Amendments in the existing procedure for International Toll Manufacturing laid down under rule 885 of SRO 957(I)/2021 dated 30/7/2021

Government of Pakistan
(Revenue Division)
Federal Board of Revenue

Islamabad, the 12th April, 2022

Notification
(Customs)

S.R.O. 514 (I)/2022.- The following certain further draft amendments in the Customs rules, 2001, which it is proposed to be made by the Federal Board of Revenue 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), are hereby published for information of all persons likely to be affected thereby and, as required by sub-section (3 A) of the said section 219, notice is hereby given that objections or suggestions thereon, if any, may for consideration by the Board be sent within fifteen days of the publication of the draft amendments in the official Gazette, which on receipt before expiry of the said period shall be taken into consideration by the Board, namely :-

DRAFT AMENDMENTS

In the aforesaid Rules,-

(1) in rule 885,-

(a) for sub rule (2), the following shall be substituted, namely:-

"(2) The user shall provide I-Form of nil remittance value for input goods duly approved by the concerned authorized dealer.";

(b) after sub rule (2), amended as aforesaid, the following clause shall be added, namely:-

"(2A) At the time of import, the system shall debit the revolving insurance guarantee balance of the importer or accept the Indemnity Bond and Post Dated Cheque, as the case may be, for an amount equivalent to the duties and taxes leviable on the imported goods.";

(c) for sub-rule 3, the following shall be substituted, namely:-

"(3) After the production of the output goods, the user shall export the goods on submission of and E-Form equivalent to the service charges approved by the authorized dealer."; and

(d) after sub-rule 3, amended as aforesaid, the following new sub-rules shall be added, namely:-

"(4) On realization of the foreign exchange equivalent to the service charges as per contract, the authorized dealer will certify and report the same to the State Bank of Pakistan on R-Form.

(5) The revolving insurance guarantee furnished by the importer shall be credited by the system or the indemnity bond and postdated cheque shall be released, as the case may be, against certification from the authorized dealer to the effect that the foreign exchange equivalent to the service charges as per contract has been repatriated in the account of the exporter.".

[C.No.5(7)EP/2019-Pt]

(Saadiya Noori)
Secretary (Export Policy)