Amendments in International Transshipment Rules

GOVERNMENT OF PAKISTAN (REVENUE DIVISION) FEDERAL BOARD OF REVENUE **** Islamabad, the 6th November, 2024. NOTIFICATION S.R.O.l1g9 (1)/2024.- The following draft of certain further amendments in the Customs Rules, 2001, which the Federal Board of Revenue proposes to make in exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, (VII of 1990), section 40 of the Federal Excise Act, 2005 and section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published for the information of all persons likely to be affected thereby and, as required by sub-section (3A) of section 219 of the Customs Act, 1969 (IV of 1969), notice is hereby given that objections or suggestions thereon, if any, may for consideration of the Board be sent within seven days of publication of the draft amendments in the official Gazette. Any objections or suggestions which may be received from any person, before the expiry of the aforesaid period, shall be taken into consideration by the Federal Board of Revenue, namely:- DRAFT AMENDMENTS In the aforesaid Rules, in Chapter XXI, in Sub-Chapter VIII-A,- in rule 510B, in clause (c), after the words "bonded-area", the expression ", except as provided in rules 510G, 510H, 5101 and 510J of this Sub-Chapter" shall be inserted.; and after rule 510F, the following new rules shall be inserted, namely:- "510G. Inter-port movement of international transshipment cargo. The inter port movement of international transshipment cargo may only be allowed from any on-dock terminal of Karachi Port and Port Muhammad Bin Qasim to another on-dock terminal of any of the said ports, through authorized bonded carriers licensed under Chapter XIV of these rules, as per procedure laid down in rules 51014, 5101 and 510K of this sub-chapter.

510H.Procedure for removal of international transshipment cargo from the original port of entry or sending port terminal to another terminal of departure or receiving terminal.- (1) The shipping line or port terminal operator, for which the international transshipment cargo is originally manifested, shall make a request in writing to the concerned Collector of Customs for removal to any other terminal through the CCS, which shall also be visible and accessible to Assistant or Deputy Collector Inter Port Movement (IP), MIS and both the sending and receiving terminals of the concerned Collectorates of Customs, who will allow or disallow such request for the reasons to be recorded in the CCS, on verifying the IGM and EGM or Vessel Departure Schedule in CCS submitted by shipping line, its agent or the concerned terminal operator. After verifications mentioned in sub-rule (1) above, the system shall generate Customs release message for the terminal operator which discharged the container and shall subsequently make it available to the Customs sealing staff after sending a 'pre-Gate-out' message to CCS along with relevant information including the name of the bonded carrier and the container number. This message shall also be visible to the Customs sealing staff. Thereafter, the bonded carrier shall load that container on authorized vehicle and report to the Customs sealing staff for sealing of the container. The Customs sealing staff after verifying that permission for transportation of cargo to the other receiving port terminal has been allowed by the system, shall physically verify the particulars of the bonded carrier and the container number vis-à-vis the information received through the system, affix the PCCSS seal on the container and feed the sealing information and the vehicle registration number in the System. The sealing staff shall also generate and print copies of 'Transport Note', as specified in Appendix-I to this sub-chapter, from the System', in triplicate. Each copy of the 'Transport Note' shall be signed by Customs sealing staff and the bonded carrier or his representative. One copy of the 'Transport Note' shall be retained by the Customs sealing staff, the second copy shall be handed over to the driver of the vehicle who shall submit the same to the Gate-in staff at the concerned receiving port terminal and last copy shall be retained by the representative of the bonded carrier for his record. A system generated Customs Seal Verification Message (SVM) shall be communicated to both the port terminal operators on feeding of PCCSS seal information in the system. The terminal operator shall perform 'Gate- out' event only after receiving the Customs seal verification message. The

Gate-out message shall be communicated by the terminal operator to the system which shall include the name of the bonded carrier, vehicle registration number, container number, shipper's seal number, PCCSS seal number and gross weight of the container. The sending terminal operator shall also hand over the weighment slip to the bonded carrier for record and onward presentation to the Customs staff posted at the receiving port terminal. The international transshipment containers moved out from the exit gate of the port of entry shall reach at the entry gate of the receiving port terminal within two hours, in case of same port. In case of inter port movement between the terminals of Karachi Port and Port Muhammad Bin Qasim, the said time limit shall be four hours. The system shall automatically block the bonded carrier in case of delayed receipt of cargo beyond the prescribed time limits. In cases where the Assistant or Deputy Collector (IP) finds no cogent reason for delayed receipt of the cargo beyond the prescribed time, he shall recommend necessary legal action against the concerned bonded carrier and port terminal operator to Assistant or Deputy Director of Transit Trade for further action by the Licensing Authority. (1) On 5101. Receipt of the departed cargo at receiving terminal.- arrival of international transshipment consignment at the receiving port terminal, the Customs sealing staff posted at the entry gate shall check the 'Transport Note' and weighment slip and shall verify the seal of the container and enter or record the same in the system. Upon receiving the cargo with seal intact, the receiving port terminal shall enter `Gate-in' event in the system and conduct weighment of the cargo and also enter the same in the system. In case the Customs seal affixed on a container is found broken or tampered with, the respective container shall be examined hundred per cent by the Customs staff in the presence of port terminal operator and a representative of the bonded carrier. An inventory of the goods contained in such containers shall be prepared and signed by all witnesses. This inventory shall be fed in the system for record and legal action if so warranted. In case, there is a difference or variation in gross weight recorded at the port terminal of original entry or sending port terminal vis-à-vis the weight found at the port of departure or receiving port terminal, the Assistant or Deputy Collector IP shall proceed against the carrier as per relevant law and rules. On the recommendations of Assistant or Deputy Collector (IP), Assistant or Deputy Collector MIS shall allow and enter such difference of weight in the manifest after payment of fine and penalty as per law and rules.

In case no electronic acknowledgment of the receipt of cargo at receiving port terminal is received after the lapse of time limits provided in sub-rule (6) of Rule 510H, the CCS shall compile report of all such containers and generate an alert for the Assistant or Deputy Collector Inter-Port movement (IP) and MIS of the Collectorate of Customs having jurisdiction at port of entry terminal for action. The feeding of any amendment in Gate-in particulars at receiving port terminal arising due to accident or break-down of the vehicle shall be carried out on approval from the Assistant or Deputy Collector IP. The Assistant or Deputy Collector IP shall carry out manifest clearance electronically on daily basis for closure of IGM lines and corresponding entries in the respective EGM, if required, proceed against the concerned shipping lines or their agents, bonded carriers, terminals and other concerned as per provisions of the Act and these rules. 510.1. Responsibilities of the carriers.- (1) Notwithstanding any other action taken under the law and the procedure under these rules, the carrier shall bear all expenses incurred on re-stuffing or re-packing of the goods including the duty and taxes leviable on goods pilfered or damaged on way from the sending port terminal to the receiving port terminal under this procedure. (2) The bank guarantee or defense saving certificates submitted by the bonded carriers at the time of issuance of license under sub-rule (6) of rule 328 shall be taken into account for recovery of the amount of duties and taxes, fine and penalty, if any, involved on the cargo during the course of transportation from sending port terminal to the receiving port terminal in case of any eventuality like damage, pilferage, theft, fire, accident etc. Violation of rules. - In case of violation of the rules provided in this sub-chapter, or any such violation is detected during inter port movement of cargo from the sending port terminal to the receiving port terminal, the carrier, the shipping lines or their agent and other concerned, shall be jointly and severally responsible for duty and taxes involved and the value diminished or any other liability arising out of any damage or pilferage. They shall be liable to pay the duty and taxes as may be leviable on such goods in addition to any other action as is authorized under the Act or these rules. Cross-stuffing of international transshipment cargo at Gwadar Port. - (1) Cross-stuffing by way of transfer of international transshipment goods from one container to another container, in the approved places within Custom bonded premises, notified under sections 9 or 10 of the Act, at Gwadar Port, shall be allowed under customs supervision.

The option of cross-stuffing of international transshipment cargo at Gwadar Port shall be available to the owner of goods or his authorized representative or shipping lines, through filing necessary details and particulars of containers and cargo on line through the CCS. Cross-stuffing of containerized international transshipment cargo shall be allowed inside especially demarcated areas of the Gwadar port. Cross-stuffing of containerized international transshipment cargo shall take place under Customs supervision from one container to another container of the same size i.e., twenty feet into twenty feet and forty feet into forty feet. Notwithstanding the restriction on LCL cargo provided in rule 510A of this sub-chapter, the cross-stuffing of non-containerized international transshipment cargo or LCL cargo shall be allowed into a 20 feet or 40 feet container at the custom bonded premises of Gwadar Port by entering the particulars into CCS under customs supervision. APPENDIX-I [see rule 51011(4)1 TRANSPORT NOTE IGM No. dated Index No. Via Port EGM No. date (Information required against cargo removed from one port terminal and destined to another port terminal of Karachi Port/ Port Muhammad Bin Qasim) International TP No date Destination Customs port terminal or station (Information required for International Transshipment Cargo) Discharged from Vessel/ IGM No. and Date Index No. Departing Voyage Vessel/ Voyage Marks and No. Container No. Vehicle No. Departing Terminal Tare Weight of ross Weight Net Weight Receiving Conveyance Shipping Line Seal numberof CCSU seal No. Quantity EGM No. and Shipper/ Date Container Yard

Description of Goods Nature of Packing (Pallets, Packages, Cartons, Cases, Bags, Bales, Sheets, Pieces) Name/ Telephone number of the Bonded Carrier Certified that theCertifled that the Certified that the Certified that details on thisabove mentioned above mentioned the above document aregoods have been goods have been mentioned correct. sealed in my received by goods have presence. Customs on been received with with seal intact. by Port Signature Terminal Signature withdate and stamp of date and Stamp of Customs CC SU Signature with M/S on the BondedOfficer at Port of date and Stamp with seal Carrier sealing of Customs intact. CCSU Officer at destination port Signature with terminal, date and Stamp of Customs Officer and authorized representative of receiving/ destination port terminal.". [C.No.1(14)T&BT/2024] (Rizwan m Milt4 Secretary (Transit & Border Trade)