Amendment in the Customs Rules, 2001

Government of Pakistan (Revenue Division) Federal Board of Revenue **** Notification Islamabad, the 28th March,2024 S.R.O. u\bt r-/ 0)t2024.- The lollowing 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 (lV of I 969), section 50 of the Sales Tax Act, 1990 (VII of 1990), section 40 ofthe Federal Excise Act,2005 and section 237 of the Income Tax Ordinance,200l (XLIX of 2001), is hereby published for information ofall persons likely to be affected thereby and, as required by sub-section (3A) of section 2 1 9 of the Customs Act, I 969 (lV of 1969), notice is hereby given that objections or suggestions thereon, ifany, may for consideration of the Board be sent within filleen days of publication of the amendments notification in the official Gazette. Any objections or suggestions which may be from any person, before the expiry ofthe aforesaid period, shall be taken into consideration by the Federal Board of Revenue, namely:- DRAFT AMENDMENTS In the aforesaid Rules,- (l) in rule 871, for clause (q), the following shall be substituted, namely:- "q. "manufacture" includes any process in which an article singly or in combination with other articles, materials, components, is product or is so L,,. either converted into another distinct article or ) changed, transformed or reshaped that it becomes capable ofbeing put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product"; (2) in rule 873, in sub-rule (1), in clause (b) for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added: "Provided that where the applicant has no previous export history, the firm contract shall be allowed subject to-

(a) detailed scrutiny by the Regulatory Collectorate including but not limited to financial viability, production capacity and history oflocal suPPlies; and firm (b) mandatory approval of the Chief Collector for all contracts above $ one million. However, where the applicant advance has firm contract and submits a bank proof of payment, the Regulatory Collector alter detailed scrutiny' as iequired under clause (a), may grant authorization at his own without referring the case to Chief Collector'"; (ii) after the word "facility" (3) in rule 875, in sub-rule (2), in sub clause theexpression..,dulydeclaredintheSalesTaxRegistrationandin case there are more than one manufacturing facilities, al1 such facilities must be incorporated in Sales Tax Registration" shall be added; (4) in rule 88i, in sub-rule (1), after the word "PSW", the expression "The in the premises plant, machinery and equipment shall be installed ieclared under iule 875 and the information shall be uploaded in the WeBOC or PSW System by the Regulatory Collector' The Regulatory Collector or an officer authorized by him in this behalf, may conduct snap check, audit or reconciliation of the installation plant, machinery & spares shall unO .quip-.ttt. The value of acquisition of machinery/hfv 50o/o of the value of exports during the preceding year'" not .*.."d shall be added; (s) in rule 886, in sub-rule (3), after the word "condition", occurring at the end,theexpression..andtheinformationshallbeuploadedinthe WeilOC o. i'SW System by the Regulatory Collector'" shall be added; (6) in rule 892,- be (a) in sub-rule (1), for the full stop at the end a colon shall added, substituted and thereafter following proviso shall be namely:- "Provided that the new entrants in Export Facilitation Scheme, not availing any previous export scheme, shall submit a quarterly reconciliation statement within fifteen days of the end of each quarter."; and *The (b) in sub-rule (3), after the word "year", the expression Regulatory Collector or an offtcer authorized by him in this behalf In case of any shail scrutinize the reconciliation statement' discrepancy in the reconciliation statement (including imports not commensuiate with export performance or non-utilization of

D1 previously imported input goods), the Regulatory Collector may suspend authorization of input goods by recording reasons of suspension in writing and such suspension shall be fed into WeBOC or PSW. The Regulatory Collector shall decide the case within thirty days of the suspension failing which the suspension shall stand revoked" shall be added; and (3), the following new sub-rule shall be (7) in rule 897, after sub-rule added, namely:- interface for the "(3A) The WeBOC/PSW shall develop an Regulatory Collector or an officer nominated by him, for real- time monitoring of the imports and exports of the user.". 1 )EP/2024-251 .tlF.No.3( (F e Samad) Sec (Export Policy)