THE CUSTOMS ACT,1969
1[Act No. IV of 1969]
[3rd March,1969]
An Act to consolidate and amend the law relating to Customs
Whereas it is expedient to consolidate and amend the
law relating to the levy and collection of customs-duties and to provide for
other allied matters:
It is hereby enacted as follows:-
CHAPTER 1
PRELIMINARY
1. Short title, extent and commencement.-
(1) This Act may be called the Customs Act,1969.
(2) It 2[extends] to the whole of Pakistan.
(3) It shall come into force on such date as the 3[Federal Government] may,
by notification in the official Gazette, appoint. 4[ ]
2. Definitions.- In this Act, unless there is anything repugnant in the subject or context:-
5[(a) "adjudicating authority" means any
authority competent to pass any order or decision under this Act, but does
not include the Board, 6[the Collector (Appeals)] or the Appellate Tribunal;]
7[(ai) "advance ruling" means classification determined by the Board
or any officer, or committee authorized by the Board for the assessment of
the goods intended to be imported or exported."]
8[(aa) "agent" means a person licensed under section 207 or permitted
to transact any business under section 208;"
(aaa) "appellate tribunal" means the Customs, Excise and Sales Tax
Appellate Tribunal constituted under section 194;]
(b) "appropriate officer" in relation to any functions to be performed
under this Act, means the officer of customs to whom such functions have been
assigned by or under this Act;
9[(bb) "assessment" includes provisional assessment, reassessment
and any order or assessment in which the duty assessed is nil ;
[1969: Act IV] [Sec. 2]
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PRELIMINARY
(bbb) "baggage" includes unaccompanied baggage but does not include
motor vehicles;]
(c) "bill of entry" means bill of entry delivered under section
79 10[and includes electronic filing of bill of entry];
(d) "bill of export" means bill of export delivered under section
131 11[and includes electronic filing of bill of export];
(e) "Board" means the Central Board of Revenue, constituted under
the Central Board of Revenue Act,1924;
12[(ea) "carrier" means the person actually transporting goods or
incharge of, or responsible for, the operations of the means of transport
or the owner thereof;]
(f) "coastal goods" means the goods transported in a vessel from
one port in Pakistan to another, but does not include imported goods on which
customs duty has not been paid;
13[(ff) "Collector (Appeals)" means a person appointed to be a Collector
of Customs (Appeals) under section 3;]
(g) "conveyance" means any means of transport used for carrying
goods or passengers such as a vessel, aircraft, vehicle or animal;
(h) "customs-airport" means any airport declared under section 9
to be a customs- airport;
(i) "customs-area" means the limits of the customs-station specified
under section 10 and includes any area in which imported goods or goods for
export are ordinarily kept before clearance by the customs authorities;
14[(ia) "Customs Computerized System" means a comprehensive Customs
information technology system specified in Chapter XVI-A;
(ib) "customs documents" includes bill of entry, bill of export
or goods declaration, applications for claim for refund, duty drawback and
repayment of duty, baggage declaration form and documents such as bill of
lading, commercial invoice and packing list or similar other forms or documents
used for customs clearance and includes such documents electronically filed
and system generated documents that are not required to be manually signed
by the departmental officials;]
(j) "customs-port" means any place declared under section 9 to be
a 15[customs-port];
[1969: Act IV] [Sec. 2]
Customs
CHAPTER I
PRELIMINARY
16[(jj) "customs-practitioner" means a person
registered as a customs practitioner in accordance with the rules made by
the Central Board of Revenue in this behalf];
(k) "customs-station" means any customs-port, customs-airport or
any land customs-station;
17[(kk) "detain", in relation to goods, means to prohibit the disposal
or use of the goods, pending the finalization of any proceedings under this
Act in relation to the goods or the owner thereof;]
18[(kkk) "export manifest" means export manifest delivered under
sub-section (2) of section 53 and includes electronically filed export manifest;]
(l) "goods" means all movable goods and includes-
(i) conveyance,
(ii) stores and materials,
(iii) baggage, and
(iv) currency and negotiable instruments;
19[(la) "goods declaration" means a goods declaration filed under
sections 79, 79A, 131 or 131A and includes goods declaration filed electronically;
(lb) "import manifest" means import manifest delivered under section
43 or 44 as the case may be and includes electronically filed import manifest;]
(m) "land customs-station" means any place including an inland river
port declared under section 9 to be a land customs-station;
(n) "master" when used in relation to any vessel, means any person,
except a pilot or harbour master, having command or charge of such vessel;
(o) "officer of customs" means an officer appointed under section
3;
(p) "Pakistan customs-waters" means the waters extending into the
sea to a distance of twelve nautical miles measured from the appropriate base
line on the coast of Pakistan;
(q) "person-in-charge" means -
(i) in relation to a vessel, the master of the vessel;
(ii) in relation to an aircraft, the commander or pilot in charge of the aircraft;
(iii) in relation to a railway train, the conductor, guard or other person
having the chief direction of the train;
[1969: Act IV] [Sec. 2]
Customs
CHAPTER I
PRELIMINARY
(iv) in relation to any other conveyance, the driver or any other person having
control of the conveyance;
20[(qa) "principal" means the owner of the goods or the person primarily
responsible for making a declaration to Customs under this Act and includes
the person in-charge of the conveyance, carrier, custodian of cargo, and the
terminal operator;
(r) "rules" means the rules made under this Act;
21[(rr) "seize" means to take into custody, physically or otherwise,
goods in respect of which some offence has been committed or is believed to
have been committed under this Act or the rules, and all cognate words and
expressions shall be construed accordingly;]
(s) "smuggle" means to bring into or take out of Pakistan, in breach
of any prohibition or restriction for the time being in force, or evading
payment of customs-duties or taxes leviable thereon,-
22[(i) gold bullion, silver bullion, platinum, palladium, radium,
precious stones, antiques, currency, narcotics and narcotic and
psychotropic substances; or
(ii) manufactures of gold or silver or platinum or palladium or
radium or precious stones, and any other goods notified by the Federal Government
in the official Gazette, which, in each case, exceed 23[fifty thousand rupees]
in value; or
(iii) any goods by any route other than a route declared under
section 9 or 10 or from any place other than a customs-station.] and includes
an attempt, abetment or connivance of so bringing in or taking out of such
goods; and all cognate words and expressions shall be construed accordingly;]
24[(ss) "Special Judge" means a Special Judge appointed under Section
185;
(sss) "Special Appellate Court" means a Special Appellate Court
constituted under section 46 of the Prevention of Smuggling Act,1977;]
(t) "warehouse" means any place appointed or licensed under section
12 or section 13;
(u) "warehousing station" means a place declared as a warehousing
station under section 11;
[1969: Act IV] [Sec. 2]
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CHAPTER I
PRELIMINARY
(v) "wharf" means any place in customs-port
approved under clause (b) of section 10 for the loading and unloading of goods
or any class of goods 25[;]
26[(w) "outstanding arrears" means the amount of any duty, surcharge,
fine or penalty which is adjudged or demanded through an adjudication order
passed by the competent authority or the amount referred to in the notice
under sub-section (2) of section 202 which is recoverable in full or in part
and is not paid within the time prescribed;
(x) "default" means the failure to pay the outstanding arrears as
defined in clause (w); and
(y) "defaulter" means the person and in the case of a company or
firm every director or partner of the company or, as the case may be of the
firm and of which he is a director or a partner of proprietor, and includes
the guarantor who fails to pay outstanding arrears.]
LEGAL REFERENCE
1. For Statement of Objects and Reasons, see Gazette
of Pakistan, 1969 Extraordinary (Rawalpindi), Page626, and for the report
of the Select Committee see ibid, 1969 Extraordinary(Dacca), Page 199.
2. This Act has been extended to the Federally Administered Tribal Areas,
(subject to the modification that section 185 thereof shall have effect as
if in sub-section (2), after the word "he" words "is a Political
Agent or" were inserted by the Regulation No.1 of 1984.s.2.
3. Substituted for the words "Central Government" by the Finance
Ordinance,1972(XXI of 1972), section 3, page 56 and Second Schedule S.1, page
76 with effect from 17th June,1972.
4 .i.e. the 1st day of January,1970, vide Notification published in Gazette
of Pakistan, Extraordinary, January,1970 Extraordinary, Page,1035.
5 Substituted by Finance Act, 1989 (V of 1989), S.5(1)(a), page 106.
5a Clause (a) substituted for the clause (a) which now is clause (aa).
6. Omitted vide Finance Ordinance, 2000(XXI of 2000),
S.4(1)(a), page 198 and inserted by Finance Ordinance, 2002 (XXVII of 2002),
S.4(1)(a), page 222.
6a. Omitted the comma, words and brackets ",the Collector (Appeals)".
7. Inserted by Finance Ordinance, 2002 (XXVII of 2002),
S.4(1)(b), page 222.
8. Inserted by Finance Act, 1989(V of 1989), S.5(1)(b), page 106
9. .Inserted by Finance Act, 1989(V of 1989), S.5(1)(c), pages 106-107.
10. Added by Finance Ordinance, 2001 (XXV of 2001) S.4(1), page 304.
11. Added by Finance Ordinance, 2001 (XXV of 2001), S.4(1)(ii), page 305.
12. Inserted by Finance Act, 2003 (I of 2003), S.5(1)(a), page 20.
13. Inserted by Finance Act, 1989 (V of 1989), S.5(1)(a), page 107, Omitted
by Finance Ordinance, 2000 (XI of 2000), S.4(1)(b), page 198 and inserted
by Finance Ordinance 2002 (XXVII of 20020, S.4(1)(c). At the time of omission,
clause (ff) was as under:-
13a. "[(ff) "Collector (Appeals)" means a person appointed
to be a Collector of Customs (Appeals) under
section 3;]"
14. Inserted by the Finance Act, 1994 (XII of 1994), S.6(1), page 253 and substituted by Finance Ordinance, 2001 (XXV of 2001), S.4(1)(iii), page 305, substituted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(d), page 223 and substituted by Finance Act, 2003 (I of 2003), S.5(1)(b), page 20. At the time of substitution clause (ia) was as under:-
[1969: Act IV] [Sec. 1,2]
Customs
CHAPTER I
PRELIMINARY
LEGAL REFERENCE
14a. "[(ia) "customs documents" includes bill of entry, bill
of export, application for claim for refund, duty drawback and repayment of
duty, baggage declaration form or similar other forms used for customs clearance
and such documents electronically filed;]".
14b. "[(ia) "customs documents" include bill of entry, bill
of export, application for claim for refund, duty drawback and repayment of
duty, baggage declaration form or similar other forms used for customs clearance;]".
15. Substituted for the words "port for the shipment
and landing of goods" by Finance Act, 1973 (L of 1973), S.9(1)(a), page
530.
16. Inserted by the Finance Act, 1977 (XXX of 1977), S.9(1), page 301.
17. Inserted by the Finance Act, 1987 (VI of 1987), S.8(1)(a), page 33.
18. Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(iv), page
305.
19 Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(v), page
305 and substituted by the Finance Act, 2003 (I of 2003), S.5(1)(c), page
20 and 21. At the time of substitution was as under:-
19a. "(ia) import manifest means import manifest delivered under section
43 or 44 as the case may be and includes electronically filed import manifest;]".
20. Inserted by the Finance Act, 2003 (I of 2003),
S.5(1)(d), page 21.
21 Inserted by the Finance Act, 1987 (XI of 1987), S.8(1)(b), page 34.
22. Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(1), page
59. At the time of substitution was as under:-
22a. "[(a) gold bullion, silver bullion, precious stones, currency, manufactures
of gold or silver or precious
stones or any other goods notified by the 22b[Federal Government] in the official
Gazette, in each case exceeding one thousand rupees in value; or
(b) any 22c[****] goods by any route other than a route declared under section
9 or 10 or from any place other than a customs station;]".
22b. Substituted for the words "Central Government" by the Finance,
1972 (XXI of 1972), S.3, page 56 and Second
Schedule S.1, page 76.
22c. The word "other" omitted by the Finance Act, 1973 (L of 1973).
23 Substituted for the words "five thousand rupees"
by the Finance Act, 1998 (III of 1998), S.4(1), page 39.
24. Inserted by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(1)(a),
page 223 (w.e.f. 16th May, 1977).
25 Replaced "full stop" by the Finance Act, 1999 (IV of 1999), S.10(1)(a),
page 757.
26. Added by the Finance Act, 1999 (IV of 1999), S.10(1)(a), page 757.
[1969: Act IV] [Sec. 3,4,5]
Customs
CHAPTER II
APPOINTMENT OF OFFICERS OF CUSTOMS AND THEIR POWERS
1[3. Appointment of officers of customs.- For the purposes
of this Act, the Board may, by notification in the official Gazette, appoint,
in relation to any area specified in the notification, any person to be -
(a) a Chief Collector of Customs;
(b) a Collector of Customs;
(c) a Collector of Customs (Appeals);
(d) an Additional Collector of Customs;
(e) a Deputy Collector of Customs;
(f) an Assistant Collector of Customs;
(g) an officer of Customs with any other designation.]
4. Powers and duties of officers of customs.- An officer of customs appointed under section 3 shall exercise such powers and discharge such duties as are conferred or imposed on him by or under this Act; and he shall also be competent to exercise all powers and discharge all duties conferred or imposed upon any officer subordinate to him:
Provided that, notwithstanding anything contained in this Act or the rules, the Board may, by general or special order, impose such limitations or conditions on the exercise of such powers and discharge of such duties as it thinks fit.
2 [5 "Delegation of powers.- (1) The Board may, by notification in the official Gazette and subject to such limitations or conditions as may be specified therein, empower by name or designation-
(a) any Additional Collector of Customs or Deputy Collector of Customs to exercise any of the powers of a Collector of Customs under this Act;
[1969: Act IV] [Sec.5, 6,7,8]
Customs
CHAPTER II
APPOINTMENT OF OFFICERS OF CUSTOMS AND THEIR POWERS
(b) any Deputy Collector of Customs or Assistant Collector
of Customs to exercise any of the powers of an Additional Collector of Customs
under this Act;
(c) any Assistant Collector of Customs to exercise any of the powers of a
Deputy Collector of Customs under this Act; and
(d) any other officer of customs with any other designation. ]
3[6. Entrustment of functions of customs officers to certain other officers.- 4[(1) The Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally, any functions of any officer of customs under this Act to any officer of the Federal Government, Provincial Government, State Bank of Pakistan and Scheduled Banks:
Provided that where any officer in performance of his functions under this section commits any offence under this Act, such officer shall, in addition to any other penalty which may be imposed under any other law for the time being in force, be liable to such punishment as is specified in sub-section (1) of section 156 for the offence committed by him.]
5[(2) No officer entrusted with any functions of any officer of customs under sub-section (1) shall interfere in any manner in the performance or discharge of any duty by an officer of customs in places notified under section 9.]
7. Assistance to the officers of customs.- All officers of Central Excise, Police, and the Civil Armed Forces, and all officers engaged in the collection of land-revenue are hereby empowered and required to assist officers of customs in the discharge of their functions under this Act.
8. Exemption from service on jury or inquest or as assessors.- Notwithstanding anything contained in any other law, no officer of the Board or Collector of Customs and no other officer of customs whom the Board or Collector of Customs deems it necessary to exempt on grounds of public duty, shall be compelled to serve on any jury or inquest or as an assessor.
[1969: Act IV] [Sec. 3,4,5,6,7,8]
Customs
CHAPTER II
APPOINTMENT OF OFFICERS OF CUSTOMS AND THEIR POWERS
LEGAL REFERENCE
1. Substituted by the Finance Act, 1996 (IX of 1996), S.4(1), page 469. Section 3 at the time of substitution was as under:-
1a. "3. Appointment of officers of Customs.- For the purposes of this Act, the Board may, by notification in the official Gazette, appoint, in relation to any area specified in the notification, any person to be-
(a) a Collector of Customs;
1b[(aa) a Collector of Customs (Appeals);]
(b) a Deputy Collector of Customs;
(c) an Assistant Collector of Customs; or
(d) an officer of customs with any other designation."
1b. Inserted by the Finance Act, 1989 (V of 1989), S.5(2)(a), page 107.
2. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(2), page 198. At the time of substitution section 5 was as under:-
2a. "5. Delegation of powers.- The Board, may
by notification in the official Gazette, and subject to such limitation or
conditions, if any, as may be specified therein, empower by name or designation
-
(a) any 2b[Additional Collector] of Customs to exercise any of the powers
of a Collector of Collector of Customs under this Act;
(b) any 2c[Assistant Collector or Deputy Collector] of Customs to exercise
any of the powers of a 2b[Additional Collector] of Customs under this Act;
(c) any other officer of Customs to exercise any of the powers of an 2d[Assistant
Collector or Deputy Collector] of Customs under this Act.".
2b. Substituted for the words "Deputy Collector" by the Finance
Act, 1996 (IX of 1996).
2c. Substituted for the words "Assistant Collector" by the Finance
Act, 1996 (IX of 1996).
2d. The brackets and figure "(1)" omitted by Customs (Amendment)
Ordinance, 2000 (XLVI of 2000), S.2, page 651.
3. .Substituted by Customs (Amendment) Ordinance,1996 and Finance Act,1996(IX of 1996)S.4(2),Page 469. Earlier same amendment was made to the Customs (Amendment) Ordinance, 1995 (CXIV of 1995) and Customs (Amendment) Ordinance, 1996 (XVI of 1996), At the time of substitution section 6 was as under:-
3a. "6. Entrustment of functions of the customs
officers to certain other officers.- The Board may, by notification in the
official Gazette, entrust, either conditionally or unconditionally, any functions
of any officer of customs under this Act to any officer of the 3b[Federal]
or Provincial 3b[Government].".
3b. Substituted for the words "Central Government" by Finance Ordinance,
1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76.
4. .Renumbered by Finance Act, 2004 (II of 2004), S.3(1),
page 13.
5. Added by Finance Act, 2004 (V of 2004), S.3(1), page.
[1969: Act IV] [Sec. 9,10,11,12]
Customs
CHAPTER III
DECLARATION OF PORTS, AIRPORTS,
LAND CUSTOMS STATIONS, ETC.
9. Declaration of customs-ports, customs airports, etc.- The Board may, by notification in the official Gazette, declare:
1[(a) the places which alone shall be customs-ports
or customs-airports for the clearance of goods or any class of goods imported
or to be exported;]
(b) the places which alone shall be land customs-stations for the clearance
of goods or any class of goods imported or to be exported by land or inland
waterways;
(c) the routes by which alone goods or any class of goods specified in the
notification may pass by land or inland waterways into or out of Pakistan,
or to or from any land customs-station or to or from any land frontier;
(d) the places which alone shall be ports for the carrying on of coastal
trade with any specified customs-ports in Pakistan; and
(e) what shall for the purposes of this Act be deemed to be a custom
house and the limits thereof.
10. Power to approve landing places and specify limits of customs-stations.- The Board may, by notification in the official Gazette:-
(a) specify the limits of any customs-station; and
(b) approve proper places in any customs-station for the loading and unloading
of goods or any class of goods.
11. Power to declare warehousing stations.- The Board may, by notification in the official Gazette, declare places to be warehousing stations at which alone public warehouses may be appointed and private warehouses may be licensed.
2[12. Power to appoint or licence public warehouses.- (1) At any warehousing station, the Collector of Customs may, from time to time, appoint or licence public warehouses wherein dutiable goods may be deposited without payment of customs-duty.
(2) Every application for a licence for a public warehouse shall be made in such form as may be prescribed by the Collector of Customs.
[1969: Act IV] [Sec. 12,13,14]
Customs
CHAPTER III
DECLARATION OF PORTS, AIRPORTS,
LAND CUSTOMS STATIONS, ETC.
(3) A licence granted under this section may be cancelled by the Collector of Customs for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.
(4) Pending consideration whether a licence be cancelled under sub-section (3), the Collector of Customs may suspend the licence.]
13. Power to licence private warehouses.- (1) At any warehousing station, the Collector of Customs may, from time to time, licence private warehouses wherein dutiable goods may be deposited 3[without payment of customs-duty.]
(2 ) Every application for a licence for a private warehouse shall be made in such form as may be prescribed by the Collector of Customs.
4[(3) A licence granted under this Section may be
cancelled by the Collector of Customs for infringement of any condition laid
down in the licence or
for any violation of any of the provisions of this Act or any rules made thereunder,
after the licensee has been given proper opportunity of showing cause against
the proposed cancellation].
(4) Pending consideration whether a licence be cancelled under sub-section (3), the Collector of Customs may suspend the licence.
14. Stations for officers of customs to board and land.-
The Collector of Customs may, from time to time, appoint, in or near any customs-port,
stations or
limits at or within which vessels arriving at or departing from such port
shall bring to for the boarding or landing of officers of customs, and may,
unless separate provisions therefor have been made under the Ports Act,1908
(XV of 1908) direct at what particular place in any such port vessels, not
brought into port by pilots, shall anchor or moor.
[1969: Act IV] [Sec. 14A]
Customs
CHAPTER III
DECLARATION OF PORTS, AIRPORTS,
LAND CUSTOMS STATIONS, ETC.
5[(14-A. Provision of accommodation at Customs-ports,
etc.- Any agency or person managing or owning a customs-port, a customs-airport
or a land customs-station shall provide at its or his own cost adequate accommodation
to customs staff
for offices, examination of goods, detention and storage of goods and for
other departmental requirements to be determined by the Collector of Customs
6[and shall pay utility bills, rent and taxes in respect of such accommodation.]
LEGAL REFERENCE
1. Substituted by the Finance Act, 1973 (L of 1973), S.9(2), page 531, At the time of substitution clause (a) was as under:-
"(a) the ports and airports which alone shall be customs ports or customs airports for the unloading of imported goods and loading of goods for export or any class of such goods.".
2. Substituted by the Finance Act, 1990 (VII of 1990), S.6(1), page 34. At the time of substitution section 12 was as under:-
"12. Power to appoint public warehouse.- At any
warehousing station, the Collector of Customs may, from time to
time, appoint, public warehouses wherein dutiable goods may be deposited without
payment of customs duty.".
3. Added by the Finance Ordinance, 2002 (XXVII of 2002), S.4(2), page 223.
4. Substituted by the Finance Act, 1986 (I of 1986), page 10. At the time of substitution sub-section (3) was as under:-
"(3) Every licence granted under this section may be cancelled on conviction of the licensee of any offence under this Act relating to warehouse, or for infringement of any condition provided in the licence, or on the expiration of one month's notice in writing given to the licencee by the Collector of Customs.".
5. Added by the Finance Ordinance, 1984 (XXVIII of
1984), S.5(1), page 93, w.e.f. 14th June, 1984.
6. Added by the Finance Ordinance, 2001 (XXV of 2001), S.4(2), page 305.
[1969: Act IV] [Sec.15,16]
Customs
CHAPTER IV
PROHIBITION AND RESTRICTION OF
IMPORTATION AND EXPORTATION
1[15. Prohibitions.- No goods specified in the following clauses shall be brought into or taken out of Pakistan, namely:-
(a) counterfeit coins, forged or counterfeit currency
notes, and any other
counterfeit product;
(b) any obscene book, pamphlet, paper, drawing, painting, representation,
figure, photograph, film, or, article, video or audio recording, CDs or recording
on any other media;
(c) goods having applied thereto a counterfeit trade mark within the
meaning of the Pakistan Penal Code, 1860 (Act XLV of 1860), or a false trade
description within the meaning of the Copyright Ordinance, 1962 (XXXIV of
1962), the Registered Layout-Designs of Integrated Circuits Ordinance, 2000
(XLIX of 2000), the Registered Designs Ordinance, 2000 (XLV of 2000), the
Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001
(XIX of 2001), or goods imported or exported in contravention of the provisions
of section 32;
(d) goods made or produced outside Pakistan and having applied thereto any
name or trade mark, being or purporting to be the name or trade mark of any
manufacturer, dealer or trader in Pakistan, unless,-
(i) the name or trade mark is, as to every application thereof, accompanied
by a definite indication of the goods having been made or produced in a place
outside Pakistan; and
(ii) the country in which that place is situated is in that indication shown
in letters as large and conspicuous as any letter in the name or trade mark,
and in the same language and character as the name or trade mark;
(e) goods involving infringement of copyright, layout-design of integrated
circuits, industrial designs, patents within the meaning of the Copyright
Ordinance, 1962 (XXXIV of 1962), the Registered Designs Ordinance, 2000 (XLV
of 2000), and the Patents Ordinance, 2000 (LXI of 2000), respectively; and
16. Power to prohibit or restrict importation and exportation of goods.- The 2[Federal Government] may, from time to time, by notification in the official
[1969: Act IV] [Sec.16,17]
Customs
CHAPTER IV
PROHIBITION AND RESTRICTION OF
IMPORTATION AND EXPORTATION
Gazette, prohibit or restrict the bringing into or taking out of Pakistan of any goods of specified description by air, sea or land.
17. Seizure and confiscation of goods imported in breach of Section 15 or Section 16.- Where any goods are imported into or attempted to be exported out of Pakistan in violation of the provisions of section 15 or of a notification under section 16, such goods shall, without prejudice to any other penalty to which the offender may be liable under this Act, or any other law, but subject to rules, be liable to 3[seizure] and confiscation.
LEGAL REFERENCE
1. Substituted by the Finance Act, 2004 (II of 2004)S.3(2), page 13. At the time of substitution section 15 was as under:-
"15. Prohibition.- No goods specified in the following
clauses shall be brought, whether by air or land or sea, into Pakistan:-
(a) counterfeit coin;
(b) forged or counterfeit currency notes;
(c) any obscence book, pamphlet, paper, drawing, painting, representation
, figure,
photograph, film or article;
(d) goods having applied thereto a counterfeit trade mark within the meaning
of the Pakistan Penal Code
(Act XLV of 1860), or a false trade description within the meaning of the
Merchandise Marks Act,1889
(IV of 1889);
(e) goods made or produced outside Pakistan and having applied thereto any
name or trade
mark, being or purporting to be the name or trade mark of any manufacturer,
dealer or trader in Pakistan unless-
(i) the name or trade mark is, as to every application
thereof, accompanied by a definite indication of the goods having been made
or produced in a place outside Pakistan; and
(ii) the country in which that place is situated is in that indication shown
in letters as large and conspicuous as any letter in the name or trade mark,
and in the same language and character as the name or trade mark;
(f) piece-goods manufactured outside Pakistan (such
as are ordinarily sold by length or by the piece), unless the real length
thereof in standard yards or other measurement for the time being applying
in Pakistan has been conspicuously stamped on each piece in Arabic numerals;
and
(g) goods made or produced outside Pakistan and intended for sale, and having
applied thereto, a design in which copyright exists under the Patents and
Designs Act of 1911(II of 1911), in respect of the class to which the goods
belong or any fraudulent or obvious imitation of such design except when the
application of such design has been made with the licence or written consent
of the registered proprietor of the design;
Provided that the 1a[Federal Government] may, by an order in writing, exempt from the provisions of this section any goods or any class or description of goods in transit to a foreign territory."
1a. The words "Central Government" substituted by the Finance Ordinance, 1972 (XXI of 1972), Section 3, page 56 and Second Schedule S.1, page 76 w.e.f. 17th June, 1972.
2. The words "Central Government" substituted
by the Finance Ordinance, 1972 (XXI of 1972), Section 3, page 56 and Second
Schedule S.1, page 76 w.e.f. 17th June, 1972.
3. Substituted for the word "Detention" by the Finance Act, 1987
(VI of 1987), S.8(2), page 34.
[1969: Act IV] [Sec.18]
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1[18. Goods dutiable.- (1) Except as hereinafter provided, customs-duties shall be levied at such rates as are prescribed in the First Schedule and the Second Schedule or under any other law for the time being in force on-
(a) goods imported into or exported from Pakistan;
(b) goods brought from any foreign country to any customs-station, and without
payment of duty, there transshipped or transported for, or thence carried
to, and imported at any other customs-station; and
(c) goods brought in bond from one customs-station to another.
2[(2) The Federal Government 3[may, on the recommendation, of the National
Tariff Commission constituted under the National Tariff Commission Act,1990
(VI of 1990) (the Commission), provided the National Tariff Commission follows
the same procedure as prescribed in the said Act] by notification in the official
Gazette, levy, subject to such conditions, limitations or restrictions as
it may deem fit to impose, a regulatory duty on all or any of the goods specified
in the First Schedule at a rate not exceeding one hundred per cent of the
value of such goods, as determined under section 25 or section 25B and may,
by a like notification, levy a regulatory duty on all or any of the goods,
exported from Pakistan:-
(i) at a rate not exceeding one hundred per cent of
the value of the goods as determined under section 25 or section 25B, if such
goods are specified in the Second Schedule; and
(ii) at a rate not exceeding fifty per cent of the amount which represents
the value of the goods as determined under section 25 or section 25B, if such
goods are not specified in the Second Schedule.]
4[(3) The regulatory duty levied under sub-section (2) shall -
(a) be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and
[1969: Act IV] [Sec.18,18A,18B,19]
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(b) be leviable on and from the day specified in the
notification issued under that sub-section, notwithstanding the fact that
the
issue of the official Gazette in which such notification appears is published
at any time after that day.]
(4) Any notification issued under sub-section (2) shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued.]
5[18.A Special customs duty on imported goods.- The Federal Government may, by notification in the official Gazette, levy a special customs duty on the importation of such of the goods specified in the First Schedule as are of the same kind as goods produced or manufactured in Pakistan, at a rate not exceeding the rate of duty of excise leviable under the Central Excises and Salt Act,1944 (I of 1944), on the goods produced or manufactured in Pakistan:
Provided that the exemption of any goods from the whole or any part of the duty of excise for the time being in force shall not prevent the Federal Government from levying a special customs duty on the importation of goods of the same kind:
Provided further that, for the purposes of the Sales Tax 6[***] Act 1990 (VII of 1990), the special customs duty shall not constitute a part of the value of supply.]
7[18B. OMITTED.]
19. General power to exempt from customs-duties.- 8[(1) The 9[Federal Government], subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, may, by notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon 10[:]
11[ OMITTED ]
12[(2) A notification issued under sub-section (1)
shall be effective from the day specified therein, notwithstanding the fact
that the issue of the official Gazette in which such notification appears
is published at any time after that day.]
[1969: Act IV] [Sec.19,20,21]
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13[(3) Notwithstanding anything contained in any other
law for the time being in force, including but not limited to the Protection
of Economic Reforms 1992
(XII of 1992), and notwithstanding any decision or judgement of any forum,
authority or court, no person shall, in the absence of a notification by the
Federal Government published in the official Gazette expressly granting and
affirming exemption from customs duty, be entitled to or have any right to
any such exemption from or refund of customs duty on the basis of the doctrine
of promissory estoppel or on account of any correspondence or admission or
promise or commitment or concessionary order made or understanding given whether
in writing or otherwise, by any government department or authority.]
14[20. Board's power to grant exemption from duty in exceptional circumstances.- Under circumstances of exceptional nature, the Board may, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by a special order in each case recording such circumstances, exempt any goods from payment of the whole or any part of the customs-duties chargeable thereon.]
21. Power to deliver certain goods with-out payment of duty and to repay duty on certain goods.- Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular cases by special order, authorize-
(a) the delivery without payment of the customs-duties chargeable thereon of goods which are imported only temporarily with a view to subsequent exportation;
15 [(b) Omitted.
16[(c) the repayment in whole or in part of the customs-duties paid on the importation of any goods which have been used in the production, manufacture, processing, repair or refitting in Pakistan of goods meant for exportation, or for supply to industrial units, projects, institutions, agencies and organizations, entitled to import the same at concessionary rates.]
[1969: Act IV] [Sec.21A,22]
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17[(21A. Power to defer collection of customs-duty.- Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular cases by special order, defer the collection of customs-duties either in whole or in part.]
22. Re-importation of goods produced or manufactured
in Pakistan.- If
goods produced or manufactured in and exported from Pakistan are subsequently
imported into Pakistan, such goods shall be liable to customs-duties and be
subject to all the conditions and restrictions, if any, to which goods of
the like kind and value not so produced or manufactured are liable on the
importation thereof:
18[ Provided if such goods have been imported within one year of their exportation and have been consigned to the person in whose account they were exported and have not undergone any processing since their exportation], the appropriate officer not below the rank of 19[Assistant Collector or Deputy Collector] of Customs may admit the goods-
20[(a) Where at the time of exportation of such goods, rebate, refund or drawback of any customs or excise duty or any other tax levied by the Federal Government or any tax, cess or duty levied by the Provincial Government was allowed on payment of customs duty equal to the amount of such rebate, refund or drawback as the case may be;]
(b) where such goods were exported in bond, without
payment of -
(i) the customs-duty chargeable on the imported materials, if any, used in
the manufacture of the goods; or
(ii ) the excise duty chargeable on the indigenous materials, if any, used
in the manufacture of such goods; or
(iii) the excise duty, if any, chargeable on such goods; or
(iv) any other tax chargeable on the material used in the manufacture of such
goods; or
(v) any other tax chargeable on such goods,
on payment of customs-duty equal to the aggregate
amount of all such duties and taxes calculated at the rates prevailing at
the time and place of importation of goods; or
[1969: Act IV] [Sec.22,23,24,25]
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(c) in any other case, without payment of duty.
23. Goods, derelict, wreck, etc.- All goods, derelict, jetsam, floatsam and wreck, brought or coming into Pakistan, shall be dealt with as if they were imported into Pakistan.
24. Provisions and stores may be exported free of duty.- Goods produced or manufactured in Pakistan and required as provisions and stores on any conveyance proceeding to any foreign port, airport or station may be exported free of customs-duty,21[***] in such quantities as the appropriate officer may determine having regard to the size of the conveyance, the number of passengers and crew and the length of the voyage or journey on which the conveyance is about to depart.
22[25. Determination of Customs value of goods.- (1)
Transaction Value.- The customs value of imported goods, subject to the provisions
of this section and the rules, shall be the transaction value, that is the
price actually paid or payable for the goods when sold for export to Pakistan:
Provided that-
(a) there are no restrictions as to the disposition
or use of the goods by the buyer other than the restrictions which -
(i) are imposed or required by law;
(ii) limit the geographical area in which the goods may be resold; or
(iii) do not affect the value of the goods;
(b) the sale or price is not subject to some condition or consideration for
which a value cannot be determined with respect to the goods being valued;
(c) no part of the proceeds of any subsequent resale, disposal or use of the
goods by the buyer will accrue directly or indirectly to the seller, unless
an appropriate adjustment is made in accordance with the provisions of sub-section
(2) (e); and
(d) the buyer and seller are not related, or where the buyer and seller are
related, that the transaction value is acceptable for customs purposes under
the provisions of sub-section (3).
[1969: Act IV] [Sec.25]
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(2) Subject to clause (b), in determining the customs value under sub-section(1),-
(a) there shall be added to the price actually paid or payable for the imported goods, if not already included in the price;
(i) the cost of transport, excluding inland freight
after importation, of the imported goods to the Port, Airport or place of
importation;
(ii) loading, unloading, and handling charges associated with the transport
of the imported goods to the Port, airport or place of importation; and
(iii) the cost of insurance;
(b) there shall also be added to such price, to the extent that they are incurred by the importer but are not included in the price actually paid or payable of the imported goods-
(i) commissions including indenting commissions and
brokerage, except buying commissions;
(ii) the cost of containers which are treated as being one
for customs purposes with the goods in question; and
(iii) the cost of packing whether for labour or materials;
(c) there shall also be added to such price the value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the importer or his related person free of charge or at reduced cost, for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable:
(i) materials, components, parts and similar items
incorporated in the imported goods;
(ii) tools, dies, moulds and similar items used in the production of the imported
goods;
[1969: Act IV] [Sec.25]
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(iii) materials consumed in the production of the imported
goods; and
(iv) engineering, development, artwork, design work and plans and sketches
undertaken elsewhere than in Pakistan and necessary for the production of
the imported goods;
(d) there shall also be added to such price, royalties
and licence fees related to the goods being valued that the buyer must
pay, either directly or indirectly, as a condition of sale of the goods being
valued, to the extent that such royalties and fees are not included in the
price actually paid or payable; and
(e) there shall also be added to such price, the value of any part of the
proceeds of any subsequent resale, disposal or use of the imported goods that
accrues directly or indirectly to the seller;
(f) if sufficient information is not available for any reason, with respect
to any adjustments referred to above, the transaction value, of the imported
goods shall be treated , for the purpose of sub-section (1), as the one that
cannot be determined;
(3) If the buyer and seller are related in terms of the rules the transaction value shall be accepted for the purposes of sub-section (1); whenever:
(a) the examination of the circumstances surrounding
the sale of the imported goods as demonstrated by the importer, indicate that
the relationship did not influence the price; or
(b) the importer demonstrates that such value closely approximates to one
of the following Test Values occurring at or about the same time:
(i) the transaction value in sales to unrelated buyers of identical or similar
goods for export to Pakistan.
(ii) the customs value of identical or similar goods as determined under the
provisions of sub-section (7) (deductive value);
[1969: Act IV] [Sec.25]
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(iii) the customs value of identical or similar goods as determined under the provisions of sub-section (8) (computed value).
Provided that in applying the foregoing tests due account shall be taken of demonstrated differences in commercial levels, quantity levels, the elements enumerated in sub-section (2) and costs incurred by the seller in sales in which the seller and the buyer are not related that are not incurred by the seller in sales in which the seller and the buyer are related;
23[(4) Where, in relation to the goods being valued, the appropriate officer is of the opinion that the importer has not, for the purposes of clause (a) of sub-section (3), demonstrated that the relationship did not influence the price or, for the purposes of clause (b) of sub-section (3), that the declared price at which the goods are imported does not closely approximate to one of the test values mentioned therein, the appropriate officer shall inform the importer of his reservations in writing and give the importer an opportunity to justify the price difference. If the importer fails to justify the price difference, the customs value cannot be determined under the provisions of sub-section (1).]
(5) TRANSACTION VALUE OF IDENTICAL GOODS.- If the customs value of the imported goods cannot be determined under the provisions of sub-section (1), it shall, subject to rules, be the transaction value of identical goods sold for export to Pakistan and exported at or about the same time as the goods being valued.
(a) In applying the 24[provisions] of this sub-section, the transaction value of 25[the] identical goods in a sale at the same commercial level and substantially the same quantity as the goods being valued shall be used to determine the customs value of imported goods.
(b) Where no sale referred to in clause (a) is found,
the transaction value of identical goods sold at a different commercial level
and/or in different quantities, adjusted to take account of differences attributable
to commercial level and/or to quantity,
[1969: Act IV] [Sec.25]
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shall be used, provided that such adjustments can be made on the basis of
demonstrated evidence which clearly establishes the reasonableness and accuracy
of the adjustment, whether the adjustment leads to an increase or decrease
in the value.
(c) Where the costs and charges referred to in clause (a) of sub-section (2) are included in the transaction value of identical goods, an adjustment shall be made to take account of significant differences in such costs and charges between the goods being valued and the identical goods in question arising from differences in distances and modes of transport.
26[(d) If, in applying the provisions of this sub-section,
there are two or more transaction values of identical goods that meet all
the requirements of this sub-section and clauses (b),(d),(e) and (f)
of sub-section (13), the customs value of the imported goods shall be the
lowest such transaction value, adjusted as necessary in accordance with clauses
(b) and (c).]
27[(6) TRANSACTION VALUE OF SIMILAR GOODS.- If the customs value of the imported goods cannot be determined under the provisions of sub-section (5), it shall, subject to clauses (c), (d), (e) and (f) of sub-section (13) and rules, be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued, and the provisions of clauses (a), (b), (c) and (d) of sub-section (5) shall, mutatis mutandis, also apply in respect of similar goods.]
(7) DEDUCTIVE VALUE.- If the customs value of the imported goods cannot be determined under sub-section (6), it shall, subject to rules, be determined as follows:
(a) if the imported goods or identical or similar imported
goods are sold in Pakistan in the condition as imported, the customs value
of the imported goods shall be based on the unit price at which the imported
goods or identical or similar imported goods are so sold in the greatest aggregate
quantity, at or about the time of the importation of the goods being valued,
to
[1969: Act IV] [Sec.25]
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persons who are not related to the persons from whom they buy such goods, subject to the deductions for the following:-
(i) either the commission usually paid or agreed to
be paid or the additions usually made for profit and general expenses in connection
with sales in Pakistan of imported goods of the same class or kind;
(ii) the usual costs of transport and insurance and associated costs incurred
within Pakistan; 28[and ]
29[(iii) Omitted.
(iv) the customs duties and other taxes payable in Pakistan by reason of the
importation or sale of the goods.
(b) If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value shall, subject otherwise to the provisions of clause (a) of this sub-section, be based on the unit price at which the imported goods or identical or similar imported goods are sold in Pakistan in the conditions as imported at the earliest date after the importation of the goods being valued but before the expiry of ninety days after such importation.
(c) If neither the imported goods nor identical nor similar imported goods are sold in the country of importation in the condition as imported, then, if the importer so requests, the customs value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the country of importation who are not related to the persons from whom they buy such goods, due allowance being made for the value added by such processing and the deductions provided for in clause (a).
(8) COMPUTED VALUE.- If the customs value of the imported
goods cannot be determined under sub-section (7), it shall, subject to rules,
be based on computed value which shall consist of the sum of :-
[1969: Act IV] [Sec.25]
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(a) the cost of value of materials and fabrication
or other processing employed in producing the imported goods;
(b) an amount for profit and general expenses equal to that usually reflected
in sales of goods of the same class or kind as the goods being valued which
are made by producers in the country of exportation for export to Pakistan;
and
(c) the cost or value of all other expenses as specified in clause (a) of
sub-section (2).
(9) FALL BACK METHOD.- If the customs value of the imported goods cannot be determined under sub-sections (1),(5),(6),(7) and (8), it shall, subject to the rules, be determined on the basis of a value derived from among the methods of valuation set out in sub-sections (1),(5),(6),(7) and (8), that, when applied in a flexible manner to the extent necessary to arrive at a customs value.
(10) Sub-sections (1), (5), (6), (7), (8) and (9) define how the customs value of imported goods is to be determined under this Act. The methods of customs valuation are required to be applied in a sequential order except reversal of the order of sub-section (7) and (8), at the importer's request, if so agreed by Collector of the Customs.
(11) Nothing contained in this section or the rules, shall be construed as restricting or calling into question the rights of the appropriate officer of customs to satisfy himself as to the truth or accuracy of any statement, information, document or declaration presented for customs valuation purposes.
(12) An appropriate officer of Customs appointed by
an order in writing by
the Board, or Collector of Customs, on case to case basis, shall have free
access to business premises, registered office, warehouses or any other place,
where any stocks, business records or documents required under this Act are
kept or maintained belonging to any person after serving notice to such person
whose business activities are covered under this Act or who may be required
for audit, inquiry or investigation in any offence committed under this Act
by such person, his agent or any other person: and such officer may, at any
time during the working hours, inspect the goods, stocks, records, data, documents,
correspondence, accounts and statements
[1969: Act IV] [Sec.25]
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and any other record or documents and may take into custody such records in whole or in part, in original or copies thereof against a signed receipt. The Board or Collector of Customs may also order for audit for ascertaining the correctness of declarations, documents records and value of imported goods. All searches and seizure of documents made under this sub-section shall be carried out mutatis mutandis in accordance with the provisions of the Code of Criminal Procedure, 1898(Act V of 1898).
(13) For the purposes of this section,-
(a) "customs value of imported goods" means
the value of goods for the purposes of levying duties of customs and other
taxes on imported goods;
(b) "identical goods" means goods which are the same in all respects
including physical characteristics, quality and reputation. Minor differences
in appearance would not preclude goods otherwise conforming to the definition
from being regarded as identical; (c) "similar goods" means goods
which although not alike in all respects, have like characteristics and like
component materials which enable them to perform the same functions and to
be commercially interchangeable. The quality of the goods, their reputation
and the existence of a trademark are among the factors to be considered in
determining whether goods are similar;
(d) the terms "identical goods" and "similar goods" do
not include as the case may be, goods which incorporate or reflect engineering
development, art work, design work, and plans and sketches for which no adjustment
has been made under sub-section 2(c) (iv) because such elements were undertaken
in Pakistan;
(e) goods shall not be regarded as "identical goods" or "similar
goods" unless they were produced in the same country as the goods being
valued;
[1969: Act IV] [Sec.25]
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(f) goods produced by a different person shall be taken
into account only when there are no identical goods or similar goods, as the
case may be, produced by the same person as the goods being valued; and
(g) "goods of the same class or kind" means goods which fall within
a group or range of goods produced by a particular industry or industry sector,
and includes identical or similar goods.
(14) Notwithstanding anything contained in sub-section
(1),(5),(6),(7),(8) and (9), if the Board or such officer as is authorized
by the Board in this behalf is satisfied that it is necessary or expedient
so to do the Board or the officer may, by notification in the official gazette,
for the purposes of levying customs duties under this Act or any other law
for the time being in force, fix the minimum customs value of goods specified
in the First Schedule and the Second Schedule, having regard to the trend
of value of such or like goods and subject to such conditions or limitations
as the Board or such officer may deem fit. The Board or such authorized officer
may fix different customs values for different classes or different description
of the same type of goods. A notification issued under this sub-section shall
be effective from the
day specified therein, notwithstanding that the official Gazette in which
such notification appears is published at any time after that day.
(15) Customs value of exported goods.- The customs value of any exported goods shall be the value at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned having regard to the following provisions, namely:-
(a) that the goods are treated as having been delivered
to the buyer on board the conveyance in which they are to be exported ; and
(b) that the seller will bear all packing, commission, transport, loading
and all other costs, charges and expenses(including any export duty which
may be chargeable) incidental to the sale and to the delivery of the goods
on board the conveyance in which they are to be exported and which will be
included in the customs value;
[1969: Act IV] [Sec.25]
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(c) that where goods are manufactured in accordance
with any patented invention or are goods to which any protected design
has been applied, the customs value shall be determined taking into consideration
the value of the right to use design in respect of the goods;
(d) that where goods are exported for sale, other disposal or use, whether
or not after further manufacture, under a Pakistan trade mark, the customs
value shall be determined taking into consideration the value of the right
to use the patent, design or trade mark in respect of the goods.
Explanation 1.-A sale in open market between a buyer and a seller independent of each other presupposes-
(a) that the customs value is the sole consideration
and sale is between a buyer and seller independent of each other.
(b) that the customs value is not influenced by any commercial, financial
or other relationship, whether by contract or otherwise between the seller
or any person associated in business with him and the buyer or an person associated
in
business with him other than the relationship created by the sale itself.
(c) that no part of the proceeds of any subsequent resale, other disposal
or use of the goods will accrue, either directly or indirectly, to the seller
or any person associated in business with him. (d) that two persons shall
be deemed to be associated in business with one another if, whether directly
or indirectly, either of them has any interest in the business or property
of the other or both have a common interest in any business or property or
some third person has an interest in the business or property of both of them.
Explanation II.- For the purposes of this sub-section,
the expression "prescribed time" shall mean the time when the bill
of export 30[or goods
[1969: Act IV] [Sec.25,25A]
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declaration] is delivered under section 131 30[or 131A]
or, when export of the goods is allowed without a bill of export 30[or goods
declaration] or in anticipation of the
delivery of a bill of export 30[or goods declaration], the time when export
of the goods commences.]
31[25A. Power to takeover the imported goods.- 32[ (1) If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the bill of entry or goods declaration, the Assistant Collector or any other higher officer of customs may order the following without prejudice to any other action against the importer or his authorised agent, namely:-]
(i) entertain offer by any other person to buy these goods at substantially higher value than the declared customs value in the bill of entry 30[or goods declaration] and payment of customs duties and other leviable taxes thereon, provided such offer is accompanied by a pay order equal to twenty-five per cent of the amount of each value and duties and other taxes leviable on imported goods;
(ii) give an option in writing to the importer of such goods for clearance of imported goods at the customs value equal to such highest offer for purchase of goods and payment of customs duties and other taxes chargeable thereon; and
(iii) in case the importer fails to clear the imported
goods within seven days of the receipt of notice under clause (ii) above,
the appropriate officer may takeover the goods on payment of
customs value declared in the bill of entry 30[or goods declaration] and an
amount equal to five per cent of such declared value;
(2) The imported goods taken over under sub-section (1) shall be delivered to the offerer on submission of two pay orders, one equal to the customs value declared in the bill of entry 30[or goods declaration] plus five per cent in the name of importer and the other pay order equal to the remaining amount of value of
[1969: Act IV] [Sec.25A,25B,26,27]
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imported goods and the amount of customs duties and other taxes leviable on the imported goods in the name of Collector of Customs;
(3) In case the local buyer fails to take the delivery
of the goods on
payment of value and taxes as prescribed in sub-section (2) above, the pay
order equal to twenty-five per cent of the amount shall be fore-feited in
favour of the
Federal Government and imported goods shall be released to the importer as
per customs value determined under section 25.]
33[25B. Omitted.
26. Power to require information to be furnished.- An appropriate officer may, by a requisition in writing, require any person concerned with the importation, exportation, purchase, sale, transport, storage or handling of any goods which are being or have been imported or exported to furnish such information relating to the goods as may be necessary for determining the legality or illegality of the importation or exportation of such goods, the value of such goods, the nature, amount and source of the funds or assets with which the goods were acquired and the customs duty chargeable thereon, or for deciding anything incidental thereto and to produce, and allow the officer to inspect and take extracts from or make copies of any invoice, bill of lading, book of account or other book or document of whatever nature relating to the goods.
34[27. Abatement allowed on damaged or deteriorated
goods.- (1) If before the examination of any imported goods the owner thereof
informs the 35[ Assistant Collector or Deputy Collector ] in writing that
the value of the goods as declared in the bill of entry has diminished as
a result of some damage or deterioration sustained
by them before or during unloading at the port of destination, an officer
of Customs not below the rank of 35[Assistant Collector or Deputy Collector]
may appraise the value of the damaged or deteriorated goods in the manner
given in sub-section (2)
and the owner shall be allowed abatement of duty in proportion to the diminution
of value so appraised, whether duty is leviable ad valorem or otherwise.
(2) For the purposes of this section, the value of
damaged or deteriorated goods may be ascertained by either of the following
methods at the option of the owner:-
[1969: Act IV] [Sec.27,28,29,30]
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(a) value may be appraised by an Officer of Customs not below the rank of 35[Assistant Collector or Deputy Collector] on the basis of physical examination of the goods; or (b) such goods may be sold by public auction or by tender or, with the consent of the owner, in any other manner and the gross sale proceeds shall be deemed to be the value of such goods inclusive of duties.]
28. Power to test and denature imported spirit.- When by any law for the time being in force a duty lower than that prescribed by 36[this Act] is imposed on denatured spirit, any such spirit imported into Pakistan may, subject to rules, be tested and if necessary adequately denatured by officers of customs, at the expense of the person importing the same, before the customs-duty is charged thereon.
29. Restriction on amendment of bill of entry or bill of export 37[or goods declaration].- Except as provided in section 88, no amendment of bill of entry or bill of export 38[or goods declaration] relating to goods assessed for duty on the declared value, quantity or description thereof shall be allowed after such goods have been removed from the customs-area.
39[30. Date of determination of rate of import duty.- The rate of duty applicable to any imported goods shall be the rate of duty in force;
(a) in the case of goods cleared for home consumption
under section 79, on the date on which a 40[bill of entry or goods declaration]
is manifested under that section; and (b) in the case of goods cleared from
a warehouse under section 104, on the date on which a 40[bill of entry or
goods declaration] for clearance of such goods is manifested under that section:
Provided that, where a 40[bill of entry or goods declaration] has been manifested
in advance of the arrival of the conveyance by which the goods have been imported,
the relevant date for the purposes of this section shall be the date on which
the manifest of the conveyance is delivered 41[at the port of first entry]:
[1969: Act IV] [Sec.30,30A]
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Provided further that, in respect of goods for the clearance of which a 41[bill of entry or goods declaration] for clearance has been manifested under section 104, and the duty is not paid within seven days of the 41[bill of entry or goods declaration] being manifested, the rate of duty applicable shall be the rate of duty on the date on which the duty is actually paid 42[:]
43[Provided further that in case of the goods illegally removed from the warehouse, the rate of duty shall be the rate prevalent either on the date of in-bonding or detection of case or date of payment of the duty and taxes, whichever is higher:
Provided further that in case of exercising option
for redemption of fine in lieu of confiscation of the goods seized during
anti-smuggling operations, the rate of duty shall be the rate prevalent either
on the date of seizure or date of payment of duty and taxes, whichever is
higher:]
44[Provided further that the Federal Government may, by notification in the
official Gazette, for any goods or class of goods, specify any other date
for the determination of rate of duty.]
Explanation:- For the purpose of this section "manifested" means that when a machine number is allocated to 40[bill of entry or goods declaration] and is registered in Customs record.]
45[30A. Date of determination of rate of duty for clearance through the Customs Computerized System.- Subject to the provisions of section 155A, the rate of duty applicable to any imported or exported goods if cleared through the Customs Computerized System, shall be the rate of duty in force on;-
(a) the date of payment of duty;
(b) in case the goods are not chargeable to duty, the date on which the goods
declaration is filed with Customs; and
(c) in case the amount of duty is corrected as a result of intervention by
Customs under section 80A or clause (b) of section 131A, the date on which
the duty was originally paid under section 79A or clause (a) of section 131A;
[1969: Act IV] [Sec.30A,31,31A]
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Provided that where a goods declaration has been filed in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is filed at the customs-station of first entry:
Provided further that the Federal Government may, by notification in the official Gazette, specify any other date for the determination of rate of duty in respect of any goods or class of goods.]
31. Date for determination of rate of export duty.- The rate and amount of duty applicable to any goods exported shall be the rate and amount chargeable at the time of the delivery of the bill of export 46[or goods declaration] under section 131:
Provided that where the export of any goods is permitted without a bill of export 47[or goods declaration] or in anticipation of the delivery of such a bill 47[or declaration], the rate and amount of duty applicable shall be the rate and amount chargeable on the date on which loading of the goods on the outgoing conveyance commences 48[:]
49[Provided further that the Federal Government may, by notification in the official Gazette, for any goods or class of goods, specify any other date for determination of the rate of duty.]
50[31A. Effective rate of duty.- (1) Notwithstanding
anything contained in any other law for the time being in force or any decision
of any Court, for the purposes of section 30 51[,30A] and 31, the rate of
duty applicable to any goods shall include any amount of duty imposed under
section 18. 52[****] and the amount of duty that may have become payable in
consequence of the withdrawal of the whole or any part of the exemption or
concession from duty whether before or
after the conclusion of a contract or agreement for the sale of such goods
or opening of a letter of credit in respect thereof.
53[(2) For the purpose of determining the value of
any imported or exported goods, the rate of exchange at which any foreign
currency is to be converted into Pakistan currency shall be the rate of exchange
in force on the date immediately preceding the relevant date referred to in
sections 30, 30A or 31.]
[1969: Act IV] [Sec.32]
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32. False statement, error, etc.- (1) If any person, in connection with any matter of customs,-
(a) makes or signs or causes to be made or signed,
or delivers or causes to be delivered to an officer of customs any declaration,
notice, certificate or other document whatsoever, or
(b) makes any statement in answer to any question put to him by an officer
of customs which he is required by or under this Act to answer,
54[knowing or having reason to believe that such document or statement is false] in any material particular, he shall be guilty of an offence under this section.
(2) Where, by reason of any such document or statement as aforesaid or by reason of some collusion, any duty or charge has not been levied or has been short-levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within 55[five] years of the relevant date, requiring him to show cause why he should not pay the amount specified in the notice.
(3) Where, by reason of any inadvertence, error or
misconstruction, any duty or charge has not been levied or has been short-levied
or has been erroneously refunded, the person liable to pay any amount on that
account shall be served with a notice within 56[three years] of the relevant
date requiring him to show cause why he should not pay the amount specified
in the notice.
57[(3A) Notwithstanding anything contained in sub-section (3), where any
duty or charge has not been levied or has been short-levied or has been erroneously
refunded and this is discovered as a result of an audit or examination of
an importer's accounts or by any means other than an examination of the documents
provided by the importer at the time the goods were imported, the person liable
to pay any amount on that account shall be served with a notice within three
years of
the relevant date requiring him to show cause why he should not pay the amount
specified in the notice.]
[1969: Act IV] [Sec.32,32A]
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(4) The appropriate officer, after considering the representation, if any, of such person as is referred to in sub-section (2) or sub-section (3) shall determine the amount of duty payable by him which shall in no case exceed the amount specified in the notice, and such person shall pay the amount so determined.
(5) For the purposes of this section, the expression"relevant
date"means -
(a) in any case where duty is not levied, the date on which an order for the
clearance of goods is made;
(b) in a case where duty is provisionally assessed under section 81, the date
of adjustment of duty after its final assessment;
(c) in a case where duty has been erroneously refunded, the date of its refund;
(d) in any other case, the date of payment of duty or charge.
58[32A. Fiscal fraud.- (1) If any person, in connection
with any matter related to customs-
(a) causes to submit documents including those filed electronically, which
are concocted, altered, mutilated, false, forged, tempered or counterfeit
to a functionary of customs; (b) declares in the bill of entry or bill of
export or electronically filed customs declaration, the name and address of
any exporter or importer which is physically non-existent at the given address;
(c) declares in the bill of entry or bill of export or electronically filed
customs declaration, an untrue information regarding description, quantity,
quality, origin and value of goods; (d) alters, mutilates or suppresses any
finding of the customs functionary on any document or in the computerized
record; or (e) attempts, abets or connives in any action mentioned in clauses
(a), (b), (c) and (d) above, he shall be guilty of an offence under this section.
(2) Where, by any reason as referred to in sub-section (1) as aforesaid, any duty or tax charged or fee or fine and penalty levied under any provision of law has not been levied or has been short levied or has been refunded, the person liable to pay any amount on that account shall be served with a notice within a period of 180 days of the date of detection of such custom duty and tax fraud, requiring him to
[1969: Act IV] [Sec.32A,33,34]
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show cause as to why he should not pay the amount specified in the notice along with any other amount imposed as fine or penalty under the provisions of this Act.
(3) The appropriate Adjudicating Officer, after considering the written or verbal representation of such person, may determine the amount of duty or tax chargeable or fee payable by such person which shall in no case exceed the amount specified in the notice and such person shall pay the amount so determined besides the fine or penalty or both.]
33. Refund to be claimed within 59[six months].- (1) No refund of any customs-duties or charges claimed to have been paid or over-paid through inadvertence, error or misconstruction shall be allowed, unless such claim is made within 59[six months] of the date of payment.
(2) In the case of provisional payments made under section 81, the said period of 56[six months] shall be reckoned from the date of the adjustment of duty after its final assessment.
34. Power to give credit for, and keep account-current of duties and charges.- An officer of customs, not below the rank of 60[Assistant Collector or Deputy Collector] of customs may, in the case of any mercantile firm or public body, if he so thinks fit, instead of requiring payment of customs duties or charges as and when they become due, keep with such firm or body an account-current of such duties and charges, which account shall be settled at intervals of not exceeding one month, and such firm or body shall make a deposit or furnish a security sufficient in the opinion of that officer to cover the amount which may at any time be payable by it in respect of such duties or charges.
LEGAL REFERENCE
1. Substituted by the Finance Act, 1975 (L of 1975), S.7(1), page 8. At the time of substitution section 18 was as under:-
a.18. Goods dutiable.- Except as hereinafter provided,
customs duties shall be levied at such rates as may be prescribed under the
Tariff Act, 1934 (XXXII of 1934) or under any other law for the time being
in force on
(a) goods imported into or exported from Pakistan;
(b) goods brought from any foreign country to any customs-station, and without
payment of duty, there transshipped or transported for, or thence carried
to, and imported at, any other customs stations; and
(c) goods brought in bond from one customs-station to another.".
[1969: Act IV]
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2. Substituted by Finance Act,1989 (V of 1989),S.5(3), page 107, substituted by Finance Act,1992 (VII of 1992),S.6(1),page 115 and substituted by the Finance Act, 1994 (XII of 1994), S.6(2), page 253. At the time of substitution sub-section (2) was as under:-
2a."(2) The Federal Government may, by Notification
in the official Gazette, levy, subject to such conditions, limitation
or restrictions as it may deem fit to impose, a regulatory duty on all or
any of the goods specified in the First
Schedule at such rate as may be specified in the said notification, and may,
by a like notification, levy a
regulatory duty on all or any of the goods specified in the Second Schedule
and exported from Pakistan at such
rate as may be specified therein.".
2b."(2) The Federal Government may, by Notification in the official Gazette,
levy, subject to such conditions,
limitations or restrictions as it may deem fit to impose, a regulatory duty
on all or any of the articles specified in
the First Schedule at a rate not exceeding hundred per cent of the value of
such articles as determined under
Section 25, or as the case may be, fixed under Section 25B, and may, by a
like notification, levy a regulatory
duty on all or any of the articles exported from Pakistan at a rate not exceeding
hundred per cent of the amount
which represents the value of such articles as determined or fixed as aforesaid.".
2c."(2) The Federal Government may, by Notification in the Official Gazette,
levy, subject to such conditions,
limitations or restrictions as it may deem fit to impose, a regulatory duty
on all or any of the articles specified in
the First Schedule at a rate not exceeding fifty per cent of the rate, if
any, specified therein 2d[***] or at a rate
not exceeding hundred per cent of the value of such articles, as determined
under Section 25 and may, by a like
Notification, levy a regulatory duty on all or any of the articles exported
from Pakistan -
(i) in the case of articles enumerated in the Second
Schedule at a rate not exceeding thirty per cent of the rate specified in
the Second Schedule or of the amount which would represent the value of such
articles as determined under Section 25; and
(ii) in the case of article not enumerated in the Second Schedule, at a rate
not exceeding thirty per cent of the amount which represents the value of
such articles as determined under Section 25.".
2d. "The words, brackets, figures and commas [read with any Notification
issued under sub-section (1) of Section 2
or sub-section (1) of Section 3 of the Protective Duties Act, 1950 (LXI of
1950)" omitted by the Federal Laws (
(Revision and Declaration) Ordinance, 1981.".
3. Substituted for the word and comma "may,"
by the Customs (Amendment) Ordinance, 1998 (XVI of 1998) and similar
amendment was made by the Customs (Amendment) Act, 1999 (II of 1999).
4. Substituted by the Finance Ordinance, 1979 (XXX of 1979), S.6(1), page
186, w.e.f. 25th June, 1979. At the time of substitution sub-section (3) was
as under:-
4a. "(3) The regulatory duty levied under sub-section (2) shall be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force.".
5. Inserted by Finance Act,1991 (XII of 1991), S.4(1),
page 197.
6. The brackets and words "(Amendment)" Omitted by Finance Act,1993
(X of 1993), S.4(1),page 121.
7. Omitted by Finance Act,1999(IV of 1999),S.10(2), Page 758. At the time
of omission section 18B was as under:-
"18B. Levy of service charges.- The Federal Government may, by notification in the official Gazette, levy a service charge equivalent to two per cent ad valorem on all such goods specified in the First Schedule to this Act as are subject to pre-shipment inspection.".
Provided that for the purposes of Sales Tax Act, 1990, such service charge shall not constitute a part of the value of supply.".
8. Renumbered by Finance Ordinance,1979(XXX of 1979),S.6(2),
Page 787 w.e.f. 28th June, 1979.
9. The words "Central Government" substituted by Finance Ordinance,
1972 (XXXI of 1972 ), S.3, and Second Schedule S.1, page 76 w.e.f. 17th June,
1972
10. Substituted for the words "full stop" by Customs (Amendment)
Act, 1999 (II of 1999).
11. Proviso omitted vide Customs (Amendment) Ordinance, 2000 (XI of 2000),
S.2, page 114. At the time of omission this was as under:
[1969: Act IV]
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[Provided that the Federal Government shall not exempt
any goods imported into Pakistan from the whole or any part of the customs
duties chargeable thereon, except in the following cases, namely:-
(a) For rectification of tariff anomalies on the recommendation of National
Tariff Commission; or
(b) for the fullfilment of an international obligation of the Government of
Pakistan; or
(c) for the purpose of national security.
12. Added by Finance Ordinance, 1979 (XXX of 1979),
S.6(2), page 187.
13. Added by Customs (Amendment) Ordinance, 2002 (XXIV of 2002).
14 Omitted by Customs (Amendment) Act, 1999 (II of 1999) and added by Customs
(Amendment) Act, 2000 (XI of 2000), S.3, page 114, at the time of omission
section 20 was as under:-
"20. Board's power to grant exemption from duty in exceptional circumstances.- Under circumstance of exceptional nature, the Board may, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by a special order in each case recording such circumstances, exempt any goods from payment of the whole or any part of the customs duties chargeable there.""
15, Omitted by Customs (Amendment) Act, 1999 (II of 1999) . At the time of omission sub-clause (b) was as under:-
"(b) the delivery without payment of the whole
or any part of the customs duties chargeable thereon of
imported goods of such classes or description as it may prescribe, intended
to be used in the production, manufacture, processing, repair or refining
in Pakistan of goods of such classes or descriptions as it may prescribe;".
16 Substituted by Customs (Amendment) Act, 1999 (II of 1999). At the time of substitution clause (c) was as under:-
"(c) the repayment in whole or in part of the customs-duties paid on the importation of any goods of such classes or description as it may prescribed, which have been used in the production, manufacture, processing, repair or refitting in Pakistan of goods of such classes or descriptions as it may prescribe, provided such repayment shall not be made in respect of the class or description of goods for which drawback can be claimed under Section 37.".
17 Inserted by Finance Act, 1990 (VII of 1990), S.6(2), page 35. Omitted by Customs (Amendment) Act, 1999 (II of 1999) and inserted by Finance Ordinance, 2001 (XXV of 2001), S.4(3), page 305. At the time of omission this section was as under:-
"21-A. Deferment of collection of customs-duties.- Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular case by special order, defer the collection of customs-duties either in whole or in part.".
18. Substituted by Finance Act,1975(L of 1975),S.7(2), Page 9 w.e.f.7th June,1975.At the time of substitution the proviso was as under:-
"Provided if such goods have been imported within
two years of their exportation 17a[(or within such further period not exceeding
three years, as the Collector may allow in any case,)] and have continued
to be the property of the person by whom or on whose account they were exported
and have not undergone any processing since their exportation.".
17a. Inserted by the Finance Act, 1973(L of 1973)
19. Substituted "Assistant Collector" by
F.A,1996(IX of 1996) S.4(6).Page 476.
20. Substituted by Finance Act,1973 (L of 1973, S.9(3), Page 531. At the time
of substitution it was as under:-
"(a) where at the time of exportation of such
goods, drawback of any customs or excise duty or any other tax levied by the
39a[Federal Government] or any excise duty levied by the Provincial Government
was allowed, on payment of customs-duty equal to the amount of such drawback.".
20a. The words "Central Government" substituted by Finance Ordinance,
1972 (XXXI of 1972 ), S.3, and Second Schedule S.1, page 76.
[1969: Act IV]
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21 Omitted the comma and words ", excise duty
and sales tax" by Finance Ordinance, 2002 (XXVII of 2002), S.4(3), page
223.
22. Substituted by the Finance Act, 1999 (IV of 1999), S.10(3), page 758.
At the time of substitution section 25 was as under:-
"25. Value of imported and exported goods.- (1)
Subject to the provisions of this section and the rules,
the value of any imported goods shall be the transaction value, that is, the
price actually paid or payable for the
goods when sold or export to Pakistan.
(2) In determining the value under sub-section (1)
-
(a) there shall be added to the price actually paid or payable for the imported
goods:-
(i) the cost of transport of the imported goods to the port, airport or place
of importation;
(ii) loading, unloading and handling charges or any other charges associated
with or incidental to the transport of the imported goods to that port, airport
or place of importation; and
(iii) the cost of insurance.
(b) to the extent that they are incurred by the buyer but are not included
in the price actually paid or payable for the imported goods, there shall
also be added to such price -
(i) commission and brokerage, except buying commissions;
(ii) the cost of containers which are treated as being one for customs purposes
with the goods in question; and
(iii) the cost of packing whether for labour or materials;
(c) the value, apportioned as appropriate, of the following goods and services
where supplied directly or indirectly by the buyer free of charge or at reduced
cost for use in connection with the production and sale for export of the
imported goods, to the extent that such value has not been included in the
price actually paid or payable, shall also be added to such price -
(i) materials, components, parts and similar items incorporated in the imported
goods; (ii) tools, dies, moulds, and similar items used in the production
of the imported goods; and (iii) materials consumed in the production of the
imported goods;
(d) royalties and license fees related to the imported goods being valued
that the buyer must pay, either directly or indirectly, as a condition of
sale of the imported goods being valued, to the extent that such royalties
and fees are not included in the price actually paid or payable shall also
be added to such price; and
(e) the value of any part of the proceeds of any subsequent resale, disposal
or use of the imported goods that accrues directly or indirectly to the seller
shall also be added to the price actually paid or payable for such goods.
(3) The value of exported any goods shall be taken to be the normal price, that is to say, the price which they would fetch, at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned between a seller and a buyer independent of each other.
Explanation.- For the purposes of this sub-section, the expression "prescribed time" shall mean the time when the bill of export is delivered under section 131 or; when export of the goods is allowed without a bill of export or in anticipation of the delivery a bill of export, the same when export of the goods commences;
(4) The normal price of any exported goods shall be determined on the following assumptions; namely:-
(a) that the goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported; and
[1969: Act IV]
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(b) that the seller will bear all packing, commission, transport, loading and all other costs, charges and expenses (including any export duty when may be chargeable) incidental to the sale and to the delivery of the goods on board the conveyance in which they are to be exported and which will be included in the normal price.
(5) Where the exported goods to be valued -
(a) are manufactured in accordance with any patented
invention or are goods to which any protected design has been supplied; or
(b) are exported for sale, other disposal or use, whether or not after further
manufacture, under a Pakistan trade mark; the normal price shall be determined
on the assumption that it includes the value of the right to use the patent,
design or trade mark in respect of the goods.
Explanation I.- A sale in open market between a buyer
and a seller independent of each other presupposes -
(a) that the price is the sole consideration;
(b) that the price is not influenced by any commercial, financial or other
relationship; whether by contract or otherwise between the seller or any person
associated in business with him other than the relationship created by the
sale itself; and
(c) that no part of the proceeds of any subsequent resale, other disposal
or use of the goods will accrue, either directly or indirectly, to the seller
or any person associated in business with him.
Explanation II.- Two person shall be deemed to be associated
in business
with one another if whether directly or indirectly, either of them has any
interest in the business or property of the other or both have a common interest
in any business or property or some third person has an interest in the business
or property of both of them.".
22a. Substituted by the Finance Act, 1998 (III of 1998), S.4(II), page 39 at the time of substitution was as under:-
"25. Value of imported and exported goods.- (1) The value of any imported goods shall be taken to be the normal price, that is to say, the price which they would fetch, 22b[on the date referred to in section 30] on a sale in open market between a buyer and a seller independent of each other.
(2) The normal price of any imported goods shall be
determined on the following assumptions, namely:-
(a) that the goods brought by sea or land are treated as having been delivered
to the buyer at the port or place of importation, as the case may be, and
that goods brought by air are treated as having been delivered to the buyer
at the airport or place where they are unloaded in Pakistan or, if the aircraft
first lands in Pakistan at some other airport or place without unloading the
goods, at such other airport or place;
(b) that the seller will bear freight, insurance, commission shall and all
other costs, charges and expenses incidental to the sale and the delivery
of the goods at that port, airport or place which will be included in the
normal price;
(c) that the buyer will bear any duties or taxes applicable in Pakistan which
will not be included in the normal price.
(3) Where the imported goods to be valued -
(a) are manufactured in accordance with any patented invention or are goods to which any protected design has been applied; or
[1969: Act IV]
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(b) are imported 22c[****] under a foreign trade mark or are imported for
sale, other disposal or use (whether or not after further manufacture) under
a foreign trade mark;
the normal price shall be determined on the assumption that it includes the
value of the right to use the patent, design or trade mark in respect of the
goods.
(4) The value of any exported goods shall be taken to be the normal price, that is to say, the price which they would fetch, at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned between a seller and a buyer independent of each other.
Explanation.- For the purposes of this sub-section,
the expression "prescribed time" shall mean the time when the bill
of export is delivered under section 131 or, when export of the goods is allowed
without a bill of export or in anticipation of the delivery of a bill of export,
the time when export of the goods commences.
(5) The normal price of any exported goods shall be determined on the following
assumptions, namely:-
(a) that the goods are treated as having been delivered
to the buyer on board the conveyance in which they are to be exported; and
(b) that the seller will bear all packing commission, transport, loading and
all other costs, charges and expenses (including any export duty which may
be chargeable) incidental to the sale and to the delivery of the goods on
board the conveyance in which they are to be exported and which will be included
in the normal price.
(6) where the exported goods to be valued -
(a) are manufactured in accordance with any patented invention or are goods
to which any protected design has been applied; or
(b) are exported for sale, other disposal or use under a Pakistan trade mark
or are exported for sale, other disposal or use (whether or not after further
manufacture) under a Pakistan trade mark, the normal price shall be determined
on the assumption that it includes the value of the right to use the patent,
design on trade mark in respect of the goods.
Explanation I.- A sale in open market between a buyer
and a seller independent of each other presupposes -
(a) that the price is the sole consideration; and
(b) that the price is not influenced by any commercial, financial or other
relationship, whether by contract or otherwise between the seller or any person
associated in business with him and buyer or any person associated in business
with him other than the relationship created by the sale itself;
(c) that no part of the proceeds of any subsequent resale, other disposal
or use of the goods will accrue, either directly or indirectly, to the seller
or any person associated to business with him.
Explanation II.- Two persons shall be deemed to be associated in business with one another if, whether directly or indirectly, either of them has any interest in the business or property of the other or both have a common interest in any business or property or some third person has an interest in the business or property of both of them.".
22b. Substituted for the words and figures "at
the time the bill of entry is delivered under section 79" by Finance
Ordinance, 1972 (XXI of 1972), S.
22c. Omitted the words and comma "for sale, other disposal or use"
by Finance Act, 1973 (L of 1973), S.
23. .Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198. At the time of substitution sub-section (4) was as under:-
[1969: Act IV]
Customs
CHAPTER V
LEVY OF, EXEMPTION FROM, AND REPAYMENT OF, CUSTOMS-DUTIES
"(4) Where, in relation to the goods being valued,
the appropriate officer is of the opinion that the declared price at which
the goods are imported is different from test values as mentioned above, the
appropriate officer shall inform the importer his reservations in writing
and require the importer to justify the price difference. If the
importer fails to justify the price difference, the transaction value shall
be taken to be the one that cannot be determined under sub-section (1).".
24 Inserted for the word "the" by the Finance Ordinance, 2000 (XXI
of 2000), S.4(3)(I), page 198.
25. Added by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198.
26. Added by the Finance Ordinance, 2000 (XXI of 2000),S.4(3)(ii), page 199.
27. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page
198. At the time of substitution this sub-section (6) was as under:-
"(6) Transaction value of similar goods.- If the customs value of the
imported goods cannot be determined under the provisions of sub-section (5),
it shall, subject to rules, be the transaction value of similar goods sold
for export to Pakistan and exported at or about the same time as the goods
being valued, and the provisions of clauses (b), (c) and (d) of sub-section
(5) shall mutatis mutandis also apply in respect of similar goods.".
28 Added the word "and" by the Finance Ordinance,
2000 (XXI of 2000), S.4(3)(I), page 198.
29. Sub-clause (iii) omitted by the Finance Ordinance, 2000 (XXI of 2000),
S.4(3)(I) page 198.
30. Inserted by Finance Act, 2003 (I of 2003), S.5(2)(b), page 21.
31. Inserted by the Finance Ordinance, 1979 (XXX of 1979), S.6(b) and substituted
by the Finance Act, 1999 (IV of 1999), S.10(4), page 765. At the time of substitution
section 25A was as under:-
"25A. Action where declared value is less than the value determined.-
If the 31a[appropriate officer] funds that the value of the goods declared
by the importer in the bill of entry is less than the value determined under
Section 25, he may, without prejudice to any other action which he may take
in respect of the importer or such goods require the importer to clear goods
on paying the duty on their value determined as aforesaid, or if the importer
is unwilling or fails to do so, acquire them on behalf of the Federal Government
by paying to the importer their value as declared in the bill of entry.".
31a. Substituted for the words "Collector of Customs" by the Finance
Ordinance, 1982 (XII of 1982), S.
32. Substituted by Finance Act, 2004 (II of 2004), S.3(3), page 14. At the
time of substitution sub-section (1) was as under:-
"(1) If the appropriate officer finds that customs value of imported
goods declared in the bill of entry 32a[or goods declaration] is understated
and there is a buyer of imported goods at substantially higher value, he may
order the following without prejudice to any other action, he may taken in
respect of the importer, namely-"
32a. Inserted by Finance Act, 2003 (I of 2003), S.5(3),
page 21.
33. Inserted by the Finance Act, 1988 (VI of 1988), S.5(1), page 936 and substituted by the Finance Act, 1998 (III of 1998), S.4(iii), page 42. At the time of substitution section 25B was as under:-
"25B. Fixation of value for imports and exports.-
(1) Notwithstanding anything contained in section 25, the Board or such officer
as authorized by the Board in this behalf may, from time to time, by notification
in the official Gazette, for the purpose of levying customs-duties under this
Act or any other law for the time being in force, fix the value of the goods
specified in the First Schedule and the Second Schedule to this act, at such
rates as it may deem fit and subject to such conditions or limitations as
it may impose.
(2) Different values may be fixed for different clauses or descriptions of
the same type of goods.".
33a. Inserted by the Finance Act, 1993 (X of 1993).
"(3) A notification issued under sub-section (1) shall be effective from the day specified therein, notwithstanding that the official Gazette in which such notification appears is published at any time after that day.".
33b. Omitted by Finance Act, 2004 (II of 2004), S.3(4), page 14. At the time of omission was as under:-
"25B. Determination of Value not covered by section 25.- (1) If the value of the imported goods cannot be determined under section 25, the value, subject to the rules, shall be the transaction value of identical goods sold for export to Pakistan and exported at or about the same time as the goods being valued.
[1969: Act IV]
Customs
CHAPTER V
LEVY OF, EXEMPTION FROM, AND REPAYMENT OF, CUSTOMS-DUTIES
(2) If the value of the imported goods cannot be determined under sub-section (1), the value, subject to the rules, shall be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued.
(3) If the value of the imported goods cannot be determined under sub-section (2), the value shall be determined as follows-
(a) if the imported goods or identical or similar imported goods are sold in Pakistan in the condition as imported, then the value of the imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods, are so sold in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods, subject to such deductions as may be provided in the rules; and
(b) If neither the imported goods nor identical nor similar goods are sold for export to Pakistan then, if the appropriate officer so decides, the value shall be based on the unit price at which the imported goods, after processing, are sold in the greatest aggregate quantity to persons in the country of importation who are not related to the persons from whom they buy such goods, due allowance being made for the value added for all such processing and the deductions as may be provided in the rules.
(4) If the value of the imported goods cannot be determined under sub-section (3), the value of imported goods shall be based on computed value as may be prescribed by the rules:
Provided that, at the request of the importer, the order of application of sub-sections (3) and (4) may be reversed, if so agreed by the appropriate officer.
(5) If the computed value o