GOVERNMENT OF PAKISTAN
CUSTOMS COLLECTORATE (PREVENTIVE)
CUSTOM HOUSE, KARACHI
NO. SI/MISC/37/86-EPZ. Dated: 03-04-1989
STANDING ORDER NO. 3/1989 (Preventive)
SUB: Procedure for grant of licence for private bonded warehouses and completion of customs formalities for the import of goods for the purpose of trading in the Karachi export processing zone.
In pursuance of C.B.R. Islamabad’s Notification S.R.O. 142(l)/88 Dated 25.02.1988, amending the Customs Export processing Rule, 1981 providing the facility of warehousing and trading in the Export Processing Zone, the following procedure is laid down to regulate the function of such warehouses.
The premises for warehouses for trading shall be situated in an area ear-marked specially for this purpose by the Karachi Export Processing Zone Authority and shall be separate from the existing premises for the processing of goods.
The prospective investor after allotment of plot/land and execution of general agreement with the Karachi Export Processing Zone Authority for warehousing and trading shall apply for the grant of a license for private bonded warehouse under Section 13 of the Customs Act, Act IV of 1969. The application for a licence on prescribed form CBR 202 (specimen enclosed), shall be addressed to the Assistant Collector of Customs, Incharge K.E.PZ./A.F.U. and shall be accompanied with the following documents:-
i) Copy of lease agreement with the K.E.P.Z. Authority.
ii) Copy of general agreement with the K.E.P.Z., Authority to conduct business for warehousing and trading.
iii) Site plan of the premises.
iv) A certificate from the off-shore banking unit, K.E.P.Z., regarding financial status of the applicant.
v) Surveyor’s certificate in respect of the suitability.
vi) Nation Identity Card of any Pakistani Applicant/ Partners or Directors, as the case may be.
On receipt of an application for grant of warehouse and trading license at K.E.P.Z., the Assistant Collector of Customs, E.P.Z. shall inspect the proposed premises to ensure that the same are safe for storage of bonded goods. The Competent Authority may grant the license, after completion of all the aforesaid formalities.
The license so granted, shall ordinarily be valid for period of one year; unless suspended or revoked earlier for any .breach of the provisions of the Customs Act, Act IV of 1969 or the conditions of the license. The license shall be remained on an application being made, well before the expiry of the validity. Failure to apply for the renewal of license within validity period may constitute an offence the Customs Act 1969, which inter alia includes the seizure of the bonded goods.
The licensee shall undertake ad ensure that no good other than those imported for warehousing and trading are stored in the bonded warehouse. The bond shall operate under the lock double and key system’ as prescribed under part III of Chapter of the Preventive Service Manual. The keys for one lock shall be kept by the Bonders.
i. With a view to store the imported goods in the bonded warehouse, the Importer/Investor shall file an into bond entry in the prescribed form E.P.Z. and marked with bold list of letters: GOODS FOR WAREHOUSING AND TRADING” at the counter of Import Section in the Custom House, in the case of goods importer and with the A.F.U., Karachi Airport, in the case of goods by Airfreight. All such bills of entry shall invariably be accompanied by a certificate of import, issued by the K.E.P.Z Authority/Invoice, Packing List, Proforma Invoice, Contract (are line missing in original).
ii. After registration/ manifestation of the bond bill of entry, the same shall be referred to the concerned appraising group of the Custom House or the A.F.U., Karachi Airport for processing and completion of necessary formalities. These bills of entry shall be completed under the first assessment system. After completion of the bill of entry, the quadruplicate copy shall be detached for office record and the remaining Copies shall be handed over to the Importer or his duly authorized Agent.
iii. Thereafter, the Importer shall execute a execute a bond prescribed under sub-section (2) of section 85 of the Customs Act and submit it to the Assistant Collector, E.P.Z., who after satisfying himself, may Accept the Bond. An entry shall be; made in the register to be maintained for this purpose, as prescribed under the bonding procedure and the original bill of entry shall be detached for record. The Importer will then make an Assistant Collector E.P.Z. for providing escort for removal of the consignment from K.P.T./A.F.U. to K.E.P.Z. All such applications will be entered in the register maintained at the Checks Post of K.E.P.Z., where full particulars of the consignment will also be entered.
iv. The Importer/Investor, after obtaining the permission for escort shall take the duplicate copy of bill of entry to the Sea Port/A.F.U. for removal of the goods of E.P.Z.
v. The Preventive Officer, deputed to escort the consignment, will ensure after due inspection of the marks and numbers and the packages that the packages are intact and no pilferage is suspected; will seal the packages and escort the consignment to E.P.Z. any seal found broken in transit will be recorded on the duplicate copy of bill of entry, by the Escort Officer.
vi. On arrival of the consignment at check-post K.E.P.Z., of the concerned bonder. A separate register shaU be maintained at check-post, in which all the consignment will be entered separately for each bonded warehouse.
vii. On arrival of the consignment in the Bonded warehouse, the Appraisement staff posted at K.E.P.Z. will examine the packages, in the light of the examination report on duplicate and triplicate copies of bills of entry, which will be consigned by Appraiser and Principal Appraiser. The Assistant Collector of Customs, E.P.Z. will also supervise the examination in case of selective consignments. In the cases of doubtful nature ad on receipt of' authentic information, the consignment can also be examined by the, staff of Customs at Sea Port or the A.F.U., in the presence of the Importers: The duplicate copy of bill of entry, bearing examination report shall be returned , and forwarded to Custom House. The quadruplicate copy earlier detached will be sent to E.P.Z. Authority for their record.
viii. The Assistant Collector of Customs, may under special circumstances allow removal of perishable goods, meant of for warehousing and trading, prior to manifestation against provisional bill of entry on furnishing an undertaking by Investor to complete the formalities within 24 hours.
ix. The facility warehousing and trading will not available for import of goods like narcotics, alcoholic goods, arms and ammunition and those causing serious environments pollutions or for veterinary or psychopathological' considering or relating to the protections patents, trademarks or copyrights.
x. The transfer of ownership of the warehouse as we as of goods will be allowed by the Collector of Customs subject to the completion of formalities for a licence by a new owner.
xi. The Owner of the warehouse shall maintain a register entered and attested by the Appraising staff.
EXPORT OF GOODS IMPORTED FOR WAREHOUSING AND TRADING
The goods imported for warehousing and trading will be subject to simple procedure, as is in vogue in Tariff Area. The exports to Tariff Area will also be govern by the same procedure.
i. The exporter/investor in K.E.P.Z. will file a shipping Bill in quintuplicate in the prescribed from with distinguished marking “K.E.P.Z.” in the Export section of Custom House or A.F.U., together with a copy of relative .import invoice, bill of entry, export invoice and packing list, proforma invoice, contract, C R form and N.O.C. from the E.P.Z. Authority.
ii. After registration, assessment and completion of Customs Formalities, the shipping bill will be allowed out of charge and an examination order will be endorsed on triplicate Gopy. The original copy will be detached by the processing group and the remaining copies will be returned to Exporter/investor or his duly authorized agent.
iii. The Examining Officer posted at E.P.Z. shall examine the goods and endorse report on triplicate and quadruplicate copies of the shipping bill which will be signed and counter-signed by the appraiser and Principal Appraiser. All the package will be sealed with Customs seal.
iv. After completion of these formalities, the Exporter/Investor will request the Assistant Collector, E.P.Z. To provide escort for removal of goods from Bounded warehouse to the point of export.
v. The gate pass, which will be issued by the E.P.Z. Authority will be collected by the staff of the preventive Collectorate, who will enter each gate pass in a separate register in addition to particulars of Exporter, description and quantity of goods, number.
vi. The consignment, under Customs escort, will be sent to the A.F.U. or the wharf, where entry shall be permit after verifying that the seals are intact.
vii. After shipment of the consignment, and upon recording Mate’s receipt, an entry to this effect shall be made in the warehouse register against relevant entry and the balance if any, shall be recorded.
Importer’s/investors liability in respect of goods imported for warehousing and trading:
The owner of the warehouse shall be responsible for proper accounting, storage and safe transport of all goods meant for warehousing and trading in the E.P.Z. in the case of any pilferage or loss of bonded goods, the Importer/Investor shall be responsible to pay Customs duties taxes leviable in addition to panel action which may be taken under the provisions of Customs Act, 1969 and the Import Control order.
NOTE: The word trading appearing in this order means trading for export only cannot from E.P.Z. to Tariff Area.
Signed by
(JEHANGIR KHAN)
COLLECTOR
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