Customs duty in pakistan


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Customs duty in Pakistan

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Customs duty in pakistan

  1. 1.
  2. 2. Customs Duty<br />Customs duty is a kind of indirect tax which is realized on goods of international trade.<br />It is categorized into Import duty and Export duty levied upon import and export of goods respectively.<br />
  3. 3. Customs Act 1969<br />Act number. IV of 1969<br />Assented on 3rd March, 1969<br />Promulgated on 8th March, 1969<br />Enforced on 1st January, 1970<br />
  4. 4. Terminologies and Definitions<br />
  5. 5. Definitions<br />Adjudicating Authority<br />Any authority which is competent to pass any order under the Custom Act,1969.<br />
  6. 6. Definitions(Cont’d)<br />Appropriate Officer<br /> Means an officer to whom certain functions have been assigned by or under the Customs Act,1969.<br />
  7. 7. Definitions(Cont’d)<br />Conveyance<br /> Any means of transport used for carrying goods or passengers.<br />
  8. 8. Definitions(Cont’d)<br />Custom Airport or Custom Port<br /> Any airport or port declared by the Board to be a customs airport or port for the clearance of goods imported or to be imported into Pakistan.<br />
  9. 9. Custom Area<br /> The limits of the specified customs station and includes any area in which the imported good or the goods for export are ordinarily kept before clearance by the customs authorities.<br />Definitions(Cont’d)<br />
  10. 10. Detain<br /> Means to prohibit the disposal or use of goods, due to the pending of any proceedings under the act 1969 in relation to the goods or their owner.<br />Definitions(Cont’d)<br />
  11. 11. Warehouse<br /> A place appointed or licensed wherein the dutiable goods may be deposited without payment of custom duty.<br />Definitions(Cont’d)<br />
  12. 12. SCOPE OF CUSTOM DUTIES<br />
  13. 13. Custom Duties<br />Goods imported into Pakistan.<br />Goods which are brought from any foreign country and are transported, without payment of duties ,from one customs station to another.<br />
  14. 14. Regulatory Duty<br />It is imposed on all or any of the goods specified in the First Schedule,at a rate not exceeding one hundred per cent(100%) of the value of goods.<br />This duty is imposed on the goods at their import or export.<br />
  15. 15. Additional Customs-Duty<br />Additional custom duty shall be levied at a rate not exceeding thirty five percent(35%) of the value of goods<br />
  16. 16. Special Customs Duty<br />It is imposed on the import of such goods as are of the same kind as goods produced or manufactured in Pakistan.<br />It is levied at a rate not exceeding the Federal excise duty (15%) leviable under the Federal Exercise Act,2005 on the goods manufactured or produced in Pakistan. <br />
  17. 17. Fee and Service Charges<br />The Government may levy fee and service charges by giving a notification in the official Gazette.<br />The rates for fee charges will also be specified in the notification.<br />The Government may impose such conditions,limitations,restrictions as it may deem fit to impose.<br />The charges may be levied for examination, scanning ,inspection, sealing, de-sealing, valuation check.<br />
  18. 18. SyedaMaryamKazmi<br />SyedaMaryumKazmi<br />ID: 14<br />
  19. 19. Officers of Custom<br />
  20. 20. Officers<br />A Chief Collecter of Customs<br />A Collecter of Customs<br />A Collecter of Customs (Appeals)<br />An Additional Collecter of Customs<br />A Deputy Collecter of Customs<br />An Assistant Collecter of Customs<br />An officer of Customs with any other designation<br />
  21. 21. Declaration of Ports,Airports,Land Customs Stations, Etc<br />
  22. 22. Declaration of customs ports<br />The places which alone shall be customs ports or airports for the clearance of goods imported or to be exported.<br />The places which alone shall be land customs-stations for the clearance of goods imported or to be exported by land or inland waterways.<br />
  23. 23. The routes by which alone goods or any class of goods may pass by land or inland waterways into or out of Pakistan,or to or from any land custom-station or to or from any land frontier.<br />The places which alone shall be ports for the carrying on of coastal trade with any specified customs-ports in Pakistan. <br />
  24. 24. Prohibition and Restriction on Importation and Exportation<br />
  25. 25. Counterfeit coins and currency notes and any other counterfeit product.<br />Any obscene book, drawing, painting, representation, article, video or audio recordings.<br />Goods having a counterfeit trade mark or a false trade description.<br />PROHIBITION<br />
  26. 26. Goods produced outside Pakistan and having any trade mark of any manufacturer, dealer or trader in Pakistan unless:<br />The trade mark has some definite indication of the goods having been made in a place outside Pakistan.<br />That country’s name is written in the same language and character as in the name or trade mark.<br />PROHIBITION (Cont’d):<br />
  27. 27. Goods involving infringements of copyrights, layout-design, patent within the meaning of The Copyright Ordinance 1962, The registered Design Ordinance 2000 and The Patent Ordinance 2000 respectively. <br />PROHIBITION (Cont’d):<br />
  28. 28. Exemption From Custom Duties<br />
  29. 29. The Federal Government may exempt from the whole or any part of the custom duties chargeable on any of the following goods:<br />Goods imported into Pakistan<br />Goods exported from Pakistan<br />Goods imported into any specified port, station or area.<br />Goods exported from any specified port, station or area.<br />General Powers To Exempt From Custom Duties<br />
  30. 30. Board’s Power To Grant Exemptions<br />Under circumstances of exceptional nature, the Board may exempt any goods from of the whole or any part of the customs duties chargeable thereon.<br />
  31. 31. Power To Deliver Certain Goods Without Payment of Duty <br /><ul><li>The Board may authorize:
  32. 32. The delivery without payment of the custom duties chargeable thereon of goods which are imported only temporarily with a view to subsequent exportation.</li></li></ul><li>Repayment is made for the goods which have been used in production, manufacture, processing or repair of goods that are meant for exportation.<br />Repayment of Duty on Certain Goods (Cont’d)<br />
  33. 33. Re-Importation of Goods Manufactured In Pakistan<br />Goods produced in and exported from Pakistan if subsequently imported into Pakistan will be liable to custom duties.<br />
  34. 34. Re-Importation of Goods Manufactured In Pakistan<br />
  35. 35. Value of Imported <br />&<br /> Exported Goods<br />Imports<br />
  36. 36. Customs Value of Imported Goods<br />The transactional value shall be taken as the customs value of the imported goods. <br />Transaction value means the price actually paid or payable for the goods when sold for export to Pakistan.<br />
  37. 37. Transaction Value<br />It includes:<br />The cost of transport of the imported good.<br />Loading , unloading and handling charges.<br />Insurance cost.<br />Commissions and brokerage but excluding the buying commission.<br />Cost of containers forming part of the goods<br />Labor or material cost of packing.<br />Royalties and license fees paid by buyer.<br />
  38. 38. Deductive Value<br />If the customs value of imported goods can’t be determined then the following methods will be adopted:<br />Ascertain the unit price at which the imported goods are sold.<br />Deduct there from the following:<br />The commission paid<br />The additions made for profits and general expenses in connection with sales of imported goods in Pakistan <br />
  39. 39. Deductive Value ( Cont’d):<br />The cost of transport, insurance and other associated cost.<br />The custom duties and other taxes payable in Pakistan.<br />Other expense incurred in connection to import of such goods.<br />
  40. 40. Computed Value<br />Computed Value method involves the addition of the followings:<br />The cost of value materials and fabrication for producing the imported goods.<br />The addition usually made for profit .<br />All other costs incurred in connection with the imports.<br />
  41. 41. Fall Back Method<br />It can be determined on the basis of a value derived from among all methods while applying them in a flexible manner to the extent necessary to arrive at a custom value.<br />
  42. 42. Customs Value of Exported Goods<br />The value at which the goods may be sold in open market for exportation. Following conditions apply for determining this value:<br />Goods are treated as having been delivered to the buyer.<br />The seller will bear all the expenses till the goods are on board the conveyance.<br />The value to use patent rights and trade mark will also be considered.<br />
  43. 43. Clearance of goods for home consumption<br />Section 83<br />The appropriate officer may make an order for the clearance of goods if<br />He is satisfied that:<br />The import of the goods is not prohibited<br />The import of goods is not in breach.<br />When goods have been assessed<br />When owner has paid import duty and other charges<br />
  44. 44. Warehousing<br />
  45. 45. Warehousing<br />Section 84<br /> Where any dutiable goods have been entered for warehousing , the owner may apply for leave to deposit the goods in the warehouse appointed under the customs Act 1969<br />
  46. 46. Form of application<br />(Section 85)<br />There will be an application form in writing signed by the applicant<br />
  47. 47. Warehousing bond<br />Section 86<br />When any such application has been made in respect of any goods, the owner of the goods shall execute a bond , binding himself to <br />Observe all the provisions<br />To pay all duties , rents , charges and surcharge at the rate of KIBOR plus 3% per annum.<br />To discharge all penalties incurred in case of violation of the provisions of the law.<br />
  48. 48. Forwarding the goods to warehouse<br />Section 87<br /><ul><li>Goods shall be forwarded in charge of a custom officer to the warehouse
  49. 49. A pass shall be sent with the goods specifying all the details about goods</li></li></ul><li>Receipt of goods at warehouse <br />Section 88<br />The pass shall be examined by the warehouse keeper<br />Returned to appropriate officer<br />Only correspondent goods will be entered as mentioned in the pass<br />
  50. 50. Payment of rent and warehouse dues<br />Section 96<br />The owner has to pay monthly rent and warehouse dues within 10 days of the demand notice, at such rates as the collector of customs may fix.<br />In case of default, the appropriate officer may order to sell sufficient portion of the goods<br /> Proceeds of such sales shall be adjusted<br />
  51. 51. Period of warehousingSection 98 <br />
  52. 52. Clearance of bonded goods<br />Section 104-107<br /><ul><li>The owner may clear the warehouse goods for home consumption by paying
  53. 53. The duty under customs Act, 1969
  54. 54. All rents, penalties, charges and surcharges payable</li></li></ul><li>Thanks For Your Cooperation<br />