close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
September 1, 2020

Timelines set for cargoes to keep up duty incentives

Business

September 1, 2020

KARACHI: Traders ought to meet the timelines to avail preferential treatment on duties and assessment on cargoes that come under the purview of transshipment, people familiar with the matter said on Monday.

The Federal Board of Revenue (FBR) notified amendments into the Customs Rules 2001 related to transshipment of goods within local or international destinations.

The sources said the law was amended to set transportation timeline for goods under the transshipment. Fixation of timeline would eliminate unnecessary stoppage of vehicles and minimise the chances of mis-declaration. Timelines are set for vehicles carrying goods under permit for transshipment to curb under-invoicing or mis-declaration, they said.

Under the Customs Act 1969, the transshipment has been allowed to goods from port of entry to port of destination without examination and levy of duty and taxes.

Usually, the imported goods are transshipped from sea ports of the country to many dry ports of the country where concerned customs stations conduct examination and levy duty and taxes. Similarly, the imported goods reach sea ports after completing necessary formalities. FBR sources said there were instances when goods were replaced en-route to a dry port and a false goods declaration was filed at the destination to reduce the amount of duty and taxes. Contrabands made roads into the country, taking advantage of no examination at port of entry or sea port. The FBR sources said transshipment of goods has become an avenue for smugglers to tamper documents or replace goods to incur huge losses to the national exchequer. Through the latest amendment, the FBR issued timelines for around 52 routes with a maximum eight days for transshipment from Sust to Quetta.

In July, the FBR amended the rules related to transshipment and authorised the directorate general of transit trade to take various actions to prevent smuggling on transit / transshipment of goods. The directorate has been empowered to examine and scan cargo related to transit trade and transshipment. The directorate was reorganised for effective enforcement to prevent slippage of cargo en-route Afghan transit trade and transshipment to domestic dry ports from the sea ports. Through the latest changes, the FBR authorised customs officials for checking of the conveyance.

“An officer of customs not below the rank of Inspector, may, on reasonable suspicion regarding substitution or attempt of substitution of goods, or interference with the container and cargo contained therein, which may in any way be detrimental to the revenue, or safety anti-narcotics, anti-terrorism concerns by tampering seals/ tracker devices or container while the conveyance is en route, shall inform concerned monitoring unit,” the FBR said in a statement.

On receiving permission from the concerned unit the customs official can conduct detailed examination of safety checks installed on the vehicle carrying goods for transshipment.