER XIII

TRANSIT TRADE

126. Chapter not to apply to baggage and postal articles.-The provisions of this Chapter shall not apply to (a) baggage, and (b) goods imported by post.

127. Transit of goods in the same conveyance.-(1) Subject to the provisions of section 15 and the rules any goods imported in a conveyance and mentioned in the import manifest as for transit in the same conveyance to customs-station in Pakistan or to any destination outside Pakistan may be allowed to be so transited without payment of duty, if any, leviable on such goods at the customs-station of transit.

(2) Any stores and provisions imported on board a conveyance which is in transit through Pakistan to a destination outside Pakistan may, subject to rules, be allowed to be consumed on board that conveyance without payment of the duties which would otherwise be chargeable on them.

128. Transport of certain classes of goods subject to prescribed conditions.-Any goods may be transported from one part of Pakistan to another through any foreign territory, subject to such conditions as to their due arrival at the destination as may be prescribed by rules.

129. Transit of goods across Pakistan to a foreign territory.-Where any goods are entered for transit across Pakistan to a destination outside Pakistan, the appropriate officer may, subject to the provisions of the rules, allow the goods to be so transited without payment of the duties which would otherwise by chargeable on such goods1[:]

2[Provided that the Federal Government may, by notification in the official Gazette, prohibit the bringing into Pakistan by sea, land or air in transit to a foreign territory any goods or class of goods.]

LEGAL REFERENCE

    1. Substituted full stop by the Finance Act, 1996 (IX of 1996), S.4(4), page 480.

CHAPTER XIV

EXPORTATION OR SHIPMENT AND RELANDING

130. No goods to be loaded on a conveyance, till entry outwards or permission granted.-No goods other than passengers’ baggage or mail bags or ballast urgently required for a vessel’s safety shall be loaded or water-borne to be loaded on a conveyance at a place in a customs-station approved for the purpose under clause (b) of section 10, until an order under section 50 in respect of the conveyance has been given or permission in this behalf in writing has been granted by the appropriate officer.

1[131. Clearance for exportation.-(1) No goods shall be loaded for exportation until

(a)
the owner any goods to be exported has made a declaration in such form and manner as prescribed by the Board, by filing a goods declaration to Customs containing correct and complete particulars of his goods, and assessed and paid his liability of duty, taxes and other charges, if any;
(b)
the claim of duty drawback, if any, has been calculated and reflected in the declaration filed for export through Customs Computerized System;
(c)
Customs has, on the receipt of goods declaration under clause (a), satisfied itself regarding the correctness of the particulars of export, including declaration, assessment, and payment of duty, taxes and other charges and verified the admissibility of the duty drawback claimed as specified in clause (b); and
(d)
the appropriate officer has permitted passenger’s baggage or mail bags, to be exported notwithstanding clauses (a), (b) and (c).

(2) If any goods or class of goods imported and lying within the port area, are intended to be exported by its owner, the Collector may allow the export subject to the conditions as the Board may, from time to time, notify:

Provided that the Board may in the case of any customs station or wharf, by notification in the official Gazette, and subject to such restrictions and conditions, if any, as it thinks fit, exempt any specified goods or class of goods or any specified person or class of persons, from all or any of the provisions of this section.

Provided further that the Collector, where Customs Computerized System has not been introduced for reasons to be recorded in writing, may cause the examination of goods or any class of goods or goods belonging to a particular exporter or class of exporters at a designated place as he deems fit and proper.]

2[131A. Omitted.

  1. Bond required in certain cases before exportation.-Before any warehoused goods subject to excise duties, or goods entitled to drawback or repayment of customs-duties on exportations or goods exportable only under particular rules or restrictions, are permitted to be exported, the owner shall, if required so to do, give security by bond in such sum not exceeding twice the duty leviable on such goods as the appropriate officer directs, with one sufficient surety, that such goods shall be exported and landed at the place for which they are entered outwards or shall be otherwise accounted for to the satisfaction of such officer.
  2. Additional charge on goods cleared for export after port-clearance granted.-Where the goods are cleared for shipment on a 3[goods declaration] presented after port-clearance or permission to depart has been granted, the appropriate officer may, if he thinks fit, levy, in addition to any duty to which such goods are ordinarily liable, a charge not exceeding one per cent of the value of the goods determined in accordance with the provisions of section 25.
  3. Notice of non-loading or relanding and return of duty thereon.-(1) If any goods mentioned in a 4&5[goods declaration] or manifest be not loaded or be loaded and afterwards relanded, the owner shall before the expiration of fifteen clear working days after the conveyance on which such goods were intended to be loaded or from which they were relanded has left the customs-station, give information of such short-loading or relanding to the appropriate officer save where the latter has occasioned the short-loading or relanding.

(2) Upon an application being made to the appropriate officer within one year of such short-loading or relanding, any duty levied upon goods not loaded or upon goods loaded and afterwards relanded shall be refunded to the person on whose behalf such duty was paid:

Provided that, where the required information of short-loading or relanding is not given within the aforesaid period of fifteen days, the appropriate officer may make refund of duty contingent upon payment of such penalty, if any, as he may see fit to impose.

135. Goods relanded or transshipped from a conveyance returning to a customs-station or putting into another customs-station.-(1) If, after having cleared from any customs-station any conveyance without having discharged her cargo returns to such customs-station or ports into any other customs station, any owner of goods in such conveyance, if he desired to land or transship the same or any portion thereof for re-export, may, with the consent of the person-in-charge of the conveyance, apply to the appropriate officer in that behalf.

(2)
The appropriate officer, if he grants the application, shall thereupon send an officer of customs to watch the conveyance and to take charge of such goods during such relanding or transhipment.
(4)
Such goods shall not be allowed to be transshipped or re-exported free of duty by reason of the previous settlement of duty at the time of first export unless they are lodged and remain, until the time of re-export under the custody of an officer of customs, in a place appointed by the appropriate officer, or are transshipped under such custody.

(4) All expenses attending such custody shall be borne by the owner.

136. Conveyance returning to customs-station may enter and land goods.-(1) In either of the cases mentioned in section 135, the person-in-charge of the conveyance may enter such conveyance inwards and any owner of goods thereon may, with the consent of the person-in-charge of the conveyance, land the same under the provisions of this Act and the rules.

(2)
In every such case, any export duty paid shall be refunded on an application made by the owner of such goods within one year of their landing and any amount paid to the owner as drawback or repayment of duty(whether of customs, excise or any other tax) shall be recovered from him or adjusted against the amount refundable.
137. Landing of goods during repairs.-(1) The appropriate officer may, on application by the person-in-charge of a conveyance which is obliged before completing her journey or voyage to put into any customs-station for repairs, permit him to land the goods or any portion thereof, and to place it in the custody of an officer of customs during such repairs, and to load and export the same free of duty.
(2)
All expenses attending such custody shall be borne by the person-incharge of the conveyance.

138. Frustrated cargo how dealt with.-(1) Where any goods are brought into a customs-station by reason of inadvertence, misdirection or untraceability of the consignee, 6[an officer of Customs not below the rank of Additional Collector of Customs] may, on application by the person-in-charge of the conveyance which brought such goods or of the consignor of such goods and subject to rules, allow export of such goods without payment of any duties (whether of import or export) chargeable thereon, provided that such goods have remained and are exported under the custody of an officer of customs.

(2) All expenses attending to such custody shall be borne by the applicant.

1.

  1. 4. 5.. 6.

THE CUSTOMS ACT,1969

LEGAL REFERENCE

Substituted by Finance Act,2005. At that time section 131 was as under:

131. Clearance for exportation.-No goods shall be loaded for exportation until

(a)
in the case of goods other than passenger’s baggage and mail bag
(i)
the owner has delivered to the appropriate officer a bill of export 1[or goods declaration] for such goods, in such form and manner and containing such particulars as may be prescribed by rules;
(ii)
such owner has paid the duties payable on such goods; such bill 2[or declaration] has been passed by the appropriate officer; and
(b)
in the case of passenger’s baggage or mail bags, the appropriate officer has permitted them to be exported:

Provided that the Board may in the case of any customs-station or wharf, by notification in the official Gazette, and subject to such restrictions and conditions, if any, as it thinks fit, exempt any specified goods or class of goods or any specified person or class of persons, from all or any of the provisions of this section.

Provided further that the Collector for reasons to be recorded in writing may cause the examination of goods or any class of goods or good belonging to a particular exporter or class of exporters at a designated place as he deems fit and proper.

Inserted by the Finance Act, 2003 and omitted by the Finance Act, 2005. At that time section 131A was as under:

131A. Clearance for exportation through the Customs Computerized System.

Subject to the provisions of section 155A, for the purposes of the Customs Computerized System, no goods shall be loaded for exportation until

(a)
the owner of any goods to be exported has made a declaration in such form and manner as prescribed by the Board, by filing a goods declaration to Customs containing correct and complete particulars of his goods, and assessed and paid his liability of duty, taxes and other charges and having reflected his claim of duty draw back if any;
(b)
Customs has, on the receipt of goods declaration under clause (a) through the Customs Computerized System, satisfied itself regarding the correctness of the particulars of export, including declaration, assessment, and payment of duty, taxes and other charges and verified the admissibility of the duty draw back claimed; and
(c)
Goods have been cleared for export through the Customs Computerized System:

Provided that the Board may in the case of any customs-station or wharf, by notification in the official Gazette and subject to such restrictions and conditions, if any, as it thinks fit, exempt any specified goods or class of goods or any specified person or class of persons, from all or any of the provisions of this section.

By the Finance Act, 2006, the words “bill of export” were substituted. Inserted by the Finance Act, 2003 (I of 2003), S.5(27), page 31

By the Finance Act, 2006, the words” bill of export or” were omitted. Substituted for the words “the Collector of Customs” by Finance Act, 2005..

CHAPTER XV

SPECIAL PROVISIONS REGARDING BAGGAGE AND GOODS IMPORTED OR EXPORTED BY POST

139. Declaration by passenger or crew of baggage.-The owner of any baggage whether a passenger or a member of the crew shall, for the purposes of clearing it, make a verbal or written declaration of its contents in such manner as may be prescribed by rules to the appropriate officer and shall answer such questions as the said officer may put to him with respect to his baggage and any article contained therein or carried with him and shall produce such baggage and any such articles for examination 1[:]

2[Provided that where the Customs Computerized System is operational, all declarations and communications shall be electronic.]

140. Determination of rate of duty in respect of baggage.-The rate of duty if any, applicable to baggage shall be the rate in force on the date on which a declaration is made in respect of such baggage under section 139 3[:]

4[Provided that in the case of goods cleared as mis-handled baggage or unaccompanied baggage, the rate of duty shall be the rate in force on the date on which a declaration for clearance of such goods is presented before the appropriate officer after landing of the goods.]

141. Bona fide baggage exempt from duty.-The appropriate officer may, subject to the limitations, conditions and restrictions specified in the rules, pass free of duty any article in the baggage of a passenger or a member of the crew in respect of which the said officer is satisfied that it is bona fide meant for the use of such passenger or for making gift.

142. Temporary detention of baggage.-Where the baggage of a passenger contains any article which is dutiable or the import of which is prohibited or restricted and in respect of which a true declaration has been made under section 139, 5[and about which the appropriate officer is satisfied that these were not imported with the intention of consumption in Pakistan, he] may, at the request of the passenger, detain such article for the purpose of being returned to him on his leaving Pakistan.

  1. Treatment of baggage of passengers or crew in transit.-Baggage of passengers and members of the crew in transit in respect of which a declaration has been made under section 139, may be permitted by the appropriate officer, subject to such limitations, conditions and restrictions as may be specified in the rules, to be so transited without payment of duty.
  2. Label or declaration in respect of goods imported or exported by post to be treated as entry.-In the case of goods imported or exported by post, any label or

declaration which contains the description, quantity and value thereof shall be deemed to be an entry for import or export, as the case may be, for the purposes of this Act.

145. Rate of duty in respect of goods imported or exported by post.-(1) The rate of duty, if any, applicable to any goods imported by post shall be the rate in force on the date on which the postal authorities present to the appropriate officer the declaration or label referred to in section 144 for the purpose of assessing the duty thereon.

(2) The rate of duty, if any, applicable to any goods exported by post shall be the rate in force on the date on which the exporter delivers such goods to the postal authorities for exportation.

LEGAL REFERENCS

  1. Substituted for the full stop by the Finance Act, 2004 (II of 2004), S.3(13), page 16.
  2. Added by the Finance Act, 2004 (II of 20040, S.3(13), page 16.
  3. Substituted full stop by the Finance Ordinance, 1982 (XII of 1982), S.6(7), page 60.
  4. Added by the Finance Ordinance, 1982 (XII of 1982), S.6(7), page 60.
  5. Substituted for the comma and words “,the appropriate officer” by the Finance Ordinance, 1982 (XII of 1982), S.6(8), page 60.

CHAPTER XVI

PROVISIONS RELATING TO COASTAL GOODS AND VESSELS

146. Chapter not to apply to baggage.-The provisions of this Chapter shall not apply to baggage.

147. Entry of coastal goods.-(1) The consignor of any coastal goods shall present to the appropriate officer a bill of coastal goods in the form prescribed by the Board.

(2) Every such consignor shall make a declaration on the bill of coastal goods presented by him as to the truth of the contents thereof.

148. Coastal goods not to be loaded, until bill relating thereto is passed.-No vessel shall take on board any coastal goods until the bill relating to such goods has been passed by the appropriate officer and delivered to the master of the vessel by the consignor:

Provided that the appropriate officer may, in circumstances of exceptional nature, on a written application by the master of the vessel, permit loading of coastal goods pending the presentation and passing of bills relating to such goods.

149. Clearance of coastal goods at destination.-(1) The master of a vessel carrying any coastal goods shall carry on board the vessel all bills delivered to him under section 148 and shall, within twenty-four hours of arrival of the vessel at any customs-port or coastal port, deliver to the appropriate officer all bills relating to the goods which are to be unloaded at that port.

(2) Where any coastal goods are unloaded at any port, the appropriate officer shall permit their clearance if he is satisfied that they are entered in a bill delivered to him under sub-section (1).

150. Declaration concerning coasting vessel which has touched foreign port.

The master of a vessel carrying coastal goods which has touched at any foreign port immediately before its arrival at a port of Pakistan shall deliver, alongwith the bills referred to in section 149, a declaration stating that fact and indicating the particulars and specifications of the cargo, if any, discharged or taken on board at such foreign port.

151. Cargo book.-(1) There shall be kept on board every coasting vessel a cargo book stating the name of the vessel, the port at which she is registered and the name of the master.

(2)
It shall be the duty of the master of every coasting vessel to enter or cause to be entered in the cargo book
(a)
the port to which and each voyage on which the vessel is bound;
(b)
the respective times of departure from every port of lading and of arrival at every port of discharge;
(c)
the name of every port of lading and an account of all goods taken on board at that port with a description of the packages and the quantities and description of the goods contained therein or stowed loose and the names of the respective shippers and the consignees in so far as such particulars be ascertainable;
(d)
the name of every port of discharge and the respective days on which such goods or any of them are delivered out of such vessel.
(3)
The entries relating to the loading and discharge of goods shall be made respectively at the ports of lading and discharge.
(4)
Every such master shall on demand produce the cargo book for the inspection of the appropriate officer and such officer may make such note or remark therein as he considers necessary.

152. Coastal goods not to be loaded or unloaded except at customs-port or coastal port.-No coastal goods shall be loaded on, or unloaded from, any vessel at any port other than a customs-port or a coastal port declared under section 9.

153. Coasting vessel to obtain written orders before departure.-(1) No coasting vessel which has brought or loaded any coastal goods at a customs-port or coastal port shall depart from such port until a written order to that effect has been given by the appropriate officer.

(2)
No such order shall be given until
(a)
the master of the vessel has answered the questions, if any, put to him;
(b)
all charges and penalties, if any, payable in respect of that vessel or by its master have been paid or the payment secured by such guarantee as the appropriate officer may direct.

154. Application of certain provisions of this Act to coastal goods.-(1) Sections 64,65 and 66 shall, so far as may be, apply to coastal goods as they apply to imported goods or goods for export.

(2)
Sections 48 and 60 shall, so far as may be, apply to vessels carrying coastal goods as they apply to vessels carrying imported goods or goods for export.
(3)
The 1[Federal Government] may, by notification in the official Gazette, direct that all or any of the other provisions of Chapter VII and the provisions of section 78 shall apply to coastal goods or vessels carrying coastal goods with such exceptions and modifications, if any, as may be specified in the notification.

155. -Prohibition of the coastal trade of certain goods.-No goods shall be carried coast-wise or shipped as stores in a coasting vessel contrary to any prohibition or restriction imposed by or under any law, nor shall such goods or stores be brought to any place in Pakistan for the purpose of being so carried or shipped.

LEGAL REFERENCE

1. Substituted for the words “Central Government” by the Finance Act, 1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76.

1[CHAPTER XVI-A

PROVISIONS RELATING TO THE CUSTOMS COMPUTERIZED SYSTEM
AND AUDIT AND ACCESS TO DOCUMENTS

155A. Application of the Customs Computerized System.-Notwithstanding anything hereinbefore contained, provisions of this Chapter shall apply to any customs-station equipped with the Customs Computerized System on such date as the Federal Government may, by notification in official Gazette, specify and different dates may be specified for different provisions and for different areas so as to bring the provisions relating to the Customs Computerized System in force throughout Pakistan progressively.

155B. Access to the Customs Computerized System.-No person shall transmit to, or receive information from, the Customs Computerized System unless that person is registered by the Collector as a user of the Customs Computerized System.

155C. Registered users.-(1) Any person who wishes to be registered as a user of the Customs Computerized System may apply 2[***] to the Collector in the prescribed form and shall provide such information in relation to the application as is prescribed.

(2)
The Collector may require an applicant for registration to give such additional information as he considers necessary for the purpose of the application.
(3)
The Collector may grant the application subject to such conditions, as he deems fit or refuse the application:

Provided that no order shall be passed for refusal of application unless the applicant has been given a reasonable opportunity of being heard.

155D. Registered users to be allocated unique user identifier.-(1) Any person registered as a user of the Customs Computerized System shall be allocated a unique user identifier for use in relation to the Customs Computerized System by the Collector in such form or of such nature as the Collector may determine.

(2)
The unique user identifier allocated pursuant to sub-section (1) of this section shall be used by the registered user for the purpose of transmitting information to or receiving information from the Customs Computerized System.
(3)
The Collector may impose conditions on a particular registered user or on registered users generally, relating to the use and security of unique user identifiers.
155E. Use of unique user identifier.-(1) Where information is transmitted to the Customs Computerized System using a unique user identifier issued to a registered user by the Collector for that purpose, the transmission of that information shall, in the absence of proof to the contrary, be sufficient evidence that the registered user to whom the unique user identifier has been issued has transmitted that information.
(2)
Where a unique user identifier is used by a person who is not entitled to use it, sub-section (1) of this section shall not apply if the registered user to whom the unique user identifier was issued has, prior to the unauthorized use of that unique user identifier, notified the Customs that the unique user identifier is no longer secure.

155F. Cancellation of registration of registered user.-(1) Where at any time the Collector is satisfied that any person who is a registered user of the Customs Computerized System, has :

(a)
failed to comply with a condition of registration imposed by the Collector under sub-section (3) of section 155C of this Act; or
(b)
failed to comply with, or acted in contravention of any conditions imposed by the Collector under sub-section (3) of section 155D of this act in relation to the use and security of the registered user's unique identifier; or
(c)
has been convicted of an offence under this Act, the Collector may cancel the registration of that person as a registered user by giving notice in writing to that person stating that the registration of that person is cancelled and setting out the reasons for that cancellation:

6[Provided that the Collector of Customs may, in exceptional circumstances , after recording reasons in writing suspend the use of unique user identifier of any person forthwith on receipt of any complaint or information about violation of any provisions of this Act:]

Provided further that the Collector of Customs shall, after giving opportunity of hearing, pass and order confirming suspension or otherwise the use of Unique User Identifier.]

155G. Customs to keep records of transmissions.-(1) The Customs shall keep a record of every transmission sent to or received from a registered user using the Customs Computerized System.

(2) The record described in sub-section (1) of this section shall be kept for a period of five years from the date of the sending of or the receipt of the transmission, or for such other period as may be prescribed by the Board.

155H. Confidentiality of information.--All trade information gathered by Customs during clearance of goods shall be confidential and shall not be used except for

(a)
statistical purposes by the department and other Government organizations; or
(b)
purposes of comparison and evidence 3[by the appropriate officer of customs] as against other imports and exports; or
(c)
production as evidence before a legal forum or an organization explicitly so authorized by the Federal Government;

and any disclosure, publishing or dissemination of trade information of any person except as provided above without his explicit permission to any other person shall be an offence.

155-I. Unauthorized access to or improper use of the Customs Computerized System.-(1) Every person commits an offence who.

(a)
knowingly and without lawful authority by any means gains access to or attempts to gain access to the Customs Computerized System; or
(b)
having lawful access to the Customs Computerized System, knowingly uses or discloses information obtained from such a computer system for a purpose that is not authorized; or
(c)
knowing that he is not authorized to do so, receives information obtained from the Customs Computerized System, and uses, discloses, publishes, or otherwise disseminates such information.

155J. Interference with the Customs Computerized System.-Every person commits an offence who

(a)
by any means knowingly falsifies any record or information stored in the Customs Computerized System; or
(b)
knowingly damages or impairs the Customs Computerized System; or
(c)
knowingly damages or impairs any duplicate tape or disc or other medium on which any information obtained from the Customs Computerized System is held or stored otherwise than with the permission of the Collector.

155K. Offences in relation to the security of or unauthorized use of unique user identifiers.-(1) A registered user of the Customs Computerized System who fails to comply with or acts in contravention of any condition imposed by the Collector relating to the security of that registered user's unique user identifier commits an offence.

(2)
A person who
(a)
not being a registered user, uses a unique user identifier; or
(b)
being a registered user, uses the unique user identifier of any other registered user; to authenticate a transmission of information to the Customs Computerized System, commits an offence.

155L. Audit or examination of records.-(1) The appropriate officer of Customs may at any reasonable time enter a premises or place where records are kept and audit or examine those records either in relation to specific transactions or to the adequacy and integrity of the manual or electronic system or systems by which such records are created and stored and shall have free access to all books, records, documents, data and computers in the custody or control of the principals or agents and may if so necessary take custody of, or make extracts from or copies of such books, records, documents, data or computers.

(2) In all cases, except where it would defeat the purposes of the audit or examination, a reasonable advance notice regarding a visit shall be given to the principals or the agents concerned.

155M. Requisition of documents.-(1) The appropriate officer may, by notice in writing, require a person, as and when specified in the notice,-

(a)
to produce for inspection by a specified Customs Officer, documents or records that the appropriate officer considers necessary or relevant to -
(i)
an investigation under this Act; or
(ii)
an audit under this Act; or
(iii) the recovery of dues payable under this Act;
(b)
to allow the specified Customs officer to take extracts from or make copies of, documents or records of the kind referred to in paragraph (a);
(c)
to appear before a specified Customs officer and answer all questions put to the person concerning -
(i)
goods, or transactions relating to those goods, that are the subject of the investigation or audit, or that are relevant to the recovery of dues referred to in clause (a); or
(ii)
documents or records of the kind referred to in clause (a).

(2) in this section, person includes an officer employed in a government department, corporation, local authority or an officer employed in a bank.

155N. Documents in foreign language.-Where a document in a foreign language except English is presented to a Customs officer in relation to the carrying out of any duty or the exercise of any power of the Customs under this Act or any other Act, the officer may require the person who presented the document to supply to the officer an authentic English translation of the document at the expense of the person who presented it.

155O. Authorised officer may take possession of and retain documents and records.-(1) An officer authorised in this behalf may take possession of and retain any document or record presented in connection with any entry or required to be produced under this Act.

(2)
Where the authorised officer takes possession of a document or record under sub-section (1) of this section, the authorised officer shall, at the request of the person otherwise entitled to the document or record, provide that person with a copy of the document certified by or on behalf of the authorised officer under the seal of the Customs as a true copy.
(3)
Every copy so certified shall be admissible as evidence in all courts and other legal forums as if it were the original.

155P. Obstructing access, altering, concealing, destruction of record.-Any person commits an offence who,

(a)
fails to operate any mechanical or electronic device, when requested by a Customs officer, on which any records are, or information is, stored for the purpose of enabling the Customs officer to obtain those records or that information.
(b)
with intent to defeat the purposes of this Act, destroys, alters, or conceals any book, document, or record required to be kept under this Act, or sends or attempts to send out of Pakistan any such book, document, or record.]

4[155Q. Electronic exchange of information and authentication through the Customs Computerized System.-Any declaration, documents or record, accounts, notice, order, payment, authentication, authorization or information required, delivered or provided by the Customs or any registered user shall be deemed to have been required, delivered, provided or done under this Act when communicated electronically through the Customs Computerized System.

155R. Correction of clerical errors.-Where the Customs Computerized System is in operation and the Collector of Customs is satisfied that incorrect data has been electronically communicated to Customs due to any clerical error, he may, for reasons to be recorded in writing, direct the correction of the said error. Except as provided herein, no person shall alter any data in the Customs Computerized System.]

LEGAL REFERENCE

  1. Inserted by the Finance Act, 2003 (I of 2003), S.5(29), page 32
  2. By the Finance Act, 2006, the words “in writing” were omitted.
  3. Inserted by the Finance Act, 2006.
  4. Inserted by the Finance Act, 2006.
  5. Added by Finance Act,2008( I of 2008) (Page-46)

6. The proviso ―Provided that the Collector of Customs may, in exceptional circumstances, after recording reasons in writing and after hearing the aggrieved person, suspend the use of unique user identifier of any person forthwith on receipt of any complaint or information about violation of the Customs Act,1969 (IV of 1969)‖ substituted by Finance Act, 2009.

CHAPTER XVII

OFFENCES AND PENALTIES

156. Punishment for offences.-(1) Whoever commits any offence described in column 1 of the Table below shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the punishment mentioned against that offence in column 2 thereof:

TABLE

Offences Penalties Section of this Act to which offence has reference.
(1) (2) (3)
1. If any person contravenes such person shall be General
any provision of this Act or any rule made liable to a penalty not exceeding 1[69.[fifty]
thereunder, or abets any thousand] rupees.
such contravention or fails
to comply with any
provision of this Act or
any such rule with which
it was his duty to comply
where no express penalty
has been provided
elsewhere for such
contravention or failure,
2.(i) If any goods imported by such person shall be 9 & 10
sea or air be unloaded or attempted to be unloaded liable to a penalty not exceeding 2[ten
at any place other than a thousand] rupees; and
customs-port or customs- such goods shall be
airport declared under liable to confiscation.
section 9 for unloading of
such goods; or
103

(ii) If any goods be imported by land or inland water through any route other than a route declared under clause (c) of section 9 for the import of such goods; or

(iii) If any goods be attempted to be exported by sea or air from any place other than a customs-port or customs airport appointed for the loading of such goods; or

(iv)
If any goods be attempted to be exported by land or inland water through any route other than a route declared under clause (c) of section 9 for the export of such goods; or
(v)
If any imported goods be brought into any bay, gulf, creek or river for the purpose of being landed at a place other than a customs-port; or
(vi)
If any goods be brought near the land frontier or the coast of Pakistan or near any bay, gulf, creek or river for the purpose of being exported from a place other than a customs-station or where any place has been approved under clause (b) of section 10 for the loading of such goods

9 & 10

from any place other than
the place so approved,
3.(i) If any person exports or such person shall be
lands goods, or aids in the export of landing of liable to a penalty not exceeding 1[twenty
goods, or knowingly five thousand]
keeps or conceals or rupees.
knowingly permits or
procures to be kept or
concealed, any goods
exported or landed or
intended to be exported or
landed contrary to the
provisions of this Act; or
(ii) If any person be found to
have been on board any
conveyance liable to
confiscation on account of
the commission of the
offence under clause 4 of
this Table, while such
conveyance is within any
place which is not a
customs-station for the
export and landing of
goods,
4. If any conveyance which the duty in respect of
has been within the limits goods so lost or
of any customs-station in deficient shall be
Pakistan with goods on payable by the
board, be afterwards person-in-charge of
found anywhere in the conveyance; and
Pakistan with the whole or such conveyance
any portion of such goods shall also be liable to
missing unless the person- confiscation.
in-charge of the
conveyance be able to
account for the loss of, or
deficiency in the goods,
5.(i) If any goods are unloaded the person-in-charge

General

9 & 10

9 & 10

9 & 10

from any conveyance inward bound, without the authority of the appropriate officer into any other conveyance at any place other than a place declared under section 9 for the unloading of goods; or if any goods are loaded into any conveyance outward bound from any other conveyance, without such authority, from or at any place other than a place declared under section 9 for the loading of goods; or

(ii) If any goods on which drawback has been granted are put, without such authority, on board any conveyance for the purpose of being relanded,

6. If any vessel arriving at, or departing from, any customs-port fails, when so required under section 14 to bring to at any such station as has been appointed by the Collector of Customs for the boarding or landing of an officer of customs,

7(i) If any vessel arriving at any customs-port, after having come to its proper place of mooring or unloading, removes from such place, except with the authority of the of every such conveyance used for irregular import or export of goods, shall be liable to a penalty not exceeding 1[twenty-five thousand] rupees; and the goods and the conveyance shall also be liable to confiscation.

the master of such vessel shall be liable to a penalty not exceeding 2[ten thousand] rupees.

the master of such 14 vessel shall be liable to a penalty not exceeding 2[ten thousand] rupees; and the vessel, if not entered, shall not be

Conservator, obtained in allowed to enter until
accordance with the the penalty is paid.
provisions of the Ports
Act,1908 (XV of 1908) or
other lawful authority, to
some other place of
mooring or unloading; or
(ii) If any vessel not brought
into port by a pilot be not
anchored or moored in
accordance with any
direction of the Collector
of Customs under section
14,
3[8.(i) If any goods be smuggled Such goods shall be
into or out of Pakistan, liable to confiscation
and any person
concerned in the
offence shall be liable
to a penalty not
exceeding ten times
the value of the
goods; and upon
conviction by a 4[Special Judge] he
shall further be liable
to imprisonment for a
term not exceeding 5[fourteen years] and
to fine not exceeding
ten times the value of
such goods, and, if the 4[Special Judge]
in his discretion so
orders, also to whipping 6[:]
7[Provided that, in the
case of such goods 8[*****] as may be