Transshipment of imported cargo from gateway port to foreign port

GOVERNMENT OF PAKISTAN
(REVENUE DIVISION)
FEDERAL BOARD OF REVENUE

Islamabad, the 4th January, 2021.

NOTIFICATION
(Customs)

S.R.O. 03 (I)/2021.- In exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, section 40 of the Federal Excise Act, 2005 and section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Customs Rules, 2001, which, as required under sub-section (3A) of the said section 219, were previously published vide Notification No.S.R.O 685(I)/2020, dated the 5th August, 2020, namely:-

In the aforesaid Rules,-

(1) for rule 510A, the following shall be substituted, namely:-

"510A. Transshipment of imported cargo from gateway port to a foreign port.- The following procedure is prescribed for the movement of the International Transshipment (IT) cargo other than LCL cargo through any sea port in Pakistan, which shall be distinctly manifested as such in the IGM or carrier declaration uploaded electronically in the Customs Computerized System by the shipping line (VOCCs/NVOCCs) having valid shipping agent licences. Such manifest shall necessarily include the following information, namely:-

(a) port of loading;
(b) via port (name of the transshipment port of Pakistan);
(c) port of destination (final port of discharge at foreign destination);
(d) bill of lading (B/L) No.;
(e) name of foreign exporter;
(f) name of foreign importer;
(g) weight;
(h) seal No.; and
(i) container No.";

(2) in rule 510B,-

(i) for clauses (a) and (b), the following shall be substituted, namely:-

"(a) the TO after unloading shall store IT containers at a place earmarked for them in the notified premises of a seaport. Further, a complete trail of IT containers including the time, location where they are placed and subsequent movements shall be electronically reported and updated in the Customs Computerized System by the Terminal Operator (TO) so that the location of the said containers is traceable at any given point in time;

(b) the TO shall deploy enough manpower to verify the shipper seals against the manifested seals and in case, a container is found without seal or with a different seal or any broken seal, such container shall be re-sealed and immediately resealed with the Customs seal in the presence of the custodian and same shall be recorded. The new seal number will be entered into the system before stacking of the container;";

(ii) in clause (c), after the word "thereon", the expression ", be penalized accordingly" shall be inserted;
(iii) clause (e) shall be omitted;
(iv) clause (h) shall be omitted;

(3) for rule 510D, the following shall be substituted, namely:-

"510D. Delay in clearance of transshipment goods.- (1) The IT goods shall not be subject to payment of import or export duties and taxes provided the activities are in conformity with these rules.

(2) If the goods stored for transshipment are not transshipped within thirty days of their arrival, a notice shall be sent to the shipping line or its agent on the address given in the shipping documents for transshipment of goods from the port. An extension of up to thirty days may be granted for the storage of such goods once a written request mentioning the reasons for delay in removal of goods is submitted to the concerned Assistant Collector of Customs and such a request is approved by him.

(3) If goods still remain on the port after sixty days of their arrival, the shipping line shall be responsible to remove them immediately unless the delay is attributed to the port authorities. The goods shall only be allowed for auction or destruction by approval of the concerned Collector of Customs who shall only allow it in extraordinary conditions where the shipping line shows its complete inability to ship them out. The said reasons shall be recorded in writing.";

(4) In case of any hazardous material left at the port, the concerned shipping line shall be have the responsibility to take the cargo back to the port of origin."; and

(4) for rule 510E, the following shall be substituted, namely:-

"510E. Execution of bond by shipping line.- Shipping lines engaged in the business of international transshipment of containers and bulk cargo shall execute an indemnity bond for ensuring to follow Customs rules and regulations.".

[C. No.18(3)/L&P/2019]

(Wajid Ali)
Secretary (Law & Procedure)