GOVERNMENTOFPAKISTAN
MODEL CUSTOMS COLLECTORATE OF PREVENTIVE
CUSTOM HOUSE,
KARACHI
Ph: 021-99214168 Fax: 021-99214234
No. SI/Misc/259/2017-AFU(Admn) Dated: April-14-2017.
PUBLIC NOTICE NO. 01/2017
Section 22 of the Customs Act, 1969 allows re-import of goods produced or manufactured in Pakistan without payment of duty and taxes subject to certain conditions as laid down therein. One of the main conditions to avail exemption is that the importer has not obtained rebate or refund of the goods exported by him.
2. The Pakistan Leather Garments Manufactures & Exporter Association (PLGMEA) in a meeting held in the office of the Chief Collector of Customs Enforcement South, Custom House, Karachi stated that the clearance of re-imported goods take long time (sometimes even a month) because of the reason that the staff of Air Freight Unit, JIAP, Karachi sends letters to Collectorates of Exports and RTO Karachi to confirm as to whether or not rebate or sales tax refund has been sought by the importer on the goods exported by him. They further stated that despite lapse of considerable time, no response is received from Collectorates of Export/RTOs and the goods are ultimately cleared by granting exemption under Section 22 of the Customs, Act, 1969. The association request to issue an SOP for handling of such consignments to avoid delay; as they have to re-export the goods immediately after removing the defects/making corrections as per order/contract.
3- The matter has been examined in detail. It is highlighted that E-form as well as Bank Credit Advice (BCA) have digitalized under WeBOC computerized system wherein E-form and BCA has been eliminated. Moreover, there is also no possibility of double claim of rebate; as no two E-forms can be fed up by the bank in the computerized system against one order/contract. There is also no possibility of getting adjustment of input tax or of obtaining refund of sales tax twice as no sales tax is paid on re-imported consignment.
4- In view of the afore-stated legal and factual position and to facilitate the importers/exporters in clearance of re-imported goods under Section 22 of the Customs Act, 1969 the following procedures is prescribed subject to fulfillment of the remaining conditions of the section:-
i. The importer shall submit copy of the GD of earlier export/airway bill, form-E pertaining to the said consignment alongwith undertaking that he had not received any refund or rebate of any amount paid to the federal and provincial government on earlier export after its exportation.
ii. He shall specify the reason (s) for return of goods by the buyer.
iii. He shall submit Post Date Cheque (PDC) of the amount of duty/taxes leviable on the imported goods on which exemption under section 22 of the Customs Act, 1969 is claimed.
iv. He shall also submit undertaking from the concerned association of the exporters that the case of claimant for exemption is genuine and the association would ensure that the amount of duty/taxes shall be paid if the goods are not re-exported within time.
5- On receipt of the aforementioned documents, the Customs Processing Officer would check the following:-
a. Specifications of the goods mentioned in the GD for earlier export, form-E, name of consignee & consignor and the country of return are the same etc.
b. The goods have been returned within one (01) year as time period mentioned under Section 22 of the Customs Act, 1969.
6- On processing of the documents if everything is found in order, the exemption from duty/taxes shall be allowed under Section 22 of the Customs Act, 1969. After re-exportation of consignment the exporter shall submit GD for export indicating the same Form-E, same consignee and same country of export. On furnishing of these documents PDC and Undertaking shall be released. In case the goods are not re-exported within 03 months of re-import, the PDC shall be encashed to recover the duty/taxes chargeable on re-imported goods. In case, the PDC is not encashed/returned/bounced back, an FIR shall be lodged under Section 32(1), 32 A read with clause 95A of Section 156(1) of the Customs Act, 1969 and Section 489-F of Pakistan Penal Code.
Signed by
(Dr. Saifuddin Junejo)
Collector
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