KARACHI: The Model Customs Collectorate (MCC) Exports has prepared budgetary proposals for the next fiscal year 2015-16, suggesting some amendments to the Customs Act, 1969.
The authorities concerned of Customs Exports in their budget proposals suggested some changes regarding the Form-E, bank credit advice, contract between buyer and seller, pro forma invoice, letter of intent, letter of credit, pre-shipment inspection reports, Free Trade Agreement (FTA) origin certificates or other forms and documents used for customs clearance and also in Section 26 of the Customs Act, 1969.
According to the proposed suggestions, every person, department, national or private bank including financial institution, company or organisation shall furnish the information demanded by the board or the appropriate officer within the time specified in the notice.
Upon failure to respond to the notice under Section 26(1) (2) of the Customs Act, 1969, no document to support any claim of legal import or export etc shall be allowed to submit at any quasi-judicial and fora legal.
They further suggested that the date for determination of rate of duty on goods exported. The rate and amount of duty applicable to any goods exported shall be the rate and amount chargeable at the time when the loading of the goods on the outgoing conveyance is allowed for export after delivery of the goods declaration under Section 131.
The authorities of MCC Exports further recommended that exporting goods on fake Form-E are not repatriated into Pakistan as per procedure prescribed by the State Bank of Pakistan (SBP) under Foreign Exchange Regulation Act, 1947, causing loss of foreign exchange to the country and non-realisation of export development surcharge and income tax chargeable on export proceeds.
Claims of duty drawback shall be sanctioned by the customs if the same are complete in all respect, on the basis of ‘first in, first out’ criteria, adding that the DTRE applicant may prefer appeal against rejection of his application against sub-rule (7) to the customs chief collector within 30 days of the communication of such a rejection, they suggested.
They further suggested 100 percent quantity of inputs shall be approved provisionally by the regulatory collector for acquisition purpose subject to the condition that the consumption of input goods shall not exceed 50per cent of the quantity of the DTRE approval till the input output ratio/wastage is determined by the IOCO/EDB.
The DTRE user may export 50 percent of quota before recommendation of IOCO/EDB is received and remaining after the receipt thereof.
The budget proposals sent by MCC Exports also included that the input goods acquired under sub-chapter shall be utilised in the manufacture and export of output goods within 12 months from the date of approval of DTRE application.
“Closing balance with liabilities involved on account of Customs duty, sales tax, income tax, other (if any) and total substitution of words ‘bill of entry’ by words ‘goods declaration’ in rule 352(10) of SRO450(I)/2001 in Clauses (6) and (12) of Rule 355 and Rule 360 ibid,” they further suggested.
They recommended that the local input goods liable to sales tax shall be supplied to the licensee may procure input goods on payment of sales tax and subsequently claim adjustment or refund under the Sales Tax Act, 1990. They proposed that the local input goods liable to the federal excise duty shall be supplied to the licensee against zero rated invoice.
