June 08, 2007	Friday	Jamadi-ul-Awwal 22, 1428

KARACHI, June 7: The Central Board of Revenue (CBR) is likely to introduce wide range of changes in the Customs Act, 1969, in the budget 2007-08. Most of these amendments are related to the powers of officers and are of administrative nature, official sources said on Thursday.

Most of these amendments are being suggested to be made by bringing in changes in existing sections and clauses or even deleting some parts from the Customs Act.

Around fourteen changes are being presently discussed in the CBR for putting forward and once they are approved will be included in the Finance Bill of the new budget.

The proposals for effecting changes include power of collectors of customs to licence public warehouses to accept dutiable goods. At any warehousing station, the collector of customs may, from time to time, licence public warehouses or private warehouses wherein dutiable goods may be deposited without payment of customs duty.

It is being considered by the CBR to delete section 13 whereas section 12 would be corrected accordingly to meet the deficiency. Both the sections were embodied with same provisions.

It is being suggested that section 25-A (I) may be amended by deleting last sentence – “after following the scheme and sequential order as laid down under section 25.”

This means that CBR would like to change the section into following words — Notwithstanding the provisions contained in section 25, the collector of customs on his own initiative, or the director of customs valuation on a reference made to him by any person, may determine the value of any goods or category of goods imported into or exported out of Pakistan.

It has been observed that during one week prior to the budget most of the importers get their Goods Declarations (GDs) manifested and wait for announcement of the budget. If duty is reduced in the budget, importers do not pay duty within seven days.

In order to remove the manoeuvrability, it is being proposed that the second proviso to section 30 may be deleted. By this way the crucial date for the purpose of levy of duty will be date manifested on ex-bond GDs, which is in line with the procedure prevalent in Model Customs Collectorate.

This is going to be achieved by omitting second proviso to section 30 read as ‘date of determination of rate of import duty.’

The CBR may also make necessary amendment in section 81 under which provisional determination of liability takes place. It has been pointed out that importer also furnishes pay order, which is even more powerful instrument than bank guarantee for the purpose of release under section 81 of the Customs Act 1969. This instrument may also be included in the first proviso.Under rule 350 of the SRO 450(I)/2001 warehousing period has been fixed for two years in case of ship spares, air-craft stores and goods imported by duty free shops. However, the warehousing period is not vested in CBR under section 98 of the Customs Act. In order to make the Act and the rules in line, the amendment in the former is being suggested.

A new clause may be inserted in section 104 for ensuring timely payment of customs duty on imports. It has been recommended that where owner fails to pay import duty and other charges within 10 days from the date of which the same has been assessed under section 104, it should be liable to pay surcharge at the rate of 14 per cent per annum on import duty and charges payable on such goods.

Some other sections like 138, section 179(I) and 179 (3), section 202, section 202-3(a), sub-section (2) of section 211, section 219 and section 222 are being considered for making appropriate amendments and changes.