Amendments in Customs Rules, 2001

Covernment of Pakistan (Revenue Division) Federal Board of Revenre *{.*,t Notification Islamabad, th" L1l,!August, 2023. the po*'ers conlerred by section 2t9 S.n.O. 1r:t) 0)D023.- In exercise of ofthe Customs Act, 1969 (lV of 1969), section 50 ofthe Sales Tax Act, 1990, section 40 of the Federal Excise Act. ?005 and section 237 ofthe Income Tax Ordinance, 2001( XLIX of2001). the Federal Board ol Revenue is pleased to direct that the following funher amendments shall be made in the Custorns Rules,200l, SRO 450(1y2001 dated 18.06.2001 namely:- In the aforesaid Rules,- (l) in rule 871,- (a) in clause (i), after the word "company", the words "authorized under these rules" shall be inserted; (b) in clause (l), after the words "such exporter", the words "authorized under these rules" shall be inserted; (c) after clause (s), the following new clause (sa) shall be inserted:- "(sa) "online market place" means an electronic interface such as a market place, e-commerce platform. website portal or similar means which facilitate export of goods, ( including third party export."; and (d) in clause (v), after the phrase "the head ofllce of the applicant" the phrase "or principal manufacturing unit" shall be inserted; (2) in rule 874,- (a) in sub-rule ( I ), in clause (i), a&er the phrase "annual production" the phrase "or exports with minimum value of USD 20 million," shall be insened; and

clause (ii), after the phrase "being exported" (b) in sub-rule (l ), in the phrase "excluding those having exports with minimum value of USD 20 million" shall be inserted: (3) in rule 8?5, in sub-rule (2), for clause (vii), the follorving shall be substituted, nameiy:- "(vii) export performance for last two or three years whichever is applicable, supported by a summary of foreign exchange realized through e-forms if aPPlicable."; (4) in rule 877.- (4), after the word "input" occurring. second time' the (a) in sub-rute word "outpuf' shall be substituted for the word "out"; and full-stop at the end, a colon shall be (b) in sub-rule (5), for the substituted and thereafler, the following provisos shall be added' namely:- "Provided that the Regulatory Collectorate shall issue analysis certihcate within 3 days ol application by the user proiisionally as per declared input output ratios and wastages pending final determination or revision by IOCO or EDB' as the case may be; Provided further that the quantity equivalent to hundred percent capacity ofthe producing or manufacturing unit may be as appro.ued provisionally by the Regulatory Collectorate' uppti.A Uy it,. user. However, up to fifty percent quantiry may be'allowed to be used by the time IOCO or EDB, as the caset may be, detcrmines output and input ratios"'; (s) in rule 881 . after sub-rule (2). the follor+'ing ne*' sub-rule shall be added, namely: - "(3) The Regulatory Authority, on submission of an appiication by or transler of plant. machinery, the EFS *"r, rnuy allow sale equipment and apparatus from one EFS user to another EFS user' under jurisdictions of different In case, both ihe units fall Collectorates, sale or transier may be allowed subjecl to obtaining no nbjection certificate from the destination Collectorate' Any stated sale or transfer shall be subject to security and indemnlty Appendix-Vl bond lbr the remaining period as prcscribed in

deposited at the time of irnport. After sale or transfer ol plant, machinery, equipment and apparatus, EFS user shall provide certificate to the respective Collectorate to the effbct that such sale or transfer has been completed as per prescribed procedure and rhis procedure shall apply mutatis mutandis in case of merger or acquisition of EFS users."; (6) after rule 883, the following proviso shall be inserted:- "Provided that the said period may be extended lor exporl ofoutput goods only by the ChielCollector of respecrive jurisdiction for six months' period in cases of exceptional circumstances and in case ofexlension such fresh securities as mentioned in rule 876 covering the extension period shall be obtained."; (7) in rule 885,- (a) for sub-rule (2), the tbllowing shall be substituted, namely:- '12) The user shall provide I-Form of nil remittance value for input goods duly approved by the authorized dealer concerned."; (b) after sub-rule (2), amended as aforesaid, the following clause shall be inserted, namely:- "(2A) At the time ol import, the system shall debit the revolving insurance guarantee balance of the importer or accept the Indemnity Bond and Post Dated Cheque, as the case may be, for an amount equivalent to the duties and taxes leviable on the imported goods.";r (c) for sub-rule 3, the following shall be substituted, namely:- "(3) After the production of the output goods, the user shall expo* the goods on submission of E-Form equivalent to the service charges approved by the authorized dealer.": and (d) after sub-rule 3, amended as aforesaid, the lbllowing new sub- rules shall be added, namely:- "{4) On realization ofthe foreign exchange equivalent to the service charges as per contract, the authorized

dealer will certiry and report the same to the State Bank of Pakistan on R'Form' foreign (5) Subsequent to the realization ol the exchange equivalent to the service charges as per contraci, cert'ihed by the authorized dealer to the State Bank of Pakistan on R-Form, the revolving insurance guarantee furnished by the imponer shall be credited or the indemnity bond and postdated cheque shall be released, accordingly "; (8) in rule 887, in sub-rule (1)' in clause (b), for the figure "741"' the figure "8?2" shall be substituted; (e) in rule 888. in sub-rule (1), in clause (a), for the figure "741"' the figure "872" shall be substituted; ( 10) in rule 895, in clause (d), for the full-stop at t}e end, a colon shall Ue ,uUstiuiea and thereafter the following proviso shall be added' namely:- in case of "Provided that remission shall not be applicable insurable risks."; (11) after rule 898, the following new heading shall be added' namely:- *SuhChaPter l- ( Common ExPort Houses"; and ( 12) after Appendix-V, the following ner'v Appendix shall be added' namely:- "APPENDIX.VI lSee Rule B8t (3)) COVERNMENT OF PAKISTAN COLLECTORATE OF CUSTOMS INDtr,MNITY BOND DICIAL PAPER) (ON APPROPRIATELY STAMPED NON-JU This deed of indemnity is made on the day of M/s who have registered office at -2}-between

(hereinafter called the licensee which means and includes their successors, administrators, executors and assignees) of the one palt and President of Pakistan (hereinafter called "the through the Collector ol Customs) Colleclor") of the other part: remove plant, 2. Whereas, the Regulatory Authority has allowed us to machinery, equipment and apparatus from one EFS user to another EFS user, we shall pay on demand all duties, taxes, drawbacks, repayments. rebates and refunds, not levied or paid under the rules, on the procurement of plant and machinery which are not accounted for to the satist'action of the Regulatory Authority and to pay any penalties imposed by the Regulatory Authority /adjudicating officer for violation of these nrles or the Acts; pursuance of this BOND the licensee 3. Now, these present witness thal in IvUs. hereby agrees :o indemnifl the said Regulatory Authority nr Rs. adiudicatinp officer for loss of revenue to the extent of may be (Rupees ) and also against costs and expenses which incurred by the Regulatory Authority in recovery of the above amount ofrevenue. may be recovered as arrears under 4. It is further agreed that the above amount relevant sections of the Acts and the rules made thereunder if the licensee {eils to abide by any condition laid down in rules. the parries hereto have put their respective trands 5. IN WIINESS WHEREOF. and seals on lhe day above written. (l)M1s (Address) (2) {Name and pennanent address) For and on behalfofthe Presidentr Witness No. I Witness No.2 Si Si ature Name Name Designation l)esignation Full address Full address CNIC No. CNIC No. Note l.- 'fhe witnesses shall be government servants in BPS-16 or above, or a Scheduled Bank. Oath Commissioner, Notary Public oraa Officerof

ofNote 2.- This bond shall be based upon proper collateral security in the shape NIT units, National Saving Certificates, Defense Saving Certificates and such other securities which banks generally accept for extending credit.". ( 13) in rule 90?, in marginal heading, after the word "authorization", the words "for common export house:" shall be inserted; (14) in rule 904, in marginal heading, after lhe word "from"' the words "common export" shall be inserted; F.No.3( 1)EP/2013 ( mj Arnan) rt Policy)