Warehouse operators: Bank statement showing sufficient funds to be made mandatory: FBR

ISLAMABAD: The Federal Board of Revenue (FBR) will make it mandatory for any person or firm desirous of operating a customs warehouse to declare bank statement showing sufficient funds in the bank account to cover the amount of duty/taxes leviable on the purported imports.

The FBR has proposed amendments to the Customs Rules, 2001, through a notification, issued here on Wednesday.

Under the existing rules, warehouse operator is required to submit documents including banker’s certificate, directly forwarded by the bank to the Collector in a sealed envelope, regarding financial transactions of the applicant during the last two years.

As per proposed amendments, any person or firm desirous of operating a customs warehouse should submit the banker’s certificate directly forwarded by the bank to the regulatory authority under sealed envelope regarding financial transactions of the applicant during the last two years, while in case of newly-incorporated companies, bank certificate directly forwarded by the bank to the regulatory authority under sealed envelope along with the statement showing sufficient funds in the bank account to cover the amount of duty and taxes leviable on the purported imports.

The revised rules further stated that the duty drawback claims marked by the Risk Management System (RMS) for compliance check to the Collector or designated officer shall be decided by the Collector or designated officer within seven working days on FIFO basis.

The FBR has also issued revised procedure for the units operating in the declared zones for availing the facility of subcontracting from the units located in the tariff area.

According to the draft rules, the units operating in a zone shall, subject to the law for the time being in force, be allowed to undertake subcontracting from the units located in the tariff area with the prior permission of the Collector of Customs.

Provided that the investor at the time of applying for subcontracting shall declare in his application about the process that he intends to get done from a vendor, along with particulars of the vendor.

The vendor shall have a valid sales tax registration being a manufacturer and his name shall be appearing in the sales tax active taxpayers list.

The vendor shall have in-house manufacturing facility to perform the stated manufacturing process.

The vendor shall not be changed or added except with prior permission of the Deputy Collector or Assistant Collector concerned.

Two sealed and signed samples of the goods shall be retained at the time of the movement of the goods for vending and the same shall be handed over on arrival of the goods, after the stated work has been carried on the goods, the FBR added.

Copyright Business Recorder, 2021