The Federal Board of Revenue has issued a new procedure for the mutilation or scrapping of imported goods including tyres/tubes, foils/films, pipes/tubes, bars/rods, sheets/ plates,beams/girders and ship plates, etc. The FBR on Monday amended Chapter-XXIV of the Customs Rules 2001 through a notification.
According to the procedure, section 47A (Allowing denaturing or mutilation of goods) of the Customs Act would be followed by the department in this regard. The FBR procedure has explained the details of the goods allowed for mutilation or scrapping. The following old and used items, if imported in serviceable condition along with the scrap consignments or imported separately as a scrap and found serviceable, may be allowed mutilation or scrapping, as the case may be, within the meanings of section 27A of the Act: Tyres or tubes, foils or films, pipes or tubes; bars or rods; sheets or strips, slabs, plates; beams, sections, channels or girders, used and pitted railway tracks, and ship plates cutting of various sizes with rough edges and having welded joints.
Under the procedure, an importer or his agent before filing the goods declaration shall make a request in writing to the assistant or deputy collector of customs in respect of items specified in rule for the mutilation or scrapping thereof.
The applicant will provide all the necessary Information with regard to mutilation or scrapping of goods. The applicant shall furnish all the import related documents available to the assistant or deputy collector of customs. All operations of mutilation or scrapping of goods shall be carried out by the applicant under the supervision of appropriate officer of Customs at such place as may be approved by the assistant or deputy collector of customs.
If a laboratory test is required, the applicant shall make arrangements for drawing samples. The samples drawn shall be in adequate quantities to permit more than one test in case such a contingency arises. The result of such tests shall be made available to the applicant, rules said.
The applicant shall pay fee for supervision charges and all other expenses including incidental charges connected therewith in connection with the mutilation or scrapping of goods, the FBR procedure added. Following is the text of the notification issued here on Monday:
In exercise of the powers conferred under section 219 of the customs act, 1969, (IV of 1969), the Federal Board of Revenue is pleased to direct that the following further amendment shall be made in the customs rules, 2001,namely. In the aforesaid rules, in chapter XXIV, in rule 592. In clause (IV) the word "and", occurring at the end, shall be omitted. In clause (V), for the full stop at the end, a semi-colon shall be substituted and thereafter the following new clauses shall be added, namely. "(vi) foils or films; and (vii) tyres or tubes."