Legal changes made thru Finance Bill: FBR sets up body to formulate rules

KARACHI: The Federal Board of Revenue (FBR) has constituted a committee to formulate rules in accordance with the legal changes made through clause 28(a)(i) & clause 28(a)(ii) of the Finance Bill, 2021 by July 15, 2021. According to the notification issued here, the committee would develop parameters to specify the person and circumstances in which the prescribed penalty shall be imposed in reference to clause 28(a)(i). Similarly, clause 28(a)(ii), identification of different types of goods declarations (GDs) and prescribe documents that are considered mandatory for submission along with those GDs. Moreover, the committee is also directed to get feedback from the trade and industry before formulating rules for the referenced clauses.

The board also informed that the amended provisions of section 156(I) of the Customs Acts, 1969 would become enforceable once the requisite rules were notified by the FBR, directing the committee to prepare a comprehensive report and submit it to the board by July 15, 2021.

While welcoming the decision to take trade and industry on board before formulating the rule under the said clauses, Arshad Jamal, chairman All Pakistan Customs Agents Association (APCAA) said that the association had already submitted its recommendations in this regard.

The association in reference to section 156(I) proposed that if the importers of the goods mentioned the condition "Pasting of Invoice/Packing List on or inside the containers or on LCL shipments in the Letter of Credits, Bank Contracts, Performa Invoice; no penalty may be imposed on the importers of goods.

He said that being the first handler of shipments on behalf of the owner/importer of goods, and licensee of Pakistan customs, it is the responsibility of the shipping lines, airlines or shipping agent to ensure that the invoice/ packing list is pasted on containers or LCL shipments, they do not accept the shipment without the said requirements.

Furthermore, chairman APCAA said that if the shipping agents, shipping lines and airlines failed to comply then they would be penalized with a maximum penalty of Rs.50,000 and they were restricted to mention the invoice no, date, and value of invoice on the bill of lading and import manifest and for air cargo, the condition of invoice & packing list would not be mandatory, if the weight of the parcel was less than 100 kilograms.

Copyright Business Recorder, 2021