KARACHI: The Collectorate of Customs, Preventive, has decided to adopt a new strategy to facilitate importers and exporters in clearance of re-imported goods under Section 22 of the Customs Act, 1969.
Collector Dr Saifuddin Junejo, through an office order No: SI/Misc/259/2017-AFU (Admn), mentioned that Section 22 of the Customs Act 1969 allows re-import of goods produced or manufactured in Pakistan without payment of duty and taxes subject to certain conditions. One of the main conditions to avail exemption is that the importer has not obtained rebate or refund on the goods exported by him.
According to him, the Pakistan Leather Garment Manufactures and Exporter Association, in a recently held meeting in the office of the chief collector of Customs Enforcement South, Customs House, Karachi, raised objection that the clearance of re-imported goods take a long time, sometimes even a month, because of the reason that the staff of the Air Freight Unit, Karachi airport sends letters to Collectorates of Exports and RTO to ascertain whether or not rebate or sales tax refund has been sought by the importer on the export of goods.
Giving the reference of the meeting, he also mentioned that PLGMEA has questioned that despite lapse of considerable time, no response is received from the Collectorates of Export or the RTOs and the goods are ultimately cleared by granting exemption under Section 22 of the Customs Act, 1969.
“The association has requested to issue an SOP for handling of such consignments to avoid delay as they have o re-export the goods immediately after removing the defects, making corrections as per order or contract.”
Dr Saifuddin Junejo further mentioned that the matter was examined in detail and it was highlighted that e-form as well as Bank Credit Advice (BCA) have been digitalised under the WeBOC computerised system wherein e-form and BCA were now fed up in the system by the concerned bank.
He said that issue of fake e-form or BCA has been eliminated and there was no possibility of double claim of rebate as no two e-form could be fed up by the bank in the computerised system against one order/contract.
He also said that there was not any possibility of getting adjustment of input tax or of obtaining refund of sales tax twice as no sales tax was paid on re-imported consignment.
He advised that the importer should submit copy of the GD of earlier export/airway bill, form-E pertaining to the said consignment alongwith undertaking that he had received any refund or rebate of any amount paid to the federal and provincial government on earlier export after its exportation.
“The importer should also specify the reason(s) for return of goods by the buyer and should submit the Post Dated Cheque of the amount of duty/taxes leviable on the imported goods on which exemption under Section 22 of the Customs Act, 1969, is claimed. He should also submit undertaking from the concerned association of the exporters that the case of the claimant for exemption is genuine and the association will ensure that the amount of duty/taxes will be paid if the goods are not re-exported within time.”
Dr Saifuddin Junejo observed that on receipt of the aforementioned documents, the Customs Processing Officer would check the specifications of the goods mentioned the GD for earlier export, form-E, name of the consignee and consignor and the country of return are the same and the goods have been returned within one year as time period mention under Section 22 of the Customs Act, 1969.
He notifies that on processing of the document if everything is found in order, the exemption from duty/taxes would be allowed as per law.
“After re-exportation of consignment the exporter should submit the GD for export indicating the same form-E, same consignee and country of export and on furnishing of these documents PDC and undertaking would be released.”
However, he warned that in case the goods are not re-exported with three months of re-import, the PDC would be encashed to recover the duty/taxes chargeable on the re-imported goods.
“In case, the PDC is not encashed/returned/bounced bank, an FIR would be lodged under Section 32(I), 32-A read with clause 95A of Section 156(I) of the Customs Act, 1969 and Section 489-F of Pakistan Penal Code.”