ISLAMABAD: The Federal Board of Revenue (FBR) has withdrawn the facility of importers for submitting the corporate guarantee.
The FBR has issued Circular No 01 of 2022, here on Wednesday on the Finance (Supplementary) Act, 2022 on the explanation of amendments in the Customs Act, 1969.
According to the FBR, the corporate guarantee is the instrument in which the guarantor is the entity or the individual submitting the guarantee whereas, in case of bank guarantee or pay order the issuing bank is the guarantor. In order to secure government revenue “Corporate Guarantee” has been omitted from section 81 of the Customs Act, 1969, retaining only bank guarantee and pay order for the purpose.
Under Section 25A of the Customs Act, 1969, both the Collector of Customs and the Director Valuation were authorised to determine the Customs Value of imported or exported goods on his own motion or on a reference made to him by any person after following the methods laid down in Section 25 of the Customs Act, 1969. However, in order to being uniformity, the role of Collector of Customs has been omitted and now the powers under section 25A have been entrusted with the respective Director of Customs Valuation to bring standardization in the process of fixation of values of goods.
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The FBR said that the post of Member Customs (Policy) and the Director General of Customs Valuation are both administrative in nature. Therefore, on the principle of natural justice, amendment has been made in section 25D, so that appeal against the decision of DG valuation should not lie before the Member Customs (Policy), and should be taken up at judicial fora to redress the grievances, the FBR said.
Limiting the checking of goods declaration within three years of its clearance under Sub-section (1) of Section 83 of the Customs Act, 1969 is uncalled for. Accordingly, section 80 has been amended.
The FBR said that the powers of Member (Customs Policy) with regard to hearing of appeals against the decision/order of DG valuation has been withdrawn.
Now, instead of filing appeal before the Member Customs (Policy) against the order/decision of DG Valuation, Section 194A has been amended so that the aggrieved party may file appeal before the Appellate Tribunal. The amendment in this section 196 is the consequential effect of the amendment proposed in Section 25D of the Customs Act, 1969, whereby, the powers of Member (Customs Policy) with regard to hearing of appeals against the decision/order of DG valuation have been omitted/withdrawn, the FBR added.
Copyright Business Recorder, 2022
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