Amendments in SRO.450(I)/2001 dated 18.6.2001- Customs Rules, 2001

Government of Pakistan (Revenue Division) Central Board of Revenue **** Islamabad, the 6th June, 2005 NOTIFICATION (CUSTOMS) S.R.O. 563(I)/2005.- In exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), the Central Board of Revenue is pleased to direct that the following further amendments shall be made in the Customs Rules, 2001, namely:- In the aforesaid Rules.- (1) in Chapter I, after rule (1), the following new rule shall be inserted, namely:- “(1A) Scope.- Unless specifically provided in the rules for Pakistan Customs Computerized System, 2005, these rules shall apply.”; (2) for rule 2 the following shall be substituted, namely:- "2. Definitions.-(1) In these rules, unless there is anything repugnant in the subject or context,- (a) "account" means all books, records, correspondence, bank and other financial statements; (b) "Act" means the Customs Act, 1969 (IV of 1969); (c) "appropriate officer" includes officers superior to an appropriate officer; (d) "Collector", "Additional Collector", "Deputy Collector" and "Assistant Collector", respectively, means Collector of Customs, Additional Collector of Customs, Deputy Collector of Customs and Assistant Collector of Customs appointed under section 3 of the Act in relation to an area of his jurisdiction; (e) "duties" includes customs-duty leviable under the First Schedule to the Customs Act, 1969; (f) “importer” means a person who imports goods; (fa) “Pakistan Customs Computerized System (PACCS)” means the Customs Computerized System as defined in clause (ia) of section 2 of the Customs Act, 1969 (IV of 1969); (g) "related persons" means such persons only if,- (i) they are officers or directors of one another's business; (ii) they are legally recognized partners in business; (iii) they are employer and employee; (iv) one of them directly or indirectly controls the other; (v) both of them are directly or indirectly controlled by a third person; (vi) together they directly or indirectly control a third person; or (vii) they are members of the same family; and (viii) any person who directly or indirectly owns, controls or holds five per cent or more of the outstanding voting stock or shares of business of both or each of such related person. Explanation I.- The expression "person" also includes a legal person. Explanation II.- Persons who are associated in the business of one another and that one is the sole agent or sole distributor or sole concessionaire, however described, of the other, shall be deemed to be related for the purpose of these rules, if they fall within the criteria herein before specified for related persons. Explanation III.- One person shall be deemed to control another when the former is legally or operationally in position to exercise restraint or direction over the other. (h) “stay”, for Pakistani nationals, means the duration of continuous living abroad; and, for foreign nationals, means the duration of their valid visa for stay in Pakistan; (i) “vehicle” means a motor-car, motor-cycle, van, microbus, bus, pick-up, jeep, truck, self-driven caravan and tractor with trailer or semi-trailer or caravan. (2) The words and expressions used and not defined herein shall have the meaning assigned to them in the Act or in the respective Chapters of these rules.”; (3) for Chapter II the following shall be substituted, namely:- "CHAPTER II BAGGAGE SUB-CHAPTER 1 PRELIMINARY 3. The provisions of this Chapter shall apply to the baggage of,- (a) passengers and tourist with less than six months stay; (b) passengers with more than six months or less than two years stay; and (c) passengers with more than two years stay or passengers arriving on transfer of residence. 4. Admissibility of allowances.- Allowances shall not be admissible if,- (a) the goods do not arrive from the country where the passenger normally resided prior to arriving in Pakistan; (b) goods are in commercial quantity; or (c) goods are not shipped before the passenger’s arrival in Pakistan and do not reach Pakistan within thirty days of shipment. 5. Definitions.-- In this Chapter, unless there is anything repugnant in the subject or context,- (a) “allowance” means allowance admissible to a passenger under this Chapter; (b) “baggage” means personal wearing apparel and other personal, professional, household effect of a passenger excluding motor vehicles, imported within the admissible allowances in reasonable quantity, whether such articles are exempt from customs-duty or not; (c) “import” means bringing into Pakistan by air, land or sea; (d) “personal allowance” means,- (i) stitched and used personal wearing apparel and clothing accessories; (ii) handbags and travel goods; (iii) medals, trophies and prizes bestowed upon a passenger; (iv) one watch and one travelling clock; (v) personal adornment, toilet requisites and electric shaver in use; (vi) spectacles and other physical aids in use; (vii) one cigarette lighter, two pens and similar goods of personal use normally carried, in pocket, in hand-bag or on person; (viii) one electric iron and one electric hair dryer; (ix) one perambulate or go-cart and toys in reasonable quantity if in use of an accompanying child; (x) one invalid chair in use; (xi) one photographic camera; (xii) two hundred cigarettes or fifty cigars or half kilogram of manufactured tobacco or an assortment of cigars and manufactured tobacco not exceeding half kilogram in weight; and (xiii) quarter liter of perfume and spirits and toilet waters, of which not more than 1/8 liter shall be perfumes; (e) “tourist” means a person who visits Pakistan for a period of more than twenty four hours and not more than six months (a person in transit excepted) and does not engage in any gainful or remunerative employment, profession or calling in Pakistan. 6. Extent of admissibility of gift allowances.- The admissible gift allowances shall be halved on the second visit in a calendar year and will not be admissible on subsequent visits in the same calendar year. 7. Re-import of baggage.- Goods otherwise liable to customs-duty and other taxes shall, upon return of the passenger, be importable free of customs-duty and other taxes, if taken out of Pakistan against export certificate or endorsement on passport specifying the exact description and distinguishable marks, obtained from an Assistant Collector of Customs at the time of the passenger’s departure from Pakistan. 8. Prohibition on import of arms, ammunition, etc.- Arms and ammunition (except against a valid personal licence), obscene and subversive literature, items of intellectual property right infringement, alcoholic beverages and other such items which are prohibited under sections 15 and 16 of the Customs Act, 1969 (IV of 1969) and under Import Policy Order shall not be imported under this Chapter. 9. Declaration to Customs.- Where a passenger intends to import any items subject to taxes or import as unaccompanied baggage or wants to make purchases from Duty Free Shops, he shall not be entitled to import or avail the concessions and exemptions under this Chapter unless he makes such a declaration in the prescribed format (Annex) at the time of his arrival. 10. Admissibility of allowances in case of husband and wife.- In case of husband and wife travelling together, separate allowances up to the extent specified in this Chapter shall be allowed to each of them. 11. Allowances admissible to members of crew.- The members of crew of any conveyance shall only be allowed to import articles of personal wearing apparel and other articles in the personal use for satisfying daily necessities of life. SUB-CHAPTER 2 CONCESSIONS TO PASSENGERS/TOURIST WITH LESS THAN SIX MONTHS STAY 12. The following allowances shall be allowed to passengers with less than six months stay, namely:- (A) Duty Free Personal Allowance: (a) Personal allowances as defined in sub-clause (d) of rule 5 in sub-chapter 1; (b) a gift allowance to import goods of the value not exceeding three hundred US dollars; (c) one personal computer or laptop computer along with printers, monitors, key boards, mouse and cables thereof; (d) one mobile phone and one watch; (e) one tape recorder or radio; (f) games or sporting requisites in actual use; (g) foodstuffs including confectionary and non-spirituous beverages of value not exceeding five US dollars; and (h) goods (tabarrakat) of the value not exceeding one hundred US dollars. (B) Dutiable Personal Allowance: Goods of personal, professional or household effect, whether used or not, acquired abroad shall be allowed on payment of customs-duty and other taxes if not admissible under duty free allowance: Provided that the above concessions shall be admissible once in six months. 13. Temporary import.- (1) An officer of Customs not below the rank of Superintendent may allow temporary release of any personal and professional tools, equipments, computers, cameras, video camera fitted with VCR or a video camera and VCR without payment of customs-duties by making an endorsement to that effect of serial number, or other identifications on the passport of foreigners or against a bank guarantee for export within thirty days or return of the tourist whichever is earlier. (2) The items released under sub-rule (1) shall not be sold in Pakistan and the tourist shall take such items out of Pakistan with him personally or may export the same on or before his departure from Pakistan. SUB-CHAPTER 3 CONCESSIONS TO PASSENGERS WITH MORE THAN SIX MONTHS BUT LESS THAN TWO YEARS STAY 14. The following allowances shall be allowed to passengers with more than six months but less than two years stay, namely:- (A) Duty Free Personal Allowance: (a) Personal allowance as admissible under item ‘A’ of rule 12 in sub-Chapter 2. However the monetary limit for gift allowance shall be US $ 450; (b) personal jewellery of the value not exceeding one thousand US Dollars for lady passengers only; (c) professional tools, instruments, apparatus and appliances acquired abroad in connection with his profession or calling subject to the aggregate value of two thousand US dollars; (d) one DVD player or one video cassette player; (e) one sewing machine; and (f) one exercise machine. (B) Dutiable Personal Allowance: Goods of personal, professional or household effect, whether used or not, acquired abroad shall be allowed on payment of customs-duty and other taxes if not admissible under duty free allowance. 15. Allowances to passengers under eighteen years of age.- The following allowances shall be allowed to passengers of all categories under eighteen years of age, namely:- (a) Personal wearing apparel, clothing accessories, and goods of personal use which are in actual use of the passenger; and (b) any other goods or personal effects whether, used or not, acquired abroad on payment of customs-duty and other taxes, subject to the aggregate value not exceeding two hundred and twenty-five US dollars. SUB-CHAPTER 4 CONCESSIONS FOR PASSENGERRS WITH MORE THAN TWO YEARS STAY OR FOR IMPORT OF BAGGAGE ON TRANSFER OF RESIDENCE 16. The provisions of this sub-Chapter shall apply to the passengers with more than two years stay or to the import of baggage on transfer of residence. 17. Personal and household effects that may be imported.- (1) The following allowances shall be allowed to a passenger with more than two years stay or on transfer of residence, namely:- (A) Allowances admissible under sub-Chapter 3. (B) Duty Free Allowances: A passenger or a family on transfer of residence shall be allowed to import, or bring as accompanied or un-accompanied baggage, the following items, duty free, namely:- (i) Personal allowances as defined in sub-clause (d) of rule 5 in sub-Chapter-1; (ii) any item exported from Pakistan at the time of departure subject to satisfactory identification; (iii) old and used furniture or fixture, cutlery, crockery, kitchen utensils, rugs, carpets, household linen, reading or writing aids and other duty free goods including electrical items other than those which are compulsorily taxable; (iv) one gas burner; (v) one personal computer or one laptop computer with printer, monitor, keyboard, mouse and other accessories; and (vi) professional equipment. (C) Concessional Duty Allowances: In addition to the above special allowances a passenger or a family on transfer of residence shall be allowed either to purchase free of duty and taxes locally manufactured one airconditioner, one refrigerator or deep freezer from Duty Free Shop outlets on payment in foreign exchange or to import the following items on payment of concessional rate of customs-duty specified in column (3) of the table below, namely:- TABLE _____________________________________________________ S.No. Description of items. Customs duty. _____________________________________________________ (1) (2) (3) _____________________________________________________ 1. One airconditioner. one half of the statutory duty and taxes. 2. One refrigerator or one deepfreezer. -do- (D) Dutiable allowances: A family on transfer of residence shall be allowed to import the following items on payment of customs-duty and other taxes, namely:- (i) Washing machine, television one item each per family. set, cooking range. (ii) New or second-hand airconditioner. one. (iii) Weapon of non-prohibited bore. one. (vi) an overseas returning Pakistani medical doctor may import second-hand or used medical equipment, dialysis machine, reverse osmosis equipment and other similar electro medical equipment without age-limit of such machinery or equipment. (2) Where a passenger on his arrival in Pakistan makes declaration in the requisite Form obtainable from the Customs that he has unaccompanied baggage to follow, the unutilized exemption under this Chapter in respect of goods in the accompanying baggage of the passenger shall also apply to such unaccompanied baggage. (3) The application for allowing concessions under this sub-Chapter shall be made in triplicate. SUB-CHAPTER 5 CONCESSIONS FOR FOREIGN EXCHANGE REMITTANCES CARD HOLDERS 18. Special allowances to overseas Pakistanis.- In addition to allowances available in sub-Chapter 2, 3 or 4, depending upon the stay of the passengers, the following special allowances shall be allowed to the following categories of overseas Pakistanis, namely:- (A) Silver card holders: Such overseas Pakistanis who have remitted two thousands and five hundred or more US dollars to Pakistan through the normal banking channels during one year preceding their date of arrival and hold a Silver Card issued by the Overseas Pakistani Foundation may avail the duty free allowance of one thousand US dollars. This facility, however, shall be admissible against the transfer of remittances once in a year on one time basis; and (B) Gold card holders: Such overseas Pakistanis who have remitted ten thousands or more US dollars to Pakistan through normal banking channels during one year preceding their date of arrival and hold a Gold Card issued by the Overseas Pakistani Foundation may avail duty free allowances worth two thousand US dollars. However, the said facility shall be admissible against the transfer of remittances once in a year on one time basis. Explanation.- A card holder shall be entitled to import the following items duty free provided that these are within the limits of permissible allowance to the Silver or Gold Card categories of worth one thousand US dollars and two thousand US dollars respectively:- (i) Household items of any type operated only by solar energy; (ii) one deep freezer or refrigerator operated by gas; (iii) gas appliances including cooking range (not more than one of any item); (iv) one microwave oven; (v) one video cassette player or video cassette recorder or one VCD or DVD; and . (vi) items of professional use. SUB-CHAPTER 6 CONCESSIONS FOR PURCHASES FROM DUTY FREE SHOPS 19. (1) Duty Free Allowance: A Pakistani passenger who has not availed concession of duty free allowances under sub-Chapters 2, 3 and 4 shall be entitled to purchase from Duty Free Shop outlets items of bona fide personal, professional or household use, free of customs duty and other taxes within the following limits provided the same are not sold in the market and payment is made in foreign exchange which is either declared at the time of arrival or remitted through legal channels before arrival of the passenger, namely:- (a) US $ 500 (for a period of less than six months stay abroad); (c) US $ 1000 (for a period of more than six months stay abroad); and (d) overseas Pakistanis holding Silver or Gold Cards may make purchases according to entitlement as specified in rule 18. (2) Dutiable Allowance: A Pakistani passenger shall be entitled to purchase from Duty Free Shops outlet goods of personal, professional or household effect on payment of customs duty and other taxes without limit within a period of two months from the date of arrival provided the foreign exchange has been declared at the time of his arrival or remitted through legal channels. SUB-CHAPTER 7 CONCESSION FOR OUT GOING PASSENGERS 20. All outgoing passengers shall be allowed to export as baggage any goods either imported under transfer of residence scheme or purchased locally provided their export is not prohibited or restricted under the trade or export policy in force or under the provisions of the Customs Act, 1969, or under any other law in force. Annex A-FORM ……………………………………… Part. (i) PASSENGERS DATA Name: | Passport No: Nationality: | Date and Place of Issue: Date of arrival: Flt No. | Visits in the calendar year: 1 st / 2 nd Date of last departure from Pakistan: | Foreign currency: Duration of stay abroad. | Allowances Availed. | Allowances balance. Part. (ii) DESCRIPTION OF ACCOMPANIED BAGGAGE (In detail) Weight (Kg). | No. of pieces. | Contents. Part. (iii) DESCRIPTION OF UNACCOMPANIED BAGGAGE (In detail) Weight (Kg). No. of pieces. Place of booking: Contents. Part. (iv) DESCRIPTION OF GOODS INTENDED TO BE PURCHASED FROM DUTY FREE SHOPS (In detail) Contents. No. of pieces. Part (v) DECLARATION OF THE SERVICE PROVIDER FOR UNACCOMPANIED BAGGAGE We *M/s ……………………………… hereby declare that this Baggage does not contain any goods / articles in breach of the prohibitions and restrictions currently inforce under the law. We ……………………………. will be liable to prosecution if any misdeclaration is discovered in the baggage handled by them. Name and Signature of the representative of *M/s……………. | Signature of the passenger Designation: Part (vi) FOR OFFICIAL USE ONLY PAKISTAN CUSTOMS ………………………… Unaccompanied baggage brought by *M/s ………………….has been scanned / checked and the following dutiable goods have been found. Description. | Quantity. | Value (Assessed). | Taxes. C.D | S. Tax | I. Tax | Total Full Name of Examining Officer. Date: | Signature Seal: Full Name of Officer Incharge. Date: | Signature Seal: * Name of Airline/vessel/Bus service / Railways etc.”; (4) in rule 68, in the proviso, for the full stop, at the end, the colon shall be substituted and thereafter the following new proviso shall be added, namely:- “Provided further that Collector of Customs may extend the period already extended by the Additional Collector, up to fifteen days on case to case basis if he considers it to be fit and appropriate.”; (5) in Chapter VII, in rule 87, after the word “writing”, the following words and comma shall be inserted, namely.- “or electronically where Pakistan Customs Computerized System (PACCS) is operational,”; (6) for Chapter X the following shall be substituted, namely:- “CHAPTER X MAINTENANCE OF ACCOUNTS 126. Persons responsible to maintain accounts:- All importers shall maintain manual or electronic accounts of imports and disposal and supply thereof in the prescribed formats and shall maintain original and copies of contracts, letters of credit, bills of lading, invoices, packing lists and Bills of entry and Goods Declarations for a period of not less than three years from the date of respective imports as per the following conditions, namely:- (I) The name, National Tax Number, Sales Tax registration number, and address of the importer as well as complete address with telephone Nos., Fax Nos. etc. of storage premises shall be mentioned on the first page of the register in the form as set out below for maintenance of accounts of imports and disposal thereof; (ii) importer shall maintain Pakistan Customs Tariff (PCT) heading wise record on daily basis giving complete description with size, length, weight, Article No./Part No. /Patent/S.No; whatever applicable, of each unit and Pakistan Customs Tariff Heading No; (iii) accounts of imports for commercial purposes or for industrial purposes (inhouse consumption) shall be maintained in the format as set out in Table-I; (iv) every importer maintaining accounts in the prescribed manner shall extend all assistance to an appropriate officer of Customs enabling him to perform detailed audit or examination of the accounts and related books and record and to obtain attested copies or verify the information on which the determination of the amount of customs duty and taxes paid or payable was made; and (v) importer shall also prepare and handover transport permit in the format as set out in Table-II which shall be presented by the driver of vehicle or conveyance to the Customs authorities whenever and wherever demanded during the transhipment for satisfaction of the authorities that goods being transported were legally imported. Register of Goods Imported First page Particulars of the importer Name: Address: E.mail: NTN: | Sales Tax Reg. No. Particulars of the storage premises ( use separate register for each location ) Address: Phone No.______________ Fax No._________________ Note:(a) To be maintained by all commercial and industrial importers for every Bill of Entry/Goods Declaration having declared import value exceeding Rs.10,000/-. (b) To be maintained at the place the corresponding imported goods are stored. TABLE I Register of Goods Imported (Use a separate page for each PCT heading of the goods imported and its description) Page No. _________ PCT heading. | Description of goods. | Unit. Date. | Bill of Entry/Goods Declaration / Sales Tax Invoice. | Assessed / Sale Value including Custom Duty and Sales Tax. (Rupees) | Quantity. | Transport Permit, if any. Date. | Number. | Imported. | Sold/ Consumed. | Balance. | Date. | Number. TABLE II Transport Permit ( To be issued by an importer of goods for movement of imported goods and accompanied with sales tax invoice/movement advice Transport Permit No. ________________ Date: _______________ Particulars of the importer Name & Address. | NTN | Sales Tax Reg. No. | Address of storage premises. Particulars of the buyer Name & Address. | Address of storage premises. Sales Tax Invoice*. | Mode of transport. | Route of transport. | Transport document**. | Remarks. Date. | Number. | By road/air/rail. *or movement advice number **(Road Bilty/Airway Bill/Rail Bilty/Any other) Signature of importer or his authorized person:_______________ Name of signatory: _______________ Designation: _______________ All transport permits to be accompanied with copy of sales tax invoice En-Route Checking/Verification S.No. | Date and time. | Place of checking/verification. | Checked/verified by Name. | Designation. | Signature. ______________________________________________________________________” ; (7) in Chapter XI, in rule 139, in sub-rule (4), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:- “Provided that either before or after the initiation of recovery proceedings, the Collector of Customs may, if so requested by the person concerned, recover the dues in such instalments as he may deem proper.” (8) in Chapter XII,- (a) sub-Chapter 4 shall be omitted; (b) sub-Chapter 6 shall be omitted; and (c) for sub-Chapter 7, the following shall be substituted, namely:- “SUB-CHAPTER 7 DUTY AND TAX REMISSION FOR EXPORTS 296. Definitions.- (1) In this sub-Chapter, unless there is anything repugnant in the subject or context,- (a) “acquisition” means import or purchase of foreign origin goods including banned or restricted items within the scope and extent of this sub-chapter or procurement of locally manufactured goods and taxable or excisable services covered under this sub-Chapter provided that acquisition of banned or restricted items shall be subject to prior permission from the Ministry of Commerce; (b) “Act” means the Customs Act, 1969 (IV of 1969), the Central Excises Act, 1944 (I of 1944) and the Sales Tax Act, 1990; (c) “Appendix” means an Appendix to this sub-Chapter; (d) “DTRE” means duty and tax remission for exports; (e) “DTRE applicant” means a person who files an application in the form set out in Appendix I for grant of facilities under this sub-Chapter; (f) “DTRE user” means a person who has been approved for availing facilities under this sub-chapter by the concerned Regulatory Collector; (g) “export” includes supply of goods,- (i) by an indirect exporter to a direct exporter; (ii) against international tenders; (iii) to projects or sectors entitled to import or purchase such goods free of duties and taxes; and (iv) to export processing zones; (h) “indirect exporter” means a person who has a firm contract or export purchase order from a direct exporter for the manufacture and supply of goods to such exporter; (i) “input goods” means goods and includes services eligible for acquisition and also includes,- (a) trims and accessories; (b) electricity and gas on which sales tax has been paid; and (c) furnace or diesel oil for the generation of electricity used or consumed in the manufacture of output goods for export under this sub-chapter; (j) “import” includes purchase of input goods from export processing zone or from a private or public bonded warehouse including manufacturing bond but excluding diplomatic bond; (k) “Ordinance” means the Income Tax Ordinance, 2001 (XLIX of 2001); (l) “Pakistan Customs Computerized System (PACCS)” means the Customs Computerized System as defined in clause (ia) of section 2 of the Customs Act, 1969 (IV of 1969); (m) “Regulatory Collector” means the Collector of Sales Tax in whose jurisdiction the DTRE applicant registered under the Sales Tax Act, 1990; and (n) “utilization period” means the period commencing from the date of acquisition of input goods till the date of export of output goods under this sub-Chapter. (2) The words and expressions used but not defined in sub-rule (1) shall have the meaning assigned to them in the Act or, as the case may be, the Ordinance. 297. Scope of DTRE facility.- (1) The DTRE facility under this sub-Chapter shall be available to, (a) the persons registered under the Sales Tax Act, 1990, as exporters; (b) the persons who make value-addition in the manufacture and export of goods in accordance with the prevalent value-addition of the relevant industry; (c) those who act or intend to act as contracted vendors of foreign manufacturers or foreign buyers; and (d) commercial exporters engaged in the purchase and export of goods in same state either after packing or otherwise. (2) The DTRE facility under this sub-Chapter shall not be admissible to,- (a) pure terephthalic acid (PTA), raw sugar and cooking oil or vegetable ghee or their raw materials; and (b) the goods which are banned or restricted under the prevalent Import and Export Policy Orders on account of national security, public health and cultural, moral or religious considerations. 298. Application for DTRE approval. - (1) A DTRE applicant who intends to obtain DTRE approval under this sub-Chapter on the basis of specific export or supply contract or order shall apply to the Regulatory Collector in the form set out in Appendix I over the web through PACCS. (2) A direct exporter or commercial exporter may obtain advance DTRE approval on the basis of his past export performance for the general class of export products corresponding to the Harmonized System Code and he shall be entitled to acquire input goods to meet his future export-related production requirements for a period of twelve months as substantiated on the basis of bills of export or E Forms duly countersigned by the State Bank of Pakistan or sales tax returns stretching over a period of previous twenty-four months. (3) An indirect exporter who is not currently in possession of any supply order but has been manufacturing and supplying goods to direct or commercial exporter either under DTRE scheme or otherwise may obtain advance DTRE approval on the basis of such past supplies of general class of export products corresponding to the Harmonized System Code for the acquisition of input goods to meet his production and supply requirements for the next twelve months. (4) An indirect exporter who is in possession of more than one firm supply contract or purchase order from a direct exporter or a commercial exporter may seek consolidated DTRE approval for all such contracts or orders. 299. Input-output ratios and wastages.- (1) In case of goods other than same-state goods, the input-output ratios and wastages under this sub-chapter shall be declared by the applicant as per Appendix I. (2) Tags and printed materials supplied by a foreign supplier without involvement of foreign exchange from Pakistan shall be allowed to be imported without any quantitative restriction for the purpose of this sub-Chapter. 300. Grant of DTRE approval. - (1) On the basis of DTRE application, a Regulatory Collector, if he is satisfied with the bona fides of the DTRE applicant, shall grant DTRE approval and each such approval shall be fed into PACCS over the web in the format as given in Appendix II. (2) The amounts suspended by the Regulatory Collector in respect of leviable customs-duties, excise duty, sales tax and withholding tax shall be secured against,- (a) indemnity bond along with the post-dated cheque from a direct and indirect exporter; (b) bank guarantee from a commercial exporter; and (c) corporate guarantee from exporters in the corporate sector. (3) The Regulatory Collector may, at the time of granting DTRE approval,- (a) verify the production capacity and business turnover from the sales tax profile or other available records of the DTRE applicant to ensure that quantity of the input goods applied for commensurates with the actual production and business capacity of such applicant; and (b) consult the records of Input-Output Coefficient Organization for identical or similar output goods if available to ensure that the input-output ratios and wastages as claimed by the DTRE applicant are as per industry standards. (4) Where an existing DTRE approval does not cater to the quantitative or other requirements of a contract or supply order due to any valid reasons, the Regulatory Collector may suitably amend the existing DTRE approval. (5) Where an exporter proves to the satisfaction of the Regulatory Collector that export under a separate contract can not be arranged out of his regular production due to valid reasons, past export performance as well as contract-based DTRE approval may be granted concurrently for the output goods of the same or different description. (6) Where the indirect exporter is granted DTRE approval on the basis of contract or order entered with a direct exporter or commercial exporter, the entitlement of the direct exporter or commercial exporter to duty suspension under this sub-chapter in respect of his export contract or order with a foreign buyer shall proportionately be reduced to the extent of entitlement of the indirect exporter. (7) No DTRE application shall be rejected without affording opportunity of being heard to the DTRE applicant. 301. Amendment, suspension or cancellation of DTRE approval. - (1) A DTRE- user may apply to a Regulatory Collector for amendment in the previous approval or for its cancellation and each such request shall be decided within ten days of receipt thereof and fed into PACCS as per Appendix II. (2) No request for amendment in the existing DTRE approval shall be rejected and no DTRE approval shall be cancelled without affording to the DTRE applicant or the DTRE- user an opportunity of showing cause in writing and being heard. (3) The Regulatory Collector may, on his own or otherwise, suspend any DTRE approval pending his decision to cancel such approval and each such suspension shall be fed into PACCS as per Appendix II. (4) The Collector may, in addition to any other action under the law, require the input goods already acquired or output goods produced under the suspended or cancelled DTRE approval to be dealt with in such manner as he may deem appropriate. 302. Acquisition of duty free input goods.- (1) A DTRE user shall be entitled to acquire input goods without payment of customs duty, excise duty, sales tax or withholding tax in accordance with his DTRE approval, and all such acquisitions shall be fed into PACCS in the following manner, namely:- (a) if imported, these shall be fed into PACCS as per Appendix-IV by the Collectorate through which such input goods have been cleared; and (b) local input goods shall be reported by the DTRE user to the Regulatory Collector for feeding into PACCS as per Appendix IV. (2) The input goods manufactured or produced in excisable premises shall be supplied against a valid document prescribed under the Central Excises Act, 1944 (I of 1944), or the rules made thereunder. (3) The Regulatory Collector may allow a DTRE user to utilize his duty and tax-free acquired input goods for his new approval if his previous DTRE approval has been cancelled due to pre-mature termination or cancellation of the export or supply contract of such input goods have been rendered surplus for any valid reason and each such approval shall be fed by the Collector into PACCS as per Appendix II. 303. Acquisition of duty paid input goods.- A DTRE user shall be entitled to claim duty drawback on acquisition of duty paid input goods subject to the applicable duty drawback notification only after full discharge of the liabilities and obligations under this sub-chapter: Provided that where a person is already in possession of stocks of duty-paid input goods, he may declare at the time of seeking approval and use such stocks for the purpose of this rule: Provided further that in no case the quantity of input goods on which a DTRE user is entitled to draw back under this rule, shall exceed 20% of the value of his DTRE approval. 304. Acquisition of locally manufactured input goods.- (1) A DTRE user shall be entitled to procure without payment of sales tax locally manufactured input goods and duty drawback shall be admissible in respect of duty paid input goods used in the manufacture of such goods at the rate given in the relevant duty drawback notification. (2) Where a registered person supplies goods to a DTRE user, he shall issue a zero-rated invoice under section 23 of the Sales Tax Act, 1990, mentioning the number and date of DTRE approval of the buyer. 305. Utilization of input goods.- The input goods acquired under this sub-chapter shall be utilized in the manufacture and export of output goods within eighteen months from the date of their acquisition: Provided that the said period may be extended by the Board in cases of exceptional circumstances. 306. Export of manufactured goods.- A bill of export or goods declaration filed for the export of a DTRE consignment under this sub-chapter shall contain the DTRE approval number and shall be subject to all formalities for other declarations or endorsements, if any, and the procedure in respect of processing and examination of export goods, for the time being in force, shall be observed and on export of such goods the respective Collectorate of Customs shall feed the requisite information into PACCS against the DTRE approval number as per Appendix IV: Provided that no bill of export or goods declaration shall be filed for supply of goods against international tenders or to exempt projects or sectors in Pakistan: Provided further that supplies against international tenders or to exempt projects or sectors in Pakistan or from indirect exporter to direct exporter shall be reported by the DTRE user to the Regulatory Collector who shall enter the relevant particulars into PACCS as per Appendix IV. 307. Exports to Afghanistan, etc.- (1) In case of exports to Afghanistan and through Afghanistan to Central Asian Republics by land routes, the facility of this sub-chapter shall be admissible only against established irrevocable letters of credit or receipt of advance payment in convertible foreign currency from the country of import. (2) Where advance payments are received in installments as agreed in the export contract, the Regulatory Collector shall grant DTRE approval staggering the acquisition of input goods over a period commensurate with the receipt of such installments. (3) For exports under sub-rules (1) and (2), the conditions laid down in the Export Policy Order in force or any other conditions or limitations as may be specified by the Board or the Regulatory Collector, or the concerned Collector of Customs shall be observed. 307A. Unaccounted-for un-exported goods.- (1) If a DTRE user fails to account for the duty and tax free acquired input goods, or he fails to account for his finished goods manufactured therefrom or he fails to account for his un-exported same-state-goods, he shall be liable to pay duties and taxes including additional duties or additional tax and penalties leviable on such goods under the relevant Acts or the Ordinance. (2) Notwithstanding sub-rule (1), a DTRE user may with the permission of the Regulatory Collector dispose of the input goods or output goods within the prescribed utilization period in the following manner, namely:- (a) return to person who had supplied the input goods; (b) sale, by a DTRE user to another DTRE user for export; (c) local sale on payment of leviable duties and taxes and on production of no objection certificate from the Ministry of Commerce in case input goods are banned or restricted for import; (d) destruction after approval of the Regulatory Collector if goods are not fit for consumption or sale with remission of duty and taxes; and (e) local sale of B-grade products, factory rejects or wastage on payment of leviable duties and taxes and subject to the provisions of the prevalent Import Policy Order: Provided that where any of the above option is allowed, the Regulatory Collector shall reduce equivalent quantity of output goods or input goods as the case may be, by feeding them into PACCS as per Appendix II. 307B. Refund of sales tax.- Refund of sales tax on electricity or gas or services utilized as input goods for DTRE purpose or inputs covered under rule 303 or in respect of goods supplied in terms of sub-rule (2) of rule 304 shall be admissible to a DTRE user or as the case may be, to a registered person as admissible under the Sales Tax Act, 1990: Provided that the DTRE user shall be entitled to refund of sales tax on the acquisitions of tax paid input goods if the value of such goods other than electricity, gas and services does not exceed 20% of the total value of DTRE approval. 307C. Records and documents.- A DTRE user shall keep and maintain separate from other business records, if any, the following records and documents in proper manner, namely:- (a) copies of DTRE applications and DTRE approvals; (b) records of acquisitions of input goods and exports; (c) record for destruction or other authorized disposal of input goods and output goods; and (d) export contracts or orders and supply contracts or orders. 307D. Reconciliation statement.- Within sixty days of the expiry of utilization period allowed under this sub-chapter, or earlier after export, a DTRE user shall file to the Duty Suspension Audit Office a reconciliation statement in the form as set out in Appendix III. 307E. DTRE audit.- (1) The liability of a DTRE user to pay duty and taxes under a security instrument furnished by him under this sub-chapter, shall not be discharged unless post-exportation audit is carried out and completed satisfactorily within a period of twelve months after the period specified in rule 305 or after filing of reconciliation statement under rule 307D, whichever is earlier. (2) Audit under this sub-chapter shall be a combined or consolidated audit for DTRE and other taxable activities, if any, and shall cover all the duties and taxes for which the security instrument has been furnished. (3) In case of commercial exporter holding a DTRE approval for same-state-goods, the Regulatory Collector may discharge the security instrument if such exporter, on the basis of purchase and export documents in his possession, proves that the goods acquired by him against such approval have been exported in full. (4) Where as a result of post-exportation audit, there arises any discrepancy, irregularity or any violation of the provisions of this sub-Chapter or any other law applicable in this behalf by the DTRE user, the same shall be reported to the adjudication officer of competent jurisdiction. 307F. Power to suspend DTRE facility.- The Board may by notification in the official Gazette, suspend application of this sub-Chapter in respect of any particular goods or a group or a class of goods. 307G. Miscellaneous.- (1) An officer authorized by the Regulatory Collector shall have free access to any place where goods covered under a DTRE approval issued by such Collector, are stored, processed or manufactured or otherwise dealt with and to the records, documents and information relating to such goods. (2) All liabilities or dues as and if payable or outstanding under any of the provisions of this sub-Chapter shall be finally ascertained and recovered by the Regulatory Collector. 307H. Saving.- All fully or partially unutilized DTRE approvals, if otherwise in order and correct, issued under sub-Chapter 7 substituted by this sub-Chapter shall be deemed to have been validly issued under this sub-Chapter. APPENDIX I [See sub-rule (1) of rule 298] [Information as below to be provided through PACCS over the Web] Application for Duty & Tax Remission for Exports (a) PARTICULARS OF THE EXPORTER: NAME : E-MAIL: ADDRESS (REGISTERED OFFICE): TELEPHONE NO. | FAX NO. MANUFACTURING PREMISES : TELEPHONE NO. | FAX NO. LOCATION OF STORAGE FACILITIES (IF DIFFERENT) : N.T.N NO : | G.S.T. NO : DIRECT INDIRECT COMMERCIAL CONTRACT- BASED PERFORMANCE-BASED Approval No. of Direct Exporter __________________(only in case of Indirect Exporter) (b) PARTICULARS OF THE GOODS INTENDED TO BE EXPORTED: S.No. | PCT Headings. | Description. | Quantity. | Value. (c) PARTICULARS OF THE INPUT GOODS INTENDED TO BE IMPORTED: S.No. | PCT Headings. | Description. | Quantity. | Value. (d) PARTICULARS OF THE INPUT GOODS INTENDED TO BE LOCALLY PROCURED: S.No. | PCT Headings. | Description. | Quantity. | Value. (e) PARTICULARS OF THE INPUT GOODS TO BE ACQUIRED AGAINST CLAIM OF DUTY DRAWBACK: S.No. | Description. | PCT Headings. | Quantity. | Value. | % as of total Input goods. | Number of DDB Notification. (1) | (2) | (3) | (4) | (5) | (6) | (7) Total (f) INPUT - OUTPUT RATIOS: S.No. | Description/PCT Heading of goods intended to be exported. | Unit of production of goods intended to be exported. | Description/PCT of input goods. | Quantity of input goods per unit of production. | Extent of Wastages. APPENDIX II [See sub-rule (1) of rule 300, sub-rules (1) and (3) of rule 301, sub-rule (3) of rule 302, and proviso to sub-rule (2) of rule 307A] [Information as below to be provided through PACCS over the Web] Application for amendment, suspension or cancellation of Duty & Tax Remission for Exports, and approval by Regulatory Collector to utilize duty and taxes-free acquired inputs for new approval, and information and approval in respect of supplies against international tenders, and supplies to exempt projects or sectors. Active Inactive (a) PARTICULARS OF THE EXPORTER: Approval No. ___________________ NAME : N.T.N NO : | G.S.T. NO : (b) PARTICULARS OF THE GOODS ALLOWED TO BE EXPORTED: S. No. | PCT Headings. | Description. | Quantity. (c) PARTICULARS OF THE INPUT GOODS ALLOWED TO BE IMPORTED: S. No. | PCT Headings. | Description. | Quantity. (d) PARTICULARS OF THE INPUT GOODS ALLOWED TO BE LOCALLY PROCURED: S. No. | PCT Headings. | Description. | Quantity. (e) PARTICULARS OF THE INPUT GOODS ALLOWED TO BE ACQUIRED AGAINST CLAIM OF DUTY DRAWBACK: S. No. | Description. | PCT Headings. | Quantity. | % as of total Input goods. (1) | (2) | (3) | (4) | (6) Total: APPENDIX III [See rule 307D] RECONCILIATION FORM Duty & Tax Remission for Exports For Office Use only Receipt No. …………………….. Date …………………………….. NAME OF EXPORTER: DTFRE APPROVAL NO. & DATE: ISSUING COLLECTORATE: (a) PARTICULARS OF THE GOODS EXPORTED: S.No. | PCT Headings. | Description. | Quantity. | Value. (b) PARTICULARS OF THE INPUT GOODS: S.No. | PCT Headings. | Description. | Quantity. | Value. (c) INPUT - OUTPUT RATIOS : S.No. | Description/PCT of goods exported. | Unit of production of goods exported. | Description/PCT of inputs. | Quantity of input GOODS per unit of production. | Extent of Wastages. (d) AMOUNT OF DUTIES/TAXES LEVIABLE ON INPUT GOODS: S.No. | PCT Heading of input goods. | Import duty. | Sales Tax. | Central Excise Duty. | Withholding tax. | Other. | Total. Name & Designation: ____________ Exporter’s Signature & Stamp N.I.C. No. : …………………………………………………………………………………………...…………. For Office Use Only APPROVAL NO. APPROVED YES NO. DATE. EXPIRY DATE. Appendix IV [See sub-rule (1) of rule 302] Imported Input Goods (To be filled by the Collectorate through which import is cleared) (1) DTRE approval No.: | NTN of DTRE User: S. No | PCT Heading. | Description. | Qty allowed for import. | Qty imported. | Balance qty. | Imported vide GD No. | GD date. Exported Goods (including EPZ) (To be filled by the Collectorate through which export is cleared) (2) DTRE approval No.: | NTN of DTRE User: S. No | PCT Heading. | Description. | Qty allowed for export. | Qty exported. | Balance qty. | Exported vide GD No. | GD date. Locally procured Input Goods (To be filled by the relevant Regulatory Collectorate) (3) DTRE approval No.: | NTN of DTRE User: S. No | PCT Heading. | Description. | Qty allowed for local procurement. | Qty procured. | Balance qty. | S.T. invoice No. | Invoice date. Locally supplied Input Goods (Includes supplies to indirect to direct exporters, international tenders, exempt projects/sectors) (To be filled by the relevant Regulatory Collectorate) (4) DTRE approval No.: | NTN of DTRE User: S. No | PCT Heading. | Description. | Qty allowed for local supplies. | Qty supplied. | Balance qty. | S.T. invoice No. | Invoice date. and”. (9) after Chapter XVIII, the following new Chapter shall be added, namely:- “Chapter XIX REFERENCE TO HIGH COURT 420. Prescribed Form for reference application.--- An application under sub- section (1) of section 196 requiring the Tribunal to refer to the High Court any question of law shall be in the form set out in Appendix-I to this Chapter.”. Appendix-I (see rule 420) FORM OF REFERENCE APPLICATION UNDER SECTION 196 OF THE CUSTOMS ACT, 1969 (IV of 1969) Before the High Court of _______________________ Customs Sales Tax Central Excise Reference Application No. _____________________________ of 20 APPELLANT -------------------------------------------------------------------------------- VERSUS RESPONDENT ----------------------------------------------------------------------------- Title and number of appeal which Gives rise to the reference The applicant (s) state (s) as follows:---- 1. That the appeal noted above was decided by ___________________________ Bench of the Customs, Excise and Sales Tax Appellate Tribunal on _________________ 2. That the order under sub-section (3) of section 194-B of the Customs Act, 1969 (IV of 1969) was served on the applicant on ___________________ 3. That the facts which are admitted and/or found by the Tribunal, the determination of the Tribunal and the question (s) of law which arises out of its order have been truly stated in the attached statement of the case. 4. That the following questions of law arise out of the order of the Tribunal :-- (1) (2) (3) 5. That the following documents are attached with this application: (1) Statement of the case signed by the Appellant. (2) Certified copy of the order of the Appellate Tribunal from which the question (s) of law stated above arises. (3) First Appellate Order (by the Collector (Appeals/ Adjudication)/ (4) Original or other order. 6. The other document (s) or copies thereof, as specified below (the translation in English of the documents, where necessary) are annexed with the statement of the case. ___________________ Signed (Appellant) __________________________ Signed (Authorized Representative, if any) N.B:- 1. The application must be made in triplicate. 2. The application made by the aggrieved person must be accompanied by a fee of one hundred rupees. The fee be deposited in the Treasury or a Branch of the National Bank of Pakistan or the State Bank of Pakistan alongwith the customs duty challan (in quadruplicate) and one copy of the challan be attached with the application. [C. No.5(7)L&P/2004(pt)] [C.No.1(3)C(CP)/2005] (AKHLAQ AHMAD KHATTAK) SECRETARY (LAW AND PROCEDURE)