CIRCULAR NO.09 OF 2021

(Inland Revenue/Customs)

   C.No.7(1)TIPU/IR/2020                                                 Islamabad, the March 1, 2021

     Sub:  MECHANISM TO BE ADOPTED FOR THE RELEASE OF CONSIGNMENT OF FATA/PATA RESIDENTS STUCK-UP AT THE KARACHI PORTS)

      A meeting was held under the Chairmanship of the Chairman, FBR with Inland Revenue-Operations and Customs Operations Wings to sort out the issues of imported goods of FATA/PATA residents stuck-up at Karachi Ports, Consumption/Installation Certificates, Postdated Cheques and Exemption Certificates under Section 148 of the Income Tax Ordinance, 2021.

2.   After thorough deliberations between the Chairman, Member (IR-Operations) and Member (Customs-Operations) following mechanism was devised for the release of consignments of FATA/PATA residents stuck-up at the Karachi Ports:-

(i)    The stuck-up containers are to be released by Customs authorities against Post dated Cheques (PDCs) and sent to their destination (FATA/PATA) under standard tracker mechanism

(ii)  The Collector Customs (Enforcement and Compliance), Peshawar, will issue detention orders of the raw materials effective from day the consignment reaches the manufacturing premise of importers.

(iii)   The importer/manufacturer will be responsible to take the import documents along with detention order to the CIR [1][Concerned], RTO, Peshawar and make arrangements to have the manufacturing premises/raw material/machinery/goods imported verified.

(iv)    The CIR [2][Concerned], RTO, Peshawar will be liable to verify/undertake Physical visit as Conducted by the importer/manufacturer to the manufacturing premises where the goods are kept under detention, and allow the raw material to be consumed/utilized in writing.

(v)    The CIR, [3][Concerned], RTO, Peshawar will ensure the monthly stock-taking of the raw materials to consumed in the production of manufactured goods by these manufacturing units. This stock-taking will facilitate in issuance of the Consumption Certificate under S.No.151 of the Sixth Schedule of the Sales Tax Act, 1990.

(vi)     The residents of FATA/PATA will apply for tax exemption certificates under section 159 of the Income Tax Ordinance, 2001 for the import of raw material/machinery in light of the Honorable Peshawar High Court, Mingora Bench, (Dara-ul- Qaza), Swat's decision dated 24.11.2020.

3. Commissioner Corporate, RTO, Peshawar and Collector Customs (Enforcement and Compliance), Peshawar would keep a close liaison to successfully implement the laid down mechanism.

                             (Signed by)

Dr. Naseer Janjua

Chief (IR-Analysis)

dadadadadadadada