Amendment in the Customs Rules, 2001 [EFS Rules, 2021]

Government of Pakistan (Revenue Division) Federal Board of Revenue ,1.*** Notification Islamabad, the l4th May,2024. r '., by section 219 of S.R.O.6rJ U)12024.- In exercise of the powers conferred the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Acq 1990 (VII of I 990), section 40 ofthe Federal Excise Act, 2005 and section 23 7 ofthe Income Tax Revenue is pleased to directOrdinance, 200 1 (XLX of 2001 ), the Federal Board of that the following further amendments shall be made in the Customs Rules, 2001, the same having been previously published vide Notification No. S.R.O 456(I)12024 dated 28th March, 2024, as required by sub-section (3A) of section of section 219 of the Customs Act, 1969 (IV of 1969), namely:- 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 or components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product;"; at the end, (2) in rule 872, in sub-rule (l), in the first proviso, the full stop a colon shall be substituted and thereafter the following new proviso shall be added, namely:- "Provided further that the EFS users shall import their goods at the first port ofentry or from the ports or dry ports falling under the jurisdiction of their Regulatory Collector."; (b), for the full stop at the end a (3) in rule 873, in sub-rule (1), in clause colon shall be substituted and thereafter the following proviso shall be added, namely:- "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 (b) mandatory approval of the Chief Collector for all firm contracts above $ one million. However, where the applicant has firm contract and submits a bank proof of advance payment, the Regulatory Collector after detailed scrutiny, as required under clause (a), may grant authorization at his own without referring the case to Chief Collector."' (4) in rule 875,, in sub-rule (2), in clause (ii), after the word "facility", the expression ", duly declared in the Sales Tax Registration and in case there are more than one manufacturing facilities, all such facilities must be incorporated in Sales Tax Registration" shall be added; ( 1),- (5) in rule 876, in sub-rule (a) in clause (b), after the words "Insurance Guarantee", the phrase "or revolving bank guarantee" shall be inserted; (b) in clause (c), after the phrase "Insurance Guarantee", the words "or revolving bank guarantee" shall be inserted; (c) in clause (d), after the phrase "lnsurance Guarantee", the words "or revolving bank guarantee" shall be inserted; (6) in rule 88 1, in sub-rule ( 1 ), for the expression "PSW:", the expression "PSW. The plant, machinery and equipment shall be installed in the premises declared under rule 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 and equipment. The value of acquisition of machinery and spares shall not exceed 50% ofthe value of exports during the preceding year." shall be substituted; (7) in rule 886, in sub-rule (3), after the word "condition", occurring at thery end, the expression "and the information shall be uploaded in the WeBOC or PSW System by the Regulatory Collector." shall be added; (8) in rule 892,- (a) in sub-rule (1), for the fulI stop at the end a colon shall be substituted and thereafter the following proviso shall be added, 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" and "fullstop", expression "The Regulatory Collector or an officer authorized by him in this behalf shall scrutinize the reconciliation statement. In case ofany discrepancy in the reconciliation statement (including imports not commensurate with export performance or absolute the non-utilization of previously imported input goods), Regulatory Collector may suspend authorization of input goods such by recording reasons of suspension in writing and 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 sub-rule shall be (9) in rule 897, after sub-rule (3), the following new added, namely:- the "(3A) The WeBOC or PSW shall develop an interface for Regulatory Collector or an officer nominated by him, for real- time monitoring of the imports and exports of the user.". F.No.3 1 EP12024-25 .l (F le Samad) Se (Export Policy)