GOVERNMENT OF PAKISTAN
COLLECTORATE OF CUSTOMS (APPRAISEMENT)
CUSTOM HOUSE, KARACHI.
NO. SI/MISC/08/95-(PSI) Dated:15th May 1995
STANDING ORDER NO: 09/1995 (APPRAISEMENT)
SUB: IMPLEMENTATION OF PSI SCHEME NOTIFIED VIDE SRO 1108 (I)1994 DATED14.11.1994 READ WITH SRO 1159(1194 DATED: 30.11.1994 – REVISED PROCEDURE
The Pre-shipment Inspection (PSI) Scheme for the imported goods has come into effect from the 1st of January 1995. In order to coordinate with PSI Companies “PSI Control Office” has already been set up. In accordance with notification SRO 1108(l)/94 dated 14.11.1994, goods having total value of over US$ 3,000.00, imported (including partial shipments) against import authorizations, contracts, sale notes, NRI Scheme etc. or letters of credit obtained/established or amended on or after 1st December, 1994, and shipped/imported on or after 01.01.1995, are subject to Pre-shipment Inspection.
2. A detailed procedure vide Standing Order No. 01/95(A) dated 18.1.1995 read with Public Notice No. 12/1995(A) dated 20.02.1995 was issued for processing Bills of Entry and Transshipment Permits (T.Ps.) for goods which are subject to Pre-shipment. Inspection under Inspection, Valuation and Assessment of Imported Goods Rules, 1994. However, procedural difficulties regarding non-issuance of CRF, valuation disputes, destination, inspections and adjudication proceedings have cropped up. In over to obviate these difficulties, the following procedure in supersession of Standing Order No. 01/95 (A) dated 18.1.1995 & Public Notice No. 12/1995 (A) dated 20.2.1995 is laid down for strict compliance.
(A) FILING/PROCESSING OF BILLS OF ENTRY:
(i) The importer or his authorized Custom House Agent shall file Bill of Entry, showing sequential No. of the Inspection Order and CRF No. and date, in the Import Section for registration along with the requisite documents including the following.
(a) Clean Report of Finding (CRF).
(b) Copy of Seller’s Final Invoice duly affixed with security label by the PSI Company.
(c) Copy of computer general Inspection Order- Receipt issued by the PSI Company to the importer.
The bill of entry shall be allocated the registration number with date if it is found complete in all respects. In case of into bond/ex-bond bill of entry also, the above referred procedure shall be followed at the time of manifestation of the bill of entry.
Provisional Registration of B/E
(ii) If the importer/authorized clearing agent states in writing on the reverse of original bill of entry, with his stamp and signature, that any of the PSI related documents is not available due to unavoidable reasons, or the goods have been received without Pre-shipment Inspection, the import section shall manifest the bill of entry as presented and shall return the same after completion of necessary formalities to the importer/authorized agent for its registration in the respective Appraising Group.
Processing in the Appraising Group:
(iii) The bill of entry shall be scrutinized by the concerned Group in the usual course of processing, and Shall be completed if the value, duly, taxes and other details shown in the CRF are in order and properly declared in the bill of entry, in accordance with the provisions of section 25 or 25B read with section of 30 of the Customs Act, 1969.
Provisional Release:
iv) Where the bill of entry is received in the Group without any of the PSI related documents, the following procedure shall be followed namely: -
(a) In cases importer/clearing agent claims that no CRF has been issued by the respective PSI Company even after 48 hours of request for issuance of CRF, the PSI Control Office shall send a notice to the respective PSI Company to issue CRF or indicate the reasons for non issuance thereof on priority. If the PSI Company fails to respond within 3 days or such notice the goods shall be released provisionally at the highest available evidence/valuation advice that the CRF will be produced within the prescribed time and that the differential amount of customs duty and other taxes shall be paid by them. The release shall however be subject to proper examination of goods through the Assistant Collector/Deputy Collector (Sheds) and after fulfillment of all other formalities including adjudication if required.
(b) In case where a bill of entry is filed with original CRF and Inspection Order but the original security labeled attested invoice is not attached, the B/E shall be allowed to be processed against undertaking (Format- A), as in the case of CRF above, after proper examination through Assistant/Deputy Collector (Sheds).
(c) The above referred undertakings in each case shall be accepted by the Principal Appraiser of the group under a progressive serial number for which record in the prescribed format (Format-B) shall be maintained and the undertakings shall be discharged on receipt of CRF or security labeled invoice as the case may be.
1st Examination
v) In case the Appraising Group is of the view that complete information including shall life/PCT No/SRO/origin etc. is not indicated, or if in the case of dyes, food colors and chemicals analysis/test report is not given by PSI Company or entries made in the CRF or in the bill of entry are not correct, the B/E shall be processed under the first examination system under section 80 of the Customs Act, 1969, while the bill of entry found in order shall be marked Allowed Payment and returned to the importer/agent for further processing under 2nd Appraisement/Examination System.
Valuation Disputes:
vi) In case of reasonable belief that the value confirmed by PSI Company is not correct, the goods may be assessed provisionally at the level of the Assistant Collector under section 81 of the Customs Act, on the higher value prevailing on the date of filing of Bill of Entry, than the value shown in CRF, Final adjustment shall be made on receipt a revised valuation advice from the PSI Company or decision by the respective authority, as the case maybe.
Provided that where valuation advice fixed by the Controller of Valuation is higher than the value shown in the CRF, and the Appraising Group is not in possession of direct evidential invoice in respect thereof the case shall be referred with a self contained note to the respective Deputy Collector of Customs who shall decide whether assessment is to be made on the basis of valuation advice or the CRF.
Record Maintenance by Group:
vii) Record of evidence of higher value whether in the form of CRF or otherwise shall invariably remain available with the Group concerned. The Principal Appraiser Incharge of the Group shall ensure the maintenance of record for PSI related consignments as per Annex-A and supply photocopy of each CRF with following information on reverse side of the same along with a photocopy security labeled invoice and computer print of Inspection Order to the PSI Control office daily before the closure of office.
1) S. No. ________________________________________________
2) B/E Machine No. with date: _______________________________
3) Declared assessable value
4) CRF No. with date_______________________________________
5) CRF Value_____________________________________________
6) Value ascertained/valuation advice__________________________
7) Revenue Gain/Loss because of CRF________________________
8) Revenue Gain over CRF_________________________________
9) PCT heading (if other than that_____________________________ Given in CRF)
10) SRO applied i) in CRF___________________________________
ii) by the Group
11) Any other discrepancy i.e. ITC contravention, valuation disparity, non application of import Policy Order detected by the group in the CRF_________________________
A.O. (Group-------- ) P.A. (Group --------)
(B) FILING & PROCESSING OF T Ps:
(i) (a) The carrier shall submit the Application for Transshipment (TP) in the Import Section of registration along with the requisite documents including documents including the following:--
- Clean Report of Findings (CRF).
Copy of Seller’s Final Invoice, duly attested by the PSI Company with security label.
- Inspection Order.
(b) An extra (photocopy) set of PSI-related documents referred to above shall be attached with the T. P.”
(ii) The Import Section shall scrutinize the documents to determine the genuiness of the Transshipment applications ascertaining that the declarations made on the T.P application are in line with the findings of PSI Company as recorded in the CRF.
(iii) If the request for transshipment is found to be in order it shall be allowed as perusual practice and the original set of PSI related documents shall be returned to the importer/agent.
(iv) The designated clerk in the Import Section shall, detach the extra set ofPSI related documents and after endorsing number and date of 1GM &Index as well as the destination of the T.P on the CRF shall immediately hand over the same to the PSI Control Office.
(v) In case the T.P is not allowed, the importer shall be required to file the bill of entry which shall be processed under this order like other bills of entry relating to pre-shipment inspection consignments.
(vi) The above procedure shall however not apply to TPs which shall be processed as per old procedure till further orders.
C) EXAMINATION OF GOODS:
(i) Each Assistant Collector (Sheds) shall designate the Shed Principal Appraisers in whose office the bill of entry under PSI Scheme under 2nd Appraisement/examination system will be registered.
(ii) The Assistant Collector/Principal Appraiser (Sheds) with the help of other examination staff shall get the contents of the CRF tallied with the" marks and numbers in the case of small packages and seal/container numbers in the case of containerized cargo and upon satisfaction that the consignment relates to the CRF attached with the bill of entry and also that the duty and taxes and other charges have duly been, paid shall make the entry out of charge of Customs.
(iii) Keeping in view the nature of cargo and place of origin/port of shipment etc. the Assistant Collector (Sheds) of his authorized officer shall choose consignments on selectivity basis for detailed examination. However, consignments of scrap, all sorts, old/used goods and job/stock lot goods irrespective of their origin and all consignments originating from Hong Kong, Singapore, Taiwan and Gulf states shall be examined with a view to correctly determining their correct origin, quantity and value.
(iv) If the seals of containers are broken or tampered with or the contents/goods are found to be different than shown in CRF the goods may be re-examined on the request of Customs in the presence of "representatives of PSI Co. and importer at the expense of the importer. The coordination in this respect shall be made through the PSI Control Officer. However, no payment by the importer to PSI Company will be required if the examination of goods confirms mistake/omission by the PSI Company.
(v) In cases where physical examination of goods calls for revision of the assessment, the bill of entry shall be marked back to the concerned Appraising Group which will finalize the assessment after taking such action as is required under the Law under intimation to PSI Control Office/PSI Company.
(vi) During the examination/assessment, it shall be ensured at each level that the notes/observations are recorded on the duplicate bill of entry invariably in the prescribed format for each Group/item.
(vii) In case where the group makes provisional assessment or forwards the case to the shed for examination prior to final assessment or the case is referred to the Working Committee for dispute resolution, the bills of entry shall be registered in the office of the Assistant Collector (Sheds) who shall get the goods examined under the supervision of the Principal. Appraiser nominated by the Assistant Collector in this behalf.
(viii) Each Principal Appraiser (Sheds), designated in this behalf, shall maintain a register regarding PSI related consignments in the prescribed from (Annex-B) and shall send through the Assistant Collector Incharge a daily report to the PSI Control Office on the given proforma
(ix) The Assistant Collector (Examination) shall after final clearance of goods arrange to send to the PSI Control Office, the duplicate bills of entry along with the original set of the PSI-related documents. The PSI Control Office shall replace the original PSI related documents with the extra set already available with it and transmit the duplicate bill of entry of the Audit Section along with the extra set of PSI related documents.
(x) Fumigation/ Inspection: In case of goods where fumigation or inspection is required for issuance of Quarantine certificate by the concerned authority, the bill of entry shall be processed on First Examination System. The. designated Appraising/Examining Officer of the respective Shed shall allow de-sealing for fumigation purposes after satisfying himself that PSI seal is intact and Seal Nos./Container Nos. on original and duplicate copies of the bills of entry tally with those mentioned in the CRF. Examination report shall be recorded thereafter as and when the goods are presented for examination, but in no such case the bill of entry shall be sent back to the Appraising Group without examination report.
(xi) Examination de-stuffed from containers: In case of de-stuffing of FCL containers of PSI related consignments the authorized person of the shipping company shall take note of the intactness of seals before opening the container for de-stuffing. He shall note down the numbers of ail the seals which are applied on the container with details as to whether or not the same are intact or broken. The authorized person of the shipping company shall submit daily report of such cases to the Assistant Collector of Customs (Wharf) showing vessel’s name, IGM No. / date, Index No., Container No., Seal Nos, confirmation of nature of seals. The examination staff while examining the consignments shall consult shipping company’s report regarding seal numbers and their nature, as well as the nature of shipment as to whether received in container or otherwise and shall base the examination report thereon
(D) EX-BONDING:
(i) In case of ex-bonding the importer or his authorized Clearing Agent shall obtain fresh CRF from the PSI Company for each ex-bond bill of entry. In exceptional cases, however, release may be allowed without CRF by respective Deputy Collector of Customs provided that the importer as well as the clearing agent undertakes to pay the differential amount, if any, and to produce CRFs for all Ex-bond B/E before clearance of the last consignment involving at least 25% of the total imported goods.
(ii) In case the importer fails to ex-bond the goods within seven (7) days in accordance with the provisions of section 30 read with section 104 of the Customs Act, 1969 (IV of 1969), he shall be required to product a fresh CRF, issued by the PSI Company, provided that if no higher evidence of value than given in the ex-bond CRF has been received or no change in the exchange rate has taken place, endorsement of “no change” shall be made by the respective Appraising Group without insisting for fresh CRF.
(iii) Bonded goods shall be re-inspected in the presence of Customs and representatives of PSI Company and importer, at the expense of the importer, in the following circumstances:-
a) When Customs intend to verify condition of the goods at the time of extension of warehousing period on the request of the importer.
b) When importer desires re-assessment due to damage or deterioration.
c) When importer desires re-assessment due to change in value at the time of ex-bonding.
(E) RESOLUTION OF DISPUTES:
(i) In case of dispute, with reference to Rule 4(6) of SRO 1108(l)/94 dated 14.11.1994 the importer may file a representation, along with the supporting documents (in triplicate) for resolution of the dispute to the Working Committee, headed by the Deputy Collector of Customs, incharge, PSI Control Office, after getting the goods cleared provisionally oh evidence available with the respective group by 10% or above, clearance may be allowed provisionally subject to payment of duty and taxes on the basis of that highest evidence and submission of pay order equal to the difference between the highest evidential value and the disputed CRF. The pay order for additional amount shall be returned to the importer on production of downward revised CRF or in the light of decision by Working Committee, as the case may be.
(ii) The Working Committee shall meet as many times in a week as agreed between the members to conduct its business.
(iii) In case the importer disagrees with the decision of the Working Committee, the case will be dealt with in the normal course of adjudication/appeal in accordance with the provisions of the Customs Act, 1969.
(F) REFUNDS:
(i) All the Assistant Collectors/Principal Appraisers shall forward refund claims pertaining to PSI Scheme for comments by the PSI Control Office. The refund claims shall be sanctioned by the respective PA/AC/DC in the light of comments.
(ii) Accounts section shall not allow any payment without obtaining final advice from the “PSI Control Office.”
(G) PROCEDURE REGARDING CONSIGNMENTS RECEIVED WITHOUT JPSI:
(i) In case, the goods have been imported without pre-shipment Inspection despite requirement thereof, the bill of entry shall be referred by the Group to the relevant Assistant Collector of Customs with a self-contained note regarding previous values available in the form of CRF or otherwise, seeking the decision whether destination inspection is required or not. If it is decided that destination inspection is required, the file shall be referred to the PSI Control Office for coordination with the respective PSI Company.
(ii) Regardless of the course which might be followed in this regard, such consignments shall not be finally released unless the violations of section 219 of the Customs Act, 1969 and 3(1) of the Imports and Exports (Control) Act 1950 have been adjudicated upon by the competent authority.
(H) ADJUDICATION:
Show cause notices and adjudications shall take place as per normal procedure in case of contraventions involved. However, the contra-venous regarding non inspection of goods by the PSI Companies may be adjudicated under early adjudication scheme, if so requested, on the reverse side of B/E. The following action is suggested for the sake of uniformity:-
(i) Release against imposition of redemption fine equal to 1 % if the ascertained value does not exceed Rs.150000/- to 300000/-.
(ii) Release against imposition of redemption fine equal to 1 % if the ascertained value ranges from Rs.15000/- to 300000/-
(iii) Release against redemption fine equal to 5% of the ascertained value if it exceeds Rs.300000/-
(I) COMPUTERIZATION OF RECORDS:
(a) On receipt of software of PSI sequential number statement of inspection orders from the PSI Company, the Custom House, Computer Bureau, shall before generating computer printout thereof, add to the statement additional columns as per Annexure-C.
(b) After filling in the new columns in the on line system to the extent of available data the Computer Bureau shall sand the computer printout thereof to the PSI Control Office on daily basis.
(c) The PSI Control Office shall fill in the outstanding blank columns/entries on, the basis of bills of entry and other documents etc., received by it under this order.
(d) The PSI Control Office shall return the computer printout, duly filled in as aforesaid, to the Computer Bureau.
(e) The Computer Bureau will feed the information given by the PSI Control Office in the Computer and will generate final printout and send it to the PSI Control Office along with the original printout manually filled in by the PSI Control Office
(J) ROLE OF PSI CONTROL OFFICE:
The PSI Control Office shall:
(i) Receive and maintain the record of CRFs issued by PSI companies in sequential order as indicated in Inspection Order Receipt. Similarly data of Inspection Orders (computer generated) shall also be maintained in sequential order:
(ii) Prepare on monthly basis a comparative statement of findings reported by PSI Company, and the findings by the Customs Officials, showing additional/loss in revenue separately owing to the performance of PSI Companies as well as Customs department:
(iii) Receive periodical report from the PSI Companies for critical study and analysis;
(iv) Keep liaison with the Steering Committee to co-ordinate the working of the PSI program;
(v) Ensure that the PSI companies are promptly informed of all tariff changes, exemptions from duty and other applicable SROs including import regulations, on receipt of the same from the Board and other concerned department;
(vi) Ensure that the PSI companies promptly receive relevant information concerning all Collectorates, on the agreed format, of all Bills of Entry relating to home consumption or warehousing or transshipment, including those relating to goods imported below the floor value of US $ 3,000.00 excluding exempted goods.
(vii) Keep liaison with the PSI companies for exchange of information as deemed necessary; and
(viii) Maintain copies of invoices of fees presented by PSI Companies and make proper check and accounting before the next invoice is paid
3. The registration and processing of Bills of Entry. Transshipment Permits, examination of goods, clearance from port Area or into or ex-bonding, and all other matters, shall be conducted in accordance with the Rules contained in SRO 1108 (l)/94 dated 14-11-1994 read with this Standing Order.
Signed by
(Muhammad Ramzan)
Collector
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