THURSDAY JUNE 16: APTTA rules notified

ISLAMABAD: The Federal Board of Revenue on Wednesday notified the Afghanistan-Pakistan Transit Trade Rules-2011 under which registered Afghan transporters would submit bank guarantee equivalent to 25 percent of the amount of duty and taxes leviable on such vehicles carrying transit goods under the new Afghanistan - Pakistan Transit Trade Agreement, (APTTA).
According to the new rules, in case of transport units registered in Afghanistan, carrying transit goods, the transport operator or his authorised Customs clearing agents, or the concerned chamber of commerce or the concerned government department shall lodge a bank guarantee or revolving bank guarantee from a scheduled bank, acceptable to Customs equivalent to 25 percent of the amount of duty and taxes leviable thereon, which shall be valid for at least one year and shall be encashable in Pakistan.
Provided that in case a transport operator desires to operate less than four transport units, he shall provide a bank guarantee of 100 percent of the amount of duty and taxes leviable on each transport unit. Provided further that if a transport unit does not return to Afghanistan as per the provisions of this chapter the bank guarantee shall be encashed for the full amount of duties and taxes leviable on that transport unit.
According to the rules, Pakistani customs would get from Afghan importers insurance guarantee equivalent to 100 percent amount of taxes and duties applicable on goods imported for Afghanistan through Pakistani land route. The customs security in the form of insurance guarantee from an insurance company of repute shall cover all import levies, including but not limited to Customs duty, regulatory duty, Sales Tax, additional sales tax, federal excise duty, income tax etc, and any other import levy chargeable on goods so carried, the rules explained.
Afghanistan-Pakistan Transit Trade Rules have also made it mandatory for Afghan transporters to furnish bank guarantee equivalent to 25 percent of the duties and taxes on Afghan trucks entering in to Pakistan for carrying goods to Afghanistan.
Under the rules, the notification SRO 601 (I)/2011 issued by the FBR has operationalised Afghan Pakistan Transit Trade Agreement (APTTA) also include the. Furnishing of Financial Guarantee, the Afghan based importer of goods or his authorised Customs clearing agents, brokers or transport operator in Pakistan shall furnish Customs security in the form of insurance guarantee from an insurance company of repute, acceptable to Customs, in the prescribed form which shall be valid for at least one year and shall be en-cashable in Pakistan, for ensuring the fulfilment of any obligation arising out of Customs transit operation between Pakistan and Afghanistan.
The amount of Customs security for transit operation shall be determined by the Assessing Officer (AO) and Principal Appraiser (PA) of the office of departure (Customs port of entry) so that it covers all import levies, including but not limited to Customs duty, regulatory duty, Sales Tax, additional sales tax, federal excise duty, income tax etc, and any other import levy chargeable on goods so carried.
In case of transport units registered in Afghanistan, carrying transit goods, the transport operator or his authorised Customs clearing agents, or the concerned chamber of commerce or the concerned Government department shall lodge a bank guarantee or revolving bank guarantee from a scheduled bank, acceptable to Customs equivalent to twenty five per cent of the amount of duty and taxes leviable thereon, which shall be valid for at least one year and shall be encashable in Pakistan, Custom Rules stated.
Provided that in case a transport operator desires to operate less than four transport units, he shall provide a bank guarantee of hundred per cent of the amount of duty and taxes leviable on each transport unit, Custom Rules stated. Provided further that if a transport unit does not return to Afghanistan as per the provisions of this chapter the bank guarantee shall be encashed for the full amount of duties and taxes leviable on that transport unit.
For Acceptance of Financial Guarantee, the Principal Appraiser or Superintendent or an officer deputed at the office of departure in this behalf, on receipt of financial guarantee, covering duty or taxes involved on vehicles and goods, as specified in these Rules, entering Pakistan, shall ensure that the financial guarantee has been issued by a company of repute or a scheduled bank, as the case may be, which is en-cashable in Pakistan and contents thereof are in conformity with the particulars of vehicle or consignment against which it is being furnished.
The in-charge Afghan Transit Group at the office of departure or office en-route shall ensure entries in the relevant register as per format prescribed for goods and vehicles separately. After acknowledging receipt of the original financial guarantee, entries shall be made in a separate register to be maintained for the purpose and feed the particulars in the computer system.
In case of border customs station, after accepting the financial guarantee and allowing clearance of Afghan registered vehicles or transit goods, the officer concerned shall submit the financial guarantee in original along with a covering letter to the financial guarantee Cell of the Collectorate within forty eight hours of acceptance for safe custody. Photocopy of the financial guarantee shall, however, be retained in the original file in the concerned office, where these were accepted. The Financial Guarantee Cell after acknowledging receipt of the original financial guarantee shall make entries in a separate register to be maintained for the purpose and feed the particulars of the instrument in the computer system.
Release, encashment and monitoring of financial guarantee. The financial guarantee shall be released, encashed and monitored in the following manner, namely Submission of documents and release of Customs security for goods. In case of Afghan international transit made through sea port, the importer or his authorised clearing agent shall submit the duplicate copy of the GD in original along with the GD, in original, filed with the Afghan Customs Department (ACD) which indicates payment of duties or exemption in Afghanistan with stamps, names, designation and signatures of the ACD staff.
In case the goods imported at border customs station and exported through sea port, the duplicate copy of the GD shall be submitted by the importer or his authorised clearing agent to the office of departure which shall bear MR number and date, Custom Rules stated.
In case the goods imported at border customs station and exported through a border station, the duplicate copy of the GD shall be submitted by the importer or his authorised clearing agent to the office of departure which shall bear endorsement of "Crossed Border" by the appropriate Customs officer with name, designation and date. The Principal Appraiser or Superintendent of Customs, as the case may be, after proper scrutiny of the aforesaid documents and satisfying him-self that the duplicate copy received is in order, shall release the Customs security, Custom Rules stated.
Submission of documents and release of Bank guarantee for vehicles. In case of vehicles, the importer or his authorised clearing agent shall submit duplicate copy of TAD in original from appropriate customs officer with his stamp, name, designation, signature and date and also 'Exit Stamp'; and the Principal Appraiser or Superintendent of Customs, as the case may be, after proper scrutiny of the duplicate copy of TAD and satisfying himself that the copy received is in order, shall release the bank guarantee.
Encashment and monitoring of Financial Guarantee: The Principal Appraiser or Superintendent of the office of departure shall be responsible for taking appropriate steps on fortnightly basis for timely encashment, revalidation or release of financial guarantee. The concerned officer shall also maintain a register for entering the particulars of all financial guarantee accepted. In case of non-receipt of cross border certificate or TAD bearing "exit stamp" or non-fulfilment of any conditions against which the security was furnished by the Afghan importer or exporter, the concerned officer at the Office of Departure shall take action for enforcement or encashment of the financial guarantee for recovery of government revenue involved therein, Custom Rules added.
Upon finalisation of action, the Afghan Transit Group shall forthwith instruct the concerned guarantor or bank or financial institution, as the case may be, to encash the guarantees and remit the amount in favour of the concerned Collector of Customs. After receipt of Payment Order from the concerned bank, the officer shall deposit the same in National Bank of Pakistan for transfer into the government treasury.