GOVERNMENT OF PAKISTAN

APPRAISEMENT COLLECTORATE,

CUSTOMS HOUSE, KARACHI

No. SI/MISC/11/2000 ACA (Auc)                                                                                                           Dated16-06-2001

Mr. Tausif Ahmed, 

Secretary (L&P),

Central Board of Revenue

Islamabad.

SUB:               PROCEDURE FOR DISTRIBUTION OF SALE PROCEEDS UNDER SECTION 201 OF THE CUSTOMS ACT, 1969.

Please refer to Board’s letter C.No.6(1) L&P/2000 dated 09.06.2001 and letter even number dated 26.05.2001 on the subject mentioned above.

The Collectorate vide letter of even number dated 26-10-2000 observed that as sub-section 2 of Section 201 of the Customs Act, 1969, sale proceeds are to be distributed in following number:-

Illustration:

Amount of Sale Proceeds = Final Auction Bid = Rs.100/-

Prevalent Rate of Customs Duty and Sales Tax are 25% and 15% respectively.

a   =     Sale Proceeds                                                                                                               100

b   =     Expenses of sale (auctioneer commission) =1% of a                                                   1

c   =     Freight charges payable, if any (assumed Nil)                                                             -

d   =     Balance = e– (b + c)                                                                                                      99

e   =     Sales Tax = d x Rate of Sales Tax                                                                                12

                                (100 + Rate of Sales Tax)

f   =      Balance = d – e                                                                                                             87

g  =      Customs Duty =  f x Rate of Customs Duty                                                                  17

                                      (100 + Rate of Customs Duty)

h  =      Balance (C&F Value)  = f – g                                                                                         70

i   =      5% surcharge to Motmar-e-Alame Islami

(as per CGO 7/1979)                                   = 0.05h                                                         3 

j   =      Balance      =  h-I                                                                                                           67

k  =      Charge due to person holding such goods

            in custody  = 40% of j                                                                                                   26

l   =      Balance if any to be paid to owner of goods =  ( j - k )                                                 41

The share in the item “charged due to person holding such goods” is 40% of balance amount left after deducting the sales expenses, duty and taxes etc. from sale proceeds. The percentage of the custodian’s share was determined by Board vide letter C. No. 83(100)SSC)/82 dated 26.03.1983 (copy enclosed).

            The Collectorate is of the opinion that percentage of custodian’s share in Auction sales proceeds is relatively high as compared to the percentage of share realised in duty and taxes. Board may consider the appropriate revision of the percentage of custodian’s share in the sales proceeds realized through auction.

Signed by

(SHAHID AHMAD)

COLLECTOR (A)