The Customs Act, 1969

An Act to consolidate and amend the law relating to Customs

Whereas it is expedient to consolidate and amend the law relating to the levy and collection of customs-duties 1a[, fee and service charges] and to provide for other allied matters:

It is hereby enacted as follows:-

CHAPTER 1
PRELIMINARY

1. Short title, extent and commencement.
(1) This Act may be called the Customs Act, 1969.

(2) It 2[extends] to the whole of Pakistan.

(3) It shall come into force on such date as the 3[Federal Government] may, by notification in the official Gazette, appoint. 4[ ]

2. Definitions.
In this Act, unless there is anything repugnant in the subject or context:-

5[(a) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, 6[the Collector (Appeals)] or the Appellate Tribunal;] 7,45[(ai) “advance ruling” means a written decision by the Board or any officer or a committee authorized by the Board, on the request of an applicant for determination of classification, origin or applicability of a particular relief or exemption on goods prior to their importation or exportation, valid for a specified period of time;] 8[(aa) “agent” means a person licensed under section 207 or permitted to transact any business under section 208;” (aaa) “appellate tribunal” means the Customs 36[…..] Appellate Tribunal constituted under section 194;]

(b) 8a[“appropriate officer”, means the officer of customs to whom such functions have been assigned by or under this Act or the rules made there under;]

9[(bb) “assessment” includes provisional assessment, reassessment and any order or assessment in which the duty assessed is nil; 10[(bba) “audit” means examination of books, records, documents, correspondence, stocks and inventory of goods relating to import, export and other business activities of the persons referred to in section 211, in order to ascertain their liability of duties and taxes and compliance with relevant laws and rules;] (bbb) “baggage” includes unaccompanied baggage but does not include motor vehicles;] 47[(bbc) “bordering and coastal areas” means areas along international borders as notified by the Board;

11[(c) omitted. 12(d) omitted].

(e) 12a[“Board” means the Central Board of Revenue established under the Central Board of Revenue Act, 1924 (IV of 1924), and on the commencement of Federal Board of Revenue Act, 2007, the Federal Board of Revenue established under section 3 thereof;] 13[(ea) "carrier" means the person actually transporting goods or incharge of, or responsible for, the operations of the means of transport or the owner thereof;] 50[(eb) “Cargo Tracking System” means a digital system, as may be notified by the Board, for the prevention of smuggling and for the electronic monitoring of the import, export, transit, and transshipment of goods transported within or into or out of territory of Pakistan;]

(f) “coastal goods” means the goods transported in a vessel from one port in Pakistan to another, but does not include imported goods on which customs duty has not been paid; 14[(fa) “Collector” means Collector of Customs appointed under section 3 and includes any other officers equivalent in rank with any other designation appointed under this Act to perform specified functions in own jurisdiction;] 15[(ff) “Collector (Appeals)” means a person appointed to be a Collector of Customs (Appeals) under section 3;] 42[fff "controlled delivery” means supervised and coordinated operational activities that allow suspected consignments of prohibited and restricted goods, including items mentioned in section 2(s), to pass out of, through or into the territory of Pakistan, with a view to identifying persons involved in the commission of an offence cognizable under this Act;]

(g) “conveyance” means any means of transport used for carrying goods or passengers such as a vessel, aircraft, vehicle or animal;

(h) “customs-airport” means any airport declared under section 9 to be a customs- airport;

(i) “customs-area” means the limits of the customs-station specified under section 10 and includes any area in which imported goods or goods for export are ordinarily kept before clearance by the customs authorities; 16[(ia) "Customs Computerized System" means a comprehensive Customs information technology system specified in Chapter

XVI-A;

17[(ib) omitted].

44[(ic) “Customs controls” means measures applied by the officers of customs or through Customs Computerized System to manage risks and ensure compliance.]

(j) “customs-port” means any place declared under section 9 to be a 18[customs-port]; 19[(jj) omitted]. 40(k) “customs-station” means any customs-station, customs-airport, an inland river port, land customs-station or any place declared as such under section 9]; 20[(kk) “detain”, in relation to goods, means to prohibit the disposal or use of the goods, pending the finalization of any proceedings under this Act in relation to the goods or the owner thereof;] 21[(kka) “documents” means a goods declaration, application for claim of refund, duty drawback or repayment of duty, import or export general manifest, passenger manifest, 46[master bill of lading, bill of lading, airway bill, certificate of origin] commercial invoice and packing list or similar other forms or documents used for customs clearance or making a declaration to Customs, whether or not signed or initialed or otherwise authenticated 47[or standardized information and documents lodged with a single entry point through Pakistan Single Window], and also includes,-

(i) any form of writing on material, data or information recorded, transmitted, or stored by means of a tape recorder, computer or any other device, and material subsequently derived from information so recorded, transmitted or stored;

(ii) a label, marking or other form of writing that identifies anything of which it forms part or to which it is attached by any means;

(iii) a book, map, plan, graph, or drawing; and

(iv) a photograph, film, negative, tape, or other device in which one or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced. 50[kkaa) “e-bilty” means a digital document generated through the Cargo Tracking System, electronically linked with the transport vehicle engaged in the import, export, transit, or transshipment of goods transported within or into or out of the territory of Pakistan in the manner prescribed under the rules by the Board;] (kkb) “electronic duty drawback filing and payment system” means Electronic Duty Drawback Filing and Payment System as specified by the rules;] 46[kkc) “electronic assessment” means assessment of a goods declaration in Customs Computerized System by an officer of Customs or by the computerized system according to the selectivity criteria;] 47[(kkd) “essential commodities” means those items availability of which is considered vital for domestic use or consumption, as notified by the Board, from time to time, in consultation with the ministries concerned;] 22[(kkk) “export manifest” means export manifest delivered under sub-section (2) of section 53 and includes electronically filed export manifest;]

(1) “goods” means all movable goods and includes-

(i) conveyance,

(ii) stores and materials,

(iii) baggage, and

(iv) currency and negotiable instruments; 23[(la) “goods declaration” means a goods declaration filed under sections 79, 10439[,121], 131, 139 42[,] 144 42[ or 147] and includes a goods declaration electronically filed;] (lb) “import manifest” means import manifest delivered under section 43 or 44 as the case may be and includes electronically filed import manifest;]

35[(Ic) “KIBOR” means Karachi Inter Bank Offered Rate prevalent on the first day of each quarter of the financial year.] 46[ld “Vessel Intimation Report” or VIR” means an intimation regarding impending arrival of a vessel at a customs sea port, where the customs computerized system is operational, to the customs authorities in the form and manner by the carrier or his agent, as may be prescribed by rules;] 41(m) Omitted;

(n) “master” when used in relation to any vessel, means any person, except a pilot or harbour master, having command or charge of such vessel; 49[(na) “nuclear material” means the nuclear material as defined in the Pakistan Nuclear Regulatory Authority Ordinance, 2001 (III of 2001);]

(o) “officer of customs” means an officer appointed under section 3; 47[(oa) “other government agencies" means other government agencies as defined under clause (n) of sub-section (1) of section 2 of the Pakistan Single Window Act, 2021 (III of 2021);]

(p) “Pakistan customs-waters” means the waters extending into the sea to a distance of 43[twenty-four] nautical miles measured from the appropriate base line on the coast of Pakistan; 24[(pa) ”person” includes 43[a local manufacturer,] a company, an association, a body of individuals whether incorporated or not; 47[(pb) "Pakistan Single Window" means Pakistan Single Window as defined under clause (m) of sub-section (1) of section 2 of the Pakistan Single Window Act, 2021 (III of 2021);]

(q) “person-in-charge” means –

(i) in relation to a vessel, the master of the vessel;

(ii) in relation to an aircraft, the commander or pilot in charge of the aircraft;

(iii) in relation to a railway train, the conductor, guard or other person having the chief direction of the train;

(iv) in relation to any other conveyance, the driver or any other person having control of the conveyance;

25[(qa) "principal" means the owner of the goods or the person primarily responsible for making a declaration to Customs under this Act and includes the person in-charge of the conveyance, carrier, custodian of cargo, and the terminal operator; 49(qaa) “radioactive material” means the radioactive material as defined in The Pakistan Nuclear Regulatory Authority Ordinance 2001 (III of 2001); 44[“(qb) “Risk Management System” means the systematic application of Customs Controls 47[,Trade Controls] and Management Procedures on pre-arrival, Customs clearance processes and post clearance of goods and passengers, for identifying, analyzing, evaluating, monitoring, reviewing and treating the risk associated with them; (qc) “Risk Management Committee” means a committee headed by a BS-21 officer of Customs, constituted under the rules, to review functioning and supervise implementation of the Risk Management System and shall comprise as many BS-19 and BS- 20 officers of Customs as may be notified by the Board;]

(r) “rules” means the rules made under this Act; 26[(rr) “seize” means to take into custody, physically or otherwise, goods in respect of which some offence has been committed or is believed to have been committed under this Act or the rules, and all cognate words and expressions shall be construed accordingly;] 44[(rrr) “Selectivity Criteria” means the risk parameters determined by the Risk Management Committee constituted under the rules for the application of Risk Management System;]

(s) “smuggle” means to bring into or take out of Pakistan, in breach of any prohibition or restriction for the time being in force, 45[, or in any way being concerned in carrying, transporting, removing, depositing, harbouring, keeping, concealing 46[,retailing] 38[ or en route pilferage of transit goods] 48[, anywhere within the territorial jurisdiction of Pakistan] or evading payment of customs-duties or taxes leviable thereon,-

27[(i) gold bullion, silver bullion, platinum, palladium, radium, precious stones, antiques, currency, narcotics and narcotic and psychotropic substances; or

(ii) manufactures of gold or silver or platinum or palladium or radium or precious stones, and any other goods notified by the Federal Government in the official Gazette, which, in each case, exceed 37,45[five hundred thousand] rupees in value; or

(iii) any goods by any route other than a route declared under section 9 or 10 or from any place other than a customs-station.] and includes an attempt, abetment or connivance of so bringing in or taking out of such goods; and all cognate words and expressions shall be construed accordingly; or] 47(iv) essential commodities, as notified by the Board;] 29[(ss) “Special Judge” means a Special Judge appointed under Section 185; (sss) “Special Appellate Court” means a Special Appellate Court constituted under section 46 of the Prevention of Smuggling Act,1977;] 30[(ssss) “surcharge” means an amount or charge required to be paid under sections 21A, 83,86,98 and 202A or any surcharge payable as such under this Act;] (ssssa) “State warehouse” means any place authorized by the Collector of Customs to store the detained, seized or confiscated goods, as the case may be; 47[(sa) "trade controls" means trade controls as defined under clause (x) of sub-section (1) of section 2 of the Pakistan Single Window Act, 2021 (III of 2021);”; (sb) "un-authorized access" means un-authorized access as defined under clause (y) of sub-section (1) of section 2 of the Pakistan Single Window Act, 2021 (III of 2021);]

(t) “warehouse” means any place appointed or licensed under section 12 or section 13;

(u) “warehousing station” means a place declared as a warehousing station under section 11;

(v) “wharf” means any place in customs-port approved under clause (b) of section 10 for the loading and unloading of goods or any class of goods 31[;]

32[(w) “33[***]arrears” means the amount of any duty, surcharge, fine or penalty 34[or any other amount] which is adjudged or demanded through an adjudication order passed by the competent authority or the amount referred to in the notice under sub-section (2) of section 202 which is recoverable in full or in part and is not paid within the time prescribed;

(x) “default” means the failure to pay the outstanding arrears as defined in clause (w); and

(y) “defaulter” means the person and in the case of a company or firm every director or partner of the company or, as the case may be of the firm and of which he is a director or a partner of proprietor, and includes the guarantor who fails to pay outstanding arrears.]

LEGAL REFERENCE

1. For Statement of Objects and Reasons, see Gazette of Pakistan, 1969 Extraordinary (Rawalpindi), Page626, and for the report of the Select Committee see ibid, 1969 Extraordinary(Dacca), Page 199. 1a The comma and words “,fee and service charges” inserted vide FA, 2007. 2. This Act has been extended to the Federally Administered Tribal Areas, (subject to the modification that section 185 thereof shall have effect as if in sub-section (2), after the word “he” words “is a Political Agent or” were inserted by the Regulation No.1 of 1984.s.2. 3. Substituted for the words “Central Government” by the Finance Ordinance,1972(XXI of 1972), section 3, page 56 and Second Schedule S.1, page 76 with effect from 17th June,1972. 4.i.e. the 1st day of January,1970, vide Notification published in Gazette of Pakistan, Extraordinary, January,1970 Extraordinary, Page,1035.

6. Omitted vide Finance Ordinance, 2000(XXI of 2000), S.4(1)(a), page 198 and inserted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(a), page 222. 7. Inserted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(b), page 222. 8. Inserted by Finance Act, 1989(V of 1989), S.5(1)(b), page 106. 8a. Substituted by the FA, 2007. Before substitution definition was as under:- “appropriate officer” in relation to any functions to be performed under this Act, means the officer of customs to whom such functions have been assigned by or under this Act; 9. Inserted by Finance Act, 1989(V of 1989), S.5(1)(c), pages 106-107. 10. Inserted by Finance Act, 2006. 11. Omitted by Finance Act, 2006. At the time of omitting the clause (c) was as under:- “(c)“bill of entry” means bill of entry delivered under section 79 11a[and includes electronic filing of bill of entry]; 11a Added by Finance Ordinance, 2001 (XXV of 2001) S.4(1), page 304.” 12. Omitted by Finance Act, 2006. At the time of omitting the clause (d) was as under:- “(d)“bill of export” means bill of export delivered under section 131 **[and includes electronic filing of bill of export];.**Added by Finance Ordinance, 2001 (XXV of 2001), S.4(1)(ii), page 305. 12a. Substituted by the FA, 2007. Before substitution definition was as under:- “Board” means the Central Board of Revenue, constituted under the Central Board of Revenue Act, 1924;” 13. Inserted by Finance Act, 2003 (I of 2003), S.5(1)(a), page 20. 14. Inserted by Finance Act, 2005 15. Inserted by Finance Act, 1989 (V of 1989), S.5(1)(a), page 107, Omitted by Finance Ordinance, 2000 (XI of 2000), S.4(1)(b), page 198 and inserted by Finance Ordinance 2002 (XXVII of 20020, S.4(1)(c). At the time of omission, clause (ff) was as under:- “[(ff) ”Collector (Appeals)” means a person appointed to be a Collector of Customs (Appeals) under section 3;]” 16. Inserted by the Finance Act, 1994 (XII of 1994), S.6(1), page 253 and substituted by Finance Ordinance, 2001 (XXV of 2001), S.4(1)(iii), page 305, substituted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(d), page 223 and substituted by Finance Act, 2003 (I of 2003), S.5(1)(b), page 20. At the time of substitution clause (ia) was as under:- “[(ia) “customs documents” includes bill of entry, bill of export, application for claim for refund, duty drawback and repayment of duty, baggage declaration form or similar other forms used for customs clearance and such documents electronically filed;]”. “[(ia) “customs documents” include bill of entry, bill of export, application for claim for refund, duty drawback and repayment of duty, baggage declaration form or similar other forms used for customs clearance;]”.

2006. At the time of omitting the clause (ib) was as under:- (ib) “customs documents” includes bill of entry, bill of export or goods declaration, applications for claim for refund, duty drawback and repayment of duty, baggage declaration form and documents such as bill of lading, commercial invoice and packing list or similar other forms or documents used for customs clearance and includes such documents electronically filed and system generated documents that are not required to be manually signed by the departmental officials; 18. Substituted for the words “port for the shipment and landing of goods” by Finance Act, 1973 (L of 1973), S.9(1)(a), page 530. 19. Inserted by the Finance Act, 1977 (XXX of 1977), S.9(1), page 301 and omitted by Finance Act, 2006. At the time of omitting the clause (jj) was as under:- “[(jj) “customs-practitioner” means a person registered as a customs practitioner in accordance with the rules made by the Central Board of Revenue in this behalf]; 17a. 20. Inserted by the Finance Act, 1987 (VI of 1987), S.8(1)(a), page 33. 21. Inserted by the Finance Act, 2006. 22. Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(iv), page 305. 23. Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(v), page 305 and substituted by the Finance Act, 2003 and Finance Act, 2006. At the time of substitution was as under:- 23a. “(la) import manifest means import manifest delivered under section 43 or 44 as the case may be and includes electronically filed import manifest;]”. 23b Substituted by the Finance Act, 2006. At the time of substitution the clause (la) was as under:- “23b[(la)"goods declaration" means a goods declaration filed under sections 79, 23c[or] 131 25. Inserted by the Finance Act, 2003 (I of 2003), S.5(1)(d), page 21.

27. Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(1), page 59. At the time of substitution was as under:- . “[(a) gold bullion, silver bullion, precious stones, currency, manufactures of gold or silver or precious stones or any other goods notified by the 27a[Federal Government] in the official Gazette, in each case exceeding one thousand rupees in value; or

(b) any 27b[****] goods by any route other than a route declared under section 9 or 10 or from any place other than a customs station;]”. 27a. Substituted for the words “Central Government” by the Finance, 1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76. 27b. The word “other” omitted by the Finance Act, 1973 (L of 1973). page 39. 29. Inserted by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(1)(a), page 223 (w.e.f. 16th May, 1977) 30. Inserted by the Finance Act, 2006.. 31. Replaced “full stop” by the Finance Act,1999(IV of 1999), S.10(1)(a), page 757. 32. Added by the Finance Act, 1999 (IV of 1999), S.10(1)(a), page 757. 33. Omitted the word “outstanding” by the Finance Act, 2006. 34. Inserted by the Finance Act, 2006. 35. Inserted by Finance Act,2009. 36. The words “Excise and Sales Tax” omitted by the Finance Act,2010. 37. Inserted by Finance Act,2010. 38. Inserted by Finance Act, 2012 39. Inserted by Finance Act, 2013 40. Substituted by the Finance Act, 2014 At the time of substitution was as under:-

(k) “customs-station” means any customs-port, customs-airport or any land customs-station;

(m) “land customs-station” means any place including an inland river port declared under section 9 to be a land customs-station; 42. Inserted by Finance Act, 2017 43. Inserted by Finance Act, 2018 44. Inserted by Finance Act, 2019 45. Substituted by Finance Act, 2020(June) 46. Substituted/inserted by Finance Act, 2021(June) 47. Inserted/substituted by Finance Act, 2022(June) 48. Inserted by Finance Act, 2023(June) 49. Inserted by Finance Act, 2024(June) 50. Inserted by Finance Act, 2025 (June)

CHAPTER II
APPOINTMENT OF OFFICERS OF CUSTOMS AND THEIR POWERS

1[3. Appointment of officers of customs.
For the purposes of this Act, the Board may, by notification in the official Gazette, appoint, in relation to any area specified in the notification, any person to be —

(a) a Chief Collector of Customs;

(b) a Collector of Customs;

(c) a Collector of Customs (Appeals);

(d) an Additional Collector of Customs;

(e) a Deputy Collector of Customs;

(f) an Assistant Collector of Customs;

(g) an officer of Customs with any other designation.]

25[3A. Directorate General of Intelligence and Risk Management, Customs.
(1) The Directorate General of Intelligence and Risk Management, Customs shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers of customs as the Board may, by notification in the official Gazette, appoint.

(2) The Directorate General of Intelligence and Risk Management-Customs shall also have powers assigned under the Anti-Money Laundering Act, 2010 (VII of 2010) and rules or regulations made thereunder to the defunct Directorate General of Intelligence and Investigation, Customs.]

11[3AA. Directorate General of Transit Trade.
The Directorate General of Transit Trade shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

15[3AAA. Directorate General of China Pakistan Economic Corridor.
The Directorate General of China Pakistan Economic Corridor shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

25[3B. Directorate General of Customs Auction.
The Directorate General of Customs Auction shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers of customs as the Board may, by notification in the official Gazette, appoint.]

11[3BB. Directorate General of Reform and Automation.
The Directorate General of Reform and Automation shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such officers as the Board may, by notification in the official Gazette, appoint.]

25[3BBB. Directorate General of Communication and Public Relations,.
Customs.- The Directorate General of Communication and Public Relations shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers of customs as the Board may, by notification in the official Gazette, appoint.]

3C. 22,23[Directorate General of Customs Academy of Pakistan (CAP).
The 23[Customs Academy of Pakistan] shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.

11[3CC. Directorate General of Intellectual Property Rights.
Enforcement.- The Directorate General of Intellectual Property Rights Enforcement shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint]

19[3CCA. Directorate General of Law and Prosecution.
The Directorate General of Law and Prosecution shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors, Special Public Prosecutors, 22[Special Prosecutors] and such other officers as the Board may, by notification in the official Gazette, appoint.

21[3CCB. Directorate General of National Nuclear Detection.
Architecture.- The Directorate General of Nuclear Detection Architecture shall consist of a Director General and as many Deputy Director Generals, Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.

3CCC. Directorate General of Marine.
The Directorate Generals of Marine shall consist of a Director General as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

24[3CCD. Directorate General of National Targeting Centre.
The Directorate General of National Targeting Centre (NTC) shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

24[3CCE. Directorate General of Combating Trade Based Money.
Laundering.- The Directorate General of Combating Trade Based Money Laundering (TBML) shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

2[3D. Directorate General, Valuation.
The Directorate General of Valuation shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

10[3DD. Directorate General of Post Clearance audit 25[and Internal Audit.
(PCA&IA)].- The Directorate-General of Post Clearance Audit 25[and Internal Audit (PCA&IA)] shall consist of a Directors-General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

12[3DDD. Directorate General of Input Output Co-efficient.
Organization. – The Directorate General of Input Output Co-efficient Organization (IOCO) shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

3E. Powers and functioning of the 18[Directorates General and Directorates],.
etc.- The Board may specify the functions, jurisdiction and powers of the 18[Directorates General and Directorates] specified in the preceding sections and their officers by notification in the official Gazette.]

25[3F. Hiring of technology specialists, auditors, accountants and.
goods evaluators on short term contract.- (1) The Board may hire services of technology specialists, auditors, accountants and goods evaluators on short term contracts not exceeding two years on such terms and conditions as may be prescribed by the Board.

(2) The re-hiring of persons hired under sub-section (1), shall be subject to the performance review by the Board.]

4. Powers and duties of officers of customs.
An officer of customs appointed under section 3 shall exercise such powers and discharge such duties as are conferred or imposed on him by or under this Act 3[or the rules made thereunder]; and he shall also be competent to exercise all powers and discharge all duties conferred or imposed upon any officer subordinate to him:

Provided that, notwithstanding anything contained in this Act or the rules, the Board may, by general or special order, impose such limitations or conditions on the exercise of such powers and discharge of such duties as it thinks fit.

4[5. Delegation of powers.
5,24(1) The Board may, by notification in the official Gazette and subject to such limitations or conditions as may be specified therein, delegate any of its functions and powers to the Chairman, or empower by name or designation-

(a) any Member or Director General to exercise the powers of the Board or Chairman;

(b) any Collector of Customs to exercise any of the powers of a Chief Collector of Customs under this Act;

(c) any Additional Collector of Customs or Deputy Collector of Customs to exercise any of the powers of a Collector of Customs under this Act;

(d) any Deputy Collector of Customs or Assistant Collector of Customs to exercise any of the powers of an Additional Collector of Customs under this Act;

(e) any Assistant Collector of Customs to exercise any of the powers of a Deputy Collector of Customs under this Act; and

(f) any other officer of customs with any other designation.]

6[(2) Unless the Board in any case otherwise directs, the Director General, Director, and Collector may authorize any officer to exercise within any specified area any of the powers of the Director General, Director, Collector or any other officer of Customs under this Act.]

7[6. Entrustment of functions of the customs officers to certain.
8(1) The Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally, any functions of any officer of customs under this Act to any officer of the Federal Government, Provincial Government 24[,National Command Authority, Pakistan Nuclear Regulatory Authority], State Bank of Pakistan and Scheduled Banks 24[for implementation and enforcement of this Act] 19[in accordance with the legal framework notified by the Board]:

Provided that where any officer in performance of his functions under this section commits any offence under this Act, such officer shall, in addition to any other penalty which may be imposed under any other law for the time being in force, be liable to such punishment as is specified in sub-section (1) of section 156 for the offence committed by him.]

9[(2) No officer entrusted with any functions of any officer of customs under sub-section (1) shall interfere in any manner in the performance or discharge of any duty by an officer of customs in places notified under section 9.]

16[7. Assistance to the officers of customs.
All officers of Federal and Provincial Governments, including Inland Revenue, Police 24[,Intelligence Bureau], National Highways and Pakistan Motorway Police, Civil Armed Forces,20[Border Military Police (BMP)] 23[,Provincial Levies, Khasadar Force] and officers engaged in the collection of land-revenue are hereby empowered and required to assist the officers of customs in the discharge of their functions under this Act. 19[The provision of assistance so requested shall be binding.]

8. Exemption from service on jury or inquest or as assessors.
Notwithstanding anything contained in any other law, no officer of the Board or Collector of Customs and no other officer of customs whom the Board or Collector of Customs deems it necessary to exempt on grounds of public duty, shall be compelled to serve on any jury or inquest or as an assessor.

¹¹[8A. Uniform.
The Board may, with approval of the Federal Minister-in-charge and by notification in the official Gazette, prescribe rules for wearing of uniform by officers and staff of Customs Service of Pakistan.]¹¹

LEGAL REFERENCE

1. Substituted by the Finance Act, 1996 (IX of 1996), S.4(1), page 469. Section 3 at the time of substitution was as under:- “3. Appointment of officers of Customs.- For the purposes of this Act, the Board may, by notification in the official Gazette, appoint, in relation to any area specified in the notification, any person to be-

(a) a Collector of Customs; **[(aa) a Collector of Customs (Appeals);]

(b) a Deputy Collector of Customs;

(c) an Assistant Collector of Customs; or

(d) an officer of customs with any other designation.” **. Inserted by the Finance Act, 1989 (V of 1989), S.5(2)(a), page 107. 1a. Substituted by the FA, 2007, Before substitution sections 3A and 3B was as under:-

“1b[3A. The Directorate General (Intelligence and Investigation), Customs and Federal.- The Directorate General (Intelligence and Investigation), Customs and Federal Excise, shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint. 3B. Directorate General of Inspection and Internal Audit.- The Directorate General of Inspection and Internal Audit shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.” 1b. Inserted by Finance Act, 2005 2. Substituted by the FA, 2007, Before substitution sections 3D was as under:- “3D. Directorate General, Valuation and Post-Clearance Audit.- The Directorate General Valuation and Post-Clearance Audit shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.” 3. Inserted by Finance Act, 2006 4. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(2), page 198. At the time of substitution section 5 was as under:- “5. Delegation of powers.- The Board, may by notification in the official Gazette, and subject to such limitation or conditions, if any, as may be specified therein, empower by name or designation –

(a) any 4a[Additional Collector] of Customs to exercise any of the powers of a Collector of Collector of Customs under this Act;

(b) any 4b[Assistant Collector or Deputy Collector] of Customs to exercise any of the powers of a 4c[Additional Collector] of Customs under this Act;

(c) any other officer of Customs to exercise any of the powers of an 4a[Assistant Collector or Deputy Collector] of Customs under this Act.”. 4a. Substituted for the words “Deputy Collector” by the Finance Act, 1996 (IX of 1996). 4b. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996). 4c. The brackets and figure “(1)” omitted by Customs (Amendment) Ordinance, 2000 (XLVI of 2000), S.2, page 651. 5. Renumbered by Finance Act, 2005 (VII of 2005),S.3(3), page 131. 6. Added by Finance Act, 2005 (VII of 2005), S.3(3),page 131. 7. Substituted by Customs (Amendment) Ordinance,1996 and Finance Act,1996(IX of 1996)S.4(2),Page 469. Earlier same amendment was made to the Customs (Amendment) Ordinance, 1995 (CXIV of 1995) and Customs (Amendment) Ordinance, 1996 (XVI of 1996), At the time of substitution section 6 was as under:- “6. Entrustment of functions of the customs officers to certain other officers.- The Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally, any functions of any officer of customs under this Act to any officer of the 7a[Federal] or Provincial 7a[Government].”. 7a. Substituted for the words “Central Government” by Finance Ordinance, 1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76. 8. Renumbered by Finance Act, 2004 (II of 2004), S.3(1), page 13. 9. Added by Finance Act, 2004 (V of 2004), S.3(1), page. 10. Inserted by Finance Act,2008 (I of 2008) Page 45) 11. Inserted by Finance Act, 2012. 12. Inserted by Finance Act, 2013 13. Substituted for the word ‘Central” by F.A,2014 14. Substituted for the words "Federal Board of Revenue by Finance Act, 2017 15. Inserted by Finance Act, 2017 16. Substituted by Finance Act, 2017, At the time of substitution section76 was as under:-

CHAPTER III
DECLARATION OF PORTS, AIRPORTS,
LAND CUSTOMS STATIONS, ETC.

9. Declaration of customs-ports, customs-airports, etc.
The Board may, by notification in the official Gazette, declare:

1[(a) the places which alone shall be customs-ports or customs-airports for the clearance of goods or any class of goods imported or to be exported;]

(b) the places which alone shall be land customs-stations for the clearance of goods or any class of goods imported or to be exported by land or inland waterways;

(c) the routes by which alone goods or any class of goods specified in the notification may pass by land or inland waterways into or out of Pakistan, or to or from any land customs-station or to or from any land frontier;

(d) the places which alone shall be ports for the carrying on of coastal trade with any specified customs-ports in Pakistan; and

(e) what shall for the purposes of this Act be deemed to be a custom house and the limits thereof.

10. Power to approve landing places and specify limits of.
customs-stations.- The Board may, by notification in the official Gazette:-

(a) specify the limits of any customs-station; and

(b) approve proper places in any customs-station for the loading and unloading of goods or any class of goods.

11. Power to declare warehousing stations.
The Board may, by notification in the official Gazette, declare places to be warehousing stations at which alone public warehouses may be appointed and private warehouses may be licensed.

¹⁰[12. Power to appoint or licence public ware-houses.
(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, appoint or license public warehouses wherein dutiable goods may be deposited without payment of customs-duty.

(2) Every application for a license for a public warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:

Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.

(3) A license granted under this section may be cancelled by the respective Collector of Customs in his own jurisdiction for infringement of any condition laid down in the license or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.

(4) Pending consideration whether a license be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend the licence.

12A. Power to appoint or licence common warehouses.
(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, appoint or license common warehouses wherein dutiable goods may be deposited without payment of customs-duty on owner or licensee own account.

(2) Every application for a license for a common warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:

Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.

(3) A license granted under this section may be cancelled by the respective Collector of Customs in his own jurisdiction for infringement of any condition laid down in the license or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.

(4) Pending consideration whether a license be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend the license.

13. Power to license private ware-houses.
(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, licence private warehouses wherein dutiable goods may be deposited without payment of customs-duty.

(2) Every application for a licence for a private warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:

Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.

(3) A licence granted under this section may be cancelled by the Collector of Customs in his own jurisdiction for infringement of any condition laid down in the license or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.

(4) Pending consideration whether a licence may be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend that licence.]

14. Stations for officers of customs to board and land.
The Collector of Customs may, from time to time, appoint, in or near any customs-port, stations or limits at or within which vessels arriving at or departing from such port shall bring to for the boarding or landing of officers of customs, and may, unless separate provisions therefore have been made under the Ports Act,1908 (XV of 1908) direct at what particular place in any such port vessels, not brought into port by pilots, shall anchor or moor.

7[14A. Provision of security and accommodation at Customs-ports, etc.
(1) Any agency or person including port authorities managing or owning a customs-port, a customs-airport or a land customs station or a container freight station shall provide at its or his own cost adequate security and accommodation to customs staff for residential purposes, offices, examination of goods, detention and storage of goods and for other departmental requirements to be determined by the Collector of Customs and shall pay utility bills, rent and taxes in respect of such accommodation.

(2) Any agency or person including, but not limited to port authorities managing or owning a customs port, a customs airport or a land customs station or a container freight station, shall entertain delay and detention certificate issued by an officer not below the rank of Assistant Collector of Customs and also refund demurrage charges which the agency or person has received on account of delay because of no fault of importers or exporters.]

LEGAL REFERENCE

1. Substituted by the Finance Act, 1973 (L of 1973), S.9(2), page 531, At the time of substitution clause (a) was as under:- “(a) the ports and airports which alone shall be customs ports or customs airports for the unloading of imported goods and loading of goods for export or any class of such goods.”. 2. Substituted by the Finance Act, 1990 (VII of 1990), S.6(1), page 34. At the time of substitution section 12 was as under:- “12. Power to appoint public warehouse.- At any warehousing station, the Collector of Customs may, from time to time, appoint, public warehouses wherein dutiable goods may be deposited without payment of customs duty.”. 3. Added by the Finance Ordinance, 2002 (XXVII of 2002), S.4(2), page 223. 4. Substituted by the Finance Act, 1986 (I of 1986), page 10. At the time of substitution sub-section (3) was as under:- “(3) Every license granted under this section may be cancelled on conviction of the licensee of any offence under this Act relating to warehouse, or for infringement of any condition provided in the license, or on the expiration of one month’s notice in writing given to the license by the Collector of Customs.”. 5. Added by the Finance Ordinance, 1984 (XXVIII of 1984). 6. Added by the Finance Ordinance, 2001 (XXV of 2001), S.4(2), page 305. 7. Substituted by Finance Act, 2013. At the time of substitution section 14A was as under: (14A. Provision of accommodation at Customs-ports, etc.- Any agency or person managing or owning a customs-port, a customs-airport or a land customs station shall provide at its or his own cost adequate accommodation to customs staff for offices, examination of goods, detention and storage of goods and for other departmental requirements to be determined by the Collector of Customs 6[and shall pay utility bills, rent and taxes in respect of such accommodation.] 8. Inserted by Finance Act, 20201 (June)

CHAPTER IV
PROHIBITION AND RESTRICTION OF
IMPORTATION AND EXPORTATION

1[15. Prohibitions.
No goods specified in the following clauses shall be brought into or taken out of Pakistan, namely:-

(a) counterfeit coins, forged or counterfeit currency notes, and any other counterfeit product;

(b) any obscene book, pamphlet, paper, drawing, painting, representation, figure, photograph, film, or, article, video or audio recording, CDs or recording on any other media;

(c) goods having applied thereto a counterfeit trade mark within the meaning of the Pakistan Penal Code, 1860 (Act XLV of 1860), or a false trade description within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout-Designs of Integrated Circuits Ordinance, 2000 (XLIX of 2000), the Registered Designs Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001) 5[Omitted];

(d) goods made or produced outside Pakistan and having applied thereto any name or trade mark, being or purporting to be the name or trade mark of any manufacturer, dealer or trader in Pakistan, unless,-

(i) the name or trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place outside Pakistan; and

(ii) the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark, and in the same language and character as the name or trade mark;

(e) goods involving infringement of copyright, layout-design of integrated circuits, industrial designs, patents within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Designs Ordinance, 2000 (XLV of 2000), and the Patents Ordinance, 2000 (LXI of 2000), respectively; and

(f) goods made or produced outside Pakistan and intended for sale, and having applied thereto, a design in which copyright exists under the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout – Designs of Integrated Circuits Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001), in respect of the class to which the goods belong or any fraudulent or obvious imitation of such design, patent, copyright except when the application of such design has been made with the license or written consent of the registered proprietor, right holder of the design, patent or copyright, as the case may be:

4[Provided that offences relating to goods imported or exported in violation of Intellectual Property Rights shall, notwithstanding any thing contained in any other law for the time being in force, be adjudicated under section 179 by the appropriate officer of customs.]

16. Power to prohibit or restrict importation and exportation of.
goods.- The 2[Federal Government] may, from time to time, by notification in the official Gazette, prohibit or restrict the bringing into or taking out of Pakistan of any goods of specified description by air, sea or land.

3[17. Detention, seizure and confiscation of goods imported in.
violation of section 15 or section 16.- Where any goods are imported into, or attempted to be exported out of, Pakistan in violation of the provisions of section 15 or of a notification under section 16, such goods shall, without prejudice to any other penalty to which the offender may be liable under this Act or the rules made there under or any other law, be liable to detention, for seizure or confiscation subject to approval of an officer not below the rank of an Assistant Collector of Customs, and seizure for confiscation through adjudication, if required:

6[Provided that the period of detention shall not exceed fifteen days which may be extended by the 7[Additional Collector of Customs or Additional Director] for a period not exceeding fifteen days.]

LEGAL REFERENCE

1. Substituted by the Finance Act, 2004 (II of 2004)S.3(2), page 13. At the time of substitution section 15 was as under:-

“15. Prohibition.- No goods specified in the following clauses shall be brought, whether by air or land or sea, into Pakistan:-

(a) counterfeit coin;

(b) forged or counterfeit currency notes;

(c) any obscene book, pamphlet, paper, drawing, painting, representation, figure, photograph, film or article;

(d) goods having applied thereto a counterfeit trade mark within the meaning of the Pakistan Penal Code (Act XLV of 1860), or a false trade description within the meaning of the Merchandise Marks Act,1889(IV of 1889);

(e) goods made or produced outside Pakistan and having applied thereto any name or trade mark, being or purporting to be the name or trade mark of any manufacturer, dealer or trader in Pakistan unless-

(i) the name or trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place outside Pakistan; and

(ii) the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark, and in the same language and character as the name or trade mark;

(f) piece-goods manufactured outside Pakistan (such as are ordinarily sold by length or by the piece), unless the real length thereof in standard yards or other measurement for the time being applying in Pakistan has been conspicuously stamped on each piece in Arabic numerals; and

(g) goods made or produced outside Pakistan and intended for sale, and having applied thereto, a design in which copyright exists under the Patents and Designs Act of 1911(II of 1911), in respect of the class to which the goods belong or any fraudulent or obvious imitation of such design except when the application of such design has been made with the license or written consent of the registered proprietor of the design;

Provided that the 1a[Federal Government] may, by an order in writing, exempt from the provisions of this section any goods or any class or description of goods in transit to a foreign territory.”

1a. The words “Central Government” substituted by the Finance Ordinance, 1972 (XXI of 1972), Section 3, page 56 and Second Schedule S.1, page 76 w.e.f. 17th June, 1972.

2. The words “Central Government” substituted by the Finance Ordinance, 1972 (XXI of 1972), Section 3, page 56 and Second Schedule S.1, page 76 w.e.f. 17th June, 1972. 3. Substituted by the Finance Act, 2005. At the time of substitution section 17 was as under:- “17. 3a[Seizure] and confiscation of goods imported in breach of Section 15 or Section 16.- Where any goods ae imported into or attempted to be exported out of Pakistan in violation of the provisions of section 15 or of a notification under section 16, such goods shall, without prejudice to any other penalty to which the offender may be liable under this Act, or any other law, but subject to rules, be liable to 3a[seizure] and confiscation.”.

3a. Substituted for the word “Detention” by the Finance Act, 1987 (VI of 1987), S.8(2), page 34. 4. Inserted by Finance Act, 2009 5. The words and figure”, or goods imported or exported in contravention of the provisions of section 32” omitted by the Finance Act, 2011 6. Inserted by Finance Act,2020 (June) 7. Substituted/ by Finance Act,2024 (June)

CHAPTER V
LEVY OF, EXEMPTION FROM, AND REPAYMENT OF, CUSTOMS-DUTIES

1[18. Goods dutiable.
(1) Except as hereinafter provided, customs duties shall be levied at such rates as are prescribed in the First Schedule or under any other law for the time being in force on,-

(a) goods imported into Pakistan;

(b) goods brought from any foreign country to any customs station, and without payment of duty there, transshipped or transported for, or thence carried to, and imported at any other customs-station; and

(c) goods brought in bond from one customs station to another.

105(1A) Notwithstanding anything contained in sub-section (1), customs duties shall be levied at such rates on import of goods or class of goods as are prescribed in the Fifth Schedule, subject to such conditions, limitations and restrictions as prescribed therein.

(2) No export duty shall be levied on the goods exported from Pakistan.

(3) The 115&120[Federal Government] may, by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods imported or exported, as specified in the First Schedule at a rate not exceeding one hundred per cent of the value of such goods as determined under section 25 1b[ or, as the case may be, section 25A].

(4) The regulatory duty levied under sub-section (3) shall –

(a) be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and

(b) be leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.]

(6) The additional customs-duty levied under sub-section (5) shall be,-

(a) in addition to any duty imposed under sub-sections (1) and (3) or under any other law for the time being in force; and

(b) leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the official Gazette in which such notification appears is published at any time after that day.]

3[18A. Special customs duty on imported goods.
The Federal Government may, by notification in the official Gazette, levy a special customs duty on the importation of such of the goods specified in the First Schedule as are of the same kind as goods produced or manufactured in Pakistan, at a rate not exceeding the rate of duty of excise leviable under 106[the Federal Excise Act, 2005], on the goods produced or manufactured in Pakistan:

Provided that the exemption of any goods from the whole or any part of the duty of excise for the time being in force shall not prevent the Federal Government from levying a special customs duty on the importation of goods of the same kind:

Provided further that, for the purposes of the Sales Tax 4[***] Act 1990 (VII of 1990), the special customs duty shall not constitute a part of the value of supply.]

5[18B. [Omitted].]
.

6[18C. Rates of duty and taxes and determination of origin under.
trade agreements.- (1) Where under a trade agreement between the Government of Pakistan and the Government of a foreign country or territory, duty at a rate lower than that specified in the First Schedule is to be charged on articles which are the produce or manufacture of such foreign country or territory, the Federal Government may, by notification in the official Gazette, make rules for determining if any article is the produce or manufacture of such foreign country or territory and for requiring the owner to make a claim at the time of importation, supported by such evidence as may be prescribed in the said rules, for assessment at the appropriate lower rate under such agreement.

(2) Where in respect of any article, a preferential rate of duty is specified in the First Schedule, or is admissible by virtue of a notification under sub-section (1), the duty to be levied and collected shall be at the standard rate unless the owner of the article claims at the time of importation that it is chargeable with a preferential rate of duty, being the produce or manufacture of such preferential or free trade area, as is notified under sub-section (3) and the article is determined, in accordance with the rules made under sub-section (1) to be such produce or manufacture.

(3) For the purposes of this section and the First Schedule “preferential area or free trade area” means any country or territory which the Federal Government may, by notification in the official Gazette, declare to be such area.

(4) Notwithstanding anything contained in sub-sections (1) and (2), where the Federal Government is satisfied that, in the interests of trade including promotion of exports, it is necessary to take immediate action for discontinuing the preferential rate or increasing the preferential rate to a rate not exceeding the standard rate, or decreasing the preferential rate, in respect of an article specified in the First Schedule, the Federal Government may, by notification in the official Gazette, direct discontinuation of, or increase or decrease, as the case may be, the preferential rate.]

6[18D. Levy of fee and service charges.
The 121[Board, with approval of the Federal Minister-in-charge] may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, levy fee and service charges for examination, scanning, inspections, sealing and desealing, valuation check or in respect of any other service or control mechanism provided by any formation under the control of the Board, including ventures of public-private partnership, at such rates as may be specified in the notification.]

103[18E. Pakistan Customs Tariff.
The Board may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, make such changes in the Pakistan Customs Tariff, specified in the First Schedule to this Act, required only for the purposes of statistical suffix of the Pakistan Customs Tariff (PCT) Code 130[:

“Provided further that the Board may constitute a committee or a centre for the purpose of settlement of disputes regarding classification of goods and may prescribe rules or procedure for carrying out the purpose of this section.]

19. General power to exempt from customs-duties.
7&110[(1) The 115&120[Federal Government], whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, 122[omitted] 114[,] implementation of bilateral and multilateral agreements, 114 [ and to any international financial institution or foreign government-owned financial institution operating under a memorandum of understanding an agreement or any other arrangement with the Government of Pakistan] 135[or to implement an agreement of the Government of Pakistan with any entity], subject to such conditions, limitations or restrictions, if any, as it deems fit to impose, may, by notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon and may remit fine, penalty, charge or any other amount recoverable under this Act.]

11[ OMITTED ]

12[(2) A notification issued under sub-section (1) shall be effective from the day specified therein, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.]

13[(3) Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms 1992 (XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court, no person shall, in the absence of a notification by the Federal Government published in the official Gazette expressly granting and affirming exemption from customs duty, be entitled to or have any right to any such exemption from or refund of customs duty on the basis of the doctrine of promissory estoppel or on account of any correspondence or admission or promise or commitment or concessionary order made or understanding given whether in writing or otherwise, by any government department or authority.]

11[(4) The Federal Government shall place before the National Assembly all notifications issued under this section in a financial year.

(5) Any notification issued under sub-section (1) after the commencement of the Finance Act, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued 115[:]

115[Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from first day of July, 2016 and shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded:

Provided further that all notifications issued on or after the first day of July, 2016, and placed before the National Assembly as required under sub-section (4) shall continue to be in force till thirtieth day of June, 120,122,129,130,133, 135,136,137[2027], if not earlier rescinded by the Federal Government or the National Assembly.]

14[19A. Presumption that incidence of duty has been passed on to the.
buyer.- Every person who has paid the customs duty and other levies on any goods under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such customs duty and other levies to the buyer as a part of the price of such goods.

19B. Rounding off of duty, etc.- The amount of duty, interest, penalty, fine or any other sum payable, and the amount of refund, drawback or any other sum due, under the provisions of this Act shall be rounded off to the nearest one hundred rupees and, for this purpose, where such amount is fifty rupees or more, it shall be increased to one hundred rupees and if such part is less than fifty rupees, it shall be ignored.]

129[19C. Minimal duties not to be demanded.-.
Where the value of imported goods 137[ through post or courier does not exceed one thousand] rupees, no duties and taxes shall be demanded, subject to conditions and restrictions as may be prescribed by the Board under the rules.]

15[20. 112 [Omitted]

21. Power to deliver certain goods without payment of duty and.
on certain goods.- Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular cases by special order, authorize-

(a) the delivery without payment of the customs-duties chargeable thereon of goods which are imported only temporarily with a view to subsequent exportation; 17[(ab) 86[Omitted]

18[(b) Omitted.

19[(c) the repayment in whole or in part of the 129[duties as levied under section 18 or 18A and] paid on the importation of any goods which have been used in the production, manufacture, processing, repair or refitting in Pakistan of goods meant for exportation, 98,134[omitted]or for supply to industrial units, projects, institutions, agencies and organizations, entitled to import the same at concessionary rates 20[:]

21[Provided that no repayment may be granted in a case in which the amount involved is less than one hundred rupees 22[; and]

23[(d) without prejudice to the provisions of clause (c), the Federal Government may, by notification in the Official Gazette, direct that drawback or repayment shall not be allowed in respect of any goods of specified description or may be allowed subject to such restrictions and conditions as may be specified in the notification.]

24[21A. Power to defer collection of customs-duty.
25[(1)] Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular cases by special order, defer the collection of customs-duties either in whole or in part.

26[ (2) Where deferment of customs-duties is allowed by the Board under sub-section (1), a surcharge not exceeding 26a,87[KIBOR plus three] per cent per annum shall also be payable on the deferred amount from such date and in the manner as the Board may by rules prescribe.]

22. Re-importation of goods produced or manufactured in.
Pakistan.- If goods produced or manufactured in and exported from Pakistan are subsequently imported into Pakistan, such goods shall be liable to customs-duties and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value not so produced or manufactured are liable on the importation thereof:

27[Provided if such goods have been imported within one year of their exportation and have been consigned to the person in whose account they were exported and have not undergone any processing since their exportation], the appropriate officer not below the rank of 28[Assistant Collector 99[Omitted] of Customs may admit the goods-

29[(a) Where at the time of exportation of such goods, rebate, refund or drawback of any customs or Federal Excise duty or any other tax levied by the Federal Government or any tax, cess or duty levied by the Provincial Government was allowed on payment of customs duty equal to the amount of such rebate, refund or drawback as the case may be;]

(b) where such goods were exported in bond, without payment of –

(i) the customs-duty chargeable on the imported materials, if any, used in the manufacture of the goods; or (ii ) the Federal Excise duty chargeable on the indigenous materials, if any, used in the manufacture of such goods; or

(iii) the Federal Excise duty, if any, chargeable on such goods; or

(iv) any other tax chargeable on the material used in the manufacture of such goods; or

(v) any other tax chargeable on such goods, on payment of customs-duty equal to the aggregate amount of all such duties and taxes calculated at the rates prevailing at the time and place of importation of goods; or

(c) in any other case, without payment of duty.

29[22A. Temporary export of imported plant and machinery.
Imported plant and machinery, temporarily exported that have not undergone any alteration, renovation, addition or refurbishment, may be re-imported duty free subject to the specific or general terms and conditions the Board may by the rules prescribe.]

23. Goods, derelict, wreck, etc.
All goods, derelict, jetsam, flotsam and wreck, brought or coming into Pakistan, shall be dealt with as if they were imported into Pakistan.

24. Provisions and stores may be exported free of duty.
Goods produced or manufactured in Pakistan and required as provisions and stores on any conveyance proceeding to any foreign port, airport or station may be exported free of customs-duty,30[***] in such quantities as the appropriate officer may determine having regard to the size of the conveyance, the number of passengers and crew and the length of the voyage or journey on which the conveyance is about to depart.

31[25. Value of imported and exported goods.
(1) Transaction Value.- The customs value of imported goods, subject to the provisions of this section and the rules, shall be the transaction value, that is the price actually paid or payable for the goods when sold for export to Pakistan:

Provided that-

(a) there are no restrictions as to the disposition or use of the goods by the buyer other than the restrictions which –

(i) are imposed or required by law;

(ii) limit the geographical area in which the goods may be resold; or

(iii) do not affect the value of the goods;

(b) the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;

(c) no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment is made in accordance with the provisions of sub-section (2) (e); and

(d) the buyer and seller are not related, or where the buyer and seller are related, that the transaction value is acceptable for customs purposes under the provisions of sub-section (3).

(2) Subject to clause (b), in determining the customs value under sub-section(1),-

(a) there shall be added to the price actually paid or payable for the imported goods, if not already included in the price;

(i) the cost of transport, excluding inland freight after importation, of the imported goods to the Port, Airport or place of importation;

(ii) loading, unloading, and handling charges associated with the transport of the imported goods to the Port, airport or place of importation; and

(iii) the cost of insurance;

(b) there shall also be added to such price, to the extent that they are incurred by the importer but are not included in the price actually paid or payable of the imported goods-

(i) commissions including indenting commissions and brokerage, except buying commissions;

(ii) the cost of containers which are treated as being one for customs purposes with the goods in question; and

(iii) the cost of packing whether for labour or materials;

(c) there shall also be added to such price the value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the importer or his related person free of charge or at reduced cost, for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable:

(i) materials, components, parts and similar items incorporated in the imported goods;

(ii) tools, dies, moulds and similar items used in the production of the imported goods;

(iii) materials consumed in the production of the imported goods; and

(iv) engineering, development, artwork, design work and plans and sketches undertaken elsewhere than in Pakistan and necessary for the production of the imported goods;

(d) there shall also be added to such price, royalties and license fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable; and

(e) there shall also be added to such price, the value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller;

(f) if sufficient information is not available for any reason, with respect to any adjustments referred to above, the transaction value, of the imported goods shall be treated, for the purpose of sub-section (1), as the one that cannot be determined;

(3) If the buyer and seller are related in terms of the rules the transaction value shall be accepted for the purposes of sub-section (1); whenever:

(a) the examination of the circumstances surrounding the sale of the imported goods as demonstrated by the importer, indicate that the relationship did not influence the price; or

(b) the importer demonstrates that such value closely approximates to one of the following Test Values occurring at or about the same time:

(i) the transaction value in sales to unrelated buyers of identical or similar goods for export to Pakistan.

(ii) the customs value of identical or similar goods as determined under the provisions of sub-section (7) (deductive value);

(iii) the customs value of identical or similar goods as determined under the provisions of sub-section (8) (computed value).

Provided that in applying the foregoing tests due account shall be taken of demonstrated differences in commercial levels, quantity levels, the elements enumerated in sub-section (2) and costs incurred by the seller in sales in which the seller and the buyer are not related that are not incurred by the seller in sales in which the seller and the buyer are related;

32[(4) Where, in relation to the goods being valued, the appropriate officer is of the opinion that the importer has not, for the purposes of clause (a) of sub-section (3), demonstrated that the relationship did not influence the price or, for the purposes of clause (b) of sub-section (3), that the declared price at which the goods are imported does not closely approximate to one of the test values mentioned therein, the appropriate officer shall inform the importer of his reservations in writing and give the importer an opportunity to justify the price difference. If the importer fails to justify the price difference, the customs value cannot be determined under the provisions of sub-section (1).]

(5) TRANSACTION VALUE OF IDENTICAL GOODS.- If the customs value of the imported goods cannot be determined under the provisions of sub-section (1), it shall, subject to rules, be the transaction value of identical goods sold for export to Pakistan and exported at or about the same time as the goods being valued.

(a) In applying the 33[provisions] of this sub-section, the transaction value of 34[the] identical goods in a sale at the same commercial level and substantially the same quantity as the goods being valued shall be used to determine the customs value of imported goods.

(b) Where no sale referred to in clause (a) is found, the transaction value of identical goods sold at a different commercial level and/or in different quantities, adjusted to take account of differences attributable to commercial level and/or to quantity shall be used,

Provided that such adjustments can be made on the basis of demonstrated evidence which clearly establishes the reasonableness and accuracy of the adjustment, whether the adjustment leads to an increase or decrease in the value.

(c) Where the costs and charges referred to in clause (a) of sub-section (2) are included in the transaction value of identical goods, an adjustment shall be made to take account of significant differences in such costs and charges between the goods being valued and the identical goods in question arising from differences in distances and modes of transport. 35,106[(d) Omitted]

36[(6) TRANSACTION VALUE OF SIMILAR GOODS.- If the customs value of the imported goods cannot be determined under the provisions of sub-section (5), it shall, subject to clauses (c), (d), (e) and (f) of sub-section (13) and rules, be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued, and the provisions of clauses (a), (b) 107[and]

(c)108[omitted] of sub-section (5) shall, mutatis mutandis, also apply in respect of similar goods.]

(7) DEDUCTIVE VALUE.- If the customs value of the imported goods cannot be determined under sub-section (6), it shall, subject to rules, be determined as follows:

(a) if the imported goods or identical or similar imported goods are sold in Pakistan in the condition as imported, the customs value of the imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods are so sold in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods, subject to the deductions for the following:-

(i) either the commission usually paid or agreed to be paid or the additions usually made for profit and general expenses in connection with sales in Pakistan of imported goods of the same class or kind;

(ii) the usual costs of transport and insurance and associated costs incurred within Pakistan; 37[and ]

38[(iii) Omitted.

(iv) the customs duties and other taxes payable in Pakistan by reason of the importation or sale of the goods.

(b) If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value shall, subject otherwise to the provisions of clause (a) of this sub-section, be based on the unit price at which the imported goods or identical or similar imported goods are sold in Pakistan in the conditions as imported at the earliest date after the importation of the goods being valued but before the expiry of ninety days after such importation.

(c) If neither the imported goods nor identical nor similar imported goods are sold in the country of importation in the condition as imported, then, if the importer so requests, the customs value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the country of importation who are not related to the persons from whom they buy such goods, due allowance being made for the value added by such processing and the deductions provided for in clause (a).

(8) COMPUTED VALUE.- If the customs value of the imported goods cannot be determined under sub-section (7), it shall, subject to rules, be based on computed value which shall consist of the sum of:-

(a) the cost of value of materials and fabrication or other processing employed in producing the imported goods;

(b) an amount for profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to Pakistan; and

(c) the cost or value of all other expenses as specified in clause (a) of sub-section (2).

(9) FALL BACK METHOD.- If the customs value of the imported goods cannot be determined under sub-sections (1),(5),(6),(7) and (8), it shall, subject to the rules, be determined 130[using reasonable means] on the basis of a value derived from among the methods of valuation set out in sub-sections (1),(5),(6),(7) and (8), that, when applied in a flexible manner to the extent necessary to arrive at a customs value.

(10) Sub-sections (1), (5), (6), (7), (8) and (9) define how the customs value of imported goods is to be determined 38a[***]. The methods of customs valuation 38b[may or may not] be applied in a sequential order except reversal of the order of sub-section (7) and (8), at the importer’s request, if so agreed by Collector of the Customs.

(11) Nothing contained in this section or the rules, shall be construed as restricting or calling into question the rights of the appropriate officer of customs to satisfy himself as to the truth or accuracy of any statement, information, document or declaration presented for customs valuation purposes.

(12) An appropriate officer of Customs appointed by an order in writing by the Board, or Collector of Customs, on case to case basis, shall have free access to business premises, registered office, warehouses or any other place, where any stocks, business records or documents required under this Act are kept or maintained belonging to any person after serving notice to such person whose business activities are covered under this Act or who may be required for audit, inquiry or investigation in any offence committed under this Act by such person, his agent or any other person: and such officer may, at any time during the working hours, inspect the goods, stocks, records, data, documents, correspondence, accounts and statements and any other record or documents and may take into custody such records in whole or in part, in original or copies thereof against a signed receipt. The Board or Collector of Customs may also order for audit for ascertaining the correctness of declarations, documents records and value of imported goods. All searches and seizure of documents made under this sub-section shall be carried out mutatis mutandis in accordance with the provisions of the Code of Criminal Procedure, 1898(Act V of 1898).

(13) For the purposes of this section,-

(a) “customs value of imported goods” means the value of goods for the purposes of levying duties of customs and other taxes on imported goods;

(b) “identical goods” means goods which are the same in all respects including physical characteristics, quality and reputation. Minor differences in appearance would not preclude goods otherwise conforming to the definition from being regarded as identical;

(c) “similar goods” means goods which although not alike in all respects, have like characteristics and like component materials which enable them to perform the same functions and to be commercially interchangeable. The quality of the goods, their reputation and the existence of a trademark are among the factors to be considered in determining whether goods are similar;

(d) the terms “identical goods” and “similar goods” do not include as the case may be, goods which incorporate or reflect engineering development, art work, design work, and plans and sketches for which no adjustment has been made under sub-section 2(c) (iv) because such elements were undertaken in Pakistan;

(e) goods shall not be regarded as “identical goods” or “similar goods” unless they were produced in the same country as the goods being valued;

(f) goods produced by a different person shall be taken into account only when there are no identical goods or similar goods, as the case may be, produced by the same person as the goods being valued; and

(g) “goods of the same class or kind” means goods which fall within a group or range of goods produced by a particular industry or industry sector, and includes identical or similar goods.

39[(14) OMITTED.]

(15) Customs value of exported goods.- The customs value of any exported goods shall be the value at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned having regard to the following provisions, namely:-

(a) that the goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported; and

(b) that the seller will bear all packing, commission, transport, loading and all other costs, charges and expenses (including any 92[regulatory duty which may be chargeable under sub-section (3) of section 18] incidental to the sale and to the delivery of the goods on board the conveyance in which they are to be exported and which will be included in the customs value;

(c) that where goods are manufactured in accordance with any patented invention or are goods to which any protected design has been applied, the customs value shall be determined taking into consideration the value of the right to use design in respect of the goods;

(d) that where goods are exported for sale, other disposal or use, whether or not after further manufacture, under a Pakistan trade mark, the customs value shall be determined taking into consideration the value of the right to use the patent, design or trade mark in respect of the goods.

Explanation I.-A sale in open market between a buyer and a seller independent of each other presupposes-

(a) that the customs value is the sole consideration and sale is between a buyer and seller independent of each other.

(b) that the customs value is not influenced by any commercial, financial or other relationship, whether by contract or otherwise between the seller or any person associated in business with him and the buyer or an person associated in business with him other than the relationship created by the sale itself.

(c) that no part of the proceeds of any subsequent resale, other disposal or use of the goods will accrue, either directly or indirectly, to the seller or any person associated in business with him.

(d) that two persons shall be deemed to be associated in business with one another if, whether directly or indirectly, either of them has any interest in the business or property of the other or both have a common interest in any business or property or some third person has an interest in the business or property of both of them.

40[Explanation II.- For the purposes of this sub-section, the expression “prescribed time” shall mean the time when the goods declaration is delivered under section 131 or when export of the goods is allowed without a goods declaration or in anticipation of the delivery of a goods declaration, the time when export of the goods commences.]

40[25A. Powers to determine the customs value.
(1) Notwithstanding the provisions contained in section 25, 130,132[omitted] 123[omitted] the Director of Customs Valuation 88[on his own motion or]on a reference made to him by any person 88[or an officer of Customs], may determine the customs value of any goods or category of goods imported into or exported out of Pakistan, after following the methods laid down in section 25, whichever is applicable 130[:

Provided that notwithstanding anything contained in any provision of this Act and any decision or judgment of any forum, authority or court, while determining the customs value under this section, the Director may 135[consult prices of goods available] internationally acclaimed publications, periodicals, bulletins or official websites of manufacturers of indenters of such goods.]

(2) The Customs value determined under sub-section (1) shall be the applicable customs value for assessment of the relevant imported or exported goods 116[:

Provided that where the value declared in a goods declaration, filed under section 79 or section 131 or mentioned in the invoice retrieved from the consignment, as the case may be, is higher than the value determined under sub-section (1), such higher value shall be the customs value.]

130[(2A) In case of any conflict in the customs value determined under sub-section (1), the Director General of Valuation shall determine the applicable customs value. ]

(3) 124[Omitted]

93[(4) The customs value determined under sub-section (1) [, or the case may be under sub-section (2A)] 125[omitted], shall be applicable until and unless revised or rescinded by the competent authority.]

120[25AA. Power to use data exchange information for determination of.
customs value.- Any information or data, available under clause (b) of sub-section (1) of section 219A, may be utilized for the purpose of assessment including valuation.

42[25B. [Omitted].]

43[25C. Power to takeover the imported goods.
(1) If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the goods declaration, 44[and the Collector of Customs is satisfied that the declared value is not the actual transactional value, he may after approval of the 130[respective Chief Collector] order the following without prejudice to any other action against the importer or his authorised agent, namely:-

(i) entertain offer by any other person to buy these goods at substantially higher value than the declared customs value in the goods declaration and payment of customs duties and other leviable taxes thereon, provided such offer is accompanied by a pay order equal to twenty-five per cent of the amount of each [such offer and duties and other taxes calculated in accordance with the offer];

(ii) give an option in writing to the importer of such goods for clearance of imported goods at the customs value equal to such highest offer for purchase of goods and payment of customs duties and other taxes chargeable thereon; and

(iii) in case the importer fails to clear the imported goods within seven days of the receipt of notice under clause (ii) above, the appropriate officer may takeover the goods on payment of customs value declared in the goods declaration and an amount equal to five per cent of such declared value;

(2) The imported goods taken over under sub-section (1) shall be delivered to the offeror on submission of two pay orders, one equal to the customs value declared in the goods declaration plus five per cent in the name of importer and the other pay order equal to the remaining amount of value of imported goods and the amount of customs duties and other taxes leviable on the imported goods in the name of Collector of Customs;

(3) In case the local buyer fails to take the delivery of the goods on payment of value and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-five per cent of the amount shall be fore-feited in favour of the Federal Government and imported goods shall be released to the importer as per customs value determined under 44[sections 25 or 25A as the case may be.]

130[25D. Review of the value determined.
Notwithstanding the provision contained in section 25A, the Director General Valuation may on his own motion or in pursuance to a review petition made to him within thirty days from the date of determination by any person or an officer of Customs may rescind or determine the value afresh:

Provided that the proceedings so initiated shall be completed within sixty days of the filing of the review petition or initiation of proceedings as the case may be.]

131,132[Omitted]

45[26. Obligation to produce documents and provide information.
(1) Any person, as and when required, in writing, by an officer of customs not below the rank of an Assistant Collector, shall,-

(a) furnish information relating to importation, exportation, purchase, sales, transportation, storage or handling of any goods imported or exported;

(b) produce for examination, documents or records that the appropriate officer considers necessary or relevant to the audit, inquiry or investigation under the Act;

(c) allow the appropriate officer of Customs to take extracts from or make copies of documents or records; and

(d) appear before an officer of Customs and answer any question put to him concerning goods, documents, records and transactions relating to the audit or inquiry or investigation.

117[(1A) Subject to rules, the Board or any officer authorized in this behalf may require any person to provide such information as is held by that person which is required for the purposes of End Use Verification of goods specified under Program Global Shield.]

(2) The appropriate officer of Customs conducting an audit, inquiry or investigation as the case may be, under this Act, may require in writing any person, department, company or organization to furnish such information as is held by that person, department, company or organization which in the opinion of the appropriate officer is required for the completion of such audit, inquiry or investigation.

(3) The Board may require in writing any person, department, company or organization, as the case may be, to provide information held by that person, department, company or organization, which in the opinion of the Board is required for purposes of formulation of policy or administering the laws of Customs, Sales Tax, Federal Excise or Income Tax.

(4) Every person, department, company or organization shall furnish the information requisitioned by the Board or the appropriate officer within the time specified in the notice.]

46[26A. Conducting the audit.
(1) The appropriate officer of customs conducting any audit under this Act shall proceed in the manner as the Board may by rules prescribe.

(2) Where any audit or inquiry or investigation is to be conducted for the purpose of ascertaining the correctness of any declaration or document or statement, for determining the liability of any person for duty, taxes, fees, surcharge, fines and penalties, or for ensuring compliance with all other laws administered by the customs, an appropriate officer of Customs may,-

(a) examine, or cause to be examined, upon reasonable notice, any record, or any statement or declaration or document described in the notice with reasonable specificity, which may be relevant to such audit, inquiry or investigation;

(b) summon, by giving a notice and reasonable time,-

(i) the person who imported, or exported or transported or stored or held under customs bond, or filed a goods declaration, drawback or refund claim;

(ii) any officer, employee or agent of any person described in clause

(a); and

(iii) any person having possession, custody or care of records and documents required to be kept under the Act, and any other person, as deemed proper, to appear before him at a reasonable time and to produce such records and documents as specified in the notice and to give such testimony under oath as may be relevant.

26B. Access for the purposes of audit.
(1) The appropriate officer of Customs, after giving a notice in writing specifying the date of visit, shall have access to business or manufacturing premises, registered office or any other place where any goods, stocks, documents or records relating to the ongoing audit are kept or maintained. Such officer may inspect the goods, stocks, documents, records, data, correspondence, accounts, statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents required under any Federal or Provincial laws, maintained in any form or mode. Such an officer may take into his custody such documents, records or any part thereof, in such form as he may deem fit, against a signed receipt.

(2) In all cases, except where it would defeat the purpose of the audit, a reasonable advance notice regarding a visit shall be given to the person concerned.

(3) Whosoever causes any obstruction or fails to provide any documents, record, statement etc, as required under subsection (1), with an intention to defeat the purpose of the Act by way of destroying, altering or concealing any books, documents or records required to be maintained under this Act, shall be guilty of an offence under this section.]

47[27. Abatement allowed on damaged or deteriorated goods.
(1) If before the examination of any imported goods the owner thereof informs 48[an officer of Customs not below the rank of] 49[Assistant Collector] in writing that the value of the goods as declared in the 50[goods declaration] has diminished as a result of some damage or deterioration sustained by them before or during unloading at the port of destination, an officer of Customs not below the rank of 49[Assistant Collector] may appraise the value of the damaged or deteriorated goods in the manner given in sub-section (2) and the owner shall be allowed abatement of duty in proportion to the diminution of value so appraised, whether duty is leviable ad valorem or otherwise.

(2) For the purposes of this section, the value of damaged or deteriorated goods may be ascertained by either of the following methods at the option of the owner:-

(a) value may be appraised by an Officer of Customs not below the rank of 49[Assistant Collector] on the basis of physical examination of the goods; or

(b) such goods may be sold by public auction or by tender or, with the consent of the owner, in any other manner and the gross sale proceeds shall be deemed to be the value of such goods inclusive of duties.]

51[(3) In the case of short-landing or short-shipment of goods, the appropriate officer may, if satisfied with regard to the bonafide of short-landing or short-shipment of goods, allow reduction in duty proportionate to the goods short-landed or short-shipped on first examination.]

52,95[27A. Allowing mutilation or scrapping of goods.- At the request of the owner 130[to be made before the filing of goods declaration] the mutilation or scrapping of goods as are notified by the Board, may be allowed, in the manner as prescribed by the rules and where such goods are so mutilated or scrapped they shall be chargeable to duty at such rates as may be applicable to the goods as if they had been imported in the mutilated form or as scrapped]:

129[Provided that the goods imported in new condition shall not be allowed scrapping and mutilation and shall be classified and chargeable to leviable duty and taxes as new goods:]

137[Provided further that scrapping and mutilation shall not be allowed for quantity exceeding ten per cent of the imported goods.]

28. Power to test and denature imported spirit.
When by any law for the time being in force a duty lower than that prescribed by 54[this Act] is imposed on denatured spirit, any such spirit imported into Pakistan may, subject to rules, be tested and if necessary adequately denatured by officers of customs, at the expense of the person importing the same, before the customs-duty is charged thereon.

29. Restriction on amendment of goods declaration.
Except as provided in section 88, no amendment of 56&56a[goods declaration] relating to goods assessed for duty on the declared value, quantity or description thereof shall be allowed after such goods have been removed from the customs-area 57[or assigned a Customs Reference Number electronically, as the case may be].

58[30. Date of determination of rate of import duty.
The rate of duty applicable to any imported goods shall be the rate of duty in force;

(a) in the case of goods cleared for home consumption under section 79, on the date on which a 59&59A[goods declaration] is manifested under that section; and

(b) in the case of goods cleared from a warehouse under section 104, on the date on which a 59&59A[goods declaration] for clearance of such goods is manifested under that section:

130[Provided that, where a goods declaration has been manifested in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the goods declaration is manifested under the 79 or section 104, as the case may be, except for those goods declaration in respect of which the rate of duty change after the submission of the goods declaration and before the berthing or cross-over event of the vessel or the vehicle respectively, as the case may be, the relevant date in which case, for the purposes of this section, shall be the date on which the vessel has berthed or the vehicle has crossed-over the border, as the case may be.]

60[Provided further that, in respect of goods for the clearance of which a 59/59A[goods declaration] for clearance has been manifested under section 104, and the duty is not paid within seven days of the 59/59A[goods declaration] being manifested, the rate of duty applicable shall be the rate of duty on the date on which the duty is actually paid 61[:]

62[Provided further that in case of the goods illegally removed from the warehouse, the rate of duty shall be the rate prevalent either on the date of in-bonding or detection of case or date of payment of the duty and taxes, whichever is higher:

Provided further that in case of exercising option for redemption of fine in lieu of confiscation of the goods seized during anti-smuggling operations, the rate of duty shall be the rate prevalent either on the date of seizure or date of payment of duty and taxes, whichever is higher:]

Provided further that the 127[Board, with approval of the Federal Minister-in-charge] may, by notification in the official Gazette, for any goods or class of goods, specify any other date for the determination of rate of duty.

Explanation:- For the purpose of this section “manifested” means that when a machine number is allocated to 59&59A[goods declaration] and is registered in Customs record.]

63[30A. Date of determination of rate of duty for clearance through.
the Customs Computerized System.- Subject to the provisions of section 155A, the rate of duty applicable to any imported or exported goods if cleared through the Customs Computerized System, shall be the rate of duty in force on;-

(a) the date of payment of duty;

(b) in case the goods are not chargeable to duty, the date on which the goods declaration is filed with Customs 64[.]

65[(c) Omitted.

Provided that where a goods declaration has been filed in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is filed at the customs-station of first entry:

Provided further that the 127[Board, with approval of the Federal Minister-in-charge] may, by notification in the official Gazette, specify any other date for the determination of rate of duty in respect of any goods or class of goods.]

31. Date for determination of rate of duty on goods exported.
The rate and amount of duty applicable to any goods exported shall be the rate and amount chargeable at the time of the delivery of the 59&59A[goods declaration] under section 131:

Provided that where the export of any goods is permitted without a 59&59A[ goods declaration] or in anticipation of the delivery of such a 59&59A[declaration], the rate and amount of duty applicable shall be the rate and amount chargeable on the date on which loading of the goods on the outgoing conveyance commences 66B[:]

67[Provided further that the 127[Board, with approval of the Federal Minister-in-charge] may, by notification in the official Gazette, for any goods or class of goods, specify any other date for determination of the rate of duty.]

68[31A. Effective rate of duty.
(1) Notwithstanding anything contained in any other law for the time being in force or any decision of any Court, for the purposes of section 30 69[,30A] and 31, the rate of duty applicable to any goods shall include any amount of duty imposed under section 18 89[,18A and 18C]. 70[Omitted] and the amount of duty that may have become payable in consequence of the withdrawal of the whole or any part of the exemption or concession from duty whether before or after the conclusion of a contract or agreement for the sale of such goods or opening of a letter of credit in respect thereof.

71[(2) For the purpose of determining the value of any imported or exported goods, the rate of exchange at which any foreign currency is to be converted into Pakistan currency shall be the rate of exchange in force on the date immediately preceding the relevant date referred to in sections 30, 30A or 31.]

32. 72[False] statement, error, etc.
(1) If any person, in connection with any matter of customs,-

(a) makes or signs or causes to be made or signed, or delivers or causes to be delivered to an officer of customs any declaration, notice, certificate or other document whatsoever, or

(b) makes any statement in answer to any question put to him by an officer of customs which he is required by or under this Act to answer, 90[or]

90[(c ) submits any false statement or document electronically through automated clearance system regarding any matter of Customs.] 72[knowing or having reason to believe that such document or statement is false] in any material particular, he shall be guilty of an offence under this section.

(2) Where, by reason of any such document or statement as aforesaid or by reason of some collusion, any duty 109[,taxes] or charge has not been levied or has been short-levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within 73[five] years of the relevant date, requiring him to show cause why he should not pay the amount specified in the notice.

(3) Where, by reason of any inadvertence, error or misconstruction, any duty 109[,taxes] or charge has not been levied or has been short-levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within 74[three years] of the relevant date requiring him to show cause why he should not pay the amount specified in the notice 75[:].

76[Provided that if the recoverable amount is less than 113[twenty thousand] rupees, the Customs authorities shall not initiate the aforesaid action 120[:]

120[Provided further that the aforesaid action shall also not be initiated in case full amount of short paid duty, taxes or other charges are paid voluntarily prior to initiation of audit, inquiry or investigation.]

77[(3A) Notwithstanding anything contained in sub-section (3), where any duty 109[,taxes] or charge has not been levied or has been short-levied or has been erroneously refunded and this is discovered as a result of an audit or examination of an importer’s 128[or exporter’s] accounts or by any means other than an examination of the documents provided by the importer 128[or exporter] at the time the goods were imported 128[or exported], the person liable to pay any amount on that account shall be served with a notice within 100[five] years of the relevant date requiring him to show cause why he should not pay the amount specified in the notice 78[:]

79[Provided that if the recoverable amount is less than 8,137[one hundred thousand] rupees, the Customs authorities shall not initiate the aforesaid action 137[if he deposits the recoverable amount.]

(4) The appropriate officer, after considering the representation, if any, of such person as is referred to in sub-section (2) or sub-section (3) 104[or sub-section (3A)] shall determine 80[any amount payable by him under this Act,] which shall in no case exceed the amount specified in the notice, and such person shall pay the amount so determined.

(5) For the purposes of this section, the expression “relevant date” means –

(a) in any case where duty is not levied, the date on which an order for the clearance of goods is made;

(b) in a case where duty is provisionally assessed under section 81, the date of adjustment of duty after its final assessment;

(c) in a case where duty has been erroneously refunded, the date of its refund;

(d) in any other case, the date of payment of duty or charge 96[;]

96[(e) in case of clearance of goods through the Customs Computerized System, on self assessment or electronic assessment, the date of detection.]

81[32A. Fiscal fraud.
(1) If any person, in connection with any matter related to customs-

(a) causes to submit documents including those filed electronically, which are concocted, altered, mutilated, false, forged, tempered or counterfeit to a functionary of customs;

(b) declares in the 82[goods declaration] electronically filed customs declaration, the name and address of any exporter or importer which is physically non-existent at the given address;

(c) declares in the 82[goods declaration] electronically filed customs declaration, an untrue information regarding 97[payment of duties and taxes through self-assessment,] description, quantity, quality, origin and value of goods; 129[(ca) declares value which is significantly higher or lower than the actual value, that is, the price actually paid or payable for the goods when sold for export to Pakistan, proceedings may be initiated under this section subject to conditions or limitations as may be prescribed by the Board under the rules.]

(d) alters, mutilates or suppresses any finding of the customs functionary on any document or in the computerized record; or

(e) attempts, abets or connives in any action mentioned in clauses (a), (b),

129[(c),(ca)] and (d) above, he shall be guilty of an offence under this section.

(2) Where, by any reason as referred to in sub-section (1) as aforesaid, any duty or tax charged or fee or fine and penalty levied under any provision of law has not been levied or has been short levied or has been refunded, the person liable to pay any amount on that account shall be served with a notice within a period of 180 days of the date of detection of such custom duty and tax fraud, requiring him to show cause as to why he should not pay the amount specified in the notice along with any other amount imposed as fine or penalty under the provisions of this Act:

129[Provided that an offence, having no revenue implication but covered under sub-section (1), shall also be served with show cause notice within a period of one hundred and eighty days of detection of such fraud for penal action under the relevant provisions of law.]

(3) The appropriate Adjudicating Officer, after considering the written or verbal representation of such person, may determine the amount of duty or tax chargeable or fee payable by such person which shall in no case exceed the amount specified in the notice and such person shall pay the amount so determined besides the fine or penalty or both.]

83[32B. Compounding of offence.
Notwithstanding anything contained in section 32 and 32A or any other provision of this Act, where any person has committed a duty or tax fraud, the Collector 128[or Director] may, with the prior approval of the Board, either before or after the institution of any proceedings for recovery of duty or tax, compound the offence if such person pays the amount of duty or tax due along with penalty as is determined under the provisions of this Act.]

128[32C. Mis-declaration of Value for illegal transfer of funds into or out of Pakistan.- (1) Without prejudice to any action that may be taken under this Act or any other law for the time being in force, if any person overstates the value of imported goods or understates the value of exported goods or vice versa, or using other means including short-shipment, over-shipment, with a view to illegally transferring funds into or out of Pakistan, such person shall be served with a notice to show cause within a period of two years from the date of detection of such mis-declaration as to why penal action shall not be initiated:

Provided that if goods have not been cleared from customs, such goods shall also be liable to be seized:

130[Provided further that Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.]

(2) Any proceedings under this section, shall not be initiated, without the explicit approval of Board.]

33. Refund to be claimed within 84[one year].
(1) No refund of any customs-duties or charges claimed to have been paid or over-paid through inadvertence, error or misconstruction shall be allowed, unless such claim is made within 84[one year] of the date of payment 91[.]

91,118[Omitted]

(2) In the case of provisional payments made under section 81, the said period of 84[one year] shall be reckoned from the date of the adjustment of duty after its final assessment.

101(3) In the case where refund has become due in consequence of any decision or judgment by any appropriate officer of Customs or the Board or the Appellate Tribunal or the Court, the said period of one year shall be reckoned from the date of such decision or judgment, as the case may be.]

120[(3A) The claim filed under this section shall be disposed of 128[subject to pre-audit] within a period not exceeding one hundred and twenty days from the date of filing of such claim:

Provided that the said period may, for reasons to be recorded in writing, be extended by the Collector of Customs for a period not exceeding ninety days.]

119[(4) No refund shall be allowed under this section, if the sanctioning authority is satisfied that the incidence of customs duty and other levies has been passed on to the buyer or consumer.]

128[(5) For the purpose of this section, the Board may, by notification in the official Gazette, specify the jurisdiction and powers of the officers of Customs to sanction refund in terms of amount of Customs duty and other taxes involved.]

34. Power to give credit for, and keep account-current of duties.
and charges.- An officer of customs, not below the rank of 85[Assistant Collector 102[omitted] of customs may, in the case of any mercantile firm or public body, if he so thinks fit, instead of requiring payment of customs duties or charges as and when they become due, keep with such firm or body an account-current of such duties and charges, which account shall be settled at intervals of not exceeding one month, and such firm or body shall make a deposit or furnish a security sufficient in the opinion of that officer to cover the amount which may at any time be payable by it in respect of such duties or charges.

LEGAL REFERENCE

1. Substituted by the Finance Act, 1975 (L of 1975), S.7(1), page 8. At the time of substitution section 18 was as under:-

“1a.18. Goods dutiable.- Except as hereinafter provided, customs duties shall be levied at such rates as may be prescribed under the Tariff Act, 1934 (XXXII of 1934) or under any other law for the time being in force on

(a) goods imported into or exported from Pakistan;

(b) goods brought from any foreign country to any customs-station, and without payment of duty, there transshipped or transported for, or thence carried to, and imported at, any other customs stations; and

(c) goods brought in bond from one customs-station to another.”.

1a. Substituted by Finance Act, 2005 (At the time of substitution section 18 was as under:- 1b Added by the Finance Act, 2007.

“18. Goods dutiable.- (1) Except as hereinafter provided, customs-duties shall be levied at such rates as are prescribed in the First Schedule and the Second Schedule or under any other law for the time being in force on-

(a) goods imported into or exported from Pakistan;

(b) goods brought from any foreign country to any customs-station, and without payment of duty, there transshipped or transported for, or thence carried to, and imported at any other customs-station; and

(c) goods brought in bond from one customs-station to another.

(2) The Federal Government may, on the recommendation, of the National Tariff Commission constituted under the National Tariff Commission Act,1990 (VI of 1990) (the Commission), provided the National Tariff Commission follows the same procedure as prescribed in the said Act by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods specified in the First Schedule at a rate not exceeding one hundred per cent of the value of such goods, as determined under section 25 or section 25B and may, by a like notification, levy a regulatory duty on all or any of the goods, exported from Pakistan:-

(i) at a rate not exceeding one hundred per cent of the value of the goods as determined under section 25 or section 25B, if such goods are specified in the Second Schedule; and

(ii) at a rate not exceeding fifty per cent of the amount which represents the value of the goods as determined under section 25 or section 25B, if such goods are not specified in the Second Schedule.

(3) The regulatory duty levied under sub-section (2) shall –

(a) be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and

(b) be leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.]

(4) Any notification issued under sub-section (2) shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued.”

2. Inserted by the Finance Act, 2006. 2a&2b. Added by the Finance Act, 2007. 3. Inserted by Finance Act,1991 (XII of 1991), S.4(1), page 197. 4. The brackets and words “(Amendment)” Omitted by Finance Act,1993 (X of 1993), S.4(1),page 121. 5. Omitted by Finance Act,1999(IV of 1999),S.10(2), Page 758. At the time of omission section 18B was as under:- “18B. Levy of service charges.- The Federal Government may, by notification in the official Gazette, levy a service charge equivalent to two per cent ad valorem on all such goods specified in the First Schedule to this Act as are subject to pre-shipment inspection.”.

Provided that for the purposes of Sales Tax Act, 1990, such service charge shall not constitute a part of the value of supply.”.

6. Inserted by Finance Act, 2005 6a Inserted by the Finance Act, 2007. 7. Renumbered by Finance Ordinance,1979(XXX of 1979),S.6(2), Page 787 w.e.f. 28th June, 1979. 8. The words “Central Government” substituted by Finance Ordinance, 1972 (XXXI of 1972 ), S.3, and Second Schedule S.1, page 76 w.e.f. 17th June, 1972 9. Added by the Finance Act, 2005. 10. Substituted for the words “full stop” by Customs (Amendment) Act, 1999 (II of 1999). 11. Proviso added by the Customs (Amendment )Act,1999 and Proviso omitted vide Customs (Amendment) Ordinance, 2000 (XI of 2000), S.2, page 114. At the time of omission this was as under: “

Provided that the Federal Government shall not exempt any goods imported into Pakistan from the whole or any part of the customs duties chargeable thereon, except in the following cases, namely:-

(a) For rectification of tariff anomalies on the recommendation of National Tariff Commission; or

(b) for the fulfillment of an international obligation of the Government of Pakistan; or

(c) for the purpose of national security.” 12. Added by Finance Ordinance, 1979 (XXX of 1979), S.6(2), page 187.

14. Inserted by Finance Act, 2005. 14a. Inserted by the Finance Act, 2007. 15. Omitted by Customs (Amendment) Act, 1999 (II of 1999) and added by Customs (Amendment) Act, 2000 (XI of 2000), S.3, page 114, at the time of omission section 20 was as under:-

“20. Board’s power to grant exemption from duty in exceptional circumstances.- Under circumstance of exceptional nature, the Board may, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by a special order in each case recording such circumstances, exempt any goods from payment of the whole or any part of the customs duties chargeable there."”

16. Added by Finance Act, 2005. 17. Inserted by the Finance Act, 2005. 18. Omitted by Customs (Amendment) Act, 1999 (II of 1999). At the time of omission sub-clause (b) was as under:- “(b) the delivery without payment of the whole or any part of the customs duties chargeable thereon of imported goods of such classes or description as it may prescribe, intended to be used in the production, manufacture, processing, repair or refining in Pakistan of goods of such classes or descriptions as it may prescribe;”. was as under:- “(c) the repayment in whole or in part of the customs-duties paid on the importation of any goods of such classes or description as it may prescribed, which have been used in the production, manufacture, processing, repair or refitting in Pakistan of goods of such classes or descriptions as it may prescribe, provided such repayment shall not be made in respect of the class or description of goods for which drawback can be claimed under Section 37.”. 20. Substituted for the full stop by the Finance Act, 2005. 21. Added by the Finance Act, 2005. 22. Substituted for the full stop by the Finance Act, 2005. 23. Added by the Finance Act, 2005.

Act, 1999 (II of 1999) and inserted by Finance Ordinance, 2001 (XXV of 2001), S.4(3), page 305. At the time of omission this section was as under:- “21-A. Deferment of collection of customs-duties.- Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed by rules or in particular case by special order, defer the collection of customs-duties either in whole or in part.”. 25. Renumbered by the Finance Act, 2006. 26. Added by the Finance Act, 2006. 26a. For the word “fifteen” the word “fourteen” was substituted vide FA, 2007.

27. Substituted by Finance Act,1975(L of 1975),S.7(2), Page 9 w.e.f.7th June,1975.At the time of substitution the proviso was as under:- “Provided if such goods have been imported within two years of their exportation 27a[(or within such further period not exceeding three years, as the Collector may allow in any case,)] and have continued to be the property of the person by whom or on whose account they were exported and have not undergone any processing since their exportation.”. 27a. Inserted by the Finance Act, 1973(L of 1973) 28. Substituted “Assistant Collector” by F.A,1996(IX of 1996) S.4(6).Page 476. 29. Substituted by Finance Act,1973 (L of 1973, S.9(3), Page 531. At the time of substitution it was as under:- “(a) where at the time of exportation of such goods, drawback of any customs or Federal Excise duty or any other tax levied by the 29a[Federal Government] or any Federal Excise duty levied by the Provincial Government was allowed, on payment of customs-duty equal to the amount of such drawback.”. 29a. The words “Central Government” substituted by Finance Ordinance, 1972 (XXXI of 1972 ), S.3, and Second Schedule S.1, page 76. 29a. Inserted section 22A by the Finance Act, 2007.

2002 (XXVII of 2002), S.4(3), page 223.

31. Substituted by the Finance Act, 1998 (III of 1998), S.4(II), page 39 at the time of substitution was as under:- “25. Value of imported and exported goods.- (1) The value of any imported goods shall be taken to be the normal price, that is to say, the price which they would fetch, on the date referred to in section 30 on a sale in open market between a buyer and a seller independent of each other.

(2) The normal price of any imported goods shall be determined on the following assumptions, namely:-that the goods brought by sea or land are treated as having been delivered to the buyer at the port or place of importation, as the case may be, and that goods brought by air are treated as having been delivered to the buyer at the airport or place where they are unloaded in Pakistan or, if the aircraft first lands in Pakistan at some other airport or place without unloading the goods, at such other airport or place;

(b) that the seller will bear freight, insurance, commission shall and all other costs, charges and expenses incidental to the sale and the delivery of the goods at that port, airport or place which will be included in the normal price;

(c) that the buyer will bear any duties or taxes applicable in Pakistan which will not be included in the normal price.

(3) Where the imported goods to be valued –

(a) are manufactured in accordance with any patented invention or are goods to which any protected design has been applied; or

(b) are imported under a foreign trade mark or are imported for sale, other disposal or use (whether or not after further manufacture) under a foreign trade mark; the normal price shall be determined on the assumption that it includes the value of the right to use the patent, design or trade mark in respect of the goods.

(4) The value of any exported goods shall be taken to be the normal price, that is to say, the price which they would fetch, at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned between a seller and a buyer independent of each other.

Explanation.- For the purposes of this sub-section, the expression “prescribed time” shall mean the time when the bill of export is delivered under section 131 or, when export of the goods is allowed without a bill of export or in anticipation of the delivery of a bill of export, the time when export of the goods commences.

(5) The normal price of any exported goods shall be determined on the following assumptions, namely:-

(a) that the goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported; and

(b) that the seller will bear all packing commission, transport, loading and all other costs, charges and expenses (including any export duty which may be chargeable) incidental to the sale and to the delivery of the goods on board the conveyance in which they are to be exported and which will be included in the normal price.

(6) where the exported goods to be valued -

(a) are manufactured in accordance with any patented invention or are goods to which any protected design has been applied; or

(b) are exported for sale, other disposal or use under a Pakistan trade mark or are exported for sale, other disposal or use (whether or not after further manufacture) under a Pakistan trade mark, the normal price shall be determined on the assumption that it includes the value of the right to use the patent, design on trade mark in respect of the goods.

Explanation I.- A sale in open market between a buyer and a seller independent of each other presupposes –

(a) that the price is the sole consideration; and

(b) that the price is not influenced by any commercial, financial or other relationship, whether by contract or otherwise between the seller or any person associated in business with him and buyer or any person associated in business with him other than the relationship created by the sale itself;

(c) that no part of the proceeds of any subsequent resale, other disposal or use of the goods will accrue, either directly or indirectly, to the seller or any person associated to business with him.

Explanation II.- Two persons shall be deemed to be associated in business with one another if, whether directly or indirectly, either of them has any interest in the business or property of the other or both have a common interest in any business or property or some third person has an interest in the business or property of both of them.”.

31a. Substituted by the Finance Act, 1999 (IV of 1999), S.10(3), page 758. At the time of substitution section 25 was as under:- “25. Value of imported and exported goods.- (1) Subject to the provisions of this section and the rules, the value of any imported goods shall be the transaction value, that is, the price actually paid or payable for the goods when sold or export to Pakistan.

(2) In determining the value under sub-section (1) –

(a) there shall be added to the price actually paid or payable for the imported goods:-

(i) the cost of transport of the imported goods to the port, airport or place of importation;

(ii) loading, unloading and handling charges or any other charges associated with or incidental to the transport of the imported goods to that port, airport or place of importation; and

(iii) the cost of insurance.

(b) to the extent that they are incurred by the buyer but are not included in the price actually paid or payable for the imported goods, there shall also be added to such price –

(i) commission and brokerage, except buying commissions;

(ii) the cost of containers which are treated as being one for customs purposes with the goods in question; and

(iii) the cost of packing whether for labour or materials;

(c) the value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable, shall also be added to such price –

(i) materials, components, parts and similar items incorporated in the imported goods;

(ii) tools, dies, moulds, and similar items used in the production of the imported goods; and

(iii) materials consumed in the production of the imported goods;

(d) royalties and license fees related to the imported goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the imported goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable shall also be added to such price; and

(e) the value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller shall also be added to the price actually paid or payable for such goods.

(3) The value of exported any goods shall be taken to be the normal price, that is to say, the price which they would fetch, at the prescribed time, on a sale in open market for exportation to the country to which the goods are consigned between a seller and a buyer independent of each other.

Explanation.- For the purposes of this sub-section, the expression “prescribed time” shall mean the time when the bill of export is delivered under section 131 or; when export of the goods is allowed without a bill of export or in anticipation of the delivery a bill of export, the same when export of the goods commences;

(4) The normal price of any exported goods shall be determined on the following assumptions; namely:-

(a) that the goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported; and

(b) that the seller will bear all packing, commission, transport, loading and all other costs, charges and expenses (including any export duty when may be chargeable) incidental to the sale and to the delivery of the goods on board the conveyance in which they are to be exported and which will be included in the normal price.

(5) Where the exported goods to be valued –

(a) are manufactured in accordance with any patented invention or are goods to which any protected design has been supplied; or

(b) are exported for sale, other disposal or use, whether or not after further manufacture, under a Pakistan trade mark; the normal price shall be determined on the assumption that it includes the value of the right to use the patent, design or trade mark in respect of the goods.

Explanation I.- A sale in open market between a buyer and a seller independent of each other presupposes–

(a) that the price is the sole consideration;

(b) that the price is not influenced by any commercial, financial or other relationship; whether by contract or otherwise between the seller or any person associated in business with him other than the relationship created by the sale itself; and

(c) that no part of the proceeds of any subsequent resale, other disposal or use of the goods will accrue, either directly or indirectly, to the seller or any person associated in business with him.

Explanation II.- Two person shall be deemed to be associated in business with one another if whether directly or indirectly, either of them has any interest in the business or property of the other or both have a common interest in any business or property or some third person has an interest in the business or property of both of them.”.

31b. For the words “Determination of Customs value of goods” the words Value of imported and exported goods” were substituted by the Finance Act, 2007. 32..Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198. At the time of substitution sub-section (4) was as under:- “(4) Where, in relation to the goods being valued, the appropriate officer is of the opinion that the declared price at which the goods are imported is different from test values as mentioned above, the appropriate officer shall inform the importer his reservations in writing and require the importer to justify the price difference. If the importer fails to justify the price difference, the transaction value shall be taken to be the one that cannot be determined under sub-section (1).”. 33. Substituted by Finance Ordinance, 2000..

35. Added by the Finance Ordinance, 2000 (XXI of 2000),S.4(3)(ii), page 199. 36. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198. At the time of substitution this sub-section (6) was as under:- “(6) Transaction value of similar goods.- If the customs value of the imported goods cannot be determined under the provisions of sub-section (5), it shall, subject to rules, be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued, and the provisions of clauses (b), (c) and (d) of sub-section (5) shall mutatis mutandis also apply in respect of similar goods.”.

38. Sub-clause (iii) omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I)p.198. 38a. The words “under this Act” were omitted by the Finance Act, 2007. 38b. For the words “are required to” the words “may or may not” were substituted by the FA, 2007.

39. Omitted by Finance Act, 2005. 40.. Amended by the Finance Act, 2006. At the time of amendments the Explanation II was as under:-

Explanation II.- For the purposes of this sub-section, the expression “prescribed time” shall mean the time when the bill of export or goods declaration is delivered under section 131 or 131A or, when export of the goods is allowed without a bill of export or goods declaration] or in anticipation of the delivery of a bill of export or goods declaration, the time when export of the goods commences. 40a. Substituted by the Finance Act, 2007. Before substitution the section 25A was as under:-

(2) If the value of the imported goods cannot be determined under sub-section (1), the value, subject to the rules, shall be the transaction value of similar goods sold for export to Pakistan and exported at or about the same time as the goods being valued.

(3) If the value of the imported goods cannot be determined under sub-section (2), the value shall be determined as follows-

(a) if the imported goods or identical or similar imported goods are sold in Pakistan in the condition as imported, then the value of the imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods, are so sold in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods, subject to such deductions as may be provided in the rules; and

(b) If neither the imported goods nor identical nor similar goods are sold for export to Pakistan then, if the appropriate officer so decides, the value shall be based on the unit price at which the imported goods, after processing, are sold in the greatest aggregate quantity to persons in the country of importation who are not related to the persons from whom they buy such goods, due allowance being made for the value added for all such processing and the deductions as may be provided in the rules.

(4) If the value of the imported goods cannot be determined under sub-section (3), the value of imported goods shall be based on computed value as may be prescribed by the rules:

Provided that, at the request of the importer, the order of application of sub-sections (3) and (4) may be reversed, if so agreed by the appropriate officer.

(5) If the computed value of the imported goods cannot be determined under sub-section (4), the value shall be determined using reasonable means consistent with the principles and general provisions contained in section 25 and on the basis of data available with the Controller of Customs Valuation, due regard being given to the circumstances surrounding the sale.]

43. Inserted by Finance Act, 1979 and amended by the Finance Act, 2006. At the time of amendments the existing Section 25C was as under:- “25A. Power to takeover the imported goods.- (1) If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the bill of entry or goods declaration, the Assistant Collector or any other higher officer of customs may order the following without prejudice to any other action against the importer or his authorised agent, namely:-]

(i) entertain offer by any other person to buy these goods at substantially higher value than the declared customs value in the bill of entry 37[or goods declaration] and payment of customs duties and other leviable taxes thereon, provided such offer is accompanied by a pay order equal to twenty-five per cent of the amount of each value and duties and other taxes leviable on imported goods;

(ii) give an option in writing to the importer of such goods for clearance of imported goods at the customs value equal to such highest offer for purchase of goods and payment of customs duties and other taxes chargeable thereon; and

(iii) in case the importer fails to clear the imported goods within seven days of the receipt of notice under clause (ii) above, the appropriate officer may takeover the goods on payment of customs value declared in the bill of entry 37[or goods declaration] and an amount equal to five per cent of such declared value;

(2) The imported goods taken over under sub-section (1) shall be delivered to the offerer on submission of two pay orders, one equal to the customs value declared in the bill of entry or goods declaration plus five per cent in the name of importer and the other pay order equal to the remaining amount of value of imported goods and the amount of customs duties and other taxes leviable on the imported goods in the name of Collector of Customs;

(3) In case the local buyer fails to take the delivery of the goods on payment of value and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-five per cent of the amount shall be fore-feted in favour of the Federal Government and imported goods shall be released to the importer as per customs value determined under section 25.” 44. Substituted by the Finance Act, 2006. 44a. Section 25D inserted by the Finance Act, 2007. 45. Substituted by the Finance Act, 2006. At the time of substitution the section 26 was as under:- “26. Power to require information to be furnished.- An appropriate officer may, by a requisition in writing, require any person concerned with the importation, exportation, purchase, sale, transport, storage or handling of any goods which are being or have been imported or exported to furnish such information relating to the goods as may be necessary for determining the legality or illegality of the importation or exportation of such goods, the value of such goods, the nature, amount and source of the funds or assets with which the goods were acquired and the customs duty chargeable thereon, or for deciding anything incidental thereto and to produce, and allow the officer to inspect and take extracts from or make copies of any invoice, bill of lading, book of account or other book or document of whatever nature relating to the goods.” 46. Inserted by Finance Act, 2006. 47. Substituted by Finance Act, 1986 48. inserted by Finance Act, 2006. 49. By Finance Act, 2006, the words “ or Deputy Collector” were omitted. 50. Substituted the words ”bill of entry” with the” words goods declaration” through Finance Act, 2006. 51. Inserted by Finance Act, 2006. 52. Added by Finance Act, 2005. 53. Inserted by Finance Act, 2006. 54. Substituted for the words, coma and figure by the Federal Laws (Remission & Declaration) Ordinance, 1981. 55. Inserted by the Finance Act, 2003 (I of 2003), S.5(7)(a), page 22. 55A. By the Finance Act, 2006 the words ”bill of entry or bill of export or” were omitted. 56. Inserted by the Finance Act, 2003 (I of 2003), S.5(7)(b)(I) and (ii),, page 22. 56A. By the Finance Act, 2006 the words “bill of entry or bill of export or” was omitted. 57. Inserted by Finance Act, 2006. 58. Substituted by Finance Act, 1972, Finance Act, 1998, and Finance Act, 1999. 59. Substituted by the Finance Act, 2003. 59A. Omitted the words “bill of entry or” by the Finance Act, 2006. 59B. Inserted by the Finance Act, 2002. 60. Second proviso added by the Finance Act, 1979. 61. Substituted for full stop by the Finance Act, 1992 (VII of 1992), S.6(3), page 114. 62. Added by the Finance Act, 1992 (VII of 1992), S.6(3), page 114. 63. Inserted by Finance Act, 2003. 64. Semi colon and the word “and” omitted by the Finance Act, 2005. 65. Clause (c ) omitted by the Finance Act2005. 66A. By Finance Act, 2006, the words ”export duty” were substituted. 66B. Substituted for full stop by Finance Act 1992. 67. Added by Finance Act, 1992. 68. Inserted by the Finance Act, 1988. 69. Inserted by Finance Act, 2003. 70. Omitted by Finance Act, 1991[section 2of the Finance Ordinance,1982(XII of 1982), and section 5 of the Finance Act,1985(I of 1985), and the anti-dumping or countervailing duty imposed under the Import of Goods (Anti-dumping and Countervailing Duties)Ordinance, 1983 (III of 1983)]. 71. Substituted by Finance Act, 2003. 72. Substituted by the Federal Laws(Remission and Declaration) Ordinance,1981. 73. Substituted for the word ”three” by the Finance Ordinance, 2000. 74. Substituted by the Finance Ordinance, 2000. 75. Substituted full stop by the Finance Act, 2005. 76. Added by the Finance Act,2005. 77. Inserted by the Finance Ordinance, 2000. 78. Substituted full stop by the Finance Act, 2005. 79. Added by the Finance Act, 2005. 80. Substituted the words “ the amount of duty payable by him” by the FA, 2006. 81. Inserted by the Finance Act, 2004. 82. Substituted for the word “bill of entry or bill of export or” by the FA, 2006. 83. Inserted by the Finance Act, 2005.

84. Substituted by the Finance Act, 2005. 85. Substituted for the words “Assistant Collector” by the FA, 1996. 86. Omitted by Finance Act,2008(I of 2008) (Page-45) 87. The word “Fourteen” substituted with word “KIBOR plus three” by Finance Act,2009. 88. Inserted by Finance Act,2009. 89. Inserted by Finance Act,2009.. 90. The word “or” and sub-clause (c) added by Finance Act,2009. 91. The full stop substituted with colon and thereafter a new proviso added by Finance Act,2009. 92. The words” export duty which may be chargeable” substituted by Finance Act,2010. 93. Added by Finance Act,2010. 94. Substituted by Finance Act,2010. At the time of substitution the section 25D was as under:- “25D. Review of the value determined.- Where the customs value has been determined by the Collector of Customs or Director of valuation or any other authority competent to do so, a review application shall lie before Director-General of Valuation and any proceeding pending before any court, authority or tribunal shall forthwith abate”. 95. Substituted by Finance Act,2010. At the time of substitution the section 27A was as under:-

“27A. Allowing denaturing or mutilation of goods.- At the request of the owner, 53 [ to be made before the filing of goods declaration,] the denaturing or mutilation or scrapping of imported goods, which are ordinarily used for more than one purpose, may be allowed, as prescribed by rules so as to render them unfit for one or more such purposes and where any goods are so denatured or mutilated or scrapped they shall be chargeable to duty at such rate as may be applicable if the goods had been imported in the denatured or mutilated form or as scrap”. 96. Inserted by Finance Act,2010. 97. Inserted by Finance Act,2010. 98. Inserted by Finance Act, 2011 99. The words “or Deputy Collector” omitted by Finance Act,2011. 100. The word “three” substituted by Finance Act,2011 101. Inserted by Finance Act, 2011 102. The words “or Deputy Collector” omitted by Finance Act,2011. 103. Inserted by the Finance Act, 2012. 104. Inserted by Finance Act, 2013 105. Substituted by F.A, 2014 106. Substituted for the words and figures “the Central Excises and Salt Act,1944 (I of 1944)” by Finance Act, 2014 107. Ommited by F.A, 2014 “At the time of omission was as under:- 5(d) If, in applying the provisions of this sub-section, there are two or more transaction values of identical goods that meet all the requirements of this sub-section and clauses

(b),(d),(e) and (f) of sub-section (13), the customs value of the imported goods shall be the lowest such transaction value, adjusted as necessary in accordance with clauses (b) and (c).]

107. Substituted for the words “and” by F.A.,2014 108. Omitted for the words “and(d)” by F.A, 2014 109. Substituted by Finance Act, 2014 110. Substituted by Finance Act, 2015 “at the time of substitution section 19 (1) was as under:

[(1) The 8[Federal Government], subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, may, by notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon 9[and may remit fine, penalty, charge or any other amount recoverable under this Act] 10[:]

111. Added by Finance Act, 2015 112. Omitted by Finance Act, 2015, “At the time of omission Section 20 was as under:

15[20. Board’s power to grant exemption from duty in exceptional.
circumstances.- Under circumstances of exceptional nature, the Board may, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, by a special order in each case recording such circumstances, exempt any goods from payment of the whole or any part of the customs-duties chargeable thereon 16[and may remit fine, penalty, charge or any other amount recoverable under this Act.] 113. Substituted by Finance Act, 2015. “At the time of substitution was as “one hundred” 114. Added vide Finance Act, 2016 115. Inserted by Finance Act, 2017, at the time of substitution the words was " Federal Government", 116. Inserted by Finance Act, 2017 117. Inserted by Finance Act, 2017 118. Omitted by Finance Ac, 2017, “At the time of substitution was as: “

Provided that no refund shall be allowed under this section if the sanctioning authority is satisfied that incidence of customs duty and other levies has been passed on to the buyer or consumer] 119. Inserted by Finance Act, 2017 120. Substituted / inserted by Finance Act, 2018 121. Substituted by Finance Act, 2019 (At the time of substitution the words was “Federal Government” 122. Omitted by Finance Act, 2019(At the time of omission, the word was “removal of anomalies in duties, development of backward areas” 123. Omitted by Finance Act, 2019 (At time of omission, the words was “the Collector of Customs on his motion, or”) 124. Omitted by Finance Act, 2019 (At time of omission, the sub-section (3) was “(3) In case of any conflict in the customs value determined under sub-section (1), the Director General of Customs Valuation shall determine the applicable customs value”. 125. Omitted by Finance Act, 2019 (At time of omission, the words was “or, as the case may be, under sub-section (3) 126. Omitted by Finance Act, 2019, t the time of omission the words was “Collector of Customs or” 127. Substituted by Finance Act, 2019. At the time of substitution the words was “Federal Government” 128. Inserted by Finance Act, 2019. 129. Inserted by Finance Act, 2020 (June) 130. Inserted by Finance Act, 2021 (June) 131. Inserted by Ordinance No.XXII of 2021(15.09.2021) 132. Omitted by Supplementary Finance Act, 2022 (January) 133. Substituted by Finance Act, 2022 (June) 134. Omitted by Finance Act, 2022 [or for supplies against international tenders] 135. Inserted by Finance Act, 2023(June) 136. Substituted by Finance Act, 2024(June) 137. Substituted by Finance Act, 2025(June)

CHAPTER VI
DRAWBACK

35. Drawback of the export on imported goods.
Subject to the subsequent provisions of this Chapter and the rules, when any goods, capable of being easily identified, which have been imported into Pakistan and upon which customs-duties have been paid on importation, are exported to any place outside Pakistan or as provisions or stores for use on board a conveyance proceeding to a foreign territory, seven-eight of such duties shall be repaid as drawback, subject to the following conditions, namely:-

(l) the goods are identified to the satisfaction of an officer of customs not below the rank of 1/2[Assistant Collector] of Customs at the customs-station, to be the same as had been imported, and

(2) the goods are entered for export within two years of the date of their importation, as shown by the records of the custom-house or if such time is extended by the Board or the Collector of Customs for sufficient cause within such extended time:

Provided that the Collector of Customs shall not extend the time beyond three years of the importation of such goods.

Explanation.- For the purposes of this section, the goods shall be deemed to have been entered for export on the date on which the 3 [goods declaration] is delivered to the appropriate officer under section 131 4[*****].

36. Drawback on goods taken into use between importation and.
exportation.- Notwithstanding anything contained in section 35, the repayment of duty as drawback in respect of goods which have been taken into use between their importation and subsequent exportation shall be made in accordance with the provisions of the rules made in that behalf.

37. Drawback on goods used in the manufacture of goods which.
are exported.- Where it appears to the Board that in respect of goods of any class or description manufactured in Pakistan and exported to any place outside Pakistan, a drawback of customs-duties should be allowed on any imported goods of a class or description used in the manufacture of such exported goods, the Board may, by notification in the official Gazette, direct that drawback shall be allowed in respect of such imported goods to such extent and subject to such condition as may be provided in the rules.

38. Power to declare what goods are identifiable and to prohibit.
draw-back in case of specified foreign territory.- (1) The Board may, from time to time, by notification in the official Gazette, declare what goods shall, for the purposes of this Chapter, be deemed to be not capable of being easily identified.

(2) The 5[Federal Government ] may, from time to time, by notification in the official Gazette, prohibit the payment of drawback upon the exportation of goods or any specified goods or class of goods to any specified foreign port or territory.

39. When no drawback allowed.
Notwithstanding anything hereinbefore contained, no drawback shall be allowed-

(a) upon goods which are required to be included in the export manifest and are not so included, or

(b) when the claim is for drawback amounting, in respect of any single shipment, to less than 6[or equal to] hundred rupees, or

(c) unless the claim for drawback has been made and established at the time of export.

40. Time of payment of drawback.
No such payment of drawback shall be made until the vessel carrying the goods has put out to sea or other conveyance has left Pakistan.

41. Declaration by parties claiming drawback.
Every person, or his duly authorized agent, claiming drawback on any goods duly exported, shall make and subscribe a declaration that such goods have been actually exported and have not been relanded and are not intended to be relanded at any place in Pakistan and that such person was at the time of entry outwards and export and continues to be entitled to drawback thereon.

LEGAL REFERENCE

1. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S.4(6), page 476 2. By the Finance Act, 2006, the words “or Deputy Collector” were omitted. 3. Substituted for the words “bill of export” by the Finance Act, 2006. 4. Added by Finance Act, 2004 (II of 2004), S.3(7), page 16 and omitted the word, figure and letter “or 131A” by the Finance Act, 2005. 5. Substituted for the words “Central Government” by the Finance Ordinance, 1972, S.3, page 56 and Second Schedule S.1, page 76. 6. Inserted by the Finance Act, 2007.

CHAPTER VII
ARRIVAL AND DEPARTURE OF CONVEYANCE

42. Arrival of conveyance.
(1) The person-in-charge of a conveyance entering Pakistan from any place outside Pakistan shall not cause or permit the conveyance to call or to land in the first instance at any place other than a customs-station.

(2) The provisions of sub-section (1) shall not apply in relation to any conveyance which is compelled by accident, stress of weather or other unavoidable cause to call, or land at a place other than a customs-station but the person-in-charge of any such conveyance-

(a) shall immediately report its arrival to the nearest officer of customs or the officer-in-charge of the police-station and shall on demand produce before him either the cargo book or the manifest or the log-book belonging to such conveyance;

(b) shall not, without the consent of any such officer, permit any goods carried in the conveyance to be unloaded from, or any of the crew or passengers to depart from its vicinity;

(c) shall comply with any direction given by such officer with respect ot any such goods; and no passenger or member of the crew shall, without the consent of any such officer, leave the vicinity of the conveyance:

Provided that nothing in this section shall prohibit the departure of any passenger or member of the crew from the vicinity of, or the removal of goods from, the conveyance where such departure or removal is necessary for reasons of health, safety or the preservation of life or property 1[: ]

2[Provided further that the person in charge of a conveyance, that is en route to Pakistan from a point outside Pakistan shall, unless otherwise approved by the Collector,-

(a) 17[deliver] to the Customs, in such form and manner (for example, in an electronic form and manner) as may be approved in writing by the Collector (either generally or for a particular case or class of cases), such advance 17[information] as may be prescribed for any or all of the following matters, namely:-

(i) the impending arrival of the conveyance;

(ii) its voyage;

(iii) its 17[passengers and crew manifest];

(iv) its passengers 17[and crew name record information];

(v) its cargo for discharge within Pakistan whether commercial or non-commercial;

(vi) its commercial cargo not intended for discharge within Pakistan, if any;

(vii) the Customs station at which the conveyance will arrive; and

(b) or arriving within Pakistan, proceed directly to that Customs station unless directed elsewhere by an appropriate Customs officer.]

3[(3) The owner or operator of the conveyance, referred to in sub-section (1), or an agent of the owner, may provide the information referred to in paragraph (a) of that sub-section to the Customs on behalf of the person in charge of the conveyance:

Provided that the provisions of sub-section (1) and (2) shall apply to,-

(a) a conveyance that has arrived in Pakistan from a point outside Pakistan;

(b) a conveyance departing from Pakistan for a point outside Pakistan;

(c) a conveyance that is within Pakistan and that is carrying international cargo or international crew or any international passenger, whether or not the conveyance is also carrying domestic cargo;

(d) any other conveyance that is within Pakistan and that a Customs officer has reasonable cause to suspect has been, or is about to be, involved in the commission of an offence under this Act or the importation or exportation of any dutiable, prohibited, restricted, notified or confiscated goods.

(4) The person in charge of, the owner of goods, any member of the crew of, any passenger on, a conveyance to which this sub-section applies, shall,-

(a) answer any question asked by a customs officer under this Act relating to the conveyance and its voyage and any persons or goods that are or have been carried by the conveyance; and

(b) produce forthwith, at the request of any Customs officer, any documents within that person’s possession or control relating to any of those matter.]

4[43. Delivery of import manifest in respect of a vessel.
(1) The Board may, by notification in the official Gazette, fix a place beyond which no vessel arriving shall pass until an import manifest has been delivered to Customs or other person duly authorized to receive in such form, manner and time as the Board may prescribe.

(2) On receipt of such import manifest the vessel may proceed to come beyond the fixed place. No pilot shall bring a vessel into customs-port without having been so authorized by Customs.

(3) If any vessel arrives at any customs-port in which a place has not been so fixed, master of such vessel shall, within twenty-four hours after arrival of such vessel, deliver an import manifest to Customs in such form and manner as the Board may prescribe.

(4) Notwithstanding anything contained in sub-section (3), an import manifest may be delivered in anticipation of the arrival of a vessel.]

18[44. Delivery of import manifest in respect of a conveyance other.
than a vessel.- The person-in-charge of a conveyance other than a vessel shall before arrival or as per following timelines, after arrival thereof at a land customs-station or customs-airport, as the case may be, deliver or file electronically an import manifest to appropriate officer of Customs:

(a) for customs airport: within three of landing; and

(b) for land Customs-station: at the time of entry into the country as prescribed under the rules.]

45. Signature and contents of import manifest and amendment.
thereof.- (1) Every manifest delivered under section 43 or section 44 shall be signed by the person-in-charge of the conveyance or his duly authorized agent and shall specify all goods imported in such conveyance showing separately all goods, if any, intended to be landed, transshipped, transited or taken into another customs-station or to a destination outside Pakistan and stores intended for consumption at the customs-station or on the outward voyage or journey, and shall be made out in such form and contain such further particulars as the Board may from time to time direct 5[:]

6[Provided that the Collector of Customs, through a special order, on such terms and conditions as he may deem fit to impose, may allow acceptance of digital signatures instead of manual ones, on electronically transmitted import manifest.]

(2) The appropriate officer shall permit the person-in-charge of a conveyance or his duly authorized agent to correct any obvious error in the import manifest or to supply any omission which in the opinion of such officer results from accident or inadvertence, by furnishing an amended or supplementary import manifest 7[or by making an amendment electronically] and shall levy thereon such fees as the Board from time to time directs:

18[Provided that before the berthing of the vessel or the cross-over of the vehicle, as the case may be, the person incharge of a conveyance or his duly authorized agent may amend the import manifest subject to the rules notified by the Board.]

(3) 18[Omitted]

46. Duty of person receiving import manifest.
The person receiving an import manifest under section 43 or section 44 shall countersign the same and enter thereon such particulars as the Collector of Customs from time to time directs 8[:]

9[Provided that no countersignatures shall be required in respect of an import manifest filed electronically.]

47. Bulk not to be broken until manifest, etc., delivered and.
vessel entered inwards.- No vessel arriving in any customs-port shall be allowed to break bulk, until an import manifest has been delivered as hereinbefore provided or until copy of such manifest together with an application for entry of such vessel inwards, has been presented by the master to the appropriate officer and an order has been given thereon for such entry.

48. Power to require production of documents and ask questions.
(1) When an import manifest is presented, the person-in-charge of a conveyance or his duly authorized agent, if required so to do by the appropriate officer, shall deliver to the officer the bill of lading or the bill of freight or a copy thereof for every part of cargo or goods laden on board, journey log-book and any port clearance, docket or other paper granted in respect of such conveyance at the place from which it is stated to have come, and shall answer all such questions relating to the conveyance, goods, crew and voyage or journey as are put to him by such officer.

(2) The appropriate officer may, if any requisition or question made or put by him under this section is not complied with or answered, refuse to grant permission to a vessel to break bulk and to other conveyance to land the imported goods, as the case may be.

49. Special pass for breaking bulk.
Notwithstanding anything contained in section 47 and subject to rules, the appropriate officer may grant, prior to receipt of the import manifest and the entry inwards of a vessel, a special pass permitting bulk to be broken.

50. Order for entry outwards or loading of goods to be obtained.
goods are loaded.- (1) No goods other than passengers’ baggage and mail bags shall be loaded on a conveyance until-

(a) in the case of a vessel, a written application for entry of such vessel outwards, subscribed by the master of such vessel, has been made to the appropriate officer and an order has been given thereon for such entry; and

(b) in the case of any other conveyance, a written application for authority to load the goods subscribed by the person-in-charge of the conveyance has been made to the appropriate officer and an order has been given thereon authorizing the loading.

(2) Every application made under this section shall specify the particulars as prescribed by the Board.

51. No vessel to depart without port-clearance.
(1) No vessel, whether laden or in ballast, shall depart from any customs-port until a port-clearance has been granted by the appropriate officer.

(2) No pilot shall take charge of any vessel proceeding to sea, unless the master of such vessel produces a port-clearance.

52. No conveyance other than vessel to leave without.
permission.- No conveyance other than a vessel shall depart from a land customs-station or customs-airport until a written permission to that effect has been granted by the appropriate officer.

53. Application for port-clearance of vessels.
(1) Every application for port-clearance shall be made by the master of a vessel at least twenty-four hours before the intended departure of the vessel:

Provided that the Collector of Customs or an officer authorized by him in this behalf may for special reasons to be recorded allow a shorter period for the delivery of the said application.

(2) The master shall, at the time of applying for port clearance,-

(a) deliver to the appropriate officer an export manifest in duplicate in such form as may from time to time be prescribed by the Board signed by such master specifying all goods to be exported in the vessel and showing separately all goods and stores entered in the import manifest, and not landed or consumed on board or transshipped 10[:]

11[Provided that the Collector of Customs, through a special or general order, on such terms and conditions as he may deem fit to impose, may allow acceptance of digital signatures, in lieu of the manual ones, on electronically transmitted export manifest.]

(b) deliver to the appropriate officer such 12/13[ goods declaration] or other documents as such officer acting under the general instructions of the Collector of Customs requires; and

(c) answer such questions respecting the departure and destination of the vessel as are put to him by the appropriate officer.

(3) The provisions of section 45 relating to the amendment of import manifests shall, mutatis mutandis, apply also to export manifests delivered under this section or under section 54.

54. Conveyances other than vessels to deliver documents and.
answer questions before departure.- The person-in-charge of a conveyance other than a vessel or his duly authorized agent shall -

(a) deliver to the appropriate officer an export manifest in duplicate in such form as may from time to time be prescribed by the Board signed by the person-in-charge or the agent specifying all goods or stores entered in the import manifest, and not landed or transshipped or consumed on board the conveyance;

(b) deliver to the appropriate officer such bills of export 14[or goods declaration] or other documents as such officer acting under the general instructions of the Collector of Customs requires; and

(c) answer such questions respecting the departure and destination of the conveyance as are put to him by the appropriate officer.

55. Power to refuse port-clearance to vessels or permission for.
other conveyance.- (1) The appropriate officer may refuse to give port-clearance to a vessel or permission for departure to any other conveyance until-

(a) the provisions of section 53 or section 54, as the case may be, have been complied with;

(b) all station or port dues and other charges and penalties payable in respect of such vessel, or by the owner or master thereof, or in respect of such other conveyance by the owner or person-in-charge thereof, and all taxes, duties and other dues payable in respect of any goods loaded therein, have been duly paid, or their payment secured by such guarantee, or by such deposit at such rate, as such officer directs;

(c) where any export goods have been loaded without payment or securing payment as aforesaid of all taxes, duties and other dues payable in respect thereof or in contravention of any provision of this Act or the rules or of any other law for the time being in force relating to export of goods.

(i) such goods have been unloaded, or

(ii) where the appropriate officer is satisfied that it is not practicable to unload such goods, the person-in-charge or his duly authorized agent has given an undertaking secured by such guarantee or deposit of such amount as the appropriate officer may direct, for bringing back the goods to Pakistan;

(d) the agent, if any, delivers to the appropriate officer a declaration in writing to the effect that he will be liable for any penalty imposed under clause 24 of the Table under sub-section (1) of section 156 and furnishes security for the discharge of the same;

(e) the agent, if any, delivers to the appropriate officer a declaration in writing to the effect that such agent is answerable for the discharge of all claims for damage or short delivery 17[or other dues in connection with discharge and delivery of goods] which may be established by the owner of any goods comprised in the import cargo in respect of such goods.

(2) An agent delivering a declaration under clause (d) of sub-section (1) shall be liable to all penalties which might be imposed on the person-in-charge of such conveyance under clause 24 of the Table under sub-section (1) of section 156 and an agent delivering a declaration under clause (e) of sub-section (1) shall be bound to discharge all claims referred to in such declaration.

56. Grant of port-clearance or permission for departure.
When the appropriate officer is satisfied that the provisions of this Chapter relating to the departure of conveyance have been duly complied with, he shall grant a port-clearance to the master of the vessel or a written permission for departure to the person-in-charge of any other conveyance and shall return at the same time to such master or person-in-charge one copy of the manifest duly countersigned by the appropriate officer.

57. Grant of port-clearance or permission for departure on.
Notwithstanding anything contained in section 55 or section 56 and subject to rules, the appropriate officer may grant a port-clearance in respect of a vessel or permission for departure in respect of any other conveyance, if the agent furnishes such security as such officer deems sufficient for duly delivering within ten days from the date of such grant, the export manifest and other documents specified in section 53, or section 54, as the case may be.

58. Power to cancel port-clearance or permission for departure.
(1) For the purpose of securing compliance with any provision of this Act or the rules or any other law, the appropriate officer may at any time, while the vessel is within the limits of any port or any other conveyance is within the limits of any station or airport or within Pakistan territory, demand the return of port-clearance or the written permission for departure, as the case may be.

(2) Any such demand may be made in writing or may be communicated to the person-in charge of the conveyance by wireless, and, if made in writing it may be served, by delivery to the person in-charge or his agent personally; or

(a) by leaving it at the last known place of abode of such person or agent; or

(b) by leaving it on board the conveyance with the person appearing to be in-charge or command thereof.

(3) Where a demand for the return of a port-clearance or of a permission for departure is made as aforesaid, the port-clearance or permission shall forthwith become void.

59. Exemption of certain classes of conveyance from certain.
provisions of this Chapter.- (1) The provisions of section 44, 52, and 54 shall not apply to a conveyance, other than a vessel which carries no goods other than the baggage of its occupants.

(2) The 15[Federal Government] may, by notification in the official Gazette, exempt conveyances belonging to Government or any foreign Government from all or any of the provisions of this Chapter.

LEGAL REFERENCE

1. Substituted for the full stop by the Finance Act, 2005 2. Added by the Finance Act, 2005 3. Added by the Finance Act, 2005 4.Substituted by the Finance Act, 2003 (I of 2003), S.5(8), page 23. At the time of substitution section 43 was as under:- 43. Delivery of import manifest in respect of a vessel.- (1) The Board may, by notification in the official Gazette, fix a place in any river or port beyond which no vessel arriving shall pass until an import manifest has been delivered to the pilot, officer of customs or other person duly authorised to receive the same.

(2) If in any river or port wherein a place has been fixed by the Board under this section, the master of any vessel arriving remains outside or below the place so fixed, such master shall, nevertheless, within twenty-four hours after the vessel anchors, deliver an import manifest to the pilot, officer of customs or other person duly authorised to receive the same.

(3) If any vessel arrives at any customs-port in which a place has not been so fixed, the master of such vessel shall, within twenty-four hours after such vessel has anchored within the limits of the port, deliver an import manifest to the pilot, officer of customs or other person authoirsed to receive the same.

(4) Notwithstanding anything herein before contained, the appropriate officer may allow an import manifest to be delivered in anticipation of the arrival of a vessel.”. 5. Substituted for the full stop by the Finance Ordinance, 2001 (XXV of 2001), S.4($), page 305. 6. Added by the Finance Ordinance,2001(XXV of 2001),S.4(4),p-305&306.

8. Substituted for the full stop by the Finance Act, 2003 (I of 2003), S.5(11), page 23. 9. Added by the Finance Act, 2003 (I of 2003), S.5(11), page 23. 10. Substituted for the full stop by the Finance Ordinance, 2001 (XXV of 2001), S.4(5), page 306. 11. Added by the Finance Ordinance, 2001 (XXV of 2001), S.4(5), page 306.

13. By the Finance Act, 2006, the words “ bills of export or” were omitted. 14. Inserted by the Finance Act, 2003 (I of 2003), S.5(13), page 23. 15. Substituted for the words “Central Government” by the Finance Ordinance, 1972, S.3, page 56 and Second Schedule S.1, page 76. 16. Inserted by Finance Act,2009.. 17. Substituted/inserted by Finance Act, 2018 18. Inserted by Finance Act, 2021(June)

CHAPTER VIII
GENERAL PROVISIONS AFFFECTING CONVEYANCES AT CUSTOMS-
STATIONS

60. P ower to depute officer of customs to board conveyances.
At any time while a conveyance is in a customs-station or is proceeding towards such station, the appropriate officer may depute one or more officers of customs to board the conveyance, and every officer so deputed shall remain on board such conveyance for such time as the appropriate officer may consider necessary.

61. Officer to be received and accommodation to be.
provided.- Whenever an officer of customs is so deputed to be on board any conveyance, the person-in-charge shall be bound to receive him on board and provide him with suitable accommodation and adequate quantity of fresh water.

62. Officer’s powers of access, etc.
(1) Every officer deputed as aforesaid shall have free access to every part of the conveyance and may-

(a) cause any goods to be marked before they are unloaded from the conveyance;

(b) lock up, seal, mark or otherwise secure any goods carried in the conveyance or any place or container in which they are carried; or

(c) fasten down any hatchway or entrance to the hold.

(2) If any box, place or closed receptacle in any such conveyance be locked, and the key be withheld, such officer shall report the same to the appropriate officer, who may thereupon issue to the officer on board the conveyance, or to any other officer under his authority, a written order for search.

(3) On production of such order, the officer empowered thereunder may require that any such box, place or closed receptacle be opened in his presence; and if it be not opened upon his requisition, he may break open the same.

63. Sealing of conveyance.
Conveyances carrying transit goods for destinations outside Pakistan or goods from some foreign territory to a customs-station or from a customs-station to some foreign territory may be sealed in such cases and in such manner as may be provided in the rules.

64. Goods not to be loaded or unloaded or water-borne.
except in presence of officer.- Save where general permission is given under section 67 or with permission in writing of the appropriate officer, no goods other than passengers’ baggage or ballast urgently required to be loaded for the vessel’s safety, shall be shipped or water-borne to be shipped or discharged from any vessel, in any customs-port, nor any goods except passengers’ baggage shall be loaded in or unloaded from any conveyance other than a vessel at any land customs-station or customs-airport except in the presence of an officer of customs.

65. Goods not to be loaded or unloaded or passed on certain.
days or at certain times.- Except with the permission in writing of the appropriate officer and on payment of such fees as may be prescribed by the Board no goods, other than passengers’ baggage or mail bags, shall in any customs-port be discharged, or be shipped or water-borne to be shipped or shall be loaded or unloaded or passed at any land customs-station or customs-airport-

(a) on any public holiday within the meaning of section 25 of the Negotiable Instruments Act,1881(XXVI of 1881), or on any day on which the discharge or shipping of cargo at customs-port or loading, unloading passage or delivery of cargo at any land customs-station or customs-airport, as the case may be, is prohibited by the Board by notification in the official Gazette; or

(b) on any day except between such hours as the Board may, from time to time, by a like notification, appoint 1[:]

2[Provided that where the Customs Computerized System is in operation, all loading and discharge may be allowed by the Collector of Customs round the clock and on all days.]

66. Goods not to be loaded or unloaded except at approved.
places.- Save where general permission is given under section 67 or with permission in writing of the appropriate officer, no imported goods shall be unloaded or goods for export loaded at any place other than a place duly approved under clause (b) of section 10 for the unloading or loading of such goods.

67. P ower to exempt from sections 64 and 66.
Notwithstanding anything contained in section 64 or section 66, the Board may, by notification in the official Gazette, give general permission for goods to be loaded at any customs-station from any place not duly appointed for loading and without the presence or authority of an officer of customs.

68. Boat-note.
(1) When any goods are water-borne for the purposes of being landed from any vessel and warehoused or cleared for home-consumption, or of being shipped for exportation on board any vessel, there shall be sent, with each boat-load or other separate dispatch, a boat-note specifying the number of packages so sent and the marks or number or other description thereof.

(2) Each boat-note for goods to be landed shall be signed by an officer of the vessel, and likewise by the officer of customs on board, if any such officer be on board, and shall be delivered on arrival to any officer of customs authorized to receive the same.

(3) Each boat-note for goods to be shipped shall be signed by the appropriate officer and, if an officer of customs is on board the vessel on which such goods are to be shipped, shall be delivered to such officer, and if no such officer be on board, shall be delivered to the master of the vessel or to an officer of the vessel appointed by him to receive it.

(4) The officer of customs who receives any boat-note of goods landed, and the officer of customs, master or other officer as the case may be, who receives any boat-note of goods shipped, shall sign the same and note thereon such particulars as the Collector of Customs may from time to time direct.

(5) The Board may from time to time, by notification in the official Gazette, suspend the operation of this section in any customs-port or part thereof.

69. Goods water-borne to be forthwith landed or shipped.
All goods water-borne for the purpose of being landed or shipped shall be landed or shipped without any unnecessary delay.

70. Goods not to be transshipped without permission.
Except in cases of imminent danger, no goods discharged into or loaded in any boat for the purpose of being landed or shipped shall be transshipped into any other boat without the permission of an officer of customs.

71. Power to prohibit plying of unlicensed cargo-boats.
(1) The Board may declare with regard to any customs-port, by notification in the official Gazette that, after a date therein specified, no boat not duly licensed and registered shall be allowed to ply as a cargo-boat for the landing and shipping of merchandise within the limits of such port.

(2) In any port with regard to which such notification has been issued, the Collector of Customs or other officer whom the Board appoints in this behalf, may, subject to rules and on payment of such fees as the Board may, by notification in the official Gazette, prescribe, issue licenses for and register cargo-boats, or cancel the same.

72. Plying of ships of less than one hundred tons.
(1) Every boat belonging to a Pakistani ship and every other vessel not exceeding one hundred tons, shall be marked in such manner as may be prescribed by rules.

(2) Plying of all or any class or description of vessels of less than one hundred tons, whether in sea or inland waters, may be prohibited or regulated or restricted as to the purposes and limits of plying by rules.

3[72A. Responsibilities of person in charge or master of a.
conveyance, agent and owner of the conveyance.- The person in charge of the conveyance, master, agent for conveyance and owner of the conveyance shall jointly and individually be responsible to submit the following information to the Collector of Customs, namely:-

(a) loading or unloading of any container of package, etc., which is believed to contain any other goods or has different weight or quantity or freight than declared in the bill of lading or any other document in the knowledge of such person;

(b) the name and full address with telephone number of the person who stuffed the goods in the container if he is other than the actual owner of the goods;

(c) the name and full address with telephone number of the person who issued a consignment note or the house bill of lading in case of a person other than licensed by the customs as Customs agent; and

(d) full details and photo copies of corrigendum or instructions issued by the owner of the goods or by the other persons for change in the name of consignee or consignor or destination or regarding weight, value, description and quantity of the goods loaded on the conveyance arriving or leaving Pakistan;]

LEGAL REFERENCE

1. Substituted full stop by Finance Act, 2006. 2. Added by the Finance Act, 2006. 3. Inserted by the Finance Act, 2005.

CHAPTER IX
DISCHARGE OF CARGO AND ENTRY INWARDS OF GOODS

73. D ischarge of cargo by vessels may commence on.
permission.- When an order for entry inwards of any vessel which has arrived in any customs-port or a special pass permitting such vessel to break bulk has been given, discharge of the cargo of such vessel may be proceeded with.

74. Discharge of goods by conveyances other than vessels.
When on arrival of a conveyance other than a vessel at a land customs-station or customs-airport the person-in-charge of such conveyance has delivered the import manifest under section 44 and the documents required under section 48, he shall forthwith take the conveyance or cause it to be taken to the examination station at the land customs-station or customs-airport and remove or cause to be removed all goods carried in such conveyance to the custom-house in the presence of the appropriate officer or some person duly authorized by him in that behalf.

75. Imported goods not to be unloaded unless entered in the.
import manifest.-

(1) No imported goods required to be shown in the import manifest shall, except with the permission of the appropriate officer, be unloaded from any conveyance at any customs-station unless they are specified in the import manifest or amended or supplementary import manifest for being unloaded at that customs-station.

(2) Nothing in this section shall apply to the unloading of baggage accompanying a passenger or a member or a crew or mail bags.

76. P rocedure in respect of goods not unloaded by vessels.
(1) (a) If any goods imported by a vessel (except such as have been shown in the import manifest as not to be unloaded) are not unloaded within such period as is specified in the bill of lading or if no period is so specified, within such number of working days, not exceeding fifteen, after entry of the vessel as the Board may from time to time by notification in the official Gazette appoint, or

(b) if the cargo of any vessel, excepting a small quantity of goods, has been discharged before the expiration of the period so specified or appointed, the master of such vessel or, on his application, the appropriate officer may then carry such goods to the custom-house, there to remain for entry.

(2) The appropriate officer shall thereupon take charge of, and grant receipts for, such goods; and if notice in writing has been given by the master of such vessel that goods are to remain subject to a lien for freight, primage, general average, or other charges of a stated amount, the appropriate officer shall hold such goods until he receives notice in writing that the said charges have been paid.

77. Power to land small parcels and hold unclaimed parcels.
(1) At any time after the arrival of any vessel, the appropriate officer may, with the consent of the master of such vessel, cause any small package or parcel of goods to be carried to the custom-house there to remain for entry in charge of the officers of customs, during the remainder of the working days allowed under this Act, for the landing of such package or parcel.

(2) If any package or parcel so carried to the custom-house remains unclaimed on the expiration of the number of working days so allowed for its unloading, or at the time of clearance outwards of the vessel from which it was unloaded, the master of such vessel may give such notice as is provided in section 76, and the officer-in-charge of the custom-house shall thereupon hold such package or parcel as provided in that section.

78. Power to permit immediate discharge.
(1) Notwithstanding anything contained in sections 74,76 and 77, the appropriate officer in any customs-station to which the Board, by notification in the official Gazette, declares this section to apply, may permit the master of any vessel immediately on receipt of an order under section 47 or a special pass under section 49, or the person-in-charge of a conveyance other than a vessel on receipt of the import manifest, to discharge the goods imported by such conveyance, or any portion thereof, into the custody of his agent, if he be willing to receive the same, for the purpose of unloading the same forthwith-

(a) at the custom-house, or at any specified landing place or wharf; or

(b) at any landing-place or wharf belonging to the port commissioners, port trust, railways or other public body or company; or

(c) for giving it in the custody of such person as may be approved by the Collector of Customs.

(2) Any agent so receiving such cargo or portion shall be bound to discharge all claims for damage or short delivery which may be established in respect of the same by the owner thereof, and shall be entitled to recover from such owner his charges for service rendered, but not for commission or the like, where any agent for the unloading of such cargo or portion has been previously appointed by the owner and such appointment is unrevoked.

(3) The appropriate officer shall take charge of all goods discharged under clause (a) of sub-section (1) and otherwise proceed in relation thereto as provided in sections 76 and 82.

(4) A public body or company or person at whose landing place or wharf or place of storage any goods are discharged under clause (b) or clause (c) of sub-section (1) shall not permit the same to be removed or otherwise dealt with except in accordance with the order in writing of the appropriate officer.

79. Declaration and assessment for home-consumption or.
transshipment].- 1[(1)The owner of any imported goods shall make entry of such goods for home consumption or warehousing 19[or transshipment] or for any other approved purposes, within 21[ten] days of the arrival of the goods, by,-

(a) filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe; 25[omitted (aa) the documents mandatory for assessment of the goods shall be uploaded by the importer or his agent with the goods declaration, as may be prescribed by the Board; and ]

(b) assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:

11[Provided that if, in case of used goods, before filing of goods declaration, the owner makes a request to an officer of customs not below the rank of an Additional Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:]

Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel 29[:

Provided further also that in case of land customs station at border, the owner of any imported goods shall file Goods Declaration (GD) for home consumption or warehousing or transshipment or any other approved purpose, within three days of arrival of goods at the border Customs station.] 20,31[Explanation.- For the purposes of this clause, the payment of duty, taxes, other charges in respect of transshipment shall be made at the port of destination and assessment may be made in such manner at such place as may be prescribed by the Board:

Provided that, from such date as notified by the Board, in respect of goods declaration filed prior to berthing of the vessel or cross-over event of vehicle, he shall have the option to pay his liability of duty, taxes and other charges on completion of assessment.]

(2) If an officer, not below the rank of Additional Collector of Customs, is satisfied that the rate of customs duty is not adversely affected and that there was no intention to defraud, he may, in exceptional circumstances and for reasons to be recorded in writing, permit, substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.

(3) An officer of Customs, not below the rank of Assistant Collector of Customs, may in case of goods requiring immediate release allow release thereof prior to presentation of a goods declaration subject to such conditions and restrictions as may be prescribed by the Board.]

2[79A. Omitted].

3[80. Checking of goods declaration by the Customs.
(1) On the receipt of goods declaration under section 79, an officer of Customs shall satisfy himself regarding the correctness of the particulars of imports, including declaration, assessment, and in case of the Customs Computerized System, payment of duty, taxes and other charges thereon.

(2) An officer of Customs may examine any goods that he may deem necessary at any time after the import of the goods into the country and may requisition relevant documents, as and when and in the manner deemed appropriate, during or after release of the goods by Customs;

(3) 26,27[If during the checking of goods declaration], it is found that any statement in such declaration or document or any information so furnished is not correct in respect of any matter relating to the assessment, the goods shall, without prejudice to any other action which may be taken under this Act, be reassessed to duty 16[,taxes and other charges levied thereon]:

24[Provided that in case of reassessment, a notice shall be served to the importer through Customs Computerized System and opportunity of hearing shall be provided, if he so desires.]

(4) In case of the Customs Computerized System, goods may be examined, scanned 21[and assessed] only on the basis of computerized selectivity criteria:

25[Provided further that in case of clearance of goods declaration through green channel, the goods may be examined or scanned with the prior approval of the Collector of Customs.]

(5) The Collector may, however, either condone the examination or defer the examination of imported goods or class of goods and cause it to be performed at a designated place as he deems fit and proper either on the request of the importer or otherwise.]

31[(6) Subject to such conditions, limitations or restrictions as it may impose, the Board may by a special order constitute Centralized Assessment Unit and Centralized Examination Unit at such places as it may deem appropriate:

Provided that-

(a) import, export and transit consignments at any customs port, inland customs station, border customs station or airport may be assessed and examined through Centralized Assessment Unit and Centralized Examination Unit;

(b) Centralized Assessment Unit shall be a restricted area accessible only to the designated customs officers or such other officers authorized by the Chief Collector;

(c) Digitalized assessment may be made through customs computerized system on the basis of artificial intelligence tools;

(d) The Board may prescribe any manner or conditions for assessment or examination of goods through Centralized Assessment Unit and Centralized Examination Unit; and

(e) The Centralized Assessment Unit and Centralized Examination Unit already constituted shall be deemed to have always been constituted under this section.]

4[80A. [Omitted].]

22[80B. Application of risk management system.
For the purpose of enforcing Customs Controls, risk management system shall be used in such manner as may be prescribed by rules.]

5[81. Provisional determination of liability.
(1) Where it is not possible for an officer of Customs during the checking of the goods declaration to satisfy himself of the correctness of the assessment of the goods made under section 79 22[or 131], for reasons that the goods require chemical or other test or a further inquiry, an officer, not below the rank of Assistant Collector of Customs, may order that the duty, taxes and other charges payable on such goods, be determined provisionally:

Provided that the importer, save in the case of goods entered for warehousing, pays such additional amount on the basis of provisional assessment or furnishes bank guarantee 26,27[Omitted] 5a[or pay order] 15[Omitted] of a scheduled bank along with an indemnity bond for the payment thereof as the said officer deems sufficient to meet the likely differential between the final determination of duty 17[, taxes and other charges] over the amount determined provisionally:

Provided further that there shall be no provisional assessment under this section if no differential amount of duty and 18[taxes and other charges] is paid or secured against bank guarantee 26,27[Omitted] 14[or pay order] 15[Omitted]:

28 [Provided further that no provisional determination of value shall be allowed in those cases where a Valuation Ruling (VR) 30[or a Publication Valuation Ruling (PVR)], issued under section 25A, is in field, irrespective of the fact whether any review or revision against such Valuation Ruling 30[or a Publication Valuation Ruling (PVR)] is pending in terms of section 25D or relevant rules, as the case may be.]

5b[(2) Where any goods are allowed to be cleared or delivered on the basis of such provisional determination, the amount of duty, taxes and charges correctly payable on those goods shall be determined within 28[ninety days] of the date of provisional determination:

Provided that the Collector of Customs or, as the case may be, Director of Valuation, may in circumstances of exceptional nature and after recording such circumstances, extend the period for final determination which shall in no case exceed 28[thirty] days 12[:]

12[Provided further that any period, during which the proceedings are adjourned on account of a stay order or for want of clarification from the Board or the time taken through adjournment by the importer, shall be excluded for the computation of aforesaid periods.]

(3) On completion of final determination, the amount already paid or guaranteed shall be adjusted against the amount payable on the basis of final determination, and the difference between the two amounts shall be paid forthwith to or by the importer, as the case may be.

(4). If the final determination is not made with the period specified in sub-section (2), the provisional determination shall, in the absence of any new evidence, be deemed to be the final determination.

13 [(5) On completion of final determination under sub-section (3) or (4), the appropriate officer shall issue an order for adjustment, refund or recovery of amount determined, as the case may be.]

Explanation.- Provisional assessment means the amount of duties and taxes paid or secured against bank guarantee or 15[pay order].

6[81A. [Omitted].]

31[82. Procedure in case of goods not cleared or warehoused or.
exported or removed from the port after unloading or filling of declaration.- (1) The owner of the goods shall be liable to such penalties as may be notified by the Board with the approval of the Minister-in-Charge in the following cases, namely:-

(a) Goods declaration is not filed for home-consumption or warehousing or transshipment within twenty days of the arrival of goods at a customs station;

(b) For the goods declaration filed prior to berthing of the vessel, the goods are not removed from the customs station after payment of leviable duty and taxes, within five days of completion of assessment and berthing of the vessel;

(c) For the goods declaration filed after berthing of vessel, the goods are not removed from the customs station for home-consumption or warehousing or transshipment within five days of the clearance of the goods declaration; and

(d) The goods are not loaded on the conveyance for export within fifteen days of the entry in the port:

Provided that in unavoidable circumstances, the Collector of Customs may waive or reduce the penalty fixed under this section:

Provided further that the Board may notify the rules to regulate the implementation of the above provisions, including the process of appeal against imposed penalties and the Customs stations, goods or class of goods, where the provisions of sub-section (1) shall not be applicable.

(2) Such goods may, after due notice to the owner, if his address could be ascertained, or after due notice to the carrier, shipping or customs agent, custodian of the goods, as the case may be, be sold in auction or taken into custody by Customs and removed from the port to a Customs warehouse for auction under the order of the Assistance Collector of Customs notwithstanding the fact that adjudication of the case under section 179, or an appeal or special customs reference application under section 193, 194 or 196 as the case may be, or a proceeding is pending in any court:

Provided that the goods shall be liable to confiscation if a goods declaration for home-consumption or warehousing or transshipment is not filed within thirty days of arrival of the goods at the customs station or the goods are not loaded on the conveyance for export or not removed from the port area within thirty days of assessment of the goods declaration:

Provided further that-

(a) Animals and perishable and hazardous goods may, with the permission of the appropriate officer, be sold or destroyed at any time.

(b) Arms, ammunition or military stores may be sold or otherwise disposed of at such time and place and in such manner as the Board may, with the approval of the Federal Government, direct; and

(c) In case where goods are sold pending adjudication, appeal or decision of the court, the proceeds of sale shall be kept in deposit and if on such adjudication, or as the case may be, in such appeal or the decision of the court, the goods sold are found not to have been liable to confiscation, the entire sale proceeds, after necessary deduction of duties, taxes transportation and other charges or duties as provided in section 201, shall be handed over to the owner:

Provided also that Collector of Customs may direct the importer or in case importer is not traceable, the shipping line to re-export out of Pakistan any goods, banned or restricted through a notification issued by the Federal Government, if the same are not cleared or auctioned within sixty days of the date of their arrival:

Provided also that where Customs removes such goods from the premises of the custodian for disposal, the charges due to the custodian shall be paid subsequently from the sale proceeds of the goods in the manner as provided under section 201:

Provided also that nothing in this section shall authorize removal for home consumption of any dutiable goods without payment of customs duties thereon.]

Provided also that the Board in a competitive manner as provided in the Public Procurement Rules, 2004, may authorize any person to auction any auctionable goods, in the manner as notified by the Board.

10[82A. [Omitted].]

LEGAL REFERENCE

1. By the Finance Act, 2006 sub-section (1) of section 79 was substituted. At the time of substitution, the section (1) of section 79 was as under:-

“(1) The owner of any imported goods shall make entry of such goods for home consumption or warehousing or for any other approved purpose by filing to the Customs a goods declaration containing correct and complete particulars of the goods and after having assessed, and, in case of the Customs Computerized System, paying his liability of duty, taxes and other charges thereon in such form and manner, as the Board may prescribe:

Provided that if, before filing a goods declaration to Customs, the owner makes a written request to the Collector of Customs or an officer designated that he is unable, for want of full information, to make a correct and complete declaration of any goods, then the Collector or the officer so designated, subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:

Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.” 2. Inserted by FA, 2003 and omitted by FA 2005. 3. Substituted by Finance Act, 2005. 4. Inserted by FA, 2003 and omitted by FA, 2005. 5. Substituted by the Finance Act, 2005. 5a. Inserted by the Finance Act, 2007. 5b Substituted by the Finance Act, 2007. Before substitution it was as under:-

“(2) Where any goods are allowed to be cleared or delivered on the basis of such provisional determination, the amount of duty, taxes and charges correctly payable on those goods shall be determined within nine months of the date of provisional determination:

Provided that the Collector of Customs may, in circumstances of exceptional nature and after recording such circumstances, extend the period for final determination by not more than ninety days.” 6. Inserted by FA, 2003 and omitted by FA, 2005. 7. Substituted by Finance Act,,2005. 8. By the Finance Act, 2006, substituted the words “twenty days” with “one months”. 9. By the Finance Act, 2006, substituted the words ”ten” with “fifteen”. 10. Inserted by FA, 1996 and omitted by FA, 2005 At that time section 82A was as under:-. “82A. Procedure in case of goods not cleared or warehoused or transshipped or exported or removed from the port within one month after unloading through the Customs Computerized System.- Subject to the provisions of section 155A, at customs-stations with an operational Customs Computerized System, if any goods are not cleared for home consumption or warehoused or transshipped or are not loaded on the conveyance for export or removed from the port area within one month of their arrival at a customs-station or within such extended period as the appropriate officer may allow, such goods may, after the due notice given to the owner, if his address could be ascertained, or after due notice to the carrier, shipping agent, custodian of the goods, as the case may be, if his address could not be ascertained, may be sold in auction or taken into custody by Customs and removed from the port to a Customs auction warehouse for auction under the orders of the appropriate officer notwithstanding the fact that adjudication of the case under section 179, or an appeal under section 193, or 196, or a proceeding in any court of law in Pakistan, is pending:

Provided that-

(a) animals, perishable and hazardous goods may, with the permission of the appropriate officer, be sold at any time;

(b) arms and ammunition or military stores may be sold or otherwise disposed of at such time and place and in such manner as the Board may, with the approval of the Federal Government, direct;

(c) In cases where goods are sold pending any adjudication, appeal or decision of the court, the proceeds of sale shall be kept in deposit and, if on such adjudication (or, as the case may be, in such appeal or the decision of the court) the thing sold is found not to have been liable to confiscation, the entire sale proceeds, after necessary deduction of duties, taxes or dues as provided in section 201, shall be handed over to the owner:

Provided further that all auctions under this section shall be governed by the auction rules as notified by the Board and where Customs removes such goods from the premises of the custodian for disposal, the charges due to the custodian shall be paid subsequently from the sale proceeds of the goods in the manner as prescribed under section 201:

Provided further that nothing in this section shall authorize removal for home consumption of any dutiable goods without payment of customs-duties thereon;”

11. Substituted by Finance Act,2010. At the time of substitution the proviso was as under:-

“

Provided that if, before filing a goods declaration, the owner makes a request to an officer of customs not below the rank of an Assistant Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer, subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges”. 12. Added by the Finance Act, 2010. 13. Added by the Finance Act, 2010 14. Added by the Finance Act, 2012. 15. The word “ or a post-dated cheque” omitted by Finance Act, 2013 16. Added by Finance Act, 2014 17. Inserted by Finance Act, 2014 18. Substituted for the word “tax’ by Finance Act, 2014 19. Inserted by Finance Act, 2015 20. Added the Finance Act, 2015 21. Substituted by Finance Act, 2019. At the time of substitution the word was “fifteen” 22. Inserted by Finance Act,2019 23. Substituted by Finance Act, 2019. At the time of substitution the words was”

(1) “twenty”

(2) “ten”

25. Inserted by Finance Act, 2021(June) 26. Inserted through Ordinance No.XXII (15.09.2021) 27. Substituted/Omitted by Supplementary Finance Act, 2022(January) 28. Inserted/substituted by Finance Act, 2022(June) 29. Inserter/substituted by Finance Act, 2023(June) 30. Inserted by Finance Act, 2024(June) 31. Substituted by Finance Act, 2025(June)

CHAPTER X
CLEARANCE OF GOODS FOR HOME-CONSUMPTION

1[83. C learance for home-consumption.
(1) When the owner of any goods entered for home-consumption and assessed under section 2[****] 80 2[****] or 81 has paid the import duty and other charges, if any, in respect of the same the appropriate officer, if he is satisfied that the import of the goods is not prohibited or in breach of any restrictions or conditions applying to the import of such goods, may make an order for the clearance of the same:

Provided that, at customs-stations where the Customs Computerized System is operational the system may clear the goods through system generated clearance documents 9[after payment of duty, taxes and other charges thereon].

(2) Where the owner fails to pay import duty and other charges within 3[ten] days from the date on which the same has been assessed under sections 80, 5[Omitted] or 81, he shall be liable to pay surcharge at the rate of 5[KIBOR plus three per cent] on import duty and other charges payable on such goods.]

4[83A. [Omitted].]

7[83B. Provisional release of imported goods.
Where any offence is detected in respect of imported goods which are not liable to 8[outright] confiscation or needed for evidence at a later stage, the Collector of Customs may, on written request of owner of the goods, allow release of the same on payment of duty, taxes or other charges and furnishing bank guarantee or pay order against the amount of any penalty or fine which may be imposed on such goods.]

10[83C. Cargo Tracking System and e-Bilty Mechanism.
(1) Any person being a consignor, transporter, shipping agent, freight forwarder, consignee, supplier or recipient of goods and causing movement of goods from and to a seaport, land border station, inland dry-port or inland movement, shall be required to electronically generate, carry, display or validate an e-bilty through the Cargo Tracking System.

(2) The Board may prescribe the manner and procedure to implement e-bilty mechanism and employ any technological means for tracking, identifying en route and digital record keeping of any kind of goods as part of its cargo tracking system and may charge fee or charges for maintenance and operation of the tracking system.

(3) In case of any violation, the goods, conveyance, owner of goods and master of conveyance, as the case may be, shall be liable to fine, penalty, detention, seizure and confiscation under the provision of this Act.

(4) Notwithstanding anything contained in the aforementioned provisions, no e-bilty is required to be generated, as prescribed by the Board where-

(a) the value of the goods or the travel distance is less than the prescribed limit; or

(b) the goods being transported are specifically exempted from the purview of e-bilty mechanism.

LEGAL REFERENCE

1. Re-numbered as sub-section (1) by the Finance Act, 1993 (X of 1993), S.4(iii), page 121 and substituted by the Finance Act, 2003 (I of 2003), S.5(19), page 27. At the time of substitution section 83 was as under:-

“83. Clearance for home-consumption.- 1a[(1) When the owner of any goods entered for home-consumption and assessed under section 80 has paid the import duty and other charges, if any in respect of the same, the appropriate officer, if he is satisfied that the import of the goods is not prohibited or in breach of any restrictions or conditions apply to the import of such goods, may make an order for the clearance of the same.

1b[(2) Where the owner fails to pay import duty and other charges under sub-section (1) within thirty days from the date on which the bill of entry is returned to him for payment of duty, he shall be liable to pay surcharge at the rate of fourteen percent per annum on import duty and other charges payable on such goods:

Provided that where the bill of entry is returned for payment of duty before the commencing day of the Finance Act, 1993, and the owner has not paid such duty before such commencing day, the date of return of such bill of entry shall be such commencing day.]

1a. Re-numbered as sub-section (1) by the Finance Act, 1993 (X of 1993). 1b. Added by the Finance Act, 1993 (X of 1993), S.4(iii), page 121.

2. Figures, letters and commas “79A, 80A” omitted vide Finance Act, 2005

3 By the Finance Act, 2006, substituted the word “thirty”. 4. Inserted by the Finance Act, 2000 (XXI of 2000),and. By the Finance Act, 2006 section 83A was omitted At that time section 83A was as under:-. “83.A Levy of additional duty.- Notwithstanding anything contained in this Act and without prejudice to any other action that may be taken under this Act, if any person fails to pay the dues recoverable under this Act within the prescribed time, he shall, in addition to the dues payable, be liable to pay additional duty at the rate of one and a half percent per month.

Explanation: For the purpose of calculating additional duty, the period of default shall be reckoned from the day following the due date on which the dues were required to be paid to the day preceding the date on which the same are actually paid.”

5. The words “fourteen per cent” substituted with the words “KIBOR plus three per cent” by Finance Act,2009. 6. The figure ‘80A’ omitted by Finance Act, 2013 7. Inserted by Finance Act, 2018 8. Inserted by Finance Act, 2021 (June) 9. Substituted by Finance Act, 2025 (June) 10. Inserted by Finance Act, 2025(June)

CHAPTER XI
WAREHOUSING

84. Application to warehouse.
When any dutiable goods have been entered for warehousing and assessed under section 1[*****] 80 1[*****] or 81] the owner of such goods may apply for leave to deposit the same in any warehouse appointed or licensed under this Act 2[:]

3[Provided that the Collector of Customs, for reasons to be recorded in writing, may disallow the warehousing of goods or any class of goods or goods belonging to a particular importer 4[:]

5[Provided further that, at customs-stations where the Customs Computerized System is operational the system may allow removal to warehouse through system generated clearance documents.]

85. Form of application.
Every such application shall be in writing signed by the applicant, and shall be in such form as may be prescribed by the Board.

6[86. Submission of post-dated cheque and indemnity bond.
(1) When any such application has been made in respect of any goods, the owner of the goods to which it relates shall furnish an indemnity bond and post-dated cheque equivalent to the duty assessed under section 80 or section 81 or reassessed under section 109 on such goods,-

(a) to observe all the provisions of this Act and the rules in respect of such goods;

(b) to pay on or before a date specified in a notice of demand all duties, taxes, rent and charges payable in respect of such goods together with surcharge on the same from the date so specified at the rate of 35[KIBOR plus three per cent per annum] or such other rate as is for the time being fixed by the Board; and

(c) to discharge all penalties incurred for violation of the provisions of this Act and the rules in respect of such goods.

(2) Every such post-dated cheque shall be equivalent to the duties and taxes leviable on the goods or portion of the goods of one conveyance only.]

87. Forwarding of goods to warehouse.
(1) When the provisions of sections 85 and 86 have been complied with in respect of any goods, such goods shall be forwarded in charge of an officer of customs to the warehouse in which they are to be deposited.

(2) A pass shall be sent with the goods specifying the name of the bonder and the name or number of the importing conveyance, the marks, numbers and contents of each package, and the warehouse or place in the warehouse wherein they are to be deposited.

88. Receipt of goods at warehouse.
(1) On receipt of the goods, the pass shall be examined by the warehouse-keeper, and shall be returned to the appropriate officer.

(2) No package, butt, cask or other container shall be admitted into any warehouse unless it bears the marks and numbers specified in, and otherwise corresponds with, the pass for its admission.

(3) If the goods be found to correspond with the pass, the warehouse-keeper shall certify to that effect on the pass, and the warehousing of such goods shall be deemed to have been completed.

(4) If the goods do not so correspond, the fact shall be reported by the warehouse-keeper for the orders of the appropriate officer, and the goods shall either be returned to the custom-house in charge of an officer of customs or kept in deposit pending such orders as the warehouse-keeper deems most convenient.

44[(5) if the quantity or value of any goods has been incorrectly stated in the goods declaration, due to inadvertence or bona fide error, the Collector of Customs may, for reasons to be recorded in writing, direct the correction of the said error.]

89. Goods how warehoused.
Except as provided in section 94, all goods shall be warehoused in the packages, butts, casks or other containers in which they have been imported.

90. Warrant to be given when goods are warehoused.
(1) Whenever any goods are lodged in a public warehouse or a licensed private warehouse, the warehouse-keeper shall deliver a warrant signed by him as such to the person lodging the goods.

(2) Such warrant shall be in such form as the Board may from time to time prescribe, and shall be transferable by endorsement; and the endorsee shall be entitled to receive the goods specified in such warrant on the same terms as those on which the person who originally lodged the goods would have been entitled to receive the same 38[;

Provided that where the Customs Computerized system is operational, the issuance of warrant and subsequent transfer of warrant shall take place through system generated documents.]

(3) The Board may, by notification in the official Gazette, exempt any class of goods from the operation of this section.

38[(4) The Board may make rules to regulate the transfer of goods in the manner as mentioned in sub-section (2)]

91. Access of customs officer to 8[*] warehouse.
The appropriate officer shall have access to any 8[*] warehouse licensed under this Act.

92. Power to cause packages lodged in warehouse to be opened.
and examined.-

(1) The appropriate officer may at any time by order in writing direct that any goods or packages lodged in any warehouse shall be opened, weighed or otherwise examined; and, after any goods have been so opened, weighed or examined, may cause the same to be sealed or marked in such manner as he thinks fit.

(2) When any goods have been so sealed and marked after examination, they shall not be again opened without the permission of the appropriate officer; and, when any such goods have been opened with such permission, the packages shall, if he thinks fit, be again sealed or marked.

93. Access of owners to warehoused goods.
(1) Any owner of goods lodged in a warehouse shall, at any time within the hours of business, have access to his goods in the presence of an officer of customs, and an officer of customs shall, upon application for the purpose being made in writing to the appropriate officer, be deputed to accompany such owner.

(2) When an officer of customs is specially employed to accompany such owner, a sum sufficient to meet the expense thereby incurred shall, subject to rules, be paid by such owner to the appropriate officer, and such sum shall, if the appropriate officer so directs, be paid in advance.

94. Owner’s power to deal with warehoused goods.
(1) With the sanction of the appropriate officer and on payment of such fees as may be prescribed by rules, the owner of any goods may, either before or after warehousing the same,-

(a) separate damaged or deteriorated goods from the rest;

(b) sort the goods or change their containers for the purpose of preservation, sale, export or disposal of the goods;

(c) deal with the goods and their containers in such manner as may be necessary to prevent loss or deterioration or damage to the goods;

(d) show the goods for sale; or

(e) take such samples of goods as may be allowed by the appropriate officer with or without entry for home-consumption, and with or without payment of duty, except such as may eventually become payable on a deficiency of the original quantity.

(2) After any such goods have been so separated and repacked in proper or approved packages, the appropriate officer may, at the request of the owner of such goods, cause or permit any refuse, damaged or surplus goods remaining after such separation or repacking (or, at the like request, any goods which may not be worth the duty) to be destroyed, and may remit the duty payable thereon.

95. Manufacture and other operations in relation to goods in a.
warehouse.- (1) Subject to rules, the owner of any warehoused goods may, with the permission in writing of the Collector of Customs, carry on any manufacturing process or other operations in the warehouse in relation to such goods.

(2) Where in the course of any such operation or process there is any waste or refuse the following provisions shall apply, namely:-

(a) If the whole or any part of the goods produced by such operation or process are exported, no duty shall be charged on the quantity of the warehoused goods wasted or turned into refuse in the course of the operation or processing carried on in relation to the goods exported:

Provided that such waste or refuse is either destroyed or duty is paid on such waste or refuse as if it had been imported into Pakistan in that form;

(b) If the whole or any part of the goods produced by such operation or process are cleared from the warehouse for home-consumption, duty shall be charged on the quantity of the warehoused goods wasted or turned into refuse in the course of the operation or processing carried on in relation to the goods cleared for home-consumption.

96. Payment of rent and warehouse-dues.
(1) If goods be lodged in a public warehouse, the owner shall 9[unless exempted by an order of the Collector or an officer not below the rank of 10[Assistant Collector 36[Omitted] authorized by him,] pay monthly rent and warehouse-dues at such rates as the Collector of Customs may fix.

(2) A table of the rates of rent and warehouse-dues so fixed shall be placed in a conspicuous part of such warehouse.

(3) If any demand for such rent or dues is not discharged within ten days of its presentation, the appropriate officer may, in the discharge of such demand (any transfer or assignment of the goods notwithstanding) cause to be sold, after due notice in the official Gazette, such sufficient portion of the goods as he may select.

(4) The proceeds of such sale shall be adjusted in accordance with section 201.

97. Goods not to be taken out of warehouse except as provided.
by this Act.- No warehoused goods shall be taken out of any warehouse, except on clearance for home-consumption or export, or for removal to another warehouse, or as otherwise provided in this Act.

11[98. Period for which goods may remain warehoused.
12{(1) Warehoused goods, other than perishable goods notified by the 11a[Board], may remain in the warehouse for a period of 13[six months] following the date of their admission into the warehouse and perishable goods so notified may remain in the warehouse for a period of 39,46[three months], following the said date:

Provided that the said period may, in case of non-perishable goods, be extended, on sufficient cause being shown by the owner of the warehoused goods and subject to the condition that he pays in advance surcharge on the duty and taxes involved at 14[one] per cent per month for the extended period-

15,44,45[(a) by the Additional Collector of Customs, for a period not exceeding one month;

(aa) by the Collector of Customs, for a period not exceeding six months;]

41(b) by the Chief Collector of Customs for such period as he may deem fit;]

(c)] 42[Omitted]. subject to the condition that the extension in case of perishable goods shall be granted only if the goods are fit for human consumption.}

(2)The Federal Government may, subject to such conditions, or restrictions as it may deem fit to impose, by notification in the official gazette, remit the whole or a part of the surcharge in case of any goods or category of goods and the Board, in circumstances of exceptional nature, may, subject to such conditions, limitations or restrictions, if any, as it may think fit to impose, by a special order in each case recording such circumstances remit the whole or a part of the surcharge.

(3) Notwithstanding anything contained in sub-section (1), the Federal Government 43[or Board] may, by notification in the official Gazette, 37[regulate] the period for which 17[***] goods or class of 17[***] goods may remain in the warehouse:

Provided that such period shall not be less than one month.

(4) When the license of any warehouse is cancelled, the owner of any goods warehoused therein shall, within ten days of the date on which notice of such cancellation is given, or within such extended period as the appropriate officer may allow, remove the goods from that warehouse to another warehouse or clear them for home-consumption or exportation.]

99. Power to remove goods from one warehouse to another in the.
same customs-station.- (1) Any owner 18[or a manufacturer-cum-exporter duly authorized by such owner in respect] of goods warehoused under this Act may, within the period of their warehousing under section 98, and with the permission of the Collector of Customs, on such conditions and after giving such security, if any, as the Collector directs, remove goods from one warehouse to another warehouse in the same warehousing station.

(2) When any owner 18[or a manufacturer-cum-exporter duly authorized by such owner] desires to remove any goods, he shall apply for permission to do so in such form as the Board may prescribe.

100. Power to remove goods from one warehousing station to.
another.- (1) Any owner 18[or a manufacturer-cum-exporter duly authorized by such owner in respect] of goods warehoused at any warehousing station may, within the period of their warehousing under section 98, remove the same for the purpose of warehousing them at any other warehousing station.

(2) When any owner 18[or a manufacturer-cum-exporter duly authorized by such owner] desires to remove any goods for such purpose, he shall apply to the Collector of Customs in such form and manner as the Board may prescribe stating therein the particulars of the goods to be removed, and the name of the customs-station to which they are to be removed.

101. Transmission of account of goods to officers at of.
destination.- (1) When permission is granted for the removal of any goods from one warehousing station to another under section 100, an account containing the particulars thereof shall be transmitted by the appropriate officer of the customs-station of removal to the appropriate officer of the customs-station of destination.

(2) The person requiring the removal shall before such removal enter into a bond, with one sufficient surety, in a sum equal at least to the duty chargeable on such goods, for the due arrival and re-warehousing thereof at the customs-station of destination, within such time, as the Collector of Customs directs.

(3) Such bond may be taken by the appropriate officer either at the customs-station of removal or at the customs-station of destination as best suits the convenience of the owner.

(4) If such bond is taken at the customs-station of destination, a certificate thereof signed by the appropriate officer of such station shall at the time of the removal of such goods be produced to the appropriate officer at the customs-station of removal; and such bond shall not be discharged unless such goods are produced to the appropriate officer, and duly re-warehoused at the customs-station of destination within the time allowed for such removal or are otherwise accounted for to the satisfaction of such officer; nor until the full duty due upon any deficiency of such goods, not so accounted for, has been paid.

102. Remover may enter into a general bond.
The Collector of Customs may permit any person desirous of removing warehoused goods to enter into a general bond, with such sureties, in such amount and under such conditions as the Collector approves, for the removal, from time to time, of any goods from one warehouse to another, either in the same or in a different warehousing station and for the due arrival and re-warehousing of such goods at the destination within such time as the Collector directs.

103. Goods on arrival at customs-station of destination to be.
subject to same laws as goods on first importation.- Upon the arrival of warehoused goods at the customs-station of destination, they shall be entered and warehoused in like manner as goods are entered and warehoused on the first importation thereof, and under the laws and rules, in so for such laws and rules are applicable, which regulate the entry and warehousing of such last mentioned goods.

104. Clearance of bonded goods for home-consumption.
Any owner 18[or a manufacturer-cum-exporter duly authorized by such owner in respect] of warehoused goods may, at any time within the period of their warehousing under section 98, clear such goods for home-consumption by paying-

(a) the duty assessed on such goods under the provisions of this Act; and

(b) all rent, penalties, 19[surcharge] and other charges payable in respect of such goods 20[:]

21[Provided that in case of manufacturer-cum-exporter duly qualified for claiming exemption under any notification issued under this Act, the ex-bonding of goods under this section shall be without payment of duties and taxes.]

105. Clearance of warehoused goods for export.
Any owner of warehoused good may, at any time within the period of their warehousing under section 98, clear such goods for export out of Pakistan on payment of all rent, penalties, 22[surcharge] and other charges payable as aforesaid but without paying any import duty thereon:

Provided that, if the 23[Federal Government] is of the opinion that warehoused goods of any specified description are likely to be smuggled back into Pakistan, it may, by notification in the official Gazette, direct that such goods shall not be exported to any place outside Pakistan without payment of duty or allow them to be exported subject to such restrictions and conditions as may be specified in the notification.

106. Clearance of warehoused goods for export as provisions,.
on a conveyance proceeding to foreign destination.- Any warehoused provisions and stores may be exported within the period of their warehousing under section 98 without payment of import duty for use on board any conveyance proceeding to a foreign territory.

107. Application for clearance of goods.
(1) An application to clear goods from any warehouse for home-consumption or for export shall be made in such form as the Board may prescribe.

(2) Such application shall ordinarily be made to the appropriate officer at least twenty-four hours before it is intended to clear such goods.

108. Re-assessment of warehoused goods when damaged.
If any goods upon which duties are levied ad valorem 24[or otherwise] are damaged or deteriorated due to an unavoidable accident or cause after they have been entered for warehousing and assessed under section 80 and before they are cleared for home-consumption, their value in the damaged or deteriorated state may be appraised 25[according to either of the methods provided in sub-section (2) of section 27], if the owner so desires, by an officer of customs and the duty leviable thereon shall be diminished in proportion to the diminution of their value and a new bond for twice the amount of the diminished duty may, at the option of the owner, be executed by him to replace the bond originally executed.

109. Re-assessment on alteration of duty.
If any goods have been entered for warehousing and assessed under section 26[*****] 80 27[*****] or 81] but the duty leviable thereon is subsequently altered, such goods shall be reassessed on the basis of the altered duty and a new bond shall be executed by the owner in accordance with the provisions of section 86 to replace the bond originally executed by him.

110. Allowance in case of volatile goods.
When any warehoused goods of such class or description as the Board having regard to the volatility of such goods and the manner of their storage may, by notification in the official Gazette, specify are, at the time of delivery from a warehouse, found to be deficient in quantity and the Collector of Customs is satisfied that such deficiency is on account of natural loss, no duty shall be charged on such deficiency.

111. Duty on goods improperly removed from.
warehouse or allowed to remain beyond fixed time or lost or destroyed or taken as sample.- In respect of goods specified hereunder the appropriate officer may demand and upon such demand the owner of such goods shall forthwith pay the full amount of duty chargeable on such goods together with all rent, penalties, 28[surcharge] and other charges payable in respect of them, namely:-

(a) Warehoused goods which are removed in contravention of section 97.

(b) Goods which have not been removed from the warehouse within the time allowed for such removal under section 98.

(c) Goods in respect of which a bond has been executed under section 86 and which have not been cleared for home-consumption or export or removed in accordance with the provisions of this Act and are lost or destroyed otherwise than as provided in sections 94 and 95 or as mentioned in section 115, or are not accounted for to the satisfaction of the appropriate officer.

(d) Goods which have been taken under section 94 as samples without payment of duty.

29[112. Encashment of post-dated cheque.
(1) Where the owner fails to clear bonded goods to the purposes specified in this Chapter within the warehousing period, the post-dated cheque submitted under section 86 by the owner of goods may be got encashed after the expiry of warehousing period.

(2) In case the post-dated cheque is not enchased for any reason, the Collector of customs or any officer designated by him may detain the owner’s goods whether lying in any warehouse or freshly imported for public auction and adjustment of sale proceeds against the amount of duties, taxes surcharges, rents and penalties, etc., which may have become payable on goods warehoused but not cleared within the specified period and the surplus amount, if any, shall be disposed of in the manner provided in section 201.]

113. Noting removal of goods.
(1) When any warehoused goods are taken out of any warehouse, the appropriate officer shall cause the fact to be noted on the back of the bond.

(2) Every note so made shall specify the quantity and description of such goods, the purposes for which they have been removed, the date of removal, the name of the person removing them, the number and date of the 30[goods declaration] under which they have been taken away, if removed for exportation, or 30A[***] for home-consumption and the amount of duty paid, if any 31[:]

32[Provided that at customs-station where the Customs Computerized System is operational, the requirement of this section shall be completed in accordance with that system.]

114. Register of bonds.
(1) A register shall be kept of all bonds entered into for customs-duties on warehoused goods, and entry shall be made in such register of all particulars required by section 113 to be specified.

(2) When such register shows that the whole of the goods covered by any bond have been cleared for home-consumption or export, or otherwise duly accounted for, and when all amounts due on account of such goods have been paid, the appropriate officer shall cancel such bond as discharged in full, and shall on demand deliver the cancelled bond to the person who executed it or who is entitled to receive it.

115. Power to remit duties on warehoused goods lost.
or destroyed.- If any warehoused goods in respect of which a bond has been executed under section 86 and which have not been cleared for home-consumption are lost or destroyed by unavoidable accident or cause, the Collector of Customs may in his discretion remit the duties due thereon:

Provided that, if any such goods be so lost or destroyed in a 33[****]warehouse, notice thereof be given to the appropriate officer within forty-eight hours 34[****]of such loss or destruction.

116. Responsibility of warehouse-keeper.
The warehouse-keeper in respect of goods lodged in a public warehouse, and the licensee in respect of goods lodged in a private warehouse, shall be responsible for their due receipt therein and delivery therefrom, and their safe custody while deposited therein, accordance to the quantity, weight or gauge reported by the officer of customs who has assessed such goods, allowance being made, if necessary, for deficiency in quantity on account of natural loss as provided in section 110:

Provided that no owner of goods shall be entitled to claim from the appropriate officer or from any keeper of a public warehouse, compensation for any loss or damage occurring to such goods while they are being passed into or out of such warehouse, or while they remain therein, unless it be proved that such loss or damage was occasioned by the willful act or neglect of the warehouse-keeper or of an officer of customs.

117. Locking of warehouses.
(1) Every public warehouse shall be under the lock and key of both the warehouse-keeper appointed by the Collector of Customs, and the appropriate officer.

(2) Every private warehouse shall be under the lock and key of both the licensee and the appropriate officer.

118. Power to decide where goods may be deposited in public.
warehouse, and on what terms.- The Collector of Customs may from time to time determine in what division of any public warehouse 34[or private warehouse], and in what manner, and on what terms, any goods may be deposited, and what sort of goods may be deposited in any such warehouse.

119. Expenses of carriage, packing, etc. to be borne by owners.
The expenses of carriage, packing and storage of goods on their receipt into or removal from a public warehouse shall, if paid by the appropriate officer or by the warehouse-keeper, be chargeable on the goods and be defrayed by, and recoverable from, the owner, in the manner provided in section 112.

LEGAL REFERENCE

1. Substituted for the figure “80” by Finance Act,2003 (I of 2003), S.5(21)(a), page 28 and figures, letters and commas”79A, 80A” omitted vide Finance Act, 2005. 2. Substituted for the full stop by Finance Act,1990 (VII of 1990),S.6(5), page 35. 3. Added by the Finance Act,1990(VII of 1990), A.6(5), page 35. 4. Substituted for the full stop by Finance Act,2003 (I of 2003), S.5(21)(b) page 29. 5. Added by Finance Act,2003 (I of 2003), S.5(21)(b), page 29. 6. Substituted by the Finance Act, 2005. At that time section 86 was as under:- “86. Warehousing bond.- (1) When any such application has been made in respect of any goods, the owner of the goods to which it relates shall execute a bond, binding himself in a penalty of twice the amount of the duty assessed under section 80 or section 81 or reassessed under section 109 on such goods,-

(a) to observe all the provisions of this Act and the rules in respect of such goods;

(b) to pay on or before a date specified in a notice of demand all duties, rent and charges payable in respect of such goods together with surcharge on the same from the date so specified at the rate of two per cent per month or such other rate as is for the time being fixed by the Board; and

(e) to discharge all penalties incurred for violation of the provisions of this Act and the rules in respect of such goods.

(2) Every such bond shall be in such form as is from time to time prescribed by the Board, and shall relate to the goods or portion of the goods of one conveyance only.

(3) Notwithstanding anything in sub-section (2), for the purposes of sub-section (1), the Collector of Customs may permit any importer to enter into a general bond in such amount and subject to such conditions, limitations or restrictions as the Collector of Customs may determine in respect of the warehousing of goods to be imported by shall continue in force notwithstanding the transfer of the goods to any other person or the removal of the goods to another warehouse or warehousing station:

Provided that, where the whole of the goods or any part thereof are transferred to another person, the appropriate officer may accept a fresh bond from the transferee in a sum equal to twice the amount of duty assessed on the goods transferred and thereupon the bond executed by the transferer shall be deemed to be discharged to the extent to which the fresh bond has been executed by the transferee.

7. By Finance Act, 2006 the words” bill of entry” was substituted, 8. By Finance Act, 2006 the words” private” was omitted.

9. Inserted by the Finance Act, 1973 (L of 1973), S.9(6), page 531. 10. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996., 11. Substituted by the Finance Act, 1990 (VII of 1990), S.6(7), page 36. At the time of substitution section 98 was as under:- “98. Period for which goods may remain warehoused.- (1) Warehoused goods, other than consumer goods notified by the Central Board of Revenue, may remain in the warehouses for a period of [six months following the date of their admission into the warehouse and consumer goods so notified may remain in the warehouses for a period of three months] following the said date:

Provided that –

(i) the said period may, in case of non-perishable goods, be extended, on sufficient cause being shown by the owner of the warehoused goods and subject to the condition that he pays in advance [surcharge] on the duty involved at two per cent per month for the extended period,-

(a) by the Collector of Customs for a period not exceeding six months; and

(b) by the Board for such period at it may deem fit:

Provided further that in circumstances of exceptional nature, the Board, may, subject to such conditions limitations or restrictions, if any, as it may think fit to impose, by a special order in each case recording such circumstances, remit the whole or a part of the interest.

(ii) when the license of any private warehouse is cancelled, the owner of any goods warehoused therein shall within ten days of the date on which notice of such cancellation is given, or within such extended period as the appropriate officer may allow, remove the goods from that warehouse to another warehouse or clear them for home-consumption or exportation.”.

(2) Notwithstanding anything contained in sub-section (1), the Federal Government may, by notification in the official Gazette, limit the period for which any consumer goods or class of consumer goods may remain in the warehouses:

Provided that such period shall not be less than one month.” 11a Substituted the words “Central Board of Revenue” with the word “Board” by the FA,2007. 12. Substituted by the Finance Act, 1998. 13. Substituted for the words “one year” by the Finance Act, 2005. 14. Substituted the word “ two” by Finance Act, 2004. 15. Substituted by the Finance Ordinance, 2001 (XXV of 2001), S.4(6), page 306. At the time of substitution this was as under:- “(a) by the Collector of Customs, for a period not exceeding six months; and

(b) by the Federal Government or the Board, for such period as it may deem fit.”. 16. Substituted for the words “two” and “six” by Finance Act, 2005. 17. Omitted the words “consumer” by the Finance Act, 1998 (III of 1998), S.4(V)(ii, 18. Inserted by the Finance Act, 1999 (IV of 1999), S.10(6)(I), page 767 19. Substituted for the word “interest” by the Finance Act, 1985(I of 1985), S.3(1). 20. Substituted full stop by the Finance Act, 1999 (IV of 1999), S.10(8)(ii), page 767. 21. Added by the Finance Act, 1999 (IV of 1999), S.10(8)(ii), page 767. 22. Substituted for the word “interest” by the Finance Act, 1985 (I of 1985), S.3(1). 23. Substituted for the words “Central Government” by the Finance Act, 1972. 24. Inserted by the Finance Ordinance, 1986 (I of 1986), S.6(4)(a) page 11. 25. Inserted by the Finance Ordinance, 1986 (I of 1986), S.6(4) (b), page 11. 26. Substituted for the figure “80” by the Finance Act, 2003 (I of 2003), S.5(22), page 29. 27. Omitted the figure “79A, 80A” by the Finance Act,2005. 28. Substituted for the word “interest” by the Finance Act, 1985 (I of 1985), S.3(1). 29. Substituted by Finance Act, 2005. 30. By the Finance Act, 2006, the words “bill of export or” were omitted. 30A. By the Finance Act, 2006, the words “of the bill of entry or goods declaration, if removed” were omitted.

31. Substituted full stop by the Finance Act, 2003 (I of 2003), S.5(23)(c), page 32. Added by the Finance Act, 2003 (I of 2003), S.5(23)(c), page 29. 33. The word “private” omitted by the Finance Act, 1990 (VII of 1990), S.6(8), page 37. 34. By the Finance Act, 2006 the words “after the discovery” were omitted. 35. The words “one per cent per month” substituted with the words “KIBOR plus three per cent per annum”, by Finance Act,2009. 36. The words” or Deputy Collector, ” omitted by Finance Act,2011. 37. Inserted by Finance Act, 2017. 38. Inserted by Finance Act, 2019. 39. Substituted by Finance Act, 2019. At the time of substitution the words was “three months” 40. Added by Finance Act, 2019. 41. Substituted by Finance Act, 2019. At the time the words was” by the Chief Collector of Customs, for a period not exceeding one month in case of notified perishable goods and a period not exceeding three months in case of non-perishable goods” 42. Omitted by Finance Act, 2019.At the time clause( c) was” by the Federal Government or the Board, for such period as it may deem fit. 43. Inserted by Finance Act, 2019. 44. Inserted by Finance Act, 2021 (June) 45. Substituted/inserted by Finance Act, 2022(June) 46. Substituted by Finance Act, 2023(June)

CHAPTER XII
TRANSSHIPMENT

1[120. C hapter not to apply to postal articles.
The provisions of this chapter shall not apply to goods imported by post.]

2[121. Transshipment of goods without payment of duty.
(1) Subject to the provisions of section 15 and the rules, the appropriate officer may, on application by the owner of any goods imported at any customs-station and specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination, grant leave to transship the same without payment of duty, if any, chargeable on such goods with or without any security or bond for the due arrival and entry of the goods at the customs-station of destination:

7[Provided that at customs-station where the Custom Computerized System is operational, the system may automatically authorize transshipment to other customs-station subject to risk selectivity criteria.]

(2) The Board may, subject to rules and such conditions as it may deem fit to impose, authorize certain carriers to transport goods under the multimodal, scheme. Goods transported under the multimodal scheme shall be specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination and shall not -

(a) require distinct permission for transshipment from the customs-station of first entry into the country to be transported to the customs-station of destination. The principal carrier issuing the multimodal bill of lading or air way bill will be responsible for the sanctity of the cargo during transportation between the customs-station of first entry into the country to the customs-station of destination; and

(b) be subject to the risk management system at the customs station of first entry.

(3) The Board may, subject to such conditions as it may deem fit, grant license to any carrier to carry goods under the multimodal scheme.]

122. Superintendence of transshipment.
An officer of customs 3[may] be deputed free of charge to superintend the removal of transshipped goods from one conveyance to another 4[:]

5[Provided that nothing in this section shall apply to the goods transported under the multimodal scheme.]

6[123. Entry, etc., of transshipped goods.
(1) All goods transshipped under sub-section (2) of section 121 to any customs-station shall, on their arrival at such customs-station, be entered in the same manner as goods on their first importation and shall be dealt with likewise.

(2) All goods being transshipped under sub-section (1) of section 121 from a customs-station of first entry into the country, where the Customs Computerized System is operational and the goods are determined to be high risk by the risk management system shall be dealt with under rules on the subject.]

8[Explanation.- For the purpose of transshipment of LCL goods, the customs-station of first entry shall be the customs-station where the goods are de-consolidated.]

124. Transshipment of provisions and stores from one.
conveyance to another of the same owner without payment of duty.- Any provisions and stores in use or being carried for use on board a conveyance may, at the discretion of the appropriate officers be transshipped to another conveyance belonging wholly or partly to the same owner and present simultaneously at the same customs-station, without payment of duty.

125. Levy of transshipment fees.
Subject to the rules, a transshipment fee on any goods or class of goods transshipped under this Act may be levied at such rates, according to weight, measurement, quantity, number, bale, package or container, as the Board may, by notification in the official Gazette, prescribe for any customs-station or class of customs-stations.

LEGAL REFERENCE

1. Section 120 substituted by the Finance Act, 1979 (XXX of 1979), S.6(7), page 188. At the time of substitution this was as under:- “120. Chapter not to apply to baggage or postal articles.- The provision of this Chapter shall not apply to (a) baggage or (b) goods imported by post.”. 2. Substituted by the Finance Act, 2003 (I of 2003), by the Finance Act, 2003 (I of 2003), S.5(25)(a), page 30. At the time of substitution section 121 was as under:- “121. Transshipment of goods without payment of duty.- Subject to the provisions of section 15 and the rules, the appropriate officer may, on application by the owner of any goods imported at any customs-station and specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination, grant leave to transship the same without payment of duty, if any, chargeable on such goods at the customs-station of transshipment and, in the case of goods to be transshipped to some other customs-station, with or without any security or bond for the due arrival and entry of the goods thereat.”. 3. Substituted for the words and commas “shall, in every case, “by the Finance Act, 2003 (I of 2003), by the Finance Act, 2003 (I of 2003), S.5(25),(a) page 30. 4. Substituted full stop by the Finance Act, 2003 (I of 2003), S.5(25)(b), page 30. 5. Added by the Finance Act, 2003 ((I of 2003), S.5(25)(b), page 30. 6. Substituted by the Finance Act, 2003 (I of 2003), S.5(26), page 30. At the time of substitution section 123 was as under:- “123, Entry, etc., of transshipped goods.- All goods transshipped under section 121 to any customs-station shall, on their arrival at such customs-station, be entered in the same manner as goods on their first importation and shall be dealt with likewise.”. 7. Added by Finance Act, 2015 8. Added by Finance Act, 2015

CHAPTER XIII
TRANSIT TRADE

126. Chapter not to apply to baggage and postal articles.
The provisions of this Chapter shall not apply to (a) baggage, and (b) goods imported by post.

127. Transit of goods in the same conveyance.
(1) Subject to the provisions of section 15 and the rules any goods imported in a conveyance and mentioned in the import manifest as for transit in the same conveyance to customs-station in Pakistan or to any destination outside Pakistan may be allowed to be so transited without payment of duty, if any, leviable on such goods at the customs-station of transit.

(2) Any stores and provisions imported on board a conveyance which is in transit through Pakistan to a destination outside Pakistan may, subject to rules, be allowed to be consumed on board that conveyance without payment of the duties which would otherwise be chargeable on them.

128. Transport of certain classes of goods subject to prescribed.
conditions.- Any goods may be transported from one part of Pakistan to another through any foreign territory, subject to such conditions as to their due arrival at the destination as may be prescribed by rules.

129. Transit of goods across Pakistan to a foreign territory.
Where any goods are entered for transit across Pakistan to a destination outside Pakistan, the appropriate officer may, subject to the provisions of the rules, allow the goods to be so transited without payment of the duties which would otherwise by chargeable on such goods 1[:]

2[Provided that the Federal Government may, by notification in the official Gazette, prohibit the bringing into Pakistan by sea, land or air in transit to a foreign territory any goods or class of goods.]

3[129A. L evy of transit fee.
A transit fee may be levied on any goods or class of goods in transit across Pakistan to a foreign territory at such rates as the Board may, by notification in the official Gazette, prescribe.].

LEGAL REFERENCE

1. Substituted full stop by the Finance Act, 1996 (IX of 1996), S.4(4), page 480. 2. Added by the Finance Act, 1996 (IX of 1996), S.4(4), page 470. 3. Added by the Finance Act,2011.

CHAPTER XIV
EXPORTATION OR SHIPMENT AND RELANDING

130. No goods to be loaded on a conveyance, till entry outwards.
or permission granted.- No goods other than passengers’ baggage or mail bags or ballast urgently required for a vessel’s safety shall be loaded or water-borne to be loaded on a conveyance at a place in a customs-station approved for the purpose under clause (b) of section 10, until an order under section 50 in respect of the conveyance has been given or permission in this behalf in writing has been granted by the appropriate officer.

1[131. Clearance for exportation.
(1) No goods shall be loaded for exportation until-

(a) the owner any goods to be exported has made a declaration in such form and manner as prescribed by the Board, by filing a goods declaration to Customs containing correct and complete particulars of his goods, and assessed and paid his liability of duty, taxes and other charges, if any;

(b) the claim of duty drawback, if any, has been calculated and reflected in the declaration filed for export through Customs Computerized System;

(c) Customs has, on the receipt of goods declaration under clause (a), satisfied itself regarding the correctness of the particulars of export, including declaration, assessment, and payment of duty, taxes and other charges and verified the admissibility of the duty drawback claimed as specified in clause (b); and

(d) the appropriate officer has permitted passenger’s baggage or mail bags, to be exported notwithstanding clauses (a), (b) and (c).

(2) If any goods or class of goods imported and lying within the port area, are intended to be exported by its owner, the Collector may allow the export subject to the conditions as the Board may, from time to time, notify:

Provided that the Board may in the case of any customs station or wharf, by notification in the official Gazette, and subject to such restrictions and conditions, if any, as it thinks fit, exempt any specified goods or class of goods or any specified person or class of persons, from all or any of the provisions of this section.

Provided further that the Collector, 8[Omitted] for reasons to be recorded in writing, may cause the examination of goods or any class of goods or goods belonging to a particular exporter or class of exporters at a designated place as he deems fit and proper.]

2[131A. [Omitted].]

132. Bond required in certain cases before exportation.
Before any warehoused goods subject to excise duties, or goods entitled to drawback or repayment of customs-duties on exportations or goods exportable only under particular rules or restrictions, are permitted to be exported, the owner shall, if required so to do, give security by bond in such sum not exceeding twice the duty leviable on such goods as the appropriate officer directs, with one sufficient surety, that such goods shall be exported and landed at the place for which they are entered outwards or shall be otherwise accounted for to the satisfaction of such officer.

133. Additional charge on goods cleared for export after port-.
clearance granted.- Where the goods are cleared for shipment on a 3[goods declaration] presented after port-clearance or permission to depart has been granted, the appropriate officer may, if he thinks fit, levy, in addition to any duty to which such goods are ordinarily liable, a charge not exceeding one per cent of the value of the goods determined in accordance with the provisions of section 25.

134. Notice of non-loading or relanding and return of duty.
thereon.- (1) If any goods mentioned in a 4&5[goods declaration] or manifest be not loaded or be loaded and afterwards relanded, the owner shall before the expiration of fifteen clear working days after the conveyance on which such goods were intended to be loaded or from which they were relanded has left the customs-station, give information of such short-loading or relanding to the appropriate officer save where the latter has occasioned the short-loading or relanding.

(2) Upon an application being made to the appropriate officer within one year of such short-loading or relanding, any duty levied upon goods not loaded or upon goods loaded and afterwards relanded shall be refunded to the person on whose behalf such duty was paid:

Provided that, where the required information of short-loading or relanding is not given within the aforesaid period of fifteen days, the appropriate officer may make refund of duty contingent upon payment of such penalty, if any, as he may see fit to impose.

135. Goods relanded or transshipped from a conveyance returning.
to a customs-station or putting into another customs-station.- (1) If, after having cleared from any customs-station any conveyance without having discharged her cargo returns to such customs-station or ports into any other customs station, any owner of goods in such conveyance, if he desired to land or transship the same or any portion thereof for re-export, may, with the consent of the person-in-charge of the conveyance, apply to the appropriate officer in that behalf.

(2) The appropriate officer, if he grants the application, shall thereupon send an officer of customs to watch the conveyance and to take charge of such goods during such relanding or transshipment.

(4) Such goods shall not be allowed to be transshipped or re-exported free of duty by reason of the previous settlement of duty at the time of first export unless they are lodged and remain, until the time of re-export under the custody of an officer of customs, in a place appointed by the appropriate officer, or are transshipped under such custody.

(4) All expenses attending such custody shall be borne by the owner.

136. Conveyance returning to customs-station may enter and land.
goods.- (1) In either of the cases mentioned in section 135, the person-in-charge of the conveyance may enter such conveyance inwards and any owner of goods thereon may, with the consent of the person-in-charge of the conveyance, land the same under the provisions of this Act and the rules.

(2) In every such case, any export duty paid shall be refunded on an application made by the owner of such goods within one year of their landing and any amount paid to the owner as drawback or repayment of duty(whether of customs, excise or any other tax) shall be recovered from him or adjusted against the amount refundable.

137. Landing of goods during repairs.
(1) The appropriate officer may, on application by the person-in-charge of a conveyance which is obliged before completing her journey or voyage to put into any customs-station for repairs, permit him to land the goods or any portion thereof, and to place it in the custody of an officer of customs during such repairs, and to load and export the same free of duty.

(2) All expenses attending such custody shall be borne by the person-in-charge of the conveyance.

138. Frustrated cargo how dealt with.
(1) Where any goods are brought into a customs-station by reason of inadvertence, misdirection or untraceability of the consignee, 7[or where consignee has dishonored his commitments] 6[an officer of Customs not below the rank of Additional Collector of Customs] may, on application by the person-in-charge of the conveyance which brought such goods or of the consignor of such goods and subject to rules, allow 9[change of consignee name for clearance under section 79 or] export of such goods without payment of any duties (whether of import or export) chargeable thereon,

Provided that such goods have remained and are exported under the custody of an officer of customs.

(2) All expenses attending to such custody shall be borne by the applicant.

LEGAL REFERENCE

1. Substituted by Finance Act,2005. At that time section 131 was as under:-

“131. Clearance for exportation.- No goods shall be loaded for exportation until-

(a) in the case of goods other than passenger’s baggage and mail bag-

(i) the owner has delivered to the appropriate officer a bill of export 1[or goods declaration] for such goods, in such form and manner and containing such particulars as may be prescribed by rules;

(ii) such owner has paid the duties payable on such goods; such bill 2[or declaration] has been passed by the appropriate officer; and

(b) in the case of passenger’s baggage or mail bags, the appropriate officer has permitted them to be exported:

Provided that the Board may in the case of any customs-station or wharf, by notification in the official Gazette, and subject to such restrictions and conditions, if any, as it thinks fit, exempt any specified goods or class of goods or any specified person or class of persons, from all or any of the provisions of this section.

Provided further that the Collector for reasons to be recorded in writing may cause the examination of goods or any class of goods or good belonging to a particular exporter or class of exporters at a designated place as he deems fit and proper.”

2. Inserted by the Finance Act, 2003 and omitted by the Finance Act, 2005. At that time section 131A was as under:-

“131A. Clearance for exportation through the Customs Computerized System.- Subject to the provisions of section 155A, for the purposes of the Customs Computerized System, no goods shall be loaded for exportation until-

(a) the owner of any goods to be exported has made a declaration in such form and manner as prescribed by the Board, by filing a goods declaration to Customs containing correct and complete particulars of his goods, and assessed and paid his liability of duty, taxes and other charges and having reflected his claim of duty draw back if any;

(b) Customs has, on the receipt of goods declaration under clause (a) through the Customs Computerized System, satisfied itself regarding the correctness of the particulars of export, including declaration, assessment, and payment of duty, taxes and other charges and verified the admissibility of the duty draw back claimed; and

(c) Goods have been cleared for export through the Customs Computerized System:

Provided that the Board may in the case of any customs-station or wharf, by notification in the official Gazette and subject to such restrictions and conditions, if any, as it thinks fit, exempt any specified goods or class of goods or any specified person or class of persons, from all or any of the provisions of this section.” 3. By the Finance Act, 2006, the words “bill of export” were substituted. 4. Inserted by the Finance Act, 2003 (I of 2003), S.5(27), page 31 5.. By the Finance Act, 2006, the words” bill of export or” were omitted. 6. Substituted for the words “the Collector of Customs” by Finance Act, 2005.. 7. Inserted by Finance Act, 2018 8. Inserted by Finance Act, 2021(June) 9. Inserted by Finance Act, 2022 (June)

CHAPTER XV
SPECIAL PROVISIONS REGARDING BAGGAGE AND GOODS IMPORTED
OR EXPORTED BY POST

139. Declaration by passenger or crew of baggage.
6[(1)] The owner of any baggage whether a passenger or a member of the crew 8[or a representative on behalf of a group of passengers] shall, for the purposes of clearing it, make a verbal or written declaration of its contents in such manner as may be prescribed by rules to the appropriate officer and shall answer such questions as the said officer may put to him with respect to his baggage and any article contained therein or carried with him and shall produce such baggage and any such articles for examination 1[:]

2[Provided that where the Customs Computerized System is operational, all declarations and communications shall be electronic.]

6,7[(2) Where any passenger or a member of the crew makes a false declaration or fails to make such declaration as required under sub-section (1), he shall be guilty of an offence under this Act.

(3) Notwithstanding the provisions of sub-section (2), where any person attempts to bring into or takes out of Pakistan, currency, gold, precious metals or stones, in any form, through concealment in baggage or circumventing customs controls at airports, sea-ports and land border custom-stations, he shall be guilty of an offence of smuggling within the meaning of clause (s) of section 2.]

140. Determination of rate of duty in respect of baggage.
The rate of duty if any, applicable to baggage shall be the rate in force on the date on which a declaration is made in respect of such baggage under section 139 3[:]

4[Provided that in the case of goods cleared as mis-handled baggage or un-accompanied baggage, the rate of duty shall be the rate in force on the date on which a declaration for clearance of such goods is presented before the appropriate officer after landing of the goods.]

141. Bona-fide baggage exempt from duty.
The appropriate officer may, subject to the limitations, conditions and restrictions specified in the rules, pass free of duty any article in the baggage of a passenger or a member of the crew in respect of which the said officer is satisfied that it is bona fide meant for the use of such passenger or for making gift.

142. Temporary detention of baggage.- Where the baggage of a passenger contains any article which is dutiable or the import of which is prohibited or restricted and in respect of which a true declaration has been made under section 139, 5[and about which the appropriate officer is satisfied that these were not imported with the intention of consumption in Pakistan, he] may, at the request of the passenger, detain such article for the purpose of being returned to him on his leaving Pakistan.

143. Treatment of baggage of passengers or crew in transit.
Baggage of passengers and members of the crew in transit in respect of which a declaration has been made under section 139, may be permitted by the appropriate officer, subject to such limitations, conditions and restrictions as may be specified in the rules, to be so transited without payment of duty.

144. Label or declaration in respect of goods imported or exported by post 9[or.
exported by post 9[or by courier] to be treated as entry.- In the case of goods imported or exported by post 9[or by courier], any label or declaration which contains the description, quantity and value thereof shall be deemed to be an entry for import or export, as the case may be, for the purposes of this Act.

145. Rate of duty in respect of goods imported or exported by post 9[or by.
post 9[or by courier].- (1) The rate of duty, if any, applicable to any goods imported by post 9[or by courier] shall be the rate in force on the date on which the postal authorities present to the appropriate officer the declaration or label referred to in section 144 for the purpose of assessing the duty thereon.

(2) The rate of duty, if any, applicable to any goods exported by post 9[or by courier] shall be the rate in force on the date on which the exporter delivers such goods to the postal authorities for exportation.

LEGAL REFERENCS

1. Substituted for the full stop by the Finance Act, 2004 (II of 2004), S.3(13), page 16. 2. Added by the Finance Act, 2004 (II of 20040, S.3(13), page 16. 3. Substituted full stop by the Finance Ordinance, 1982 (XII of 1982), S.6(7), page 60. 4. Added by the Finance Ordinance, 1982 (XII of 1982), S.6(7), page 60. 5. Substituted for the comma and words “,the appropriate officer” by the Finance Ordinance, 1982 (XII of 1982), S.6(8), page 60. 6. As amended by Act, No.XVII of 2020 (30th March) 7. Substituted /inserted by Finance Act, 2020(June) 8. Inserted by Finance Act, 2023(June) 9. Inserted by Finance Act, 2025 (June)

CHAPTER XVI
PROVISIONS RELATING TO COASTAL GOODS AND VESSELS

146. Chapter not to apply to baggage.
The provisions of this Chapter shall not apply to baggage.

147. Entry of coastal goods.
(1) The consignor of any coastal goods shall present to the appropriate officer a bill of coastal goods in the form prescribed by the Board.

(2) Every such consignor shall make a declaration on the bill of coastal goods presented by him as to the truth of the contents thereof.

148. Coastal goods not to be loaded until bill relating thereto is.
No vessel shall take on board any coastal goods until the bill relating to such goods has been passed by the appropriate officer and delivered to the master of the vessel by the consignor:

Provided that the appropriate officer may, in circumstances of exceptional nature, on a written application by the master of the vessel, permit loading of coastal goods pending the presentation and passing of bills relating to such goods.

149. Clearance of coastal goods at destination.
(1) The master of a vessel carrying any coastal goods shall carry on board the vessel all bills delivered to him under section 148 and shall, within twenty-four hours of arrival of the vessel at any customs-port or coastal port, deliver to the appropriate officer all bills relating to the goods which are to be unloaded at that port.

(2) Where any coastal goods are unloaded at any port, the appropriate officer shall permit their clearance if he is satisfied that they are entered in a bill delivered to him under sub-section (1).

150. Declaration concerning coasting vessel which has touched.
foreign port.- The master of a vessel carrying coastal goods which has touched at any foreign port immediately before its arrival at a port of Pakistan shall deliver, alongwith the bills referred to in section 149, a declaration stating that fact and indicating the particulars and specifications of the cargo, if any, discharged or taken on board at such foreign port.

151. Cargo book.
(1) There shall be kept on board every coasting vessel a cargo book stating the name of the vessel, the port at which she is registered and the name of the master.

(2) It shall be the duty of the master of every coasting vessel to enter or cause to be entered in the cargo book-

(a) the port to which and each voyage on which the vessel is bound;

(b) the respective times of departure from every port of lading and of arrival at every port of discharge;

(c) the name of every port of lading and an account of all goods taken on board at that port with a description of the packages and the quantities and description of the goods contained therein or stowed loose and the names of the respective shippers and the consignees in so far as such particulars be ascertainable;

(d) the name of every port of discharge and the respective days on which such goods or any of them are delivered out of such vessel.

(3) The entries relating to the loading and discharge of goods shall be made respectively at the ports of lading and discharge.

(4) Every such master shall on demand produce the cargo book for the inspection of the appropriate officer and such officer may make such note or remark therein as he considers necessary.

152. Coastal goods not to be loaded or unloaded except at.
customs-port or coastal port.- No coastal goods shall be loaded on, or unloaded from, any vessel at any port other than a customs-port or a coastal port declared under section 9.

153. Coasting vessel to obtain written orders before departure.
(1) No coasting vessel which has brought or loaded any coastal goods at a customs-port or coastal port shall depart from such port until a written order to that effect has been given by the appropriate officer.

(2) No such order shall be given until -

(a) the master of the vessel has answered the questions, if any, put to him;

(b) all charges and penalties, if any, payable in respect of that vessel or by its master have been paid or the payment secured by such guarantee as the appropriate officer may direct.

154. Application of certain provisions of this Act to coastal goods.
(1) Sections 64,65 and 66 shall, so far as may be, apply to coastal goods as they apply to imported goods or goods for export.

(2) Sections 48 and 60 shall, so far as may be, apply to vessels carrying coastal goods as they apply to vessels carrying imported goods or goods for export.

(3) The 1[Federal Government] may, by notification in the official Gazette, direct that all or any of the other provisions of Chapter VII and the provisions of section 78 shall apply to coastal goods or vessels carrying coastal goods with such exceptions and modifications, if any, as may be specified in the notification.

155. Prohibition of the coastal trade of certain goods.
No goods shall be carried coast-wise or shipped as stores in a coasting vessel contrary to any prohibition or restriction imposed by or under any law, nor shall such goods or stores be brought to any place in Pakistan for the purpose of being so carried or shipped.

LEGAL REFERENCE

1. Substituted for the words “Central Government” by the Finance Act, 1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76.

1[CHAPTER XVI-A
PROVISIONS RELATING TO THE CUSTOMS COMPUTERIZED SYSTEM
AND AUDIT AND ACCESS TO DOCUMENTS

155A. Application of the Customs Computerized System.
Notwithstanding anything hereinbefore contained, provisions of this Chapter shall apply to any customs-station equipped with the Customs Computerized System on such date as the 9[Board] may, by notification in official Gazette, specify and different dates may be specified for different provisions and for different areas so as to bring the provisions relating to the Customs Computerized System in force throughout Pakistan progressively.

155B. Access to the Customs Computerized System.
No person shall transmit to, or receive information from, the Customs Computerized System unless that person is registered by the Collector as a user of the Customs Computerized System.

155C. Registered users.
(1) Any person who wishes to be registered as a user of the Customs Computerized System may apply 2[***] to the Collector in the prescribed form and shall provide such information in relation to the application as is prescribed.

(2) The Collector may require an applicant for registration to give such additional information as he considers necessary for the purpose of the application.

(3) The Collector may grant the application subject to such conditions, as he deems fit or refuse the application:

Provided that no order shall be passed for refusal of application unless the applicant has been given a reasonable opportunity of being heard.

155D. Registered users to be allocated unique user identifier.
(1) Any person registered as a user of the Customs Computerized System shall be allocated a unique user identifier for use in relation to the Customs Computerized System by the Collector in such form or of such nature as the Collector may determine.

(2) The unique user identifier allocated pursuant to sub-section (1) of this section shall be used by the registered user for the purpose of transmitting information to or receiving information from the Customs Computerized System.

(3) The Collector may impose conditions on a particular registered user or on registered users generally, relating to the use and security of unique user identifiers.

155E. Use of unique user identifier.
(1) Where information is transmitted to the Customs Computerized System using a unique user identifier issued to a registered user by the Collector for that purpose, the transmission of that information shall, in the absence of proof to the contrary, be sufficient evidence that the registered user to whom the unique user identifier has been issued has transmitted that information.

(2) Where a unique user identifier is used by a person who is not entitled to use it, sub-section (1) of this section shall not apply if the registered user to whom the unique user identifier was issued has, prior to the unauthorized use of that unique user identifier, notified the Customs that the unique user identifier is no longer secure.

155F. Cancellation of registration of registered user.
8[Omitted] Where at any time the Collector is satisfied that any person who is a registered user of the Customs Computerized System, has:

(a) failed to comply with a condition of registration imposed by the Collector under sub-section (3) of section 155C of this Act; or

(b) failed to comply with, or acted in contravention of any conditions imposed by the Collector under sub-section (3) of section 155D of this act in relation to the use and security of the registered user's unique identifier; or

(c) has been convicted of an offence under this Act, the Collector may cancel the registration of that person as a registered user by giving notice in writing to that person stating that the registration of that person is cancelled and setting out the reasons for that cancellation:

6[Provided that the Collector of Customs may, in exceptional circumstances, 10[after giving notice and affording reasonable opportunity of being heard] suspend the use of unique user identifier of any person forthwith on receipt of any complaint or information about violation of any provisions of this Act:]

Provided further that the Collector of Customs shall, after giving opportunity of hearing, pass and order confirming suspension or otherwise the use of Unique User Identifier.]

8[Provided also that a person aggrieved by an order of the Collector, cancelling or confirming the suspension of his unique user identifier, may, within thirty days of communication of such order, prefer an appeal to the Chief Collector who may pass an order annulling, modifying or confirming the order passed by the Collector.]

155G. Customs to keep records of transmissions.
(1) The Customs shall keep a record of every transmission sent to or received from a registered user using the Customs Computerized System.

(2) The record described in sub-section (1) of this section shall be kept for a period of five years from the date of the sending of or the receipt of the transmission, or for such other period as may be prescribed by the Board.

155H. Confidentiality of information.
All trade information gathered by Customs during clearance of goods shall be confidential and shall not be used except for -

(a) statistical purposes by the department and other Government organizations; or

(b) purposes of comparison and evidence 3[by the appropriate officer of customs] as against other imports and exports; or

(c) production as evidence before a legal forum or an organization explicitly so authorized by the Federal Government; 7[or

(d) sharing of data to the extent of agreed data contents under a memorandum of understanding, bilateral, regional, multilateral agreements or convention; or

(e) public disclosure of valuation data through any medium containing description of items, origin, currency, declared and assessed unit value without disclosing name and address of the importer or exporter or their suppliers.] and any disclosure, publishing or dissemination of trade information of any person except as provided above without his explicit permission to any other person shall be an offence.

155I. Unauthorized access to or improper use of the Customs.
Computerized System.- (1) Every person commits an offence who.-

(a) knowingly and without lawful authority by any means gains access to or attempts to gain access to the Customs Computerized System; or

(b) having lawful access to the Customs Computerized System, knowingly uses or discloses information obtained from such a computer system for a purpose that is not authorized; or

(c) knowing that he is not authorized to do so, receives information obtained from the Customs Computerized System, and uses, discloses, publishes, or otherwise disseminates such information.

155J. Interference with the Customs Computerized System.
Every person commits an offence who–

(a) by any means knowingly falsifies any record or information stored in the Customs Computerized System; or

(b) knowingly damages or impairs the Customs Computerized System; or

(c) knowingly damages or impairs any duplicate tape or disc or other medium on which any information obtained from the Customs Computerized System is held or stored otherwise than with the permission of the Collector.

155K. Offences in relation to the security of or unauthorized use of.
unique user identifiers.- (1) A registered user of the Customs Computerized System who fails to comply with or acts in contravention of any condition imposed by the Collector relating to the security of that registered user's unique user identifier commits an offence.

(2) A person who -

(a) not being a registered user, uses a unique user identifier; or

(b) being a registered user, uses the unique user identifier of any other registered user; to authenticate a transmission of information to the Customs Computerized System, commits an offence.

155L. Audit or examination of records.
(1) The appropriate officer of Customs may at any reasonable time enter a premises or place where records are kept and audit or examine those records either in relation to specific transactions or to the adequacy and integrity of the manual or electronic system or systems by which such records are created and stored and shall have free access to all books, records, documents, data and computers in the custody or control of the principals or agents and may if so necessary take custody of, or make extracts from or copies of such books, records, documents, data or computers.

(2) In all cases, except where it would defeat the purposes of the audit or examination, a reasonable advance notice regarding a visit shall be given to the principals or the agents concerned.

155M. Requisition of documents.
(1) The appropriate officer may, by notice in writing, require a person, as and when specified in the notice,--

(a) to produce for inspection by a specified Customs Officer, documents or records that the appropriate officer considers necessary or relevant to --

(i) an investigation under this Act; or

(ii) an audit under this Act; or

(iii) the recovery of dues payable under this Act;

(b) to allow the specified Customs officer to take extracts from or make copies of, documents or records of the kind referred to in paragraph (a);

(c) to appear before a specified Customs officer and answer all questions put to the person concerning --

(i) goods, or transactions relating to those goods, that are the subject of the investigation or audit, or that are relevant to the recovery of dues referred to in clause (a); or

(ii) documents or records of the kind referred to in clause (a).

(2) in this section, person includes an officer employed in a government department, corporation, local authority or an officer employed in a bank.

155N. Documents in foreign language.
Where a document in a foreign language except English is presented to a Customs officer in relation to the carrying out of any duty or the exercise of any power of the Customs under this Act or any other Act, the officer may require the person who presented the document to supply to the officer an authentic English translation of the document at the expense of the person who presented it.

155O. Authorized officer may take possession of and retain.
records.- (1) An officer authorised in this behalf may take possession of and retain any document or record presented in connection with any entry or required to be produced under this Act.

(2) Where the authorised officer takes possession of a document or record under sub-section (1) of this section, the authorised officer shall, at the request of the person otherwise entitled to the document or record, provide that person with a copy of the document certified by or on behalf of the authorised officer under the seal of the Customs as a true copy.

(3) Every copy so certified shall be admissible as evidence in all courts and other legal forums as if it were the original.

155P. Obstructing access, altering, concealing, destruction of.
record.- Any person commits an offence who,-

(a) fails to operate any mechanical or electronic device, when requested by a Customs officer, on which any records are, or information is, stored for the purpose of enabling the Customs officer to obtain those records or that information.

(b) with intent to defeat the purposes of this Act, destroys, alters, or conceals any book, document, or record required to be kept under this Act, or sends or attempts to send out of Pakistan any such book, document, or record.]

4[155Q. Electronic exchange of information and authentication.
through the Customs Computerized System.- Any declaration, documents or record, accounts, notice, order, payment, authentication, authorization or information required, delivered or provided by the Customs or any registered user shall be deemed to have been required, delivered, provided or done under this Act when communicated electronically through the Customs Computerized System.

155R. Correction of clerical errors.
Where the Customs Computerized System is in operation and the Collector of Customs is satisfied that incorrect data has been electronically communicated to Customs due to any clerical error, he may, for reasons to be recorded in writing, direct the correction of the said error. Except as provided herein, no person shall alter any data in the Customs Computerized System:]

10[Provided that in case where any clerical or typographical error is noted in goods declaration except as provided in section 29 of this Act, the exporter or importer may apply to the concerned officer not below the rank of Assistant Collector for issuance of correction or corrigendum certificate and the concerned officer upon his satisfaction may issue such certificate for subsequent correction in the computerized goods declaration.]

LEGAL REFERENCE

1. Inserted by the Finance Act, 2003 (I of 2003), S.5(29), page 32 2. By the Finance Act, 2006, the words “in writing” were omitted. 3. Inserted by the Finance Act, 2006. 4. Inserted by the Finance Act, 2006. 5. Added by Finance Act,2008( I of 2008) (Page-46) 6. The proviso “

Provided that the Collector of Customs may, in exceptional circumstances, after recording reasons in writing and after hearing the aggrieved person, suspend the use of unique user identifier of any person forthwith on receipt of any complaint or information about violation of the Customs Act,1969 (IV of 1969)” substituted by Finance Act, 2009. 7. Added vide Finance Act, 2016 8. Omitted / Inserted by Finance Act, 2017. 9. Substituted by Finance Act, 2019. At the time of substitution the words was “Federal Government”. 10. Inserted by Finance Act, 2021(June)

CHAPTER XVII
OFFENCES AND PENALTIES

156. Punishment for offences.
(1) Whoever commits any offence described in column 1 of the Table below shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the punishment mentioned against that offence in column 2 thereof:-

TABLE

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180(i). If any person contravenes such person shall be liable General any provision of this Act to a penalty not exceeding or any rule made 1[69.[fifty] thousand] thereunder, or abets any rupees. such contravention or fails to comply with any provision of this Act or any such rule with which it was his duty to comply where no express penalty has been provided elsewhere for such contravention or failure,

81, 89 (ii) [Omitted] 89(iii) If any person fails to Such person shall be liable attach or electronically to a penalty not exceeding General upload mandatory Rs.50,000/-documents required under section 79 or 131 of the Customs Act, 1969-, 2.(i) If any goods imported by such person shall be liable 9 & 10 sea or air be unloaded or to a penalty not exceeding attempted to be unloaded 2[ten thousand] rupees; and at any place other than a such goods shall be liable customs-port or customs- to confiscation. airport declared under section 9 for unloading of such goods; or

(ii) If any goods be imported by land or inland water through any route other than a route declared under clause (c) of section 9 for the import of such goods; or

(iii) If any goods be attempted 9 & 10 to be exported by sea or air from any place other than a customs-port or customs airport appointed for the loading of such goods; or

(iv) If any goods be attempted to be exported by land or inland water through any route other than a route declared under clause (c) of section 9 for the export of such goods; or

(v) If any imported goods be brought into any bay, gulf, creek or river for the purpose of being landed at a place other than a customs-port; or

(vi) If any goods be brought near the land frontier or the coast of Pakistan or near any bay, gulf, creek or river for the purpose of being exported from a place other than a customs-station or where any place has been approved under clause (b) of section 10 for the loading of such goods from any place other than the place so approved,

3.(i) If any person exports or such person shall be liable General lands goods, or aids in the to a penalty not exceeding export of landing of 1[twenty-five thousand] goods, or knowingly rupees. keeps or conceals or knowingly permits or procures to be kept or concealed, any goods exported or landed or intended to be exported or landed contrary to the provisions of this Act; or

(ii) If any person be found to 9 & 10 have been on board any conveyance liable to confiscation on account of the commission of the offence under clause 4 of this Table, while such conveyance is within any place which is not a customs-station for the export and landing of goods,

4. If any conveyance which the duty in respect of goods 9 & 10 has been within the limits so lost or deficient shall be of any customs-station in payable by the person-in- Pakistan with goods on charge of the conveyance; board, be afterwards and such conveyance shall found anywhere in also be liable to Pakistan with the whole or confiscation. any portion of such goods missing unless the person-in-charge of the conveyance be able to account for the loss of, or deficiency in the goods,

5.(i) If any goods are unloaded the person-in-charge of 9 & 10 from any conveyance every such conveyance inward bound, without the used for irregular import or authority of the export of goods, shall be appropriate officer into liable to a penalty not any other conveyance at exceeding 1[twenty-five any place other than a thousand] rupees; and the place declared under goods and the conveyance section 9 for the unloading shall also be liable to of goods; or if any goods confiscation. are loaded into any conveyance outward bound from any other conveyance, without such authority, from or at any place other than a place declared under section 9 for the loading of goods; or

(ii) If any goods on which drawback has been granted are put, without such authority, on board any conveyance for the purpose of being relanded,

6. If any vessel arriving at, the master of such vessel 14 or departing from, any shall be liable to a penalty customs-port fails, when not exceeding 2[ten so required under section thousand] rupees. 14 to bring to at any such station as has been appointed by the Collector of Customs for the boarding or landing of an officer of customs,

7(i) If any vessel arriving at the master of such vessel 14 any customs-port, after shall be liable to a penalty having come to its proper not exceeding 2[ten place of mooring or thousand] rupees; and the unloading, removes from vessel, if not entered, shall such place, except with not be allowed to enter the authority of the until the penalty is paid. Conservator, obtained in accordance with the provisions of the Ports Act,1908 (XV of 1908) or other lawful authority, to some other place of mooring or unloading; or

(ii) If any vessel not brought into port by a pilot be not anchored or moored in accordance with any direction of the Collector of Customs under section 14,

83[7A. If any agency or person including port authorities managing or owning a customs port, customs airport or a land customs station or a container freight station, fails to entertain a delay and detention certificate issued by the officer of Customs, such agency or person or port authority shall be liable to a penalty not exceeding five million rupees. 14A]

3,88[8.(i) If any goods 90[including essential commodities as notified by the Board] be smuggled into or out of Pakistan, such goods shall be liable to confiscation and any person concerned in the offence shall be liable to—

(a) if the value of the a penalty not exceeding the goods is from PKR value of the goods; and 500,001 to 3,000,000 upon conviction by a (both inclusive); Special Judge he shall further be liable to imprisonment for a term not exceeding two years;

(b) if the value of the a penalty not exceeding goods is from PKR two times 92[but not less 3,000,001 to 5,000,000 than] the value of the (both inclusive); goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding three years:

Provided that the sentence of the imprisonment shall not be less than two years.

(c) if the value of the a penalty not exceeding goods is from PKR three times 92[but not less 5,000,001 to 7,500,000 than] the value of the (both inclusive); goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding five years:

Provided that the sentence of the imprisonment shall not be less than two and half years.

(d) if the value of the a penalty not exceeding goods is from PKR four times 92[but not less 7,500,001 to 10,000,000 than] the value of the (both inclusive); goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding ten years:

Provided that the sentence of the imprisonment shall not be less than three years.

(e) if the value of the a penalty not exceeding goods exceeds PKR five times 92[but not less 10,000,000; than] the value of the goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding fourteen years:

Provided that the sentence of the imprisonment shall not be less than five years and the whole or any part of his moveable and immoveable assets and property shall also be liable to forfeiture in accordance with section 187 of the Customs Act, 1969:

Provided further that, in the case of such goods as may be notified by the Federal Government in the official Gazette, the sentence of imprisonment shall not be less than five years and the whole or any part of his property shall also be liable to forfeiture.

9[(ii) If the smuggled goods are such goods shall be liable narcotics drugs, to confiscation and any psychotropic substances person concerned in the or controlled substances,- offence shall be liable to –

(a) if the quantity of the imprisonment which may narcotic drug, extend to two years, or psychotropic with fine, or with both; substance of controlled substance is imprisonment which may one hundred grams or extend to seven years and less; shall also be liable to fine;

(b) if the quantity of the death or imprisonment for narcotic drug, life, or imprisonment for a psychotropic term which may extend to substance or fourteen years and shall controlled substance also be liable to fine which exceeds one hundred may be upto one million grams but does not rupees; exceed one kilogram;

(c) if the quantity of the

Provided that, if the narcotic drug, quantity exceeds ten psychotropic kilograms the punishment substance or shall not be less than controlled substance imprisonment for life. exceeds the limit specified in clause (b); 87,88[(iii If the smuggled or such currency or goods General] ) prohibited goods comprise shall be liable to currency, gold, silver, confiscation and any platinum or precious person concerned in the stones in any form- offence shall be liable to-

(a) if the value of the a penalty not exceeding the currency or goods is upto value of the goods; and US $ 10,000 or equivalent upon conviction by a in value (currency of other Special Judge he shall denomination) etc; further be liable to imprisonment for a term not exceeding two years;

(b) if the value of the a penalty not exceeding currency or goods is from two times the value of the US $ 10,001 to US $ goods; and upon conviction 20,000 (both inclusive) or by a Special Judge he shall equivalent in value further be liable to (currency of other imprisonment for a term denomination) etc; not exceeding three years:

Provided that the sentence of the imprisonment shall not be less than two years.

(c) if the value of the a penalty not exceeding currency or goods is from three times the value of the US $ 20,001 to US $ goods; and upon conviction 50,000 (both inclusive) or by a Special Judge he shall equivalent in value further be liable to (currency of other imprisonment for a term denomination) etc; not exceeding five years:

Provided that the sentence of the imprisonment shall not be less than two and half years.

(d) if the value of the a penalty not exceeding currency or goods is from four times the value of the US $ 50,001 to US $ goods; and upon conviction 100,000 (both inclusive) by a Special Judge he shall or equivalent in value further be liable to (currency of other imprisonment for a term denomination) etc; not exceeding ten years:

Provided that the sentence of the imprisonment shall not be less than three years.

(e) if the value of the a penalty not exceeding currency or goods exceeds five times the value of the US $ 100,000 or goods; and upon conviction equivalent in value by a Special Judge he shall (currency of other further be liable to denomination) etc; imprisonment for a term not exceeding fourteen years:

Provided that the sentence of the imprisonment shall not be less than five years and the whole or any part of his moveable and immoveable assets and property shall also be liable to forfeiture in accordance with section 187 of the Customs Act, 1969. 88(iv) [Omitted]

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(PAK/926) or any amendment therein as determined by the PNRA, exceeds the limit specified under clause (c).

9. (i) If any goods, not being Such goods shall be liable 15 & 16 goods referred to in to confiscation; and any clause 8, are imported into person concerned in the or exported from Pakistan offence shall also be liable evading payment of to a penalty not exceeding leviable customs-duties or two times 92,93[omitted] the in violation of any value of the goods. prohibition or restriction on the importation or exportation of such goods imposed by or under this Act or any other law; or

(ii) If any attempt be made so to import or export any such goods; or

(iii) If any such goods be found in any package produced before any officer of customs as containing no such goods; or

(iv) If any such goods be found either before or after landing or shipment to have been concealed in any manner on board any conveyance within the limits of any seaport, airport, railway station or other place where conveyances are ordinarily loaded or unloaded; or

(v) If any such goods, the exportation of which is prohibited or restricted as aforesaid be brought within a customs area or to a wharf, with the intention of loading them on a conveyance for exportation in violation of such prohibition or restriction,

10. If, upon an application to such person shall be liable General pass any goods through to a penalty not exceeding the custom-house, any 1[twenty-five thousand] person not being the rupees. owner of such goods, and not having proper and sufficient authority from the owner, subscribes or attests any document relating to any goods on behalf of such owner,

10[10 If any condition, such goods shall be liable 19 & 20

(A) limitation or restriction to confiscation and the imposed by Federal person to whom the Government or by the exemption was granted Board for grant of partial shall be liable to a penalty or total exemption from not exceeding ten times the customs duties is violated value of goods; and upon in respect of the goods on conviction by a Special which exemption has been Judge he shall further be granted, liable to imprisonment for a term not exceeding two years].

11. If any goods which have any person who sells, been allowed temporary transfers or otherwise 21 admission under section disposes of such goods or 21 without payment of aids or abets the sale, duty subject to the transfer or disposal of such condition of subsequent goods, and any person in export be not exported, or whose possession such any goods duty on which goods are found shall be has not been paid or liable to a penalty not having been paid has been exceeding five times the refunded be sold or duty chargeable on such transferred or otherwise goods; and such goods disposed of in shall also be liable to contravention of the rules confiscation. or a special order made under that section,

11[12 If a person contravenes such person shall be liable 26(1) and the provisions of section to a penalty not exceeding 26(4) 26 and does not furnish one million rupees and on any information as conviction by a Special required by the rules, Judge shall be liable to imprisonment for a term not exceeding one year or with both. 12[12A If any person contravenes such person shall be liable the provisions of section to a penalty not exceeding 26A 84[and 26A 84[and 155M] does one million rupees and on 155M] not furnish any conviction by a Special information as required by Judge shall be liable to the rules, imprisonment for a term not exceeding one year or with both. If any person contravenes such person shall be liable 26B] 12B the provisions of section to a penalty not exceeding 26B and does not furnish one million rupees and on any record, documents or conviction by a Special information as required by Judge shall be liable to the rules, imprisonment for a term not exceeding one year or with both.

13. If any person willfully such person shall be liable 28 contravenes any rule to a penalty not exceeding relatable to section 28 2[ten thousand rupees;] and with respect to any spirits, all such spirit shall be liable to confiscation. 85[14 If any person commits an such person shall be liable 32 offence under to a penalty not exceeding one hundred thousand

(i) sub-section (1) or sub- rupees or three times the section (2) of section value of the goods in 32; respect of which such offence is committed, whichever be greater; and such goods shall also be liable to confiscation; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding three years, or to fine, or to both;

(ii) sub-section (3) or sub- such person shall be liable 32] section (3A) of to a penalty not exceeding section 32, fifty thousand rupees or two times the value of the goods in respect of which such offence is committed, whichever be greater.

14[14A. If any person commits an such person shall be liable 32A.] offence to a penalty not exceeding Under section 32A. three times the value of the goods in respect of which such offence is committed and such goods shall also be liable to confiscation and upon conviction by a Special Judge he shall further be liable to imprisonment for a term which may extend to ten years but shall not be less than five years or to fine, or to both. 85[14B If any person commits an Such person shall be liable 32C] offence under section to penalty not exceeding 32C, two hundred thousand rupees or three times the value of goods in respect of which such offence is committed whichever is greater; and such goods shall also be liable to confiscation; and upon conviction by a special judge he shall further be liable to imprisonment for a term not exceeding five years and to a fine which may extend upto one million rupees.

15. If any goods in respect of any person who fails to 35 & 105 which drawback has been export such goods or who paid or any warehoused unloads or relands the goods cleared for goods or any person who exportation are not duly aids or abets the evasion of exported or after being export of such unloading or exported are unloaded or relanding shall be liable to relanded at any other a penalty not exceeding place in Pakistan three times the value of otherwise than in such goods or 1[twenty five accordance with the thousand rupees,] provisions of this Act and whichever be higher; and the rules. the goods which are not so exported or which are so unloaded or relanded together with the conveyance from which they are unloaded or relanded shall also be liable to confiscation. 16. If any provisions or stores such provisions or stores on which drawback has shall be liable to 24 & 35 been paid or on which confiscation. duty has not been paid for reason of their being provisions or stores meant, to be exported for use on board are not loaded on board or after being loaded are subsequently unloaded without the permission of the appropriate officer.

If any person fraudulently 16[such person shall be claims drawback on any liable to penalty not 17. goods on which drawback exceeding twenty-five 39 is disallowed under thousand rupees, and such section 39 or includes any goods shall also be liable to such goods in his claim confiscation]. for drawback,

18. If, in any river or port the master of such vessels 43 wherein a place has been 17[and master of the pilot] fixed under section 43 by shall be liable to a penalty the Board, any vessel not exceeding 1[twenty-arriving passes beyond five thousand rupees]. such place, before delivery of a manifest to the pilot, officer of customs, or other person duly authorized to receive the same,

19. If the master of any vessel such master shall be liable 43 arriving, which remains to penalty not exceeding outside or below any place 1[twenty five thousand fixed, under section 43, rupees]. wilfully omits, for twenty-four hours after anchoring, to deliver a manifest as required by this Act,

20. If, after any vessel has such master shall be liable 43 entered any customs-port to a penalty not exceeding in which a place has not 1[twenty five thousand been fixed under section rupees]. 43, the master of such vessel willfully omits, for twenty-four hours after anchoring, to deliver a manifest as required by this Act,

21. If, after any conveyance such person shall be liable 44 other than a vessel has to a penalty not exceeding entered any land customs- 1[twenty five thousand station or customs-airport, rupees]. the person-in-charge of such conveyance willfully omits, for twenty-four hours after arrival, to deliver a manifest as required by this Act,

22. If any person required by such person shall be liable 43 & 46 this Act to receive an to a penalty not exceeding import manifest from the 2[ten thousand]rupees. person-in-charge of a conveyance refuses to do so, or fails to countersign the same or to enter thereon the particulars referred to in section 46,

23. (i) If, any import or export the person delivering such 45 & 53 manifest delivered under manifest shall be liable to a any provision of this Act penalty not exceeding is not signed by the person 1[twenty-five thousand delivering the same or is rupees]. not in the form prescribed under this Act or does not contain the particulars of the conveyance, goods and journey required to be stated in such manifest by or under this Act, or

(ii) If any manifest so delivered does not contain a specification true to the best of such person’s knowledge of all goods imported or to be exported in such conveyance,

24(i) If any goods entered in the the person-in-charge of 45,53 & 55 import manifest of a such conveyance shall be conveyance are not found liable to a penalty not in that conveyance; or exceeding twice the

(ii) amount of duty chargeable If the quantity found in on the goods not found on the conveyance the conveyance or, if such 18[,container or any other goods are not dutiable or package] is short, and the the duty thereon cannot be shortage is not accounted ascertained, to a penalty for to the satisfaction of not exceeding 19[fifteen the officer-in-charge of thousand rupees] for every the custom-house, missing or deficient package or separate article, and in the case of bulk goods to a penalty not exceeding the value of the goods, or 1[twenty-five thousand rupees], whichever be higher.

25. If any bulk is broken on a the master of such vessel 47 & 49 vessel in contravention of shall be liable to a penalty section 47 or without a not exceeding 1[twenty-special pass granted under five thousand] rupees. section 49,

26. (i) If any bill of lading or the person-in-charge of 48 copy required under such conveyance shall be section 48, is false and the liable to penalty not person-in-charge of the exceeding 1[twenty-five conveyance is unable to thousand rupees]. satisfy the appropriate officer that he was not aware of the fact; or if any such bill or copy has been altered with fraudulent intent; or

(ii) If the goods mentioned in any such bill or copy have not been bona fide shipped or loaded as shown therein; or if any such bill of landing or any bill of lading of which a copy is delivered has not been made previously to the departure of the conveyance from the place where the goods referred to in such bill of lading were shipped or loaded; or,

(iii) If any part of the cargo or goods has been stayed, destroyed or thrown over board, or if any package has been opened and any part of the cargo or goods be not accounted for to the satisfaction of the appropriate officer,

27. If the person-in-charge of such person shall be liable 51 & 52 a conveyance attempts to to a penalty not exceeding depart from the customs- 1[twenty-five thousand station without a port- rupees]. clearance or written permission of the appropriate officer, granted under section 51 or section 52, as the case may be,

28. If any conveyance the person-in-charge of actually departs from a such conveyance shall be customs-station without liable to a penalty not obtaining the port- exceeding 1[twenty- five clearance or the written thousand rupees]. permission of the appropriate officer, as the case may be,

29. If any pilot takes charge such pilot shall be liable to of any vessel proceeding a penalty not exceeding out of Pakistan 1[twenty- five thousand notwithstanding that the rupees]. master of the vessel does not produce a port-clearance,

30. If the person-in-charge of such person shall be liable 61 a conveyance refuses to to a penalty not exceeding receive on board any 2[ten thousand rupees] for officer of customs deputed each day during which under section 60, such officer is not received on board the conveyance, and the conveyance if not entered shall not be allowed to enter until such penalty is paid.

31. If the master of a vessel or such master or person 61 the person-in-charge of a shall, in each such case, be conveyance other than a liable to a penalty not vessel or an aircraft exceeding 2[ten thousand refuses to provide such rupees]. officer with suitable accommodation and adequate quantity of fresh water,

32. (i) If the person-in-charge of such person shall be liable 62 any conveyance refuses to to a penalty not exceeding allow such conveyance or 1[twenty five thousand any box, place or close rupees]. receptacle therein to be searched when so required by an officer of customs bearing a written order to search; or

(ii) If an officer of customs places any lock, mark or seal upon any goods in any conveyance, and such lock, mark or seal is willfully opened, altered or broken before due delivery of such goods; or

(iii) If any such goods are secretly conveyed away; or

(iv) If any such hatchway or entrance to the hold of a conveyance after having been fastened down by an officer of customs is opened without his permission,

33. If the person-in-charge of such person shall be liable 64. a conveyance laid up by to a penalty not exceeding the withdrawal of the 1[twenty-five thousand officer of customs shall, rupees] and the goods if before application is made protected by a pass or by him for an officer of written order shall be liable customs to superintend the to be relanded for receipt of goods, causes or examination at the expense suffers to be put on board of the person-in-charge such conveyance and and, if not protected by a goods what ever in pass or written order, shall contravention of section be liable to confiscation. 64,

34. If the person-in-charge of such person shall be liable 64,65 & 141 a conveyance, in any case to a penalty not exceeding other than that provided 1[twenty-five thousand] for in clause 33 of this rupees; and all goods so Table, causes or suffers discharged, put on board any goods to be the conveyance or water-discharged, put on board borne shall be liable to the conveyance or water- confiscation. borne contrary to the provisions of section 64 or section 65 or any rules relating to baggage,

35(i) If, when a boat-note is the person by whose 68 required by section 68, authority the goods are any goods water-borne for being landed or shipped, the purpose of being and the person-in-charge of landed from any vessel the boat, shall each be and warehoused or passed liable to a penalty not for importation, or of exceeding twice the being shipped for amount of duty leviable on exportation, be found the goods, or, if such goods without such note; or be non-dutiable to a penalty not exceeding 20[two thousand] rupees; and such goods shall also be liable to confiscation.

(ii) If any goods are found on board any boat in excess of such boat-note, whether such goods are intended to be landed, from, or to be shipped on board any vessel,

36. If any person refuses to such person, master or 68 receive, or fails to sign, or officer shall be liable to a to note the prescribed penalty not exceeding 2[ten particulars upon, any boat- thousand ] rupees. note, as required by section 68, or if any master or officer of a vessel receiving the same fails to deliver it when required so to do by any officer of customs authorized to make such requisitions, 37(i) If any goods are, without the person by whose 66,69 & 70 permission, shipped or authority the goods are loaded on board a shipped, loaded, landed, conveyance proceeding water-borne or out of Pakistan or are transshipped and the water-borne to be so person-in-charge of the shipped or loaded or are conveyance employed in landed except from or at a conveying them shall each wharf or other place duly be liable to a penalty not appointed for the purpose; exceeding five times the or value of the goods; and such goods shall also be liable to confiscation.

(ii) if any goods water-borne for the purpose of being landed or shipped or loaded are not landed, shipped or loaded without unnecessary delay; or

(iii) if the boat containing such goods be found out of the proper track between the vessel and the wharf or other proper place of landing or shipping or loading and such deviation be not accounted for to the satisfaction of the appropriate officer; or

(iv) if any goods are transshipped contrary to the provisions of section 70,

38. If, after the issue of a the owner or the person-in- 71 notification under section charge of the boat shall be 71 with regard to any port, liable to a penalty not any goods are found exceeding 20[two thousand] within the limits of such rupees; and such goods port on board any boat not shall also be liable to duly licensed and confiscation, unless they registered, are covered by a special permit of the Collector of Customs.

39. If any boat or vessel not such boat or such vessel 72 exceeding one hundred shall be liable to tons does not comply with confiscation. the rules relatable to section 72,

21[39A. The person incharge of a such person, master, agent 72A] conveyance or master or or owner shall be liable to agent or owner of the penalty not exceeding two conveyance who fails to hundred thousand rupees supply the information or and on conviction by a documents suo moto Special Judge, he shall further be liable to imprisonment for a term which may extend to three years on with fine, or with both.

40. If any person-in-charge of such person shall be liable 45 & 75 any conveyance unloads to a penalty not exceeding or suffers to be unloaded 1[twenty-five thousand] any goods not duly rupees. entered in the manifest of such conveyance,

41. If any goods are found such goods shall be liable to General concealed in any place, box confiscation. or close receptacle in any conveyance and are not duly accounted for to the satisfaction of the officer-in-charge of the custom- house,

42. If any goods are found on such goods shall be liable to 45 & 75 board any conveyance in confiscation. excess of those entered in the manifest, or not corresponding with the specification therein contained,

22[43. If any goods, after having if the goods cannot be 25[79, 26[***] 80 landed and before they have recovered, the owner 68[or 26[***] been processed and cleared any other person having by the Customs, are by the custody of the aforesaid or any other person, goods]shall be liable, in fraudulently concealed in, or addition to full duty, to a attempted to remove from penalty not exceeding five the bonded area of any Port. times the amount of such Airport and Dry port, or duty, or if such goods are not abstracted from any package dutiable or duty thereon or transferred from one cannot be ascertained, to a package to another, or penalty not exceeding 23[one otherwise, for the purpose of hundred] thousand rupees, for illegal removal or every missing or deficient concealment, with the package or separate article, intention of defrauding the and in the case of bulk goods revenue, to a penalty not exceeding 23[one hundred] thousand rupees or three times of the value of the goods, whichever be higher.

And the owner or any person guilty of such removal, concealment, abstraction or transferment and every person aiding or abetting him shall 24[including the custodian], upon conviction by a special judge, be liable to imprisonment for a term not exceeding five years. ]

44. If, in relation to any goods the owner of the goods and 29[79, 30[***] 131 in respect of which a every person who aids or 30[***] declaration is required on abets such packing shall be 36/36A[a goods declaration], liable to a penalty not as the case may be, it be exceeding 1[twenty five found that the goods have thousand] rupees 28[or five apparently been packed so times the duty and taxes as to deceive the officer of involved whichever is customs, higher]; and such goods shall also be liable to confiscation.

45. If any goods have been the owner of such goods 31&73[79 and 131] declared on 27/27A[ a goods and every person who aids declaration], as the case or abets such concealment may be, and it is found or mixing of goods shall be that goods not so declared liable to a penalty not have been concealed in, or exceeding 1[twenty five mixed within the goods so thousand] rupees 28[or five declared, times the duty and taxes involved whichever is higher]; and both the goods so declared and the goods not so declared shall be liable to confiscation.

46. If, when goods are passed the person guilty of such 79 & 88 by bale or by package, any omission or mis-omission or mis- description shall be liable description thereof to a penalty not exceeding tending to injure the ten times the amount of revenue be discovered, duty which might have been lost to Government by such omission or mis-description, unless it be proved to the satisfaction of the officer-in-charge of the custom-house that the variance was accidental.

47. If, without entry duly the person so taking or 7934[***] made, any goods are taken passing such goods or passed out of any 32[along with the custodian customs-station, of the goods] shall, in every such case, be liable to a penalty not exceeding five times the value of goods; and such goods shall also be liable to confiscation 33[and upon conviction by a Special Judge be further liable to imprisonment for a term not exceeding five years]. 35,85[47 89[Omitted] A

48. If any prohibited the passenger shall be General 36[,restricted] or dutiable liable to a penalty not goods are found, either exceeding five times the before or after landing, value of the goods; and concealed in any such goods shall also be passenger’s baggage, liable to confiscation.

49. If any goods entered to be any person so carrying 87 warehoused are carried them shall be liable to a into the warehouse unless penalty not exceeding with the authority, or 1[twenty five thousand under the care, of the rupees]; and such goods appropriate officer, and in shall also be liable to such manner, by such confiscation. persons, within such time, and by such roads or ways, as such officer directs,

50. If any goods entered to be such goods shall be 88 warehoused are not duly deemed not to have been warehoused in pursuance duly warehoused, and shall of such entry, or are be liable to confiscation withheld, or removed [and any person guilty of from any proper place of such offence, aiding or examination before they abetting shall be liable to a have been examined and penalty not exceeding five certified by the hundred thousand rupees]. appropriate officer,

51. If any warehoused goods such goods shall be liable Chapter XI be not warehoused in to confiscation accordance with the provisions of Chapter XI,

52. If the licensee of any such licensee shall be 91 private warehouse liable to a penalty not licensed under this Act exceeding 1[twenty five does not open the same thousand rupees], and shall when required so to do by further be liable to have his any officer entitled to license forthwith cancelled. have access thereto, or, upon demand made by any such officer, refuses access to any such officer,

53. If the 37[licensee] of any such 38[***] licensee shall, Chapter XI public warehouse, or the for every such neglect, be licensee of any private liable to a penalty not warehouse, neglects to exceeding 39[one thousand show the goods rupees]. warehoused therein, so that easy access may be had to every package and parcel thereof,

54. If the owner of any such owner or person shall 93 warehoused goods, or any in every such case, be person in the employment liable to penalty not of such owner, exceeding 1[twenty five clandestinely opens any thousand rupees]. warehouse, or, except in the presence of the appropriate officer, gains access to his goods,

55(i) If any warehoused goods such goods shall be liable 92 & 94 are opened in to confiscation. contravention of the provisions of section 92; or

(ii) if any alteration be made in such goods or in the packing thereof, except as provided in section 94,

56. If any warehoused goods the person-in-charge of the 106 that have been delivered conveyance shall be liable as stores and provisions to a penalty not exceeding for use on board a 1[twenty five thousand conveyance under the rupees;] and such goods authority of this Act are shall also be liable to relanded, sold or disposed confiscation. of in Pakistan without due entry and payment of duty,

57. If any goods, lodged in a the licensee of such 116 private warehouse are warehouse shall, unless the found at the time of deficiency be accounted for delivery therefrom to be to the satisfaction of the deficient, and such appropriate officer, be deficiency is not due liable to a penalty equal to solely to natural loss, as five times the duty allowed under section chargeable on the goods so 110, deficient.

58. If the 37[licensee] of any such 38[***] licensee shall 116 public warehouse, or the for every such failure, be licensee of any private liable to pay the duties due warehouse, fails, on the on such goods, and also a requisition of any officer penalty not exceeding of customs, to produce 39[one thousand rupees] in any goods which have respect of every package or been deposited in such parcel so missing or warehouse, and which deficient. have not been duly cleared and delivered therefrom, and is unable to account for such failure to the satisfaction of the appropriate officer,

59. If any goods, after being any person guilty of such Chapter XI duly warehoused, are removal, concealment, fraudulently concealed in, abstraction or transferment or removed from the and every person aiding or warehouse, or abstracted abetting him shall be liable from any package, or to a penalty not exceeding transferred from one 1[twenty five thousand package to another, or rupees] 40[; and upon otherwise, for the purpose conviction by a Special of illegal removal or Judge, he shall further be concealment, liable to imprisonment for a term not exceeding five years, or to fine, or to both].

60. If any goods lodged in a such excess, unless Chapter XI private warehouse are accounted for to the found to exceed the satisfaction of the officer-registered quantity, in-charge of the custom-house, shall be charged with five times the duty leviable thereon.

61. If any goods be removed any person so removing Chapter XI from the warehouse in them shall be liable to a which they were penalty not exceeding originally deposited, 1[41[one hundred thousand except in the presence, or rupees]; and such goods with the sanction, of the shall also be liable to appropriate officer or confiscation. under the proper authority for their delivery,

62. If any person illegally such person shall be liable Chapter XI takes any goods out of any to a penalty not exceeding warehouse without 42[five hundred thousand] payment of duty [or rupees 40[;and upon replaces with other conviction by a Special goods], or aids, assists or Judge, he shall be further is otherwise concerned liable to imprisonment for therein, a term not exceeding five years or to fine or to both.]

62A. If any person is found to be involved or abetting in the removal, substitution, damage or otherwise tampering with any goods, whether or not confiscated, at any such place as authorized by the Collector as a State Warehouse, such person shall be liable to a penalty not exceeding two times the value of the goods involved; and upon conviction by a Special Judge, shall further be liable to imprisonment for a period not exceeding five years, or fine or both. General

84[63(i). If any goods which are such goods and the loaded for transshipment, conveyance illegally are pilfered, replaced en- carrying these goods shall route or failed to reach the be liable to confiscation port of destination, or any and any person including person transships goods the custodian involved in not allowed to be the offence and the bonded transshipped: carrier shall be liable to a penalty not exceeding ten times the value of the goods and he shall further be liable, upon conviction by a Special Judge, to imprisonment for a term not exceeding seven years; and

(ii) If any person contravenes such person including the 121] any rule relating to custodian and the inland transshipment other than carrier shall be liable to mentioned in clause (i), penalty not exceeding five hundred thousand rupees or three times the amount of duties and taxes involved.

64. 82[If any person 74[such person including 94[127,128, 129& contravenes any rule or the custodian and inland 129A] condition relating to carrier shall be liable to a 94[section 127, section penalty up to twice the 128, section 129 or value of the goods and section 129A], or makes upon conviction by a an untrue declaration Special Judge be further relating to transit goods or liable to imprisonment for illegally removes or a term not exceeding five conceals any transit years, and the goods in goods,] respect of which such offence has been committed shall also be liable to confiscation.]

65. If any goods be taken on the person-in-charge of 130 board any conveyance at such conveyance shall be any customs-station in liable to a penalty not contravention of section exceeding 1[twenty five 130, thousand] rupees.

66. If any goods not specified the person-in-charge of 131 47[***] in a duly-passed 27/27A[ such conveyance 48[along goods declaration] or not with the custodian] shall be permitted to be exported liable to a penalty not are taken on board any exceeding 49[one hundred conveyance, contrary to thousand rupees and upon the provisions of conviction by a Special 46[sections 131 47[***], Judge be further liable to imprisonment for a term not exceeding two years and the conveyance involved shall be liable to confiscation].

67. If any goods specified in the owner of such goods 134 the manifest of any shall be liable to a penalty conveyance or in any not exceeding 20[two 27/27A[goods declaration] thousand] rupees; and such are not duly put on board goods shall also be liable to before the departure of confiscation. such conveyance, or are relanded and notice of such short loading or relanding be not given as required by section 134,

68. If any goods duly put on the person-in-charge of 135,136 &137 board any conveyance be such conveyance shall, landed, except under unless the landing be sections 135,136 or 137, accounted for to the at any place other than satisfaction of the that for which they have appropriate officer, be been cleared, liable to a penalty not exceeding three times the value of the goods so landed.

69. If any goods on account of the person-in-charge of 136 which drawback has been such conveyance shall, paid be not found on unless the fact be board any conveyance accounted for to the referred to in section 136, satisfaction of the appropriate officer, be liable to a penalty not exceeding the value of such goods.

70. If the owner of any such owner shall be liable 139 baggage fails to make to a penalty not exceeding correct declaration of its three times the value of the contents or refuses to goods, in respect of which answer any questions put no declaration or incorrect to him by the appropriate declaration has been made officer with respect to his or in respect of which he baggage or any of its refuses or fails to answer contents including articles any question, or which he carried with him or fails to fails to produce for produce the baggage or examination; and such any such article for goods shall also be liable to examination, confiscation. 87[70 If the owner of any baggage fails to declare or makes a false declaration with respect to his baggage or refuses to answer any questions put to him by the appropriate officer with respect to his baggage or any of its contents including articles carried with him or fails to produce baggage or any such article for examination, and if such goods are:

(i) Other than currency Such owner shall be laible 139(1) gold, silver & platinum to penalty not exceeding and precious stones in three times the value of the any form goods; and such goods shall also be liable to confiscation.

(ii) Currency of all types. 139(2)

(a) If the amount of the Such currency shall be currency over and liable to confiscation and above the permissible any person concerned in limit is upto US dollars the offence shall be liable 10,000/- or equivalent to a penalty not exceeding in value (currency of the value of the excess other denomination) amount of the currency; etc.

(b) If the amount of Such currency shall be the currency over and liable to confiscation and above the permissible any person concerned in limit is US dollars the offence shall be liable 10,001/- top 20,000/- to a penalty not exceeding or equivalent in value two times the value of the (currency of other excess amount of the denomination) etc. currency;

(c) if the amount of the Such currency shall be currency over and liable to confiscation and above the permissible any person concerned in limit is US dollars the offence shall be liable 20,001/- to 50,000/- or to a penalty not exceeding equivalent in value three times the value of the (currency of other currency; and upon denomination) etc. conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding two years;

(d) If the amount of the Such currency shall be currency over and liable to confiscation and above the permissible any person concerned in limit is US dollars the offence shall be liable 50,001/- to 100,000/- to a penalty not exceeding or equivalent in value four times the value of the (currency of other currency; and upon denomination) etc. conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding seven years;

(e) if the amount of the Such currency shall be currency over and liable to confiscation and above the permissible any person concerned in limit is US dollars the offence shall be liable 100,001/- to 200,000/- to a penalty not exceeding or equivalent in value five times the value of the (currency of other currency; and upon denomination) etc. conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding ten years;

Provided further that the sentence of the imprisonment shall not be less than three years.

(f) If the amount of the Such currency shall be currency over and liable to confiscation and above the permissible any person concerned in limit exceeds US the offence shall be liable dollars 200,000/- or to a penalty not exceeding equivalent in value of ten times the value of the (currency of other currency; and upon denomination) etc. conviction by a Special Judge be liable to imprisonment for a term not exceeding fourteen years;

Provided further that the sentence of the imprisonment shall not be less than five years.

(iii) Gold, silver, 139(2) platinum and precious stones in any form;

(a) If the quantity of Such goods shall be liable such goods is up to to confiscation and any 15 tola gold or person concerned in the equivalent in value offence shall be liable to a (silver or platinum) penalty not exceeding the etc. value of the goods;

(b) If the quantity of Such currency shall be such goods is from liable to confiscation and 16-30 tola gold or any person concerned in equivalent in value the offence shall be liable (silver or platinum) to a penalty not exceeding etc. two times the value of the currency;

(c) if the quantity of Such goods shall be liable such goods is from to confiscation and any 31-50 tola gold or person concerned in the equivalent in value offence shall be liable to a (silver or platinum) penalty not exceeding three etc. times the value of the goods; and upon conviction by a Special Judge he further be liable to imprisonment for a term not exceeding one year; (d ) the quantity of such Such good shall be liable to good is from 51-100 confiscation and any tola gold or person concerned in the equivalent in value offence shall be liable to a (silver or penalty not exceeding three platinum)etc. times the value of the goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding three years;

(e) If the quantity of such Such goods shall be liable goods is from 101-200 to confiscation and any tola gold or equivalent person concerned in the in value (silver or offence shall be liable to a platinum)etc. penalty not exceeding four times the value of the goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding five years;

(f) If the quantity of such Such currency shall be goods is from 201-500 liable to confiscation and tola gold or equivalent any person concerned in in value (silver or the offence shall be liable platinum) etc. to a penalty not exceeding five times the value of the currency; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding ten years:

Provided further that the sentence of the Imprisonment shall not be less than three years.

(g) If the quantity of such Such goods shall be liable goods exceeds 500 tola to confiscation and any gold or equivalent in person concerned in the value (silver or offence shall be liable to a platinum) etc. penalty not exceeding ten times the value of the goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding fourteen years;

Provided further that the sentence of the imprisonment shall not be less than five years.]

71. If any consignor in such consignor shall be 147 relation to coastal goods liable to a penalty not fails to make an entry exceeding 1[twenty-five thereof in the prescribed thousand] rupees. bill as required under section 147, or while presenting such bill fails to make and subscribe to a declaration as to the truth of the contents of such bill,

72. If in the case of any the master of the vessel 148 to 153 coasting vessel the shall in each case be liable provisions of sections 148, to a penalty not exceeding 149, 150,151, 152 and 153 19[fifteen thousand] rupees. are not compiled with,

73(i) If the master of any the master shall be liable to 151 coasting vessel fails a penalty not exceeding correctly to keep, or to 2[ten thousand]rupees. cause to be kept the cargo book, or to produce the same on demand; or if at any time there be

(ii) found on board any such vessel any goods not entered in such book as laden, or any goods noted as delivered; or

(iii) if any goods entered as laden, and not noted as delivered, be not on board,

74. If any person contravenes such person shall, except 155 the provisions of section where any fine has been 155 or aids in or abets expressly provided for the such contravention, violation of the prohibition or restriction in the law that imposes it, be liable to a penalty not exceeding 2[ten thousand]rupees; and the goods in respect of which such contravention is committed shall also be liable to confiscation.

75. If any rule which prevents the master of the vessel 155 or regulates the taking of carrying such goods shall any coastal goods out of be liable to a penalty not Pakistan is contravened, exceeding 1[twenty-five thousand] rupees, and where such contravention results in the loss of any customs-duty he shall further be liable to a penalty not exceeding three times such duty; and the goods in respect of which such contravention is committed shall also be liable to confiscation.

76(i). If, contrary to the the master of such vessel Chapter XVI provisions of this Act or shall be liable to a penalty any other law for the time not exceeding 2[ten being in force, any goods thousand] rupees; and such are laden on board any goods shall also be liable to vessel in any customs-port confiscation. or carried coast-wise, or

(ii) If any goods which have been brought coast-wise are so unladen in any such port; or

(iii) If any goods are found on board any coasting vessel without being entered in the manifest or cargo book, as the case may be, of such vessel,

77 50[(i) If any person counterfeits, such person shall, on General falsifies or fraudulently conviction of any such alters or destroys any offence before a 4[Special declaration, statement or Judge] be liable to document in the imprisonment for a term transaction of any not exceeding three years, business relating to the or to fine, or to both. customs or any seal, signature, initials or other mark made or impressed by any officer of customs in the transaction of any business relating to customs; or]

(ii) being required under this Act to produce any document, refuses or neglects to produce such document; or

(iii) Being required under this Act to answer any question put to him by an officer of customs, does not correctly answer such question,

78. If any person on board such person shall be liable General any conveyance in any to a penalty not exceeding customs-station or who three times the value of has landed from any such such goods; and such conveyance, upon being goods shall also be liable to asked by an officer of confiscation. customs whether he has dutiable or prohibited goods about his person or in his possession, declares that he has not, and if any such goods are, after such denial, found about his person or in his possession,

79(i) If any officer of customs such officer shall, on 158 required any person to be conviction before a searched for dutiable or 4[Special Judge], be liable prohibited goods, or any to a fine not exceeding documents connected with 1[twenty five thousand such goods, or to be rupees.] detained, without having reasonable grounds to believe that he has such goods or documents about his person; or

(ii) arrest any person without having reasonable grounds to believe that he has been guilty of an offence relating to customs,

80. If, save for good and the person-in-charge of 164 sufficient cause, any such conveyance shall be conveyance having been liable to a penalty not summoned under section exceeding 1[twenty five 164 to stop fails to do so, thousand] rupees; and such conveyance shall also be liable to confiscation.

81. If any officer of customs, such officer or person General or other person duly shall, on conviction before employed for the a 4[Special Judge], be prevention of smuggling, liable to imprisonment for is guilty of a willful a term not exceeding three breach of the provisions of years, or to fine, or to both. this Act,

82. If any officer of customs, such officer or person General or other person duly shall, on conviction before employed for the a 4[Special Judge], be prevention of smuggling, liable to imprisonment for practices, or attempts to a term not exceeding three practice, any fraud for the years, or to fine, or to both. purpose of injuring the customs revenue, or abets or connives at any such fraud, or any attempt to practice any such fraud,

83. If an officer of any authority who is duty bound under section 170 to deposit the impugned goods with customs, neglects so to do, such officer shall, on conviction before a Special Judge, be liable to a penalty not exceeding 20,93[fifty thousand] rupees. 170

84. If, in relation to any goods the person concerned shall 83 & 131 imported or intended to be be liable to a penalty not exported by land, an order exceeding 1[twenty-five permitting clearance under thousand] rupees, and such section 83 or section 131 goods shall also be liable to is not produced, confiscation.

85. If any person knowingly- such person shall, on General conviction before a

(a) obstructs, hinders, 4[Special Judge] be liable 51[falsely accuses or to a fine 93[not less than implicates, threatens, one hundred thousand] molests or assaults rupees, and to an official of Customs or any imprisonment for a term person while duly not exceeding two years. engaged or subsequently] in the discharge of any duty or the exercise of any power imposed or conferred on him by or under any of the provisions of this Act or any person acting in his aid; or

(b) does anything which impedes or is calculated to impede, the carrying out of any search for any thing 52[required in an inquiry, investigation, audit of goods] liable to confiscation under this Act or the detention, seizure or removal of any such thing; or

(c) rescues, damages or destroys anything so liable to confiscation or does anything calculated to prevent the procuring or giving of evidence as to whether or not anything is so liable to confiscation; or

(d) prevents the detention of any person by a person duly engaged or acting as aforesaid, or rescues any person so detained; or

(e) attempts to do any of the aforementioned acts or things, or who aids or abets, or attempts to aid or abet, the doing of any of them,

86. If any person, having such person shall, on 192 knowledge of the conviction before a commission of any 4[Special Judge], be liable offence under this Act or to imprisonment for a term of an attempt or likely which may extend to one attempt to commit any year, or to a fine not such offence, fails to give exceeding 1[twenty-five information in writing to thousand]rupees, or to the officer-in-charge of both. the nearest custom-house or customs-station, or if there be no custom-house or customs-station at a reasonably convenient distance to the officer-in-charge of the nearest police-station,

87(i) If any officer of customs, such officer shall, on 199 except in the discharge in conviction before a good faith of his duty as 4[Special Judge], be liable such officer, discloses any to a fine not exceeding particulars learnt by him 1[twenty-five thousand] in his official capacity in rupees. respect of any goods; or

(ii) If any officer of customs, except as permitted by this Act, parts with the possession of any samples delivered to him in his official capacity,

88. If any person not holding such person shall be liable 207 a license granted under to a penalty not exceeding section 207 acts as an 2[ten thousand] rupees. agent for the transaction of business as therein mentioned,

89.53[(i) If any person without 54[such goods shall be General lawful excuse, the proof liable to confiscation and of which shall be on such any person concerned in person, acquires the offence shall be liable possession of, or is in any to a penalty not exceeding way concerned in ten times the value of the carrying, removing, goods; and, where the depositing, harbouring, value of such goods keeping or concealing, exceeds 55[71[three] 89[retailing], or in any hundred thousand rupees], manner dealing with he shall further be liable, smuggled goods or any upon conviction by a goods in respect to which Special Judge, to there may be reasonable imprisonment for a term suspicion that they are not exceeding six years and smuggled goods; to a fine not exceeding ten times 92[but not less than] the value of such goods 75[……]

56[(ii) If the smuggled goods are Such goods shall be liable narcotics drugs, to confiscation and any psychotropic substances person concerned in the or controlled substances,- offence shall be liable to --

(a) if the quantity of the imprisonment which may narcotic drug, extend to two years, or psychotropic with fine, or with both; substance of controlled substance is one hundred grams or less; imprisonment which may extend to seven years and

(b) if any quantity of the shall also be liable to fine; narcotic drug, psychotropic substance or controlled substance exceeds one hundred grams but does not exceed one kilogram; death or

(c) if the quantity of the imprisonment for life, or narcotic drug, imprisonment for a term psychotropic which may extend to substance or fourteen years and shall controlled substance also be liable to fine which exceeds the limits may be up to one million specified in clause rupees;

(b)

Provided that, if the quantity exceeds ten kilograms the punishment shall not be less than imprisonment for life.]

Provided that if the smuggled goods be gold bullion or silver bullion the onus of proving the plea, that such bullion was obtained by processing or other means employed in Pakistan and not by smuggling shall be upon the person taking that plea.

93[(iii) in case any smuggled such person shall be liable goods, liable to to a penalty not exceeding confiscation, seized and ten times the value of such placed in the custody of goods and upon conviction the owner of the goods or by a Special Judge, shall any person holding the further be liable to goods in his possession or imprisonment for a term charge are found removed not exceeding six years or illegally, exchanged, to a fine not exceeding one pilfered or disposed of in million rupees or both.] any manner,

9093[(i). If any person, without such goods shall be liable General lawful excuse the proof of to confiscation, and any which shall be on such person concerned shall also person, acquires be liable to a penalty not possession of, or is in any exceeding ten times way concerned in 92,93[omitted] the value of carrying, removing, the goods. depositing, harbouring, keeping or concealing or in any manner dealing with any goods, not being goods referred to in clause 89, which have been unlawfully removed from a warehouse, or which are chargeable with a duty which has not been paid, or with respect to the importation or exportation of which there is a reasonable suspicion that any prohibition or restriction for the time being in force under or by virtue of this Act has been contravened, or if any person is in relation to any such goods in any way, without lawful excuse, the proof of which shall be on such person, concerned in any fraudulent evasion or attempt at evasion of any duty chargeable thereon, or of any such prohibition or restriction as aforesaid or of any provision of this Act applicable to those goods,

93[(ii) in case seized goods liable such goods shall be liable to confiscation not being to confiscation and any goods referred to in clause person concerned in the 89, placed in the custody offence shall be liable to a of the owner of the goods penalty not exceeding two or any person holding the times of the value of such goods in his possession or goods and upon conviction charge are found removed by a Special Judge, shall illegally, exchanged, further be liable to pilfered or disposed of in imprisonment for a term any manner, not exceeding six months or to a fine not exceeding fifty thousand rupees or both.]

91. If any person, without 57[such goods shall be General lawful excuse, the proof liable to confiscation and of which shall be on such any person concerned in person, brings into the offence shall be liable Pakistan, or is in any way to a penalty not exceeding concerned with the twenty-five thousand bringing into Pakistan of, rupees; and, upon or who has in his conviction by a Special possession, any bill- Judge, he shall further be heading, or other paper liable to imprisonment for appearing to be a heading a term not exceeding one or blank, capable of being year or to a fine not filled up and used as an exceeding twenty-five invoice, purporting to be thousand rupees, or to made out by or on behalf both.] of a person or firm other than the one from whose possession the bill-heading or other paper has been recovered, or who has brought it into Pakistan, or on whose behalf it has been brought into Pakistan,

92. Any person who bears such person shall be liable, General himself in disguise or on conviction before, a being armed with an 4[Special Judge] to offensive weapon, imprisonment for a term intimidates any person not exceeding 58[seven] duly engaged in the years 76[…...] discharge of any duty or the exercise of any power imposed or conferred on him by or under any of the provisions of this Act or any person acting in his aid or uses such weapon against any such person-

(a) while he is concerned in the movement, carriage or concealment of any goods with the intent of violating any prohibition or restriction on the importation or exportation thereof imposed by this or any other Act or with the intent of passing such goods without paying the duty chargeable thereon or without giving security for its payment; or

(b) while in possession of any goods liable to confiscation under this Act,

93. If any person, by any such person shall, on General means, makes any signal conviction before a or any message from any 4[Special Judge], be liable part of Pakistan or from to imprisonment for a term any ship or aircraft for the not exceeding three years, information of a person in or to fine not exceeding any ship or aircraft, or 1[twenty-five thousand] across the frontier, being a rupees, or to both; and any signal or message equipment or apparatus connected with the used for sending the signal smuggling or intended or message shall also be smuggling of goods into liable to confiscation. or out of Pakistan, whether or not the person for whom the signal or message intended is in a position to receive it or is actually engaged at the time in smuggling goods,

Explanation:- If in any proceedings under this clause, any question arises as to whether any signal or message was such a signal or message as aforesaid, the burden of proof shall lie upon the defendant,

94. If within the limits of such person shall, on General Pakistan, any person conviction before a deposits, places or carries, 4{Special Judge,] be liable or causes to be deposited, to imprisonment for a term placed or carried in, not exceeding three years, through or into any or to a fine not exceeding building within one mile 1[twenty-five thousand] of the frontier between rupees, or to both. Pakistan and any foreign country, or in, through or into any premises connected with any such building, any dutiable goods on which duty has not been paid, or any goods imported in contravention of any of the provisions of this Act or any other law, 95. If within one mile of the such building shall be General frontier between Pakistan liable to confiscation. and any foreign country, any building is generally used for storage of imported goods and any such goods are seized from such building and confiscated according to law, 35[95A. If any person furnishes a Such person shall be liable General] security or guarantee in to a penalty not exceeding shape of a cheque or a two million rupees and post dated cheque or any upon conviction before a other bank instrument special Judge; he shall towards fulfillment of any further be liable to obligations under this Act imprisonment for a term or any other Act or rules not exceeding three years made there under, which or both. is dishonoured on presentation, 59 [96. If any person does not such person shall 211] maintain and keep record be liable to a penalty which under the provisions of may extend to one million section 211, rupees.

97. If any person contravenes such person shall, on 212 any of the provisions of a conviction before a notification under section 4[Special Judge,] be liable 212 or of the rules to imprisonment for a term regulating business not exceeding three years, connected with gold or and to a fine not exceeding silver or precious stones 60[fifty thousand] rupees. or ornaments made of gold or silver or precious stones within fifteen miles of the frontier of Pakistan,

98. If any person obstructs an such person shall, on 189 officer acting in the conviction before a exercise of the powers 4[Special Judge,] be liable conferred by sub-section to imprisonment for a term

(2) of section 189, not exceeding two years, or to fine, or to both.

61[99. If defaulter fails to pay such person, upon 202 outstanding arrears as conviction by a Special defined in clause (w) of Judge, shall be liable to section (2) of the Customs imprisonment for a term Act,1969, not exceeding five years or to a fine not exceeding three times the amount due from him, or both.]

62[100. If any person discloses, such person shall be liable 155H publishes or otherwise to a penalty not exceeding disseminates trade two hundred thousand information of any person rupees and on conviction to any other person except before a Special Judge to as authorized, imprisonment for a term not exceeding three years or both.

101. Unauthorized access to or such person shall be liable 155-I improper use of 77[or to a penalty not exceeding attempt to make two hundred thousand unauthorized access to or rupees and on conviction improper use of ] the before a Special Judge to Customs Computerized imprisonment for a term System by any person, not exceeding three years or both.

102. If any person interferes such person shall be liable 155J 78[or attempts to interfere] to a penalty not exceeding with the Customs two hundred thousand Computerized System, rupees and on conviction before a Special Judge to imprisonment for a term not exceeding two years or both.

103. Unauthorized use of 79[ or such person shall be liable 155K attempt to make to a penalty not exceeding unauthorized use of] one hundred thousand unique user identifier by rupees. any person,

104. If any person,- such person shall be liable 155P to a penalty not exceeding

(a) fails to operate any one hundred thousand mechanical or electronic rupees. device, when requested by a Customs Officer, on which any records are, or information is, stored for the purpose of enabling the Customs Officer to obtain those records or that information; or

(b) with intent to defeat such person shall be liable the purposes of this Act, to a penalty not exceeding destroys, alters, or two hundred thousand conceals any book, rupees and on conviction document, or record before a Special Judge to required to be kept under imprisonment for a term this Act, or sends or not exceeding two year, or attempts to send out of both]. Pakistan any such book, document, or record. 90[105 If any person makes or Imprisonment which may General]

(i) attempts to make un- extend up to six months or authorised access to with fine which may information, data or extend to one hundred personal details of thousand rupees or with registered user of Pakistan both. Single Window system or systems connected or ancillary thereto;

(ii) If any person makes or Imprisonment which attempts to make un- may extend upto six authorised copy, months or with fine transmission or cause to which may extend to transmit any data, one hundred thousand information or detail in rupees or with both. relations to Pakistan Single Window system or systems connected or ancillary thereto;

(iii) If any person makes un- Imprisonment which authorised interference, or may extend to three attempt to interfere, years or fine which may damage or attempt to extend to five hundred damage any part of whole thousand rupees or with of the Pakistan Single both. Window system or data or system connected to or ancillary thereto;

(iv) If any person makes or Imprisonment which attempts to make use of may extend to four years any information system, or fine which may device or data to make extend to one million any illegal claim or title or rupees or with both. cause any person to part with property or to enter into any express or implied contract or intent to commit fraud by any input, alteration, deletion or suppression of data, resulting in unauthentic data with the intent that such data be considered or acted upon for legal purpose, as if it were authentic in relations to Pakistan Single Window system or Systems connected or ancillary thereto;

(v) If any person uses, makes, Imprisonment which may supplies, retains, obtains extend to six months or device, system or software with fine which may for offences under section extend to one hundred 13 of the Pakistan Single thousand rupees or with Window Act, 2021 (III of both. 2021);

(vi) If any person obtains, Imprisonment which may sells, process, uses or extend to four years and transmits another person's fine which may extend to Unique User Identifier or one million rupees or with makes an attempt thereof both. without authorisation;

(vii) If any person tampers with Imprisonment which may or attempts to tamper extend to four years and with, alters, re- fine which may extend up programmes any Pakistan to one million rupees or Single Window system or with both and any devices system connected or or systems used in offence ancillary thereto for un- shall be liable to authorised use; confiscation.

(viii) If any person writes, Imprisonment for a term offers, makes available, which may extend to four distributes or transmits a years and fine which may malicious code or abets in extend to five million the same, with intent to rupees or with both. cause harm to Pakistan Single Window system or data resulting in or intending to result in corruption, destruction, alteration, suppression, theft or loss to the Pakistan Single Window system or data, or any attempt thereof. 94(ix) If any person who Such person shall be liable 83C intentionally- to a penalty of fifty thousand rupees for the

(i) fails to generate, carry, first contravention and display or validate an rupees five hundred e-bilty and any thousand for the second tracking devices contravention; and ancillary thereto for thereafter he shall be liable inland movement of to a penalty of rupees one goods; or million and confiscation of

(ii) avoids to generate, the goods and conveyance carry, display or and upon conviction by a validate an e-bilty and Special Judge liable to any tracking devices imprisonment not ancillary thereto; or exceeding six months.

(iii) tampers with the e-bilty or any tracking devices ancillary thereto or affixes tracking device issued for one conveyance on another.

Nothing in Column 3 of the above Table Shall be deemed to have the force of law.

Explanation.- For the purposes of any penal provisions of this Act, the offence of contravening, in respect of any goods, any of the provisions of this Act or the rules or any other law for the time being in force, shall be deemed to have been committed when, in the case of import, any vessel containing such goods arrives within twelve nautical miles of the sea coast of Pakistan (each nautical mile measuring six thousand and eighty feet) or when, in the case of export, such goods have been loaded on any conveyance for transport to any destination outside Pakistan, or when in either case, the connected customs documents have been presented to the appropriate officer 63[:]

64[Provided that in the case of accompanied baggage or any unmanifested goods meant for export, the offence shall be deemed to have been committed when such baggage or goods enter the customs-area or are delivered to the carrier of the conveyance.]

(2) Where 65[any goods specified in clause (s) of section 2 or in a notification issued there-under] are seized under this Act in the reasonable belief that an act to defraud the Government of any duty payable thereon or to evade any prohibition or restriction for the time being in force by or under this Act has been committed in respect of such goods, or that there is intent to commit such act, the burden of proving that no such act has been committed or there was no such intent shall be on the person from whose possession the goods were seized.

66[(3) OMITTED]

83[(4) Notwithstanding anything contained in this Act, the Board may, by notification in the official Gazette, regulate the imposition, including the time and manner, of any penalty specified in sub-section (1).]

86[156A. Proceeding against authority and persons.
(1) Subject to section 217, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in sections 3 to 3DDD, including any officer or official subordinate to the aforesaid authority, who willfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

(2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1).

(3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.]

157. Extent of confiscation.
(1) Confiscation of any goods under this Act includes any package in which they are found, and all other contents thereof.

(2) Every conveyance of whatever kind used in the removal of any goods liable to confiscation under this Act shall also be liable to confiscation. 94[Omitted]

Explanation.—The word “removal” includes, and shall be deemed to have always included, every act of carrying, transporting, depositing, harbouring, keeping, concealing, retailing, or any other act involving movement of smuggled goods.

89,91[Omitted]

(3) Confiscation of any vessel under this Act includes 94[its] tackle, apparel and furniture.

LEGAL REFERENCE

1. Substituted for the words “five thousand rupees” by the Finance Ordinance, 1982 2. Substituted for the words “two thousand rupees” by the Finance Ordinance, 1982. 3. Renumber S.No.8 as sub-paragraph(i)and new paragraph(ii) was added by FA,2005. 4. Substituted for the word “Magistrate” by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(ii)(a), page 223. 5. Substituted for the words “ten years” by the Finance Act, 1988 (VI of 1988), S.5(3), page 938. The words “ten years” were previously substituted for the words “six years” by the Finance Act, 1973 (L of 1973), S.9(7)(a), page 531. 6. Substituted for the full stop by the Finance Act, 1973 (L of 1973), S.9(7)(b), page 531. 7. Added by the Finance Act, 1973 (L of 1973), S.9(7)(b), page 531 and substituted by the Prevention and Smuggling Act, 1977 (XII of 1977), S.51(ix), page 230.. At the time of substitution this proviso was as under:- “

Provided that, in the case of such goods essential to the life of the community as may be notified by the Federal Government in the official Gazette, the sentence of imprisonment shall not be less than five years and the whole or any part of the property of the person convicted shall also be liable to confiscation.”. 8. Omitted by Finance Act, 2003. 9. Added by the Finance Act, 2005. 10. Inserted by the Finance Act, 1986 (I of 1986), S.6(5)(a), page 11. 11. Substituted by the Finance Act, 2006. At that time serial 12 was as under:-

If any person who without any 11a[such person shall be liable to a 12. reasonable excuse fails to comply penalty not exceeding one hundred 26 with any requisition made under thousand rupees and on conviction by section 26 or to furnish any a Special Judge shall be liable to information as required by or imprisonment for a term not exceeding under the rules to be furnished, two years, fine, or with both.]

11a. Substituted by the Finance Act, 2005. 12. Inserted by the Finance Act, 2006. 13. Substituted for the full stop and added by the Federal Laws (R&D), 1981 (XXVII of 1981),

S.3.

14. Inserted by the Finance Act, 2004 (II of 2004), S.3(14), pages 16-17. 15. Substituted for the words “Magistrate” by the Finance Act, 1986 (I of 1986), S.6(5)(b), page 11. 16. Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(a)(ii), page 60. At the time of substitution this was as under: “such goods shall be liable to confiscation”. 17. Inserted by the Finance Act, 2003 (I of 2003), 5(30(i), page 36.- 18. Inserted by the Finance Act, 1993 (X of 1993), S.4(iv), page 121. 19. Substituted for the words “two thousand five hundred rupees” by the Finance Ordinance,1982 (XII of 1982), S.6(9)(a)(I), page 60. 20. Substituted for the words “five hundred rupees” by the Finance Ordinance, 1982 21. Inserted by the Finance Act, 2005. 22. Substituted by the Finance Act, 1999 (IV of 1999), S.10(9)(a), page 768. At the time of substitution this was as under:- “43. If, after any goods have been landed if the goods cannot be recovered, 79 & 80.”. and before they have been passed the owner shall be liable, in addition through the custom-house, the owner to full duty, to a penalty not exceeding removes or attempts to remove them, five time the amount of such duty, or if with the intention of defrauding the if such goods are not dutiable or duty revenue, thereon cannot be ascertained to a penalty not exceeding 22a[twenty-five thousand rupees], for every missing or deficient package or separate article, and in the case of bulk goods to a penalty not exceeding 29a[twenty-five thousand rupees] or the value of the goods, whichever be higher. 22a. Substituted for the words “five thousand rupees” by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(a)(i), page 60. 23. Substituted for the words “twenty-five” by the Finance Act, 2003 (I of 2003), S.5(30)(ii)(a)(I), page 36. 24. Inserted by the Finance Act, 2003 (I of 2003), S.5(30),(ii)(a)(ii), page 37. 25. Substituted for the figures “79 & 80” by the Finance Act, 2003 (I of 2003), S.5(30)(ii)(b), page 37. 26. Omitted the figure, letters, comma and word “79A, and 80A” by the FA,2005. 27. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(iii)(a), page 37. 27A. By the Finance Act, 2006, the words”a bill of entry or bill of export or” were omitted. 28. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(iii)(b), page 37. 29. Substituted for the figures “79 & 131” by the Finance Act, 2003 (I of 2003), S.5(30)(iii)(c), page 37 30. Omitted the figure, letters, comma and word “79A, and 1310A” by the FA,2005. 30A. Inserted by Finance Act, 2005. 31. Substituted for the figures “79 & 131” by the Finance Act, 2003 32. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(v)(a)(I), page 37. 33. Inserted by the Finance Act, 2003 (I of 2003), S.5(30),(v)(a)(ii), page 37. 34. Added by the Finance Act, 2003 (I of 2003), S.5(30)(b), page 38. 35. Inserted by the Finance Act, 2006. 36. Inserted by the Finance Ordinance, 1982 (XII of 1982&added by the FA,2005. 37. Substituted for the word “keeper” by the Finance Act, 1990 (VII of 1990), S.6(9)(a)(i), page 37., 38. Omitted the words “keeper or” by the Finance 1990(VII of 1990. 39. Substituted for the words “two hundred and fifty rupees” by the Finance Ordinance,1982 (XII of 1982),S.6(9)(a)(i), page 60. 40. Added by the Finance Act, 1987 (VI of 1987), S.8(3)(a), page 34. 41. Substituted for the words “twenty-five thousand rupees” by the Finance Act, 1999 (IV of 1999), S.10(9)(b), page 768 and earlier substituted for the words “five thousand rupees” by the Finance Ordinance, 1982 (XII of 1982. 42. Substituted for the words “twenty five thousand” by the FA, 2005.

43. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(vi)(b), page 38. 44. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(vi)(c), page 38. 45. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(vii)(a)(I), page 38. 46. Substituted for the word and figure “section 131” by the Finance Act, 2003. 47. Omitted the word, figure and letter “and 131A” in column (1) &(3)by the FA, 2005. 48. Inserted by the Finance Act, 2003 (I of 2003), S.5(30(vii)(b)(I), pag 49. Substituted for the words “one thousand rupees for every package of such goods” by the Finance Act, 2003 (I of 2003), S.5(30)(vii)(b)(ii), page 38 50. Substituted clause 9i) of item 77 by the Federal Laws, 1981.. 51. Substituted in clause (a) for the words “molests or assaults any person duty engaged” by the Finance Act, 2003 (I of 2003),S.5(30)(ix)(a), page 39. 52. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(ix)(b), page 39. 53. S.No. 80 renumbered as sub-paragraph (i) by the Finance Act, 2005. of substitution this was as under:- “such goods shall be liable to confiscation any person concerned in the offence shall be liable to a penalty not exceeding ten times the value of the goods; and upon conviction by a Special Judge, to imprisonment for a term not exceeding six years and to fine not exceeding ten times the value of such goods and if the Special Judge in his discretion so orders also to whipping.”. 55. Substituted for the words “ten thousand rupees” by the Finance Act, 1998. 56. Added by the Finance Act, 2005 57. Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(v), page 60. At the time of substitution this was as under: “such person shall on conviction before a Special Judge be liable to imprisonment for a term not exceeding one year, or to a fine not exceeding five thousand rupees or to both.”.. 58. Substituted for the word “three” by the Finance Act, 2004. 59. Substituted by the Finance Act, 2006. At that time serial 96 was as under:-

96. if any person being an such person shall be liable 211 importer or exporter of to a penalty not exceeding goods other than for 6[fifty thousand] rupees. bonafide private or personal purposes, fails to maintain accounts in such from as may be notified by the Board, or for the period specified in section 211,

60. Substituted for the words “ten thousand rupees” by the Finance Ordinance, 1982. 61. Added by the Finance Act, 1999 (IV of 1999), S.10(9)(c), page 768. 62. Added new serial numbers “100 to 104” by the Finance Act, 2003. 63. Substituted for the full stop by the Finance Ordinance, 1982. 64. Added by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(a)(vi), page 61. 65. Substituted for the words and commas “currency, gold, silver, precious stones, ornaments or other manufactures of gold silver or previous stones which the 65a[Federal Government] may, by notification in the official Gazette, specify” by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(b), page 61. 65a. Substituted for the words “Central Government” by the Finance Act, 1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76. 66. Sub-section (3) omitted by the Finance Act, 1969 (XVI of 1969), S.4. At the time of omission this sub-section was as under:- “(3) Where any person charged of an offence under clause 8 or clause 89 of the Table under sub-section (1) is acquitted by a Magistrate, and the finding of the Magistrate be that the goods in respect of which the person was charged are not smuggled goods, such person shall not be liable to any penalty, nor such goods shall be liable to confiscation, and if any order confiscating the goods or imposing any penalty has already been made to an officer of customs, it shall become null and void.”. 67. Substituted for the words “Collector of Customs” by the Finance Ordinance, 1982 (XII of 1982. 68. Added by Finance Act,2008(I of 2008) (Page-46) 69. Substituted for the word “twenty five”, by the Finance Act,2010. 70. Substituted for the words “not exceeding twenty-five thousand rupees and any goods”, by the Finance Act,2010. 71. Substituted the word “One”, by the Finance Act,2010. 72. Omitted the comma and words [, and, if the Special Judge in his discretion so orders, also to whipping] by Finance Act, 2012. 73. Substituted for the words and numbers “ 79,79A, 131A” by Finance Act, 2012 74. Substituted for the words “ such person shall be liable to a penalty 70[upto twice the value of the goods and goods] in respect of which such offence has been committed shall also be liable to confiscation” by the Finance Act, 2012. 75. Substituted the words “and if the Special Judge in his discretion so orders also to whipping” by Finance Ac, 2012. 76. Substituted the words “and, if the Special Judge in his discretion so orders, to whipping” by Finance Act, 2012. 77. Inserted by Finance Act, 2012 78. Inserted by Finance Act, 2012 79. Inserted by Finance Act, 2012. 80. Substituted by Finance Act, 2015. 81. Inserted by Finance Act, 2015. 82. Substituted by Finance Act, 2015.at the time of substitution the wording is as under: “[If any person contravenes any rule or condition relatable to section 128 or section 129.]" 83. Inserted by Finance Act, 2017. 84. Inserted by Finance Act, 2018. 85. Substituted by Finance Act,2019. At the time of substitution the wording was:

14.f If any person commits an offence such person shall be liable to a under section 32, penalty not exceeding 1[twenty five 32 thousand] rupees or three times the value of the goods in respect of which such offence is committed, whichever be greater; and such goods shall also be liable to confiscation

CHAPTER XVIII
PREVENTION OF SMUGGLING – POWER OF SEARCH, SEIZURE AND
ARREST – ADJUDICATION OF OFFENCES

158. Power to search on reasonable ground.
(1) The appropriate officer, if he has reason to believe that any person is carrying about himself goods liable to confiscation or any documents relating thereto, may search such person, if he has landed from or is on board or is about to board a vessel within the Pakistan customs-waters, or if he has alighted from, or is about to get into or is in any other conveyance arriving in or proceeding from Pakistan, or if he is entering or about to leave Pakistan, or if he is within the limit of an y customs-area.

(2) Without prejudice to the provisions of sub-section (1) the appropriate officer may search a person, if he has reason to believe that such person is carrying about himself smuggled Platinum, any radio active mineral, gold, silver or precious stones, manufactures of Platinum, any radioactive mineral, gold, silver or precious stones, or currency, or any other goods or class of goods notified by the 1[Federal Government] in the official Gazette, or any documents relating to any one or more of the aforementioned goods.

159. Person to be searched may desire to be taken before gazetted.
customs or Magistrate.- (1) When any officer of customs is about to search any person under the provisions of section 158, the officer of customs shall inform such person about his right to be taken to a gazetted officer of customs or Magistrate, and if such person so desires take him without unnecessary delay to the nearest gazetted officer of customs or Magistrate before searching him, and may detain him until he can be so taken.

(2) The gazetted officer of customs or the Magistrate before whom such person is brought shall, if he sees no reasonable ground for search, forthwith discharge the person and record reasons for doing so, or else direct search to be made.

(3) Before making a search under section 158, the officer of customs shall call upon two or more persons to attend and witness the search and may issue an order in writing to them or any of them so to do, and the search shall be made in the presence of such persons and a list of all things seized in the course of such search shall be prepared by such officer or other person and signed by such witnesses.

(4) A female shall not be searched except by a female.

160. Power to screen or X-Ray bodies of suspected persons for.
detecting secreted goods.- (1) Where the appropriate officer has reason to believe that any person liable to search under section 158 has any goods liable to confiscation secreted inside his body, he may detain such person and produce him without unnecessary delay before an officer of customs not below the rank of an 2/2A[Assistant Collector] of Customs.

(2) The aforesaid officer, if he has reasonable grounds for believing that such person has any such goods secreted inside his body and that it is necessary to have the body of such person screened or X-Rayed, may make an order to that effect , or else discharge such person forthwith, except where he is held on any other grounds.

(3) Where the aforesaid officer orders such person to be screened or X- Rayed, the appropriate officer shall, as soon as practicable, take him to a radiologist possessing such qualifications as may be recognized by the 1[Federal Government] for that purpose and such person shall allow the radiologist to screen or X-Ray his body.

(4) The radiologist shall screen or X-Ray the body of such person and forward his report thereon, together with any X-Ray picture taken by him to the aforesaid officer without unnecessary delay.

(5) Where on the basis of a report from a radiologist or otherwise, the aforesaid officer is satisfied that any person has any goods liable to confiscation secreted inside his body, he may direct that suitable action for bringing such goods out of his body be taken on the advice and under the supervision of a registered medical practitioner and such person shall be bound to comply with such direction:

Provided that in the case of a female no such action shall be taken except on the advice and under the supervision of a female registered medical practitioner.

(6) Where any person is brought before an officer of customs not below the rank of an Assistant Collector 2A[**] of Customs as aforesaid, he may direct that pending completion of all action under this section such person be detained.

(7) No person shall be subjected to screening or X-Ray if he confesses that goods liable to confiscation are secreted inside his body and of his own consent agrees to suitable steps being taken to bring out such goods. .

161. Power to arrest.
(1) Any officer of customs authorized in this behalf who has reason to believe that any person has committed an offence under this Act may arrest such person.

(2) Any person duly empowered for the prevention of smuggling who has reason to believe that any person who has committed an offence of smuggling under this Act may arrest such person.

(3) Every person arrested under this Act shall be taken forthwith before the nearest officer of customs authorized by the Collector of Customs to deal with such cases, or, if there is no such officer of customs within a reasonable distance, to the officer-in-charge of the nearest police-station.

3[(4) When any person arrested under this Act is taken before an officer of customs or the officer-in-charge of a police-station, as required by sub-section (3), or when such officer of customs or officer-in-charge of a police-station himself arrests any person under this Act, such officer or officer-in-charge shall, if the offence is bailable, admit him to bail to appear before the Special Judge having jurisdiction or, if the offence is non-bailable, have him taken in custody to the Special Judge or if there is no Special Judge within a reasonable distance, to the 4[nearest Judicial Magistrate,] within twenty-four hours of such arrest, excluding the time necessary for the journey from the place of arrest to the Court of the Special Judge or, as the case may be, of such Magistrate.

(5) When any person is taken under sub-section (4) before the Special Judge, he may, on the request of such person, after perusing the record, if any, and after giving the prosecution an opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse to admit him to bail and direct his detention at such place as he deems fit:

Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but before passing such order he shall afford such person an opportunity of being heard, unless for reasons to be recorded he considers that the affording of such opportunity shall defeat the purposes of this Act.

(6) When such person is taken under sub-section (4) before a Magistrate, such Magistrate may, after authorizing his detention in such custody, at such place and for such period as he considers necessary or proper for facilitating his earliest production before the Special Judge, direct his production before the Special Judge on a date and time to be fixed by such Magistrate, or direct such person to be forthwith taken to, and produced before, the Special Judge and he shall be so taken.

(7) Nothing in sub-section (5) or sub-section (6) shall preclude the Special Judge or the Magistrate from remanding any such person to the custody of the officer of customs, or the officer-in-charge of a police-station holding inquiry against that person if such officer makes a request in writing to that effect and the Special Judge or the Magistrate, after perusing the record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is necessary to make such an order;

Provided that in no case the period of such custody shall exceed fourteen days.

(8) When any person arrested under this Act is brought before an officer of customs or the officer-in-charge of a police-station as required by sub-section(3), or when such officer of customs or officer-in-charge of a police-station himself arrests any person under this Act, such officer shall, if he is an officer of customs, record the fact of arrest and other relevant particulars in the register mentioned in sub-section (12) or, if he is an officer-in-charge of a police-station, record such fact in the register ordinarily maintained by him, and shall immediately proceed to inquire into the charge against such person and if he completes the inquiry within twenty-four hours of his arrest, excluding the time necessary for journey as aforesaid, he may, after producing such person before the Special Judge or the 5[nearest Judicial Magistrate] make a request for his further detention in his custody.

(9) While holding an inquiry under sub-section (8), the officer of customs shall exercise the same powers as are exercisable by an officer-in-charge of a police-station under the Code of Criminal Procedure, 1898 (Act V of 1898), but such officer and the officer-in-charge of a police-station shall exercise such powers subject to the foregoing provisions of this section while holding an inquiry under this Act.

(10) If the officer of customs or the officer-in-charge of a police-station, as the case may be, after holding an inquiry as aforesaid, is of the opinion that there is no sufficient evidence or reasonable ground for suspicion against such person, he shall release him on his executing a bond, with or without sureties as the officer may direct, to appear, as and when required, before the Special Judge, may make a report to the Special Judge for the discharge of such person and shall make a full report of the case to his immediate superior.

(11) The Special Judge to whom a report has been made under sub-section (10) may, after the perusal of record of the inquiry and hearing the prosecution, agree with such report and discharge the accused or, if he is of the opinion that there is sufficient ground for proceeding against such person, proceed with his trial and direct the prosecution to produce evidence.

(12) The officer of customs empowered to hold inquiry under this section shall maintain a register to be called “Register of Arrests and Detention” in the prescribed form in which he shall enter the name and other particulars of every person arrested under this Act, together with the time and date of arrest, the details of the information received, the details of things, goods or documents recovered from his custody, the name of the witnesses and the explanation, if any, given by him and the manner in which the inquiry has been conducted from day to day; and such register or authenticated copies of its aforesaid entries shall be produced before the Special Judge whenever such officer is so directed by him.

(13) After completing the inquiry, the officer of customs shall submit to the Special Judge a report in the form and manner, as early as possible, in which the officer-in-charge of a police-station submits a challan before a Court, or if such inquiry has been conducted by an officer-in-charge of a police-station, he shall submit a challan before the Special Judge.

(14) The officer of customs, or as the case may be, the officer-in-charge of a police-station shall immediately intimate the fact of the arrest of a person under sub-sections (1),(2) or (4) to the Special Judge who may direct such officer to produce that person at such time and place and on such date as the Special Judge considers expedient and such officer or officer-in-charge shall act accordingly.

(15) Any Magistrate of the first class may record any statement or confession during inquiry under this Act, in accordance with the provisions of section 164 of the Code of Criminal Procedure,1898 (Act V of 1898).

(16) Without prejudice to the foregoing provisions of this section, the Federal Government may, by notification in the official Gazette authorize any other officer also to exercise the power and perform the functions of an officer of customs or officer-in-charge of a police-station under this section, subject to such conditions, if any, that it may deem fit to impose.]

162. Power to issue search warrant.
(1) Any 5[Judicial Magistrate] may, on application by a gazetted officer of customs stating the grounds of his belief that goods liable to confiscation or documents or things which in his opinion will be useful as evidence in any proceeding under this Act are secreted in any place within the local limits of the jurisdiction of such Magistrate, issue a warrant to search for such goods, documents or things.

(2) Such warrant shall be executed in the same way, and shall have the same effect, as a search-warrant issued under the Code of Criminal Procedure, 1898 (Act V of 1898).

163. Power to search and arrest without warrant.
(1) Whenever any officer of customs not below the rank of an 2/2A[Assistant Collector] of Customs or any other officer of like rank duly employed for the prevention of smuggling has reasonable grounds for believing that any goods liable to confiscation or any documents or things which in his opinion will be useful for or relevant to any proceeding under this Act are concealed or kept in any place and that there is a danger that they may be removed before a search can be effected under section 162, he may, after preparing a statement in writing of the grounds of his belief and of the goods, documents or things for which search is to be made, search or cause search to be made for such goods, documents or things in that place.

(2) An officer or person who makes a search or causes a search to be made under sub section (1) shall leave a signed copy of the aforementioned statement in or about the place searched and shall, at the time the search is made or as soon as is practicable thereafter, deliver furthermore a signed copy of such statement to the occupier of the place at his last known address.

(3) All searches made under this section shall be carried out mutatis mutandis in accordance with the provisions of the Code of Criminal Procedure, 1898 (Act V of 1898).

(4) Notwithstanding anything contained in the foregoing sub-sections and subject to previous authorization by an officer of customs not below the rank of an Assistant Collector 2A[***]of Customs, any officer of customs or any person duly empowered as such may, with respect to an offence related to exportation of such goods as the 1[Federal Government] may, by notification in the official Gazette, specify in this behalf-

(a) arrest without warrant any person concerned in such offence or against whom reasonable suspicion exists that he is about to be concerned in such offence;

(b) enter and search without warrant any premises to make an arrest under clause (a),or to seize any goods which are reasonably suspected to be intended for exportation contrary to any prohibition or restriction for the time being in force, and all documents or things which in his opinion will be useful for or relevant to any proceeding under this Act; and

(c) for the purpose of arresting, detaining or taking into custody or preventing the escape of any person concerned or likely to be concerned in such offence, or for the purpose of seizing or preventing the removal of any goods in respect of which any such offence has occurred or is likely to occur, use or cause to be used such force to the extent of causing death as may be necessary.

(5) The provisions of sub-section (4) shall apply only to the areas within five miles of the land frontier of Pakistan, and within a five miles belt running along the sea coast of Pakistan.

(6) No suit, prosecution or other legal proceeding shall be instituted, except with the previous sanction in writing of the 1[Federal Government], against any person in respect of anything done or purporting to be done in exercise of the powers conferred by sub-section (1) or sub-section(2) or, in the areas specified in sub-section (5), by sub-section (4).

164. Power to stop and search conveyances.
(1) Where the appropriate officer has reason to believe that within the territories of Pakistan(including territorial waters) any conveyance has been, is being or is about to be, used in the smuggling of any goods or in the carriage of any smuggled goods, he may at any time stop any such conveyance or, in the case of an aircraft, compel it to land, and -

(a) rummage and search any part of the conveyance;

(b) examine and search any goods thereon; and

(c) break open the lock of any door, fixture or package for making search.

(2) Where in the circumstances referred to in sub-section (1)-

(a) it becomes necessary to stop any vessel or compel any aircraft to land, it shall be lawful of any vessel or aircraft in the service of the Government while flying her proper flag or bearing flag marks and any authority authorized in this behalf by the 1[Federal Government] to summon such vessel to stop or the aircraft to land, by means of an international signal, code or other recognized means, and thereupon such vessel shall forthwith stop or such aircraft shall forthwith land, and if it fails to do so chase may be given thereto by any vessel or aircraft as aforesaid and if after a gun is fired as a signal, the vessel fails to stop or the aircraft fails to land, it may be fired upon;

(b) it becomes necessary to stop any conveyance other than a vessel or aircraft, the appropriate officer may use or cause to be used all lawful means for stopping it or preventing its escape including, if all other means fail, firing upon it.

49[(3) For the execution of the above, the officers or officials shall be empowered to use all necessary force including use of firearms subject to section 97 of the Pakistan Penal; Code, 1860 (Act XLV of 1860) in the line of duty:]

52[Provided that in case of essential commodities, the powers under sub-section (1) shall only be exercised within bordering and coastal areas as notified by the Board.]

165. Power to examine persons.
(1) The appropriate officer may, during the course of an inquiry in connection with the smuggling of any goods.-

(a) require any person to produce or deliver any document or thing to such officer;

(b) examine any person acquainted with the facts and circumstances of the case.

(2) The appropriate officer shall exercise the powers in sub-section (1) only in relation to a person who is readily available or present before him and shall be subject to the same provisions as an officer-in-charge of a police-station is subject to under the Code of Criminal Procedure, 1898 (V of 1898), when investigating a cognizable offence.

166. Power to summon persons to give evidence and produce.
documents or things. – (1) Any gazetted officer of customs shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce document or any other thing in any inquiry which such officer is making 6[*****].

(2) A summon to produce documents or other things may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person summoned.

(3) All persons so summoned shall be bound to attend either in person or by an authorized agent, as such officer may direct; and all persons so summoned shall be bound to state the truth upon any subject respecting which they are examined or make statement and produce such documents and other things as may be required;

Provided that the exemption under section 132 of the Code of Civil Procedure, 1908 (Act V of 1908), shall be applicable to any requisition for attendance under this section.

(4) Every such inquiry as aforesaid shall be deemed to be judicial proceeding within the meaning of section 193 and section 228 of the Pakistan Penal Code, (Act XLV of 1860).

167. Person escaping may be afterwards arrested.
If any person liable to be arrested under this Act is not arrested at the time of committing the offence for which he is so liable, or after arrest makes his escape, he may at any time afterwards be arrested and dealt with in accordance with the provisions of 7[***] section 161 as if he had been arrested at the time of committing such offence.

168. Seizure of things liable to confiscation.
(1) The appropriate officer may seize any goods liable to confiscation under this Act, and where it is not practicable to seize any such goods, he may serve on the owner of the goods or any person holding them in his possession or charge an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer.

(2) Where any goods are seized under sub-section (1) and no show cause notice in respect thereof is given under section 180 within two months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized:

Provided that the aforesaid period of two months may, for reasons to be recorded in writing, be extended by the Collector of Customs by a period not exceeding two months 8[:]

9[Provided further that the limitation prescribed under sub-section (2) shall not apply to goods specified under the first proviso to section 181.]

(3) The appropriate officer may seize any documents or things which in his opinion will be useful as evidence in any proceeding under this Act.

(4) The person from whose custody any documents are seized under sub-section (3) shall be entitled to make copies thereof or take extracts therefrom in the presence of an officer of customs.

10[169. Things seized how dealt with.
(1) All things seized on the ground that they are liable to confiscation under this Act shall, without unnecessary delay, be delivered into the care of the officer of customs authorized to receive the same.

(2) If there be no such officer at hand, such things shall be carried to and deposited at the customs-house nearest to the place of seizure.

(3) If there be no custom-house within a convenient distance, such things shall be deposited at the nearest place appointed by the Collector of Customs for the deposit of things so seized.

11[(4) When anything liable to confiscation under this Act is seized by the appropriate officer under section 168, the Collector of Customs, or any other officer of customs authorized by him in this behalf, may notwithstanding the fact that adjudication of the case under section 179, or an appeal under 12[section 193 or 194A] or a proceeding in any court, is pending, cause the thing to be sold in accordance with the provisions of section 201 and have the proceeds kept in deposit pending adjudication of the case or as the case may be, disposal of the appeal or the final judgment by the court:

49[Provided that where the seized goods liable to confiscation are produced during any inquiry or trial before the court of Special Judge Customs and if such goods are subject to speedy or natural decay, the court may on an application after recoding evidence, as it thinks necessary, order the goods to be sold or otherwise dispose of in terms of this section:

Provided further that if the property is a dangerous drug, intoxicant, intoxicating liquor or any other narcotic or psychotropic substance seized or taken into custody, the Court may, either on an application or of its own motion and under its supervision and control, obtain and prepare such number of samples of the property as it may deem fit for safe custody and production before it or any other court and cause destruction of the remaining portion of the property under a certificate issued by it in that behalf;

Provided also that such samples shall be deemed to be whole of the property in an inquiry or proceedings in relation to such offence before any authority or court.]

(5) If on such adjudication or, as the case may be, in such appeal or proceeding in Court, the thing so sold is found not to have been liable to such confiscation, the entire sale proceeds, after necessary deduction of duties, taxes or dues as provided in section 201, shall be handed over to the owner.]

54[(6) No court shall stay the auction proceedings unless the person obtaining stay order furnish pay order or bank guarantee not less than twenty-five per cent of the reserve price of the goods before the nazir of the court.]

170. Procedure in respect of goods seized or detained by other authorities.
Notwithstanding anything contained in any other law for the time being in force, when any goods liable to confiscation under this Act are detained or seized by any other authority on any violation, irrespective of any pending proceedings under the laws of that authority, the customs authorities upon confirmation that such goods are liable to confiscation shall intimate that authority in writing and that authority shall be bound to deposit the impugned goods with customs for further processing under this Act.

52[170A. Procedure in case of seizure of essential commodities.
In case of seizure of essential commodities, as notified by the Board, such seized goods shall be deposited in the nearest custom-house or the nearest place appointed by the Collector of Customs, as the case may be, for deposit of goods so seized.]

171. When seizure or arrest is made, reason in writing to be given.
When anything is seized, or any person is arrested under this Act, the officer or other person making such seizure or arrest shall, as soon as may be, inform in writing the person so arrested or the person from whose possession the things are seized of the grounds of such seizure or arrest.

172. Power to detain packages containing certain publications.
imported into Pakistan.- (1) Any officer of customs duly authorized by the Collector of Customs or any other officer authorized by the Provincial Government in this behalf may detain any package, brought whether by land, air or sea into Pakistan which he suspects to contain-

(a) any newspaper or book as defined in the 13[***] West Pakistan Press and Publication Ordinance, 1963 (West Pakistan Ordinance. XXX of 1963).

(b) any documents containing any treasonable or seditious matter, that is to say, any matter the publication of which is punishable under Section 123A or Section 124A, as the case may be, of the Pakistan Penal Code, 1860 (XLV of 1860), and shall forward such package to such officer as the Provincial Government may appoint in this behalf.

(2) Any officer detaining a package under sub-section (1) shall, where practicable, forthwith send by post to the addressee or consignee of such package notice of the fact of such detention.

(3) The Provincial Government shall cause the contents of such package to be examined, and if it appears to the Provincial Government that the package contains any such newspaper, book or other document, as aforesaid, it may pass such order as to the disposal of the package and its contents as it may deem proper, and, if it does not so appear, shall release the package and its contents unless the same be otherwise liable to seizure under any law for the time being in force:

Provided that any person interested in any package detained under the provisions of this section may, within two months of the date of such detention, apply to the Provincial Government for release of the same, and the Provincial Government shall consider such application and pass such order thereon as it may deem to be proper:

Provided further that if such application is rejected, the applicant may, within two months of the date of the order rejecting the application, apply to the High Court for release of the package or its contents on the ground that the package or the contents do not contain any such newspaper, book or other document.

(4) No order passed or action taken under this section shall be called in question in any court save as provided in the second proviso to sub-section (3).

Explanation.- In this section “document” includes any writing, painting, engraving, drawing or photograph, or other visible representation.

173. Procedure for disposal by High Court of applications for.
release of packages so detained.- Every application under the second proviso to sub-section (3) of section 172 shall be heard and determined in the manner provided by section 99D to 99F of the Code of Criminal Procedure, 1898 (Act V of 1898), by a special bench of the High Court constituted in the manner provided by section 99C of that Code.

174. Power to require production of order permitting clearance of.
goods imported or exported by land.- The appropriate officer may require any person-in-charge of any goods which such officer has reason to believe to have been imported, or to be about to be exported, by land from, or to, any foreign territory to produce the order made under section 83 permitting inward clearance of the goods or the order passing the 14/14A[goods declaration] made under section 131 permitting export of the goods:

Provided that nothing in this section shall apply to any imported goods passing from a foreign frontier to an inland customs-station by a route prescribed under clause (c) of section 9:

Provided further that the Board may, by notification in the official Gazette, direct that the provisions of this section shall not apply to any particular area adjoining foreign territory in relation to goods of any specified description or value.

175. Power to prevent making or transmission of certain signals or.
messages.- If an officer of customs or police or any member of the armed forces of Pakistan has reasonable grounds for suspecting that any signal or message connected with smuggling or intention or designs of smuggling any goods into or out of Pakistan is being or is about to be made or transmitted from any conveyance, house or place, he may board or enter such conveyance, house or place, and take such steps, as are reasonably necessary to stop or prevent the making or transmission of the signal or message.

176. Power to station officers in certain factories.
An officer of customs not below the rank of an 2/2A[Assistant Collector] of Customs may, if he so deems fit, station an officer of customs in any factory or building used for commercial purposes and situated within five miles of the frontier of Pakistan with the object of ensuring that the factory or building is not used in any way for the unlawful or irregular importation or exportation of goods and the officer so stationed shall have the power to inspect at all reasonable times the records of the factory or business carried on in the building and such other powers as may be prescribed by rules.

177. Restriction on the possession of goods in certain areas.
(1) This section shall apply to such areas adjacent to the frontier of Pakistan as may, from time to time, be notified by the Board in the official Gazette.

(2) In any area to which this section for the time being applies, no person shall have in his possession or control any such goods or class of goods in excess of such quantity or value as may from time to time be notified by the 1[Federal Government] or, with the previous approval of the 1[Federal Government], by the Provincial Government, in the official Gazette, except under a permit granted by the Government which issued the notification in respect of the particular goods or class of goods, or by an officer authorized by such Government.

178. Punishment of persons accompanying a person possessing.
goods liable to confiscation.- If any two or more persons in company are found together and they or any of them, have goods liable to confiscation under this Act, every such person having knowledge of this fact is guilty of an offence and punishable in accordance with the provisions of this Act as if goods were found on such person.

15[179. Power of adjudication.
16&39[(1) Subject to sub-section (2), in cases involving confiscation of goods or recovery of duty and other taxes not levied, short levied or erroneously refunded, imposition of penalty or any other contravention under this Act or the rules made thereunder, the jurisdiction and powers of the officers of Customs in terms of amount of duties and other taxes involved, excluding the conveyance, shall be as follows, namely:-

(i) Collector no limit

(ii) Additional Collector not exceeding 52[five] million rupees

(iii) Deputy Collector not exceeding 52[two] million rupees

(iv) 45[Omitted]

(v) Superintendent not exceeding 46[one hundred] thousand rupees.

(vi) Principal Appraiser not exceeding 46[one hundred] thousand rupees.

42[Provided that in cases of goods to be exported, the above officers of Customs shall have their jurisdiction and powers in terms of FOB value and twice their respective monetary limit.]

(2) Notwithstanding the provisions of sub-section (1), the Board may, by notification in the official Gazette, fix or vary the jurisdiction and powers of any Officer of Customs or a class of officers, and may also assign or transfer 41[,by an order,] any case to any 40[Officer] of Customs, irrespective of the territorial jurisdiction 53[:

Provided that the respondent may opt for adjudication through the customs computerized system for such goods or offences as notified by the Board.]

(3) The cases shall be decided within 37,47[ninety] days of the 38[issuance of show cause notice]or within such period extended by the Collector for which reasons shall be recorded in writing, but such extended period shall in no case exceed 38[sixty] days:

50[Provided that in cases, wherein the provisions of clause (s) of section 2 have been invoked, such cases shall be decided within a period of 54[forty-five] days of the issuance of show cause notice 54[extendable for fifteen days by the Collector Adjudication:]

38[Provided 50[further] that any period during which the proceedings are adjourned on account of a stay order or alternative dispute resolution proceedings or the time taken through adjournment by the petitioner not exceeding thirty days, shall be excluded for the computation of aforesaid periods:]

51[Provided further that in cases where in goods are lying at sea-port, airport or dryport, these shall be decided within 54[forty-five] days of the issuance of show cause notice which can be extended by another fifteen days by Collector of Customs, if required so.]

(4) The Board shall have the powers to regulate the system of adjudication including transfer of cases and extension of time-limit 54[as deemed appropriate after reasons to be recorded in writing.]

17 [(5) Notwithstanding anything contained in this Act, or any other law for the time being in force and notwithstanding any decision or judgment of any forum, authority or court whether passed on or before the commencement of the Finance Act, 2006, the time for adjudication in all the cases pending as on first day of July, 2006, for whatsoever reasons, shall be deemed always to have been extended up to st day of December, 2006.]

(6) Notwithstanding anything contained in this Act, or any other law for the time being in force, the Board may notify a procedure for faceless adjudication whereby adjudication proceedings shall be conducted without any face-to-face interaction between the adjudicating officer and the respondent. The virtual mode shall be in such manner as may be prescribed by the Board from time to time.

18[179A. [Omitted].]

180. Issue of show-cause notice before confiscation of goods or.
imposition of penalty.- No order under this Act shall be passed for the confiscation of any goods or for imposition of any penalty on any person unless the owner of the goods, if any, or such person-

(a) is informed in writing (or if the person concerned consents in writing, orally) of the grounds on which it is proposed to confiscate the goods or to impose the penalty;

(b) is given an opportunity of making a representation in writing (or if the person concerned indicates in writing his preference for it orally) within such reasonable time as the appropriate officer may specify, against the proposed action; and

(c) is given a reasonable opportunity of being heard personally or through a counsel or duly authorized agent.

181. Option to pay fine in lieu of confiscated goods.
Whenever an order for the confiscation of goods is passed under this Act, the officer passing the order may give the owner of the goods an option to pay in lieu of the confiscation of the goods such fine as the officer thinks fit 19[:]

20[Provided that the Board may, by an order, specify the goods or class of goods where such option shall not be given:

Provided further that the Board may, by an order, fix the amount of fine which, in lieu of confiscation, shall be imposed on any goods or class of goods imported in violation of the provisions of section 15 or of a notification issued under section 16 48[or in violation of any other provisions of this Act], or any other law for the time being in force.]

Explanation.- Any fine in lieu of confiscation of goods imposed under this section shall be in addition to any duty and charges payable in respect of such goods, and of any penalty that might have been imposed in addition to the confiscation of goods.

182. Vesting of confiscated property in the Federal Government.
When any goods are confiscated under this Act, they shall forthwith vest in the 1[Federal Government], and the 44[officer or person authorized by the Collector or Director] shall take and hold possession of the confiscated goods 21[:]

22[Provided that 53[subject to rules,] the Board may authorize the use of confiscated vehicles 53[,conveyance and any other equipment] for operational purposes by the Board or, with approval of the Board, its subordinate offices.].

183. Levy of penalty for departure without authority or ailure to.
(1) If any conveyance actually departs without a port clearance or permission in writing or, in the case of a vessel, after having failed to bring-to when required at any station appointed under section 14, the penalty to which the person-in-charge of such conveyance is liable may be adjudged by the appropriate officer of any customs-station, to which, such conveyance proceeds, or in which it for the time being is.

(2) A certificate in respect of such departure or failure to bring-to when required, purporting to be signed by the appropriate officer of the customs-station from which the conveyance is stated to have so departed, shall be prima facie proof of the fact so stated.

23[184. Power to try summarily.
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898), a Special Judge may, if he thinks fit, try in a summary way, any offence under this Act where the value of the goods involved in such offence does not exceed one thousand rupees.

(2) In the trial of an offence under sub-section (1), the provisions of sub-section (1) of section 262 and sections 263, 264 and 265 of the said Code shall, so far applicable and with the necessary adaptation, apply.

(3) No proceeding under this section shall be called in question merely on the ground that the value of the goods involved was more than the limit specified in sub-section (1).

Explanation.- For the purpose of this section, “value”-

(i) in the case of goods, whether imported or indigenous, which are lawfully sold in open market in Pakistan, means the wholesale price of such goods in open market;

(ii) in the case of goods, whether imported or indigenous, the price of which has been fixed by the Government, means the price so fixed’ and

(iii) in the case of goods the import of which is absolutely prohibited, means the price of similar or comparable indigenous goods sold in open market in Pakistan or, where no such goods are sold in open market in Pakistan, the price fixed by the Federal Government, by general or special order.

24[185. Special Judges.
(1) The Federal Government may by notification in the official Gazette, appoint as many Special Judges as it considers necessary and, where it appoints more than one Special Judge, shall specify in the notification the headquarters of each Special Judge and the territorial limits within which he shall exercise jurisdiction under this Act.

(2) No person shall be appointed as a Special Judge unless he is or has been a Sessions Judge.

(3) Notwithstanding the provisions of sub-sections (1) and (2), the Federal Government may, for the areas comprising the districts of Lasbela 25[,Turbat, Panjgoor and Gwadar], appoint any other officer as Special Judge and specify in the notification his headquarters and the limits of his territorial jurisdiction under this Act.

(4) If a Special Judge is, for any reason, temporarily unable to perform his duties under this Act, he may generally or specially authorize the Sessions Judge 26[***] of the district to perform such duties of an urgent nature as he may deem proper and such Sessions Judge 26[***] shall perform such duties.

27[185A. Cognizance of offences by Special Judges.
(1) Notwithstanding anything contained in this Act or any other law for the time being in force, a Special Judge may, within the limits of his jurisdiction, take cognizance of any offence punishable under this Act-

(a) upon a report in writing made by an officer of customs 27a[***] or by any other officer especially authorized in this behalf by the Federal Government; or

(b) upon receiving a complaint or information of facts constituting such offence made or communicated by any person; or

I upon his own knowledge acquired during any proceeding before him under this Act or under the Prevention of Smuggling Act,1977.

(2) Upon the receipt of report under clause (a) of sub-section (1), the Special Judge shall proceed with the trial of the accused:

49[Provided that such cases shall be disposed of within six months of the receipt of report or within such extended period as the Special Judge may, for reasons to be recorded in writing, fix.]

(3) Upon the receipt of a complaint or information under clause (b), or acquired in the manner referred to in clause (c) of sub-section (1), the Special Judge may, before issuing a summon or warrant for appearance of the person complained against, hold a preliminary inquiry for the purpose of ascertaining the truth or falsehood of the complaint, or direct any Magistrate or any officer of customs or any police officer to hold such inquiry and submit a report, and such Magistrate or officer shall conduct such inquiry and make report accordingly.

(4) If, after conducting such inquiry or after considering the report of such Magistrate or officer, the Special Judge is of the opinion that-

(a) there is no sufficient ground for proceeding, he may dismiss the complaint, or

(b) there is sufficient ground for proceeding, he may proceed against the person complained against in accordance with law.

(5) A Special Judge or a Magistrate or an officer holding inquiry under sub-section (3) may hold such inquiry, as early as possible, in accordance with the provisions of section 202 of the Code of Criminal Procedure, 1898(Act V of 1898).

(6) Where a Special Judge during trial of an offence punishable under this Act, is satisfied that there is any reasonable grounds for believing that the accused has committed an illegal transfer of funds into or out of Pakistan, he may order the freezing of the assets of the accused, whether in his possession or in the possession of any other person on his behalf:

Provided that, in the case of a person other than the accused, no order shall be passed by the Special Judge without affording such person an opportunity of being heard, except where immediate action is necessary to prevent the dissipation of assets.

185B. Special Judge, etc. to have exclusive jurisdiction.
Notwithstanding anything contained in this Act or in any other law for the time being in force-

(a) 43[no court other than the Special Judge having jurisdiction shall try an offence punishable under the Act, except the offences relating to narcotics and narcotic substances which shall be tried by the Special Courts established under the Control of Narcotics Substances Act, 1997 (XXV of 1997)];

(b) no other court or officer, except in the manner and to the extent specifically provided for in this Act, shall exercise any power, or perform any function under this Act;

I no court, other than the Special Appellate Court, shall entertain, hear or decide any application, petition or appeal under Chapters XXXI and XXXII of the Code of Criminal Procedure, 1898 (Act V of 1898), against or in respect of any order or direction made under this Act; and

(d) no court, other than the Special Judge or the Special Appellate Court, shall entertain any application or petition or pass any order or give any direction under Chapters XXXVII, XXXIX, XLIV or XLV of the said Code.]

185C. Provisions of Code of Criminal Procedure, 1898,.
(1) The provisions of the Code of Criminal Procedure, 1898(Act V of 1898), so far as they are not inconsistent with the provisions of this Act, shall apply to the proceedings of the court of a Special Judge and such court shall be deemed to be a Court of Session for the purposes of the said Code and the provisions of Chapter XXIIA of the Code, so far as applicable and with the necessary modifications, shall apply to the trial of cases by the Special Judge under this Act.

(2) For the purposes of sub-section (1), the Code of Criminal Procedure, 1898(Act V of 1898), shall have effect as if an offence punishable under this Act were one of the offences referred to in sub-section (1) of section 337 of the Code.

185D. Transfer of cases.
(1) Where more than one Special Judge are appointed within the territorial jurisdiction of a Special Appellate Court, the Special Appellate Court, and where not more than one Special Judge is so appointed, the Federal Government, may, by order in writing direct the transfer, at any stage of the trial, of any case from the court of one Special Judge to the Court of another Special Judge for disposal, whenever it appears to the Special Appellate Court or, as the case may be, the Federal Government, that such transfer will promote the ends of justice or tend to the general convenience of the parties or witnesses.

(2) In respect of a case transferred to a Special Judge under sub-section(1), such Special Judge shall not by reason of the said transfer, be bound to recall and rehear any witness whose evidence has been recorded in the case before the transfer and may act upon the evidence already recorded or produced before the court which tried the case before the transfer.

(3) 53[The Board may at any stage of investigation direct transfer of investigation of criminal case from one field formation to other formation.]

185E. Place of sittings.
A Special Judge shall ordinarily hold sittings at his headquarters but, keeping in view the general convenience of the parties or the witnesses, he may hold sittings at any other place.

185F. Appeal to Special Appellate Court.
(1) Any person, including the Federal Government 28[the 28a[Board], the Collector of Customs 28b[or Director of Intelligence and Investigation] or any other officer authorized in this behalf by the Board], aggrieved by any order passed or decision made by a Special Judge under this Act or under the Code of Criminal Procedure,1898(Act V of 1898), may, subject to the provisions of Chapters XXXI and XXXII of the Code, within 29[sixty days] from the date of the order or decision, prefer an appeal or revision to the Special Appellate Court, and in hearing and disposing of such appeal or revision, such Court shall exercise all the powers of a High Court under the said Code.

(2) Except as otherwise provided in sub-section (1), the provisions of the Limitation Act,1908 (Act IX of 1908), shall apply to an appeal or a revision preferred under sub-section(1).

185G. Persons who may conduct prosecution, etc.
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1898(Act V of 1898), a Special Prosecutor appointed under section 47 of the Prevention of Smuggling Act,1977, shall be competent to conduct prosecution before a Special Judge for and on behalf of the Federal Government and to withdraw prosecution when so required by the Federal Government.

(2) A law officer appointed under the Central Law Officers Ordinance,1970 (Ordinance VII of 1970) 30[or an advocate authorized by the Board or by an officer subordinate to it] shall be competent to conduct proceedings before a Special Appellate Court on behalf of the Federal Government and to withdraw such proceedings when so required by the Federal Government.]

186. Detention of goods pending payment of fine or penalty.
(1) When any fine or penalty has been imposed, or while imposition of any fine or penalty is under consideration 31[,or pending any inquiry or investigation], in respect of any goods, such goods shall not be removed by the owner until such fine or penalty has been paid 32[or such inquiry and investigation has been completed].

(2) When any fine or penalty has been imposed in respect of any goods, the appropriate officer may detain any other goods belonging to the same owner pending payment of such fine or penalty.

187. Burden of proof as to lawful authority, etc.
When any person is alleged to have committed an offence under this Act and any question arises whether he did any act or was in possession of anything with lawful authority or under a permit, license 54[or goods declaration or sales tax invoice in his name] or other document prescribed by or under any law for the time being in force, the burden of proving that he had such authority, permit, license 54[or goods declaration or sales tax invoice in his name] or other document shall lie on him:

50[Provided that any person, alleged to have committed an offence under this Act, shall bear the burden of proof that any property owned by him in his name or someone else name was not acquired from the proceeds of such crime:

Provided further that the procedure for forfeiture of such property shall be prescribed by the Board under the rules.]

54[187A. Presumption of legal character of vehicle.
Where any vehicle is detained or seized under this Act or the rules made thereunder and such vehicle upon forensic examination is found to be having a tampered chassis number or cut and weld chassis or chassis number filled with welding material or re-stamped, such vehicle shall be presumed to be smuggled, even if registered with Motor Registration Authority, and shall be confiscated and the Board may authorize the use of such confiscated vehicles for operational purposes in the manner provided in section 182, of this Act, within ninety days of confiscation.]

188. Presumption as to documents in certain cases.
Where any document is produced by any person under this Act or has been seized under this Act from the custody or control of any person, and such document is tendered by the prosecution in evidence against him, the 33[Special Judge] shall,-

(a) unless the contrary is proved by any such person, presume-

(i) the truth of the contents of such document;

(ii) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the Special Judge may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person’s handwriting, and in the case of a document executed or attested that it was executed or attested by the person by whom it purports to have been so executed or attested;

(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence 34[:]

35[Provided that where the Customs Computerized System is operational, system generated documents shall be accepted as true and correct.]

189. Notice of conviction to be displayed.
(1) Upon the conviction of any person for the offence of smuggling, the 1[Federal Government] may require him to exhibit in or outside, or both in and outside his place of business, if any, notices, of such number, size and lettering, and placed in such positions and containing such particulars relating to conviction as it may determine, and to keep them so exhibited continuously for a period not less than three months from the date of conviction; and, if he fails to comply fully with the requirement, he shall be deemed to have committed a further offence under this Act of the nature of the original offence for which he was convicted.

(2) If any person so convicted refuses or fails to comply fully with any such requirement, any officer authorized in that behalf by an order of the 1[Federal Government] in writing may, without prejudice to any proceedings which may be brought in respect of any such refusal or failure, affix the notices in or outside, or both in and outside, the place of business of such person in accordance with the requirement of the 1[Federal Government] in pursuance of sub-section (1).

(3) If, in any case, the 1[Federal Government] is satisfied that the exhibition of notices in accordance with the requirements of the provisions of sub-section (1) or sub-section (2) will not effectively bring the conviction to the notice of persons dealing with the convicted person, the 1[Federal Government] may, in lieu of, or in addition to any such requirement, require the convicted person to exhibit for such period, not being a period less than three months, on such stationery used in his business as may be specified in the requirement, a notice placed in such position and printed in type of such size and form and containing such particulars relating to the conviction as may be specified in the requirement; and, if he fails to comply fully with the requirement, he shall be deemed to have committed a further offence under this Act of the nature of the original offence for which he was convicted.

190. Power to publish conviction.
If the 1[Federal Government] is satisfied that it is necessary so to do, the conviction and the particulars relating to the conviction of any person for the offence of smuggling may be published in the official Gazette.

191. Imprisonment may be of either description.
Imprisonment for any offence under this Act may, in the discretion of the 36[Special Judge], be either simple or rigorous.

192. Duty of certain persons to give information.
(1) Any person who comes to know of the commission of any offence under this Act, or an attempt or likely attempt to commit any such offence, shall, as soon as may be, give information thereof in writing to the officer-in-charge of the nearest custom- house or customs-station, or if there is no such custom-house or customs-station, to the officer-in-charge of the nearest police-station.

(2) The officer-in-charge of a police-station who receives any information mentioned in sub-section (1) shall as soon as possible communicate it to the officer-in-charge of the nearest custom-house or customs-station.

LEGAL REFERENCE

1. Substituted for the words “Central Government” by the Finance Ordinance, 1972 (XXI of 1972), S.3, page 56 and Second Schedule S.1, page 76. 2. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S. 4(6), page 476. 2A. By the Finance Act, 2006 the words ”or Deputy Collector” were omitted. 3. Substituted by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(iii), page 24. At the time of substitution sub-section (4) was as under:- “(4) The officer of customs or the officer-in-charge of a police station before whom any person is taken under this section shall, if the offence be bailable, either admit him to bail to appear before the Magistrate having jurisdiction or have him taken in custody before such Magistrate.

(5) When any person is taken under sub-section (4) before an officer of customs as aforesaid, such officer shall proceed to inquire into the charge against such person.

(6) For the purpose of an inquiry under sub-section (5), the officer of customs may exercise the same powers, and shall be subject to the same provisions, as an officer-in-charge of a police station may exercise and is subject to under the Code of Criminal Procedure, 1898 (Act V of 1898), when investigating a cognizable offence:

Provided that, if the officer of customs is of opinion that there is sufficient evidence or reasonable ground of suspicion against the accused person, he shall, if the offence be bailable, either admit him to bail to appear before a Magistrate having jurisdiction, or have him taken in custody before such Magistrate.

(7) If it appears to the officer of customs that there is no sufficient evidence or reasonable ground of suspicion against the accused person, he shall release the accused person on his executing a bond, with or without sureties as the officer may direct, to appear, if and when so required, before the Magistrate having jurisdiction and shall make a full report of the case to his immediate superior.”.

4. Substituted for the words “nearest Magistrate” by the Federal Laws (R&D) Ordinance, 1981 (XXVII of 1981). 5. Substituted for the word “Magistrate” by the Federal Law (R&D) Ordinance, 1981 (XXVII of 1981). Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996)., 6. Omitted the word “in connection with the smuggling of any goods” by the Finance Act, 2004 (II of 2004), S.3(16), page 17 7. Omitted the words, figures and brackets “sub-section (3) to (7) of” by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(iv), page 226. 8. Substituted for the full stop by the Finance Act, 2004 (II of 2004), S.3(17), page 17. 9. Added by the Finance Act, 2004 (V of 2004), S.3(17), page 17. 10. Substituted by the Finance Ordinance, 1979 (XXX of 1979), S.6(8), page 188. At the time of substitution section 169 was as under:-

“169. Things seized how dealt with.- (1) All things seized on the ground that they are liable to confiscation under this Act shall, without unnecessary delay, be delivered into the care of the officer of customs authorized to receive the same.

(2) If there be no such officer at hand, all such things shall be carried to and deposited at the customs-house nearest to the place of seizure.

(3) If there be no custom-house within a convenient distance, such things shall be deposited at the nearest place appointed by the Collector of Customs for the deposit of things so seized. deterioration, he shall immediately cause it to be sold in accordance with the provisions of Section 201 and have the proceeds kept in deposit pending adjudication of the case.”. 10b. Inserted the words and commas by the Finance Act, 1973(L of 1973), page 13. S.9(8)(b), page 13.

11. Substituted by the Finance Ordinance, 2001 (XXV of 2001), S.4(7), page 306. At the time of substitution this was as under: “(4) When anything liable to confiscation under this Act is seized by the appropriate officer under section 168, the Collector of Customs or any other officer of customs authorized by him in this behalf may, notwithstanding the fact that adjudication of the case under section 179, or an appeal under section 193, or a revision under section 196 or a proceeding in any court, is pending, cause the things to be sold in accordance with the provisions of section 201 and have the proceeds kept in deposit pending adjudication of the case or as the case may be, disposal of the appeal or revision or the final judgment by the court.

(5) If on such adjudication or, as the case may be, in such appeal or revision or proceedings in court, the things so sold is found not to have been liable to such confiscation, the entire sale proceeds, after necessary deduction of duties, taxes or dues as provided in section 201, shall be handed over to the owner.”.

12. Substituted by the Finance Act, 2005

13..The words, commas and figure “the Press and Publications Ordinance, 1960(XV of 1960) in its application to the province of East Pakistan or in” omitted by the Federal Laws (R&D), Ordinance, 1981.

14. Inserted by the Finance Act, 2003 (I of 2003), S.5(31), page 40.

14A. Omitted the words “bill of export of” by the Finance Act, 2006

15. Substituted by the Finance Ordinance, 2000 and again substituted by the FO,2002, At the time of substitution section 179 was as under:-

“179. Power of adjudication.-In cases involving confiscation of goods or imposition of penalty under this Act, the jurisdiction and powers of the officers of customs shall be as follows:-

(1) a Collector of Collector of Customs may deal with cases where the value of the goods exceeds ten thousand rupees;

(2) a 1a[Additional Collector] of Customs may deal with cases where the value of the goods does not exceed ten thousand rupees;

(3) an 1 b[Assistant Collector or Deputy Collection] of Customs may deal with cases where the value of the goods does not exceed two thousand five hundred rupees;

(4) any other officer of customs as the Board may authorize by virtue of his office may deal with cases where the value of the goods does not exceed two hundred and fifty rupees;

(5) any officer of customs shall be competent to impose any penalty under section 156 in any case which he is authorized to deal with:

Provided that the Board may, by notification in the official Gazette, reduce or extend the jurisdiction and powers of any particular officer or class of officers.”. 1a. Substituted for the words “Deputy Collector” by the Finance Act, 1996 (IX of 1996), S.4(6), page 476. 1b. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S.4(7), page 476.

1c. 179. Powers of adjudication.- (1) Subject to sub-section (2), in cases involving confiscation of goods or imposition of penalty under this Act or the rules made thereunder, the jurisdiction and powers of adjudication of the Officers of Customs shall be as follows:-

(i) Collector Without limit.

(ii) Additional Collector Confiscation of goods the value of which does not exceed Rs. 1,500,000/- excluding the value of conveyance and the value of non-dutiable goods, and imposition of the penalty under the rules.

(iii) Deputy Collector Confiscation of goods the value of which does not exceed Rs.500,000/- excluding the value of conveyance and the value of non-dutiable goods, and imposition of the penalty under the rules. 2. The Board may, by notification in the official Gazette, 1e[ fix or] vary the jurisdiction and powers of any Officer of Customs or a class of officers. 3. A Collector, an Additional Collector or an Deputy Collector shall decide the case within forty-five days of the issuance of show cause notice or within such extended period for which for reason shall be recorded in writing

Provided that such extended period shall in no case exceed ninety days. 4. The Board shall have the powers to regulate the system of adjudication including transfer of cases and extension of time limit in exceptional circumstance.”. 1e. Inserted words by the Customs (Amendment) Ordinance, 2000 (XLVI of 2000).

16. Substituted by the Finance Act, 2006. At the time of substitution sub-section (1) and (2) of section 179 was as under:-

(1) Subject to sub-section (2), in cases involving confiscation of goods or imposition of penalty under this Act or the rules made thereunder, the jurisdiction and powers of adjudication of the Officers of Customs in terms of amount of duties and other taxes involved, excluding the conveyance, shall be as follows:-

**[*** ***** *****].

(ii) Additional Collector [without limit].

(iii) Deputy Collector not exceeding four hundred thousand rupees.

(iv) Assistant Collector not exceeding fifty thousand rupees.

(v) Superintendent not exceeding ten thousand rupees.

(vi) Principal Appraiser not exceeding ten thousand rupees.

(3) The Board may, by notification in the official Gazette, fix or vary the jurisdiction and powers of any Officer of Customs or a class of officers. **. Omitted by the Finance Act, 2005. 16a. For the word “five” the word “eight” was substituted by the FA, 2007. 16b. For the words “two hundred and fifty” the words “three hundred” were substituted by the

FA, 2007.

17. Inserted by the Finance Act, 2006. 18. Inserted by the Prevention of Smuggling ordinance, 1977 (XII of 1977), S.51(v), page 226 and omitted by Finance Ordinance, 1979 (XXX of 1979), S.6(9), page 189. At the time of omission section 179-A was as under:-

“179-A. Orders of adjudication to be subject to decision of Special Judge, etc.- Notwithstanding anything contained in Section 179, Section 181 or Section 182 or in Chapter XIX, in cases where the owners or persons-incharge of goods or things seized are to be, or are being, prosecuted before a Special Judge, an order of adjudication made under Section 179 or under Chapter XIX shall be subject to the decision of the Special Judge and of the Special Appellate Court in appeal or revision, if any.”. 19. Substituted for full stop by the Finance Act, 1992 (VII of 1992), S.6(5), page 114. 20. Added by the Finance Act, 1992 (VII of 1992), S.6(5), page 114. 21. Substituted for full stop by the Finance Ordinance, 2002 (XXVII of 2002), S.4(8), page 224. 22. Added by the Finance Ordinance, 2002 (XXVII of 2002), S.4(8), page 224 23. Substituted by the Prevention and Smuggling Act, 1977 (XII of 1977), S.51(iv), page 226. At the time of substitution section 184 was as under:-

184. Power to try summarily.- Any Magistrate for the time being empowered to try in a summary way the offences specified in sub-section (1) of Section 260 of the Code of Criminal Procedure, 1898 (Act V of 1898) may, if he thinks fit, on application in this behalf by the prosecution, try an offence under this Act except when the value of goods involved in such offences exceeds five hundred rupees, in accordance with the provisions of sub-section (1) of Section 262, 263, 264 and 265 of that Code.”. –

24. Substituted by the Prevention and Smuggling Act, 1977 (XII of 1977), S.51(vii), page 227. At the time of substitution section 185 was as under:-

“185. Special powers for Magistrates.- Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898) and subject to the other provisions of this Act, any Magistrate of the first class specially empowered by the Provincial Government in this behalf may pass a sentence of imprisonment for a term exceeding two years and of fine exceeding one thousand rupees for an offence under this Act.”.

25. Substituted for the words “and Mekran” by the Customs (Amendment) Ordinance, 1977. 26. The words “or the District Magistrate” omitted by the Federal Laws (R&D) Ordinance, 1981(XXVII of 1981). 27. Inserted by the Finance Act, 1973 (51 of 1973), S.9(8), page 13 and substituted by the Prevention and Smuggling Act, 1977(XII of 1977), S.51(vii), page 227. At the time of substitution section 185-A was as under:- “185-A. Offences to be tried by Special Judges.- (1) The Federal Government may, by notification in the official Gazette, appoint as many Special Judges as it may consider necessary in this section referred to a Special Judge and where it appoints more than one Special Judge, shall specify in the notification the territorial limits within which each one of them shall exercise jurisdiction.

(2) A Special Judge shall be a person who is or has been or is qualified to be a Sessions Judge.

(3) Notwithstanding anything contained in any other provision of this Act or in any other law for the time being in force, on the appointment of a Special Judge for any area, an offence punishable under this Act shall be tried exclusively by the Special Judge and all cases pending in any other court in such area immediately before such appointment shall stand transferred to such Special Judge.

(4) The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), except those of Chapter XXXVIII of that Code, shall apply to the proceedings of the court of a Special Judge and for the purposes of the said provisions, the court of a Special Judge shall be deemed to be a Court of Session trying cases without the aid of assessors or a jury, and a person conducting prosecution before the Court of a Special Judge shall be deemed to be a Public Prosecutor.

(5) For the purposes of sub-section (4), the Code of Criminal Procedure, 1898 (Act V of 1898) shall have effect as if an offence punishable under this Act were one of the offences referred to in sub-section (1) of Section 237 of the Code.

(6) A Special Judge shall take cognizance of, and have jurisdiction to try, an offence triable under sub-section (3) only upon a complaint in writing made by such officer of Customs, or such other person invested with the powers of an officer of Customs, as may be authorized by the Central Board of Revenue in this behalf, by a general or special order in writing.} 1b[(7) The provisions of Chapter XX of the Code of Criminal Procedure, 1898 (Act V of 1898), shall apply to trial of cases under this Act in so far as they under the Code of Criminal Procedure, 1898 (Act V of 1898), to admit to bail any person accused of any non-bailable offence punishable under this Act who appears or is brought before such court.

(9) The Federal Government may, by order in writing, direct the transfer, at any stage of the trial, of any case from the court of one Special Judge to the court of another Special Judge for disposal, whenever it appears to the Federal Government that such transfer will promote the ends of justice or tend to the general convenience of parties or witnesses.

(10) In respect of a case transferred to a Special Judge by virtue of sub-section (3) or under sub-section (9), such Judge shall not, by reason of the said transfer, be bound to recall and re-hear any witness who has given evidence in the case before the transfer and may act on the evidence already recorded by or produced before the court which tried the case before the transfer.]”.

1b. Added by the Finance Act, 1974 (XL of 1974), S.10, page 245.

27a. The words “or by an officer-incharge of a police-station” were omitted by the Finance Act, 2007. 28. Inserted by the Finance Act, 2005. 28a. For the words “Central Board of Revenue” the word “Board” was substituted by the Finance Act, 2007. 28b. Inserted by the Finance Act, 2007. 29. Substituted the words “thirty days” by the Finance Ordinance, 1982 (XII of 1982), S.6(11), page 61. 30. Inserted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(9), page 224. 31. Inserted by the Finance Act, 2004 (II of 2004), S.3(18), page 17. 32. Inserted by the Finance Act, 2004 (V of 2004), S.3(18), page 17. 33. Substituted for the word “Magistrate” by the Prevention and Smuggling Act, 1977 34. Substituted for the full stop by the Finance Act, 2004 (II of 29\004), S.3(19), 35. Added by the Finance Act, 2004 (II of 2004), S.3(19), page 17. 36. Substituted for the word “Magistrate” by the Prevention and Smuggling Act, 1977. 37. Added by Finance Act,2008(I of 2008) (Page-46) 38. The words “receipt of the contravention report” and “ninety” substituted with the words “issuance of show cause notice” and “sixty”, respectively and proviso inserted by Finance Act,2009. 39. Substituted by Finance Act, 2012 for the words “[(1) Subject to sub-section (2), in cases involving confiscation of goods or imposition of penalty under this Act or the rules made thereunder, the jurisdiction and powers of the Officers of Customs in terms of amount of duties and other taxes involved, excluding the conveyance, shall be as follows:-

(i) Additional Collector without limit. Deputy Collector not exceeding 16a[eight] hundred thousand rupees.

(ii) Assistant Collector not exceeding 16b[three hundred] thousand rupees.

(iii) 40. Substituted for the word “Collector” by Finance Act, 2012. 41. Inserted by Finance Act, 2012. 42. Inserted by Finance Act, 2013 43. Substituted by Finance Act, 2014, At the time of substitution was as under: no court other than the Special Judge having jurisdiction, shall try an offence punishable under this Act 44. Substituted by Finance Act, 2018 45. Omitted by Finance Act, 2019, At the time the omission, the sub-clause was:

(iv) Assistant Collector not exceeding five hundred thousand rupees 46. Substituted by Finance Act,2019. At the time of substitution the words was “Fifty” 47. Substituted by Finance Ac, 2019. At the time of substitution the words was “one hundred and twenty” 48. Inserted by Finance Act, 2019 49. Inserted by Tax Laws (Amendment) Act (30th March) 2020 50. Inserted by Finance Act, 2020 (June) 51. Inserted by Finance Act, 2021(June) 52. Inserted by Finance Act, 2022(June) 53. Inserted by Finance Act, 2023(June) 54. Inserted by Finance Act, 2025(June)

1CHAPTER XIX
APPEALS AND REVISIONS

2[193. Appeals to Collector (Appeals).
60[ (1) Any person including an officer of Customs aggrieved by any decision or order passed under sections 33, 79, 80 69[,131] 66[,] 179 66[and 195] by an officer of Customs below the rank of Additional Collector may prefer appeal to the Collector (Appeals) within thirty days of the date of communication to him of such decision or order:

Provided that an appeal preferred after the expiry of thirty days may be admitted by the Collector (Appeals) if he is satisfied that the appellant has sufficient cause for not preferring the appeal within that period.]

(2) An appeal under this section shall be in such form and shall be verified in such manner as may be prescribed by rules made in this behalf.

(3) An appeal made under this Act shall be accompanied by a fee of one thousand rupees to be paid in the manner that may be prescribed by the Board.

5[193A. Procedure in Appeal.
(1) The Collector (Appeals) shall give an opportunity to the appellant to be heard if he so desires.

(2) The Collector (Appeals) may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the ground of appeal, if the Collector (Appeals) is satisfied that the omission of that ground from the grounds of appeal was not willful or unreasonable.

68[(2A) The Collector (Appeals) may, for a period not exceeding thirty days, stay recovery of duty and taxes on filing of appeal and after affording opportunity of being heard to the officer of the concerned Collectorate or Directorate.]

5b[(3) The Collector (Appeals) may, after making such further inquiry as may be necessary pass an order, within 48,70[ninety] days from the date of filing of appeal or within such extended period as the Collector (Appeals) may for reasons to be recorded in writing, extend, confirm, modify or annul the decision or order appealed against:

Provided that such extended period shall not exceed 49{sixty] days unless the Board further extends at any time during the pendency of appeal:]

50[Provided further that any period during which the hearing of an appeal is adjourned on account of a stay order or alternative dispute resolution proceedings or the time taken through adjournment by the petitioner not exceeding thirty days, shall be excluded for the purpose of computation of aforesaid period.]

Provided further that, where the Collector (Appeals) is of opinion that any duty has not been levied or has been short-levied or erroneously refunded, no order requiring the appellant to pay any duty not levied, short-levied or erroneously refunded shall be passed unless the appellant is given notice within the time-limit specified in section 32 to show cause against the proposed order.

(4) The order of the Collector (Appeals) disposing of the appeal shall be in writing and shall state that points for determination, the decision thereon and the reasons for the decision.

(5) On the disposal of the appeal, the Collector (Appeals) shall communicate the order passed by him to the appellant, the adjudicating authority and the Collector of Customs].

6,71,76,81[194. Appellate Tribunal.- (1) There shall be established a Customs Appellate Tribunal, hereinafter called as the Appellate Tribunal to exercise jurisdiction, powers and perform functions conferred upon it under this Act.

(2) The Appellate Tribunal shall consist of members who shall be appointed by the Federal Government in such numbers, in accordance with such procedure and on such terms and conditions as the Federal Government may prescribe by rules, which shall be made and take effect notwithstanding anything contained in section 219 of this Act or the Federal Public Service Commission Ordinance, 1977 (XLV of 1977) or any other law or rules, for the time being in force:

Provided that the existing members including Chairman of the Appellate Tribunal shall continue to hold office, on the same terms and conditions as applicable to them prior to the commencement of the Finance Act, 2024, till the completion of their term of office unless removed earlier on the grounds provided in the proviso to sub-section (5).

(3) A person shall be eligible to be appointed as a member of the Appellate Tribunal, if he-

(a) is an advocate of a High Court for not less than fifteen years having expertise in Customs Laws and experience of pleading at least fifty Customs cases at various forums; and possesses such other qualifications as may be prescribed by rules;

(b) is an officer of the Customs Service of Pakistan in BS-21 or above; or

(c) is an officer of the Customs Service of Pakistan in BS-20, having served in such grade for three years or more.

(4) The Federal Government shall appoint any member possessing qualifications provided in clause (a) of sub-section (3) as Chairman of the Appellate Tribunal. The Chairman shall hold office for a period of three years

Provided that the Federal Government may reappoint the Chairman for such further term or terms as it may deem appropriate.

(5) The members including, the Chairman shall cease to hold office on attaining the age of sixty-two years

Provided that the members falling under clauses

(b) and (c) of sub-section (3) shall cease to hold office on attaining the age of superannuation, under the law regulating their service:

Provided that a member including the Chairman may be removed by the Federal Government, on the recommendation of performance review committee, to be constituted by the rules made under sub-section (2), at any time before the expiry of his term or attaining the age of superannuation, as the case may be, on grounds, inter-alia, of inefficiency or misconduct, as prescribed by the rules made under sub-section (2).]

81[194A. Appeals to the Appellate Tribunal.
(1) Any person or an officer of Customs aggrieved by any of the following orders may appeal to the Appellate Tribunal against such orders:-

(a) a decision or order passed by an officer of Customs not below the rank of Additional Collector under section 179;

(b) an order passed by the Collector (Appeals) under section 193;

(c) an order passed under section 195;

(d) an order passed in revision by the Director General Customs Valuation under section 25D:

Provided that such appeal shall be heard by a special bench of at least two members one Judicial Member and one Technical Member, constituted by the Chairman; and

(e) an appellate order or a quasi-judicial order passed by the Chief Collector of Customs under provisions of this Act and the rules made thereunder

Provided that such appeal shall be heard by a special bench consisting of one technical member and one judicial member:

Provided that the Appellate Tribunal may, in its discretion, refuse to admit an appeal in respect of an order referred to in sub-section (1) where-

(i) the value of the goods confiscated without option having been given to the owner of the goods to pay a fine in lieu of confiscation under section 181; or

(ii) in any disputed case other than a case where the determination of any question having a relation to rate of duty of customs or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or

(iii) the amount of fine or penalty determined by such order does not exceed fifty thousand rupees.

(2) Every appeal in the prescribed form and accompanied by the prescribed fee so specified in sub section (3) under this section shall be filed, within 82[forty-five days] from the date on which the decision or order sought to be appealed against is communicated to the Board or the Collector of Customs, or as the case may be, the other party preferring the appeal.

(3) An application under sub-section (1) by a person other than an officer of customs, shall be accompanied by a fee of twenty thousand rupees in case of a company, and five thousand rupees in case other than a company.

(4) The Appellate Tribunal may, upon application in writing, admit an appeal after the expiration of the period specified in sub-section (2) if it is satisfied that there was sufficient cause for not presenting it within that period.

(5) Notwithstanding that an appeal has been filed under this section, the assessed or adjudged amount of duty and taxes shall be payable, unless recovery thereof has been stayed by the Appellate Tribunal:

Provided that on filing of application for grant of stay, the Appellate Tribunal may after affording an opportunity of being heard to the Collector having jurisdiction, for reasons to be recorded, stay the recovery of duty and taxes for thirty days, during which period a notice shall be issued to the respondents and after hearing the parties, order may be confirmed or varied as the Tribunal deems fit but stay order shall in no case exceed ninety days 82[:

Provided further that such stay order shall be subject to furnishing of pay order or bank guarantee not less than twenty-five per cent of principal amount by the aggrieved person before the register of the Tribunal.]

(6) Notwithstanding anything in this Act, where any reference or appeal was preferred with the approval of Collector of Customs by the officer of lower rank than that of the Collector and the reference or appeal is pending before an appellate forum or the Court, such reference or appeal shall be deemed to have been so filed by the Collector and for removal of doubt it is hereby declared the pending appeals shall not abate solely on this ground.]

81[194-B. Decision of appeals by the Appellate Tribunal.
(1) The Appellate Tribunal may after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit confirming, modifying or annulling the decision or order appealed against. The Appellate Tribunal may record additional evidence and decide the case but shall not remand the case for recording the additional evidence:

Provided that the appeal shall be decided within ninety days of filing the appeal:

Provided further that where an appeal is not decided within the aforesaid period, the Appellate Tribunal with the consent of both parties and upon reasons to be recorded in writing may extend for a further period of sixty days.

(2) At the first hearing of appeal, the Appellate Tribunal shall-

(a) bring to the notice of the Appellant; the provisions relating to alternate dispute resolution under section 195C of the Act; and

(b) in case the Appellant decline the option of alternate dispute resolution and wish to continue with the appeal, fix date or dates for hearing and decision of the appeal in consultation with both the Appellant and Respondent and in accordance with the rules.

(3) The Appellate Tribunal shall decide the appeal on the date or dates fixed, and no adjournment shall be granted except-

(a) where there are compelling reasons for adjournment, to be recorded in writing by the Appellate Tribunal; and

(b) on mandatory payment of such cost as the Appellate Tribunal may deem fit, which shall not be less than fifty thousand rupees.]

(4) The Appellate Tribunal may, at any time within fifteen days from the date of communication of order, with a view to rectifying any clerical, arithmetical errors or error arising therein from accidental slip and omission apparent from the record, amend any order passed by it under-sub-section (1) and shall make such amendments if the mistake is brought to its notice by the Collector of Customs or the other party to the appeal:

Provided that an amendment which has the effect of enhancing the assessment or reducing a refund or otherwise increasing the liability of the other party shall not be made under this sub-section, unless the Appellate Tribunal has given notice to the party of its intention to do so and has allowed a reasonable opportunity of being heard.

(5) The Appellate Tribunal shall send a copy of every order passed by it under this section, disposing of an appeal, to the officer of Customs and in valuation cases also to the Director General Valuation, and the other party to the appeal:

Provided that the order of the Appellate Tribunal shall remain pending for thirty days, if the Collector or other party to the appeal, prefers a reference to the High Court within this period.

(6) Save as otherwise expressly provided in section 196, an order passed by the Appellate Tribunal in appeal shall be final.]

81[194-C. Procedure of Appellate Tribunal.
(1) The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted by the Chairman from amongst the members thereof.

(2) Subject to the provisions contained in sub-sections (3) and (4), the procedure of the Appellate Tribunal including constitution of benches, case management system, distribution of cases and other matters ancillary or incidental thereto shall be regulated by the rules under this Act.

(3) Every appeal against a decision or order deciding a case involving duty, tax, penalty or fine exceeding five million rupees shall be heard by a Special Bench for hearing such appeals and such Bench shall consist of not less than two members and shall include at least one judicial member and one technical member:

Provided that the Chairman may, for reasons to be recorded in writing, constitute Benches including special Benches consisting of two or more –

(a) technical members; or

(b) judicial members.

(4) The Chairman or any other member of the Appellate Tribunal authorized in this behalf by the Chairman may, sitting singly, dispose of any case which has been allotted to the bench of which he is a member where,-

(a) the value of the goods confiscated without option having been given to the owner of the goods to pay a fine in lieu of confiscation under section 181; or

(b) In any disputed case, the difference in duty or tax involved, or the amount of fine or penalty involved does not exceed five million rupees.

(5) If the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ and the case shall be referred by the Chairman for hearing on such point or points by one or more of the other members of the Appellate Tribunal, and such point or points shall be decided according to the opinion of the majority of the members of the Appellate Tribunal who have heard the case including those who first heard it:

Provided that, where the members of a Special Bench are equally divided, the points on which they differ shall be decided by the Chairman.

(6) The Appellate Tribunal shall, for the purposes of discharging its functions, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (V of 1908), when trying suit in respect of the following matters, namely:-

(a) discovery and inspection;

(b) enforcing the attendance of any person and examining him on oath;

(c) compelling the production of books of account and other documents; and

(d) issuing commissions.

(7) Any proceeding before the Appellate Tribunal shall be deemed to be judicial proceeding within the meaning of sections 193 and 228 and for the purpose of section 196 of the Pakistan Penal Code (Act XLV of 1860), and the Appellate Tribunal shall be deemed to be a Court for all the purposes of sections 480 and 482 of the Code of Criminal Procedure, 1898 (Act V of 1898).]

77[195. Powers of Board or Collector to pass certain orders.
orders,-(1) The Board or the Chief Collector 82[or Director General] or the Collector of Customs 82[or Director] may, within his jurisdiction, call for and examine the records of any proceedings under this Act for the purpose of satisfying itself or, as the case may be, himself as to the legality or propriety of any decision or order passed by a subordinate officer:

67[(1A) Where it is deemed necessary to pass fresh orders, in respect of proceedings 82[including adjudication proceedings] referred to in sub-section (1), the Board or Collector of Customs 82[or Director] or 73[Chief Collector] 82[or Director General] may pass the order itself or himself, as the case may be, or assign the case to an officer of higher rank, who may have passed the earlier order, for passing such order as he may think fit:]

Provided that no order confiscating goods of greater value or enhancing any fine in lieu of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short-levied shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorized by him.

(2) No record of any proceedings relating to any decision or order passed by an officer of customs shall be called for or examined under sub-section (1) after the expiry of two years from the date of such decision or order.]

74[(3) The cases records of which are called and examined under sub-section (1) shall be decided within a period of one twenty days further extendable by the Board for another sixty days subject to recording of reasons in writing.]

33[195A. [Omitted].]

195-B. Deposit, pending appeal, of duty demanded or penalty.
levied.- Where, in any appeal under this Chapter, the decision or order appealed against relates to any duty demanded in respect of goods which are not under the control of the customs authorities or any penalty levied under this Act, the person desirous of appealing against such decision or order shall, pending the appeal, deposit with the proper officer the duty demanded or the penalty levied:

34[Provided that where in any particular case the Collector (Appeals) or the Appellate Tribunal is of the opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person, the Collector (Appeals) or, as the case may be, the Appellate Tribunal may dispense with such deposit subject to such conditions as he, or it, may deem fit to impose so as to safeguard the interest of revenue.]

35[Provided further that an order dispensing with such deposit shall, without effecting the appeal, cease to have effect on the expiration of a period of six months following the day on which it is made unless the appeal is finally decided earlier and nothing in the order dispensing with such deposit which as ceased to have effect shall debar the appropriate officer to recover the amount of the duty demanded or penalty levied.]

81[195-C. Alternative dispute resolution (ADR).
(1) Notwithstanding anything contained in this Act, or the rules made there under, any aggrieved person, in connection with any dispute pertaining to liability of customs-duty, admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any time period or procedural and technical condition which is under litigation in any court of law or an appellate authority, except in the cases where criminal proceedings have been initiated or where interpretation of question of law having larger revenue impact in the opinion of the Board is involved, may apply to the Board for the appointment of a committee for the resolution of dispute in appeal.

(2) The application for alternate dispute resolution under sub-section (1) shall be accompanied by an initial proposition for resolution of the dispute, including an offer of payment of duties and taxes.

(3) The Board may, subject to the provisions of sub-section (1) and (2), after examination of the application of an aggrieved person, appoint a committee, within fifteen days of receipt of such application, consisting of-

(a) a retired judge not below the rank of a judge of a High Court, who shall also be the Chairperson of the Committee, to be nominated by the Board from a panel notified by the Law and Justice Division for such purpose;

(b) an officer of customs not below the rank of Chief Collector having jurisdiction over the case;

(c) a person to be nominated by the applicant from a panel notified by the Board, comprising-

(i) chartered accountants, cost and management accountants and advocates, having minimum ten years experience in the field of taxation;

Provided that the taxpayer shall not nominate a chartered accountant or cost and management accountant or an advocate if the said chartered accountant, cost and management accountant or the advocate is or has been an auditor or an authorized representative of the taxpayer;

(ii) reputable businessmen as nominated by Chambers of Commerce and Industry; and

(iii) officer of Customs Service of Pakistan who stood retired in BS 21 or above:

(4) The Board shall communicate the order of appointment of committee to the aggrieved person, court of law or the appellate authority where the dispute is pending and the concerned Collector.

(5) The committee constituted under sub-section (3) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of customs or any other person to conduct an audit and shall decide the dispute by majority, within forty-five days of its constitution extendable by another fifteen days for the reasons to be recorded in writing.

(6) The recovery of duties and taxes payable by the applicant in connection with any dispute for which a committee has been appointed under sub-section (3) shall be deemed to have been stayed from the date of appointment of the committee up to the date of decision of committee or its dissolution, as the case may be.

(7) If the aggrieved person is satisfied with the decision of the committee, he shall withdraw the appeal pending before the court of law or any appellate authority and communicate the order of withdrawal to the Collector within thirty days of the service of the decision.

(8) The decision of the committee under sub-section (5) shall be binding on the Collector subject to the provision of sub-section (7).

(9) Subject to sub-section (7), the Collector shall also withdraw the appeal, if any, pending before any court of law or an appellate authority in respect of dispute as mentioned in sub-section (1) within thirty days of the communication of the order of withdrawal by the aggrieved person to the Collector.

(10) If the committee fails to make recommendations within a stipulated period of sixty days under sub-section (5), the Board shall dissolve the committee by an order in writing and the matter shall be decided by the appellate authority where the dispute is pending.

(11) The Board shall communicate the order of dissolution to the court of Law or the appellate authority and the Collector and the aggrieved person.

(12) The aggrieved person, on receipt of the order of dissolution, shall communicate the order to the appellate authority, which shall decide the appeal within the stipulated period as provided under the relevant provision, of the communication of the said order.

(13) The aggrieved person shall make payment of customs duty and other taxes as determined by the committee under sub-section (5) and all decisions, orders and judgments made or passed shall stand modified to that extent.

(14) The Board may prescribe the amount to be paid as remuneration for the services of the members of the committee, other than the member appointed under clause (b) of sub-section (3).

(15) The Board may, by notification in the official Gazette make rules for carrying out the purposes of this section, including the procedures and manner of conducting of ADR committee meetings.]

81[196. Reference to High Court.
– (1) Within thirty days of the 82[date of receipt of ] the order of the Appellate Tribunal 82[omitted], the aggrieved person or any officer of Customs not below the rank of Deputy Collector or Deputy Director, authorized by the Collector or Director in writing, may file a reference, in the prescribed form, along with a statement of the case, before the High Court, stating any question of law or a mixed question of law and fact arising out of such order:

Provided that the applicant shall also file complete record of the Appellate tribunal within fifteen days of preferring an application under this section.

(2) A reference to the High Court under this section shall be heard by a Special Bench, constituted for hearing cases under this section, comprising of not less than two judges of the High Court and, the provisions of section 98 of the Code of Civil Procedure, 1908 (Act V of 1908), shall apply to the extent possible to such cases, notwithstanding anything contained in any other law for the time being in force.

(3) The Special Bench shall decide a reference within six months from the date of its filing. The High Court upon hearing a reference under this section shall decide the question of law or a mixed question of law and fact raised in the reference and pass judgment thereon specifying the grounds on which such judgement is based and the Appellate Tribunal’s order shall stand modified accordingly. by the reference and pass judgment thereon specifying the grounds on which such judgment is based and the Appellate Tribunal's order shall stand modified accordingly.

(4) The High Court shall establish a case management system to ensure that sufficient number of Special Benches are constituted, so as to ensure that a reference filed under this section is decided within the stipulated six months.

(5) Notwithstanding that a reference has been made to the High Court, the duty shall be payable in accordance with the order of the Appellate Tribunal:

Provided that the recovery shall not be made by the Collector for fifteen days from the date of communication of the order of the Appellate Tribunal:

Provided further that, the amount of duties and taxes if reduced as a result of the judgment in the reference, and any amount of duty and tax is found refundable, the High Court may, on application submitted by an officer of Customs authorized by the Collector or Director, within thirty days of the judgment of the High Court, that he wants to prefer petition for leave to appeal to the Supreme Court, make an order authorizing the Collector to postpone the refund until the disposal of the appeal by the Supreme Court.

(6) Where recovery of duty has been stayed by the High Court by an order, such order shall cease to have effect on the expiration of a period of six months following the day on which it is made unless the reference is decided, or such order is withdrawn by the High Court earlier:

82[Provided that such stay order shall be subject to furnishing of pay order or bank guarantee not less than twenty-five per cent of the principal amount by the aggrieved person before the nazir of the court.]

(7) Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an application made to the High Court under sub-section (1).

(8) An application under sub-section (1) by a person other than the officer of Customs authorized by the Collector or Director shall be accompanied by a fee of fifty thousand rupees.

(9) Notwithstanding anything in this Act where any reference or appeal was preferred with the approval of Collector by the officer below the rank of Collector, and the reference or appeal is pending before appellate forum or the Court, such reference or appeal shall be deemed to have been preferred and shall be deemed always to have been so preferred by the Collector or Director.

(10) The Court shall send a copy of the judgment under the seal of the Court to the Appellate Tribunal.]

46[196-H. Exclusion of time taken for copy.
In computing the period of limitation specified for an appeal or application under this Chapter, the day on which the order complained of was served, and if the party preferring the appeal or making the application was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining a copy of such order, shall be excluded.

196-I. Transfer of certain pending proceedings.
(1) Every appeal which is pending before the Board under section 193 as it stood immediately before the appointed day and any matter arising out of or connected with such proceedings shall stand transferred on the appointed day to the Appellate Tribunal and the Appellate Tribunal may proceed with such appeal or matter from the stage at which it then was or may re-hear the same, as it may deem fit.

(2) Every proceeding which is pending immediately before the appointed day before the Board or the Collector of Customs under section 195 as it stood immediately before that day, and any matter arising out of or connected with such proceedings and which is so pending shall continue to be dealt with by the Board or the Collector of Customs, as the case may be, as if the said section had not been substituted.

(3) Every proceeding pending before the Federal Government under section 196 as it stood immediately before the appointed day and any matter arising out of or connected with such proceedings which is so pending shall stand transferred to the Appellate Tribunal and Appellate Tribunal may proceed with such proceedings or matter from the stage at which it then was or may re-hear the same, as it may deem fit, as if such proceedings or matter were an appeal filed before it:

Provided that if any such proceeding or matter relates to an order where-

(a) the value of the goods confiscated without option having been given to the owner of the goods to pay a fine in lieu of confiscation under section 181; or

(b) in any disputed case, other than a case where the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or

(c) the amount of fine or penalty determined by such order; does not exceed ten thousand rupees, such proceeding or matter shall continue to be dealt with by the Federal Government as if the said section 196 had not been substituted:

Provided further that the applicant or the other party may make a demand to the Appellate Tribunal that, before proceeding further with that proceeding or matter; he may be re-heard.

196J. Definitions.
In this Chapter;

(a) “Appointed day” means the date of the coming into force of the Finance Act,1989;

(b) “High Court” means in relation to any province, the High Court for the Province;

(d) “Chairman” means the Chairman of the Appellate Tribunal.]

196JJ. Independent case scrutiny committee.
(1) Any Civil petition, reference, civil petition for leave to appeal or review petition before the High Court, the Federal Constitutional Court or the Supreme Court of Pakistan shall only be filed by the Collector or Director of Customs, or any officer of Customs not below the rank of Deputy Collector or Deputy Director authorized by the Collector or Director of Customs, in writing, subject to approval by an independent case scrutiny committee, as constituted by the Board under sub-section (3).

(2) The Board may constitute one or more such committees and assign them jurisdiction which shall exercise the powers and functions in a manner, and from the date, as may be notified by the Board.

(3) The independent case scrutiny committee shall comprise of the following Members, namely:-

(a) a retired judge of the superior judiciary who shall also act as Chairman of the Committee;

(b) an advocate having not less than fifteen years of experience in customs and commercial litigation before the High Court or Supreme Court of Pakistan; and

(c) a serving or retired officer not below the rank of Director or Collector of Customs:

Provided that the committee may co-opt a chartered accountant as a non-voting member, whenever required; and

(4) The members shall receive such remuneration as may be prescribed by rules.

(5) Recommendations of the committee shall be binding upon the concerned Collector or Director of Customs.

(6) No suit, prosecution or other legal proceedings shall lie against the members of the committee in relation to the decisions made under this section.

(7) Notwithstanding anything contained in this Act or the Limitation Act, 1908, for purposes of determining whether a matter referred to in sub-section (1) has been filed within time, the period from the date from which time begins to run to the date on which the committee gives its approval, which period shall in each case be certified by the chairman, shall stand excluded:

Provided that in cases where time has already begun to run when this section comes into force the period as aforesaid shall commence from the date on which the Finance Act 2026 comes into force.

LEGAL REFERENCE

1. Chapter XIX substituted by the Finance Act, 1989 (V of 1989), S.5(6), page 107. The previous Chapter contained Sections 193, 194, 195 and 196. At the time of substitution Chapter XIX was as under:-

“193. Appeal.- Any person aggrieved by any decision or order passed by an officer of customs under this act may, 1a[within thirty days of the date of receipt of such decision or order], appeal there from to the Board, or, in such cases as the 1b[Federal Government] directs, to any officer of customs not lower in rank than a Deputy Collector of Customs, and the appellate authority may thereupon make such further inquiry as it may consider necessary, and, after giving him an opportunity of being heard if he so desires, pass such order as it thinks fit, confirming, altering or annulling the decision or order appealed against:

Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short-levied shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorised by him.

194. Deposit, pending appeal, of duty demanded or penalty levied.- (1) Any person desirous of appealing under section 193 against any decision or order relating to any duty demanded in respect of goods which have ceased to be under the control of customs authorities or to any penalty levied under this Act shall, at the time of filing his appeal or if he is so permitted by the appellate authority at any later stage before the consideration of the appeal, deposit with the appropriate officer the duty demanded or levied.

Provided that such person may, instead of depositing an aforesaid the entire amount of the penalty, deposit only fifty per cent thereof and furnish a guarantee from a scheduled bank for the due payment of the balance:

Provided further that where, in any particular case, the appellate authority is of the opinion that the deposit of duty demanded or penalty levied will cause undue hardship to the appellant, it may dispense with such deposit either unconditionally or subject to such conditions as it may deem fit to impose.

195. Power of the Board to call for and examine records etc.- 1c(1) The Board or the Collector of Customs, within his jurisdiction may call for and examine the records of any proceedings under this Act for the purpose of satisfying itself

196. or, as the case may be, himself as to the legality or propriety of any decision or order passed therein by a subordinate officer and may pass such order as it to he may think fit:

Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of confiscation, or imposing or enhancing any penalty or requiring payment of any duty not levied or short-levied shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorised by him.]

(2) No record of any proceedings relating to any decision or order passed by an officer of customs shall be called for and examined under sub-section (1) after the expiry of two years from the date of such decision or order.

196. Revision by the 1b{Federal Government].- The 1b[Federal Government] may, on the application of any person aggrieved by any decision or order passed under section 193, 1d[194 or 195], if the application is made 1e[within thirty days of the date of receipt of such decision or order], pass such order in relation thereto as it thinks fit:

Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short-levied shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorised by him.”

1a. Substituted for the words “within three months of the date of such decision or order” by the Finance Ordinance, 1972 (XXI of 1972). 1b. Substituted for the words “Central Government” by the Finance Ordinance, 1972 (XXI of 1972), S.3, page 56 and Second Schedule, S.1, page 76. 1c. Substituted by the Finance Act, 1975 (L of 1975). At the time of substitution was as under:-

(i) The Board may on its own motion call for an examine the records of any proceedings under this Act for the purpose of satisfying itself as to the legality or propriety of any decision or order passed therein by an officer subordinate to it and may pass such orders as it thinks fit:

Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short levied shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorised by him.

1d. Substituted for the words and figure “by an officer of Customs or the Board, or an order passed under Section 195 by the Board confiscating goods of greater value or enhancing any fine in lieu of confiscation or imposing or enhancing any penalty or requiring payment of any duty not levied or short-levied” by the Finance Act, 1975.

1e. Substituted for the words “within four months of the date of such decision or order” by the Finance Ordinance,1972 (XXI of 1972)” 2. Section 193 was omitted by the Finance Ordinance, 2000 (XI of 2000) and added by the Finance Ordinance, 2002 (XXVII of 2002), S.4(10), page 224. At the time of omission section 193 was as under:-

“2a{193. Appeals to Collector (Appeals).- (1) Any person aggrieved by any decision or order passed under this Act by an officer of customs lower in rank than a Collector of Customs 2b[, other than a notice of demand served under section

202,] may appeal to the Collector (Appeals) within thirty days of the date of the communication to him of such decision order:

Provided that an appeal filed after the expiry of thirty days may be admitted by the Collector (Appeals) if he is satisfied that the appellant had sufficient cause for not filing the appeal within that period.

(2) An appeal under this section shall be such form and shall be verified in such manner as may be specified by rules made in this behalf.] 2c[ (3) An appeal made under this Act shall be accompanied by a fee of one thousand rupees to be paid in the manner prescribed.]”

2a. Substituted by the Finance Act, 1989, S 2b. Inserted by the Finance Act, 1995 (I of 1995), S. 2c. Added by the Finance Act, 1989

3. Substituted by Finance Act, 2005 4. Substituted for the word and figure “section 179 of this Act by an officer of Customs” by the Finance Act, 2006. 5. Omitted Finance Act, 2005..

5a. Omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(8), page 202, at the time of omission section 193-A was as under and added by the Finance Ordinance, 2002 (XXVII of 2002):

“193-A. Procedure in appeal.- (1) The Collector (Appeals) shall give an opportunity to the appellant to be heared if he so desires.

(2) The Collector (Appeals) may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if the Collector (Appeals) is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.

(3) The Collector (Appeals) may, after making such further inquiry as may be necessary, pass such order as he thinks fit conforming, modifying or annulling the decision or order appealed against, or may refer the case back to the adjudicating authority with such direction as he may think fit for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary:

Provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:

Provided further that, where the Collector (Appeals) is of the opinion that any duty has not been levied or has been short-levied or erroneously refunded, no order requiring the appellant to pay any duty not levied, short levied or erroneously refunded shall be passed unless the appellant is given notice within the time limit specified in section 32 to show cause against the proposed order.

(4) The order of the Collector (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision.

(5) On the disposal of the appeal, the Collector (Appeals) shall communicate the order passed by him to the appellant, the adjudicating authority and the Collector of Customs.]

5b. Substituted by the Finance Act, 2007. Before substitution it was as under:-

“(3) The Collector (Appeals) may, after making such further inquiry as may be necessary, pass such order as he thinks fit, confirming, modifying or annulling the decision or order appealed against, or may refer the case back to the adjudicating authority with such direction as he may think fit for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary:

Provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:” section 194 was as under:-

“194. Deposit, pending appeal, of duty demanded or penalty levied.- (1) Any person desirous of appealing under section 193 against any decision or order relating to any duty demanded in respect of goods which have ceased to be under the control of customs authorities or to any penalty levied under this Act shall, at the time of filing his appeal or if he is so permitted by the appellate authority at any later stage before the consideration of the appeal, deposit with the appropriate officer the duty demanded or the penalty levied:

Provided that such person may, instead of depositing as aforesaid the entire amount of the penalty, deposit only fifty per cent thereof and furnish a guarantee from a scheduled bank for the due payment of the balance: Provided further that where, in any, particular case, the appellate authority is of the opinion that the deposit of duty demanded or penalty levied will cause undue hardship to the appellant, it may dispense with such deposit, either unconditionally or subject to such conditions as it may deem fit to impose.

(2) If, upon an appeal it is decided that the whole or any portion of the aforesaid duty or penalty was not leviable, the appropriate officer shall return to the appellant such amount or portion as the case may be.

7. Substituted by the Finance Act, 1999 (IV of 1999), S.5(10)(11)(a), page 769. At the time of substitution sub-section (2) was as under:- “(2) A judicial member shall be a person who is a Judge of a High Court who has for a period of not less than five years exercised the powers of a District Judge and is qualified to be a Judge of a High Court or who is or has been an Advocate of a High Court and is qualified to be a Judge of High Court.”.

7a. Substituted by the Finance Act, 2007. Before substitution it was as under:-

“(3) A technical member shall be an officer of Customs and Excise Group equivalent in rank to that of a Member, Central Board of Revenue.” 8. Proviso omitted by the Finance Act, 1999 (IV of 1999), S.5(10(11)(b), page 769. At the time of omission this proviso was as under:- “Provided that where a Judge of High Court is appointed as the Chairman of the Appellate Tribunal his term and conditions shall be the same as those of a Judge of the High court.”.

9. Added by the Finance Act, 1989 (V of 1989), S.5(6), page 107. 10. Inserted by the Finance Ordinance, 2000 (XXI of 2000), S.4(9)(a)(I), page 202. 11. Substituted by the Finance Ordinance, 2001 (XXV of 2001), S.4(8)(a)(I), page 307. At the time of substitution this was as under:- “(a) a decision or order passed by the 11a[an officer of customs] as an adjudicating authority]” 11a. Substituted for the words “the Collector of Customs” by the Finance Ordinance, 2000 (XXI of 2000),S.4(9)(a)(ii), page 202.

12. Inserted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(a)(I), page 226. 13. Omitted by the Finance Ordinance, 2000(XXV of 2000), S.4(9)(a)(iii) at the time of mission this was a under:- “(b) an order passed by the Collector (Appeals) under section 193;”.

14. Omitted the comma and words “,as it stood immediately before the appointed day” by the Finance Act, 1995 (I of 1995), S.6(2)(I), page 511. 15. The first proviso omitted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(a)(ii), page 226. At the time of omission this proviso was as under:- “

Provided that no appeal shall lie to the Appellate Tribunal, and the Appellate Tribunal shall not have jurisdiction to decide any appeal, in respect of any order referred to in sub-section (1) if such order relates to –

(a) any goods imported or exported as baggage;

(b) any goods loaded in a conveyance for importation into Pakistan, but which are not unloaded at their place of destination in Pakistan; or so much of the quantity of such goods as has not been unloaded at any such destination if goods unloaded at such destination are short of the quantity required to be unloaded at that destination;

(c) repayment of customs-duty under clause (c) of section 21;

(d) payment of drawback as provided in Chapter VI, and the rules made thereunder:”

16. The word “further” omitted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(iii), page 226.

17. Substituted for the word “ten” by the Finance Ordinance, 2000 (XXI of 2000), S.4(9)(a)(iv), page 202. 18. Substituted by the Finance Act, 2007. Before substitution it was as under:- 20. Substituted for the word “20a[seven hundred fifty]” by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(c), page 226. 20a. Substituted for the words “two hundred” by the Finance Ordinance, 2001 (XXV of 2001), S.4(8)(b), page 307. 21. Added by the Finance Ordinance, 2000 (XXI of 2000), S.4(9)(d), page 203. 21a. Added by the Finance Act, 2007. 21b. Substituted by the Finance Act, 2007.Before substitution it was as under:-

“(1) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the authority which passed such decision or order with such directions as the Appellate Tribunal may think fit, for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary 22[:]

23[Provided that the appeal shall be decided within sixty days of filing the appeal or within such extended period as the Tribunal may, for reasons to be recorded in writing fix,

Provided that such extended period shall not in any case exceed ninety days.]” 21c. For the word “three” the word “one” was substituted by the FA,2007. 22. Substituted for full stop by the Finance Ordinance, 2000 (XXI of 2000), S.4(10)(I), page 203. 23. Inserted by the Finance Ordinance, 2000 (XXI of 2000), S.4(10(I), page 203. 24. Substituted for the words “Collector of Customs” by the Finance Ordinance, 2000 (XXI of 2000), S.4(10)(ii), page 203. 25. Substituted for the words and figures “section 196 and 19G” by the Finance Act, 1997. 25a For the words “ relating, among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment,” the words “deciding a case involving duty, tax, penalty or fine exceeding five million rupees” were substituted by the Finance Act, 2007. 26. Substituted for the full stop by the Tax Laws (Amendment) Ordinance, 2001 (XIII of 2001). 27. Added by Tax Laws (Amendment) Ordinance, 2001 (XIII of 2001). 28. Inserted by the Tax Laws (Amendment) Ordinance, 2001 (XIII of 2001). 28a. Following explanation was omitted by the FA, 2007:- “Explanation:- For the purposes of this sub-section, the expression “cases” means the matters involving decisions other than decisions in relation to a question of law under this Act or the Central Excises Act, 1944 (I of 1944) or as the case may be, the Sales Tax Act, 1990.]” 28b. Omitted by the FA, 2007.At the time of omission it was as under:-

(b)in any disputed case, other than a case where the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or”

28c. Substituted by the FA, 2007.At the time of substitution it was as under:-

“(c) the amount of fine or penalty involved does not exceed 29&29a[fifteen hundred thousand rupees].”

29. Substituted for the words “one hundred thousand rupees” by the Finance Act, 2003 (I of 2003), S.5(33), page 40. 29a. Substituted for the word “five” by the Finance Act, 2006. 30. Substituted by the Finance Act, 1995 (I of 1995), S.6(3), page 511. At the time of substitution section 195 was as under:-

“195. Powers of Board or Collector of Customs to pass certain orders.- (1) The Board may, of its own motion, call for and examine the record of any proceeding in which a Collector of Customs as an adjudicating authority has passed any decision or order under this Act for the purpose of satisfying itself as to the legality or propriety of any such decision or order and may, by order, direct the Collector to apply to the Appellate Tribunal for the determination of such points arising out of the decision or order as may be specified by the Board in its orders.

(2) The Collector of Customs, may, of his own motion, call for and examine the record of any proceeding in which an adjudicating authority subordinate to him has passed any decision or order under this Act for the purpose of satisfying himself as to the legality or propriety of any such decision or order and may, by order, direct such authority to apply to the Collector (Appeals) for the determination of such points arising out of the decision or order as may be specified by the Collector of Customs in his order.

(3) No order shall be made under sub-section (1) or sub-section (2) after the expiry of one year from the date of the decision or order.

(4) Where in pursuance of an order under sub-section (1) or sub-section (2) the Collector of Customs or any officer of Customs authorised in his behalf by him makes an application to the Appellate Tribunal or the Collector (Appeals) within a period of thirty days from the date of communication of the order under sub-section (1) or sub-section (2), such application shall be heard by the Appellate Tribunal or the Collector (Appeals), as the case may be, as if such application were an appeal made against the decision or order of the adjudicating authority and the provisions of the Act regarding appeals including the provisions of sub-section (4) of section 196 shall, so far as may be, apply to such application.

(5) The Board, or the Collector of Customs within his jurisdiction, may call for and examine the record of any decision or order where the decision or order is of the nature referred to in the first proviso to sub-section (1) of section 194A for the purpose of satisfying itself or, as the case may be, himself as to the legality or propriety of the decision or order passed therein by a subordinate officer and may pass such order as it or he may think fit:

Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short levied or reducing the amount of repayment of customs duty or drawback shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorised by him:

Provided further that no record of any proceedings relating to any decision or order passed by an officer of customs shall be called for and examined after the expiry of two years from the date of such decision or order.”. 31. Omitted the words “of Customs” by the Finance Act, 2003 (I of 2003), S.5(34)(I), page 41.

32. Inserted by the Finance Act, 2003 (I of 2003), S.5(34)(ii), page 41. 32A. Omitted the words “or the Collector of Customs (Adjudication)” by the Finance Act, 2006. 33. Omitted by the Finance Act, 2000 (XXI of 2000), S.4(11), page 203. At the time of omission section 195-A was as under:-

“33a[195-A. Revision by the Federal Government.- (1) The Federal Government may, on the application of any person aggrieved by any order passed under section 193, where the order is of the nature referred to in the first proviso to sub-section (1) of section 194-A annual or modify such order.

(2) An application under sub-section (1) shall be made within thirty days from the date of the communication to the applicant of the order against which the application is being made:

Provided that the Federal Government may permit the filing of application after the expiry of relevant period referred to in sub-section (2) if it is satisfied that there was sufficient cause for not presenting it within that period.

(3) An application under sub-section (1) shall be in such form and shall be verified in such manner as may be specified by rules made in this behalf and shall be accompanied by a fee of two hundred rupees.

(4) The Federal Government may, of its own motion, annual or modify any order referred to in sub-section (1).

(5) No order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value shall be passed under this section --

(a) in any case in which an order passed under section 193 has enhanced any penalty or fine in lieu of confiscation or has confiscated goods of greater value; and (b) in any other case, unless the person affected by the proposed order has been given notice to show cause against it within one year from the date of the order sought to be annulled or modified.

(6) Where the Federal Government is of the opinion that any duty of customs has not been levied or has been short levied or has been erroneously refunded, no order levying or enhancing the duty shall be made under this section unless the person affected by the proposed order is given notice to show cause against it within the time limit specified in section 32.]” 33a. Substituted for section 196 by the Finance Act, 1989. 34. Substituted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(12), page 227. At the time of substitution this proviso was as under:-, “

Provided that, where in any particular case the Appellate Tribunal is of opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person. the Appellate Tribunal may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the interests of revenue: 35. Added by the Tax Law (Amendment) Ordinance, 1999. 36. Inserted by the Finance Act, 2004 (II of 2004), S.3(20), page 17 36a. By the Finance Act, 2006 the word “Alternate” were substituted. 36b. Substituted by the Finance Act, 2007. Before substitution it was as under:-

“(1) Notwithstanding any other provision of this Act, or the rules made there under, any aggrieved person in connection with any matter of Customs pertaining to liability of customs duty, admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any time period or procedural and technical condition may apply to the Central Board of Revenue for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application 36c[:]

42. Omitted by Finance Act, 2005. 43. Substituted “Sections 196 to 196G” by the Finance Act, 1997 (XXII of 1997), S.5, page 1219. At the time of substitution these sections were as under:- “196. Statement of case to High Court.- (1) The Collector of Customs, or the other party may, within thirty days of the date upon which he is served with notice of an order under section 194-B (not being an order relating among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment), by application in such form as may be specified by rules made in this behalf, accompanied, where the application is made by the other party, by a fee of two hundred rupees, require the Appellate Tribunal to refer to the High Court any question of law arising out of such order and subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court:

Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period herein before specified, allow it to be presented, within a further period not exceeding thirty days.

(2) On receipt of notice that an application has been made under sub-section (1), the person against whom such application has been made, may, notwithstanding that he may not have filed such an application, file, within forty-five days of the receipt of the notice, a memorandum of cross-objectives verified in such a manner as may be specified by rules made in this behalf against any part of the order in relation to which an application for reference has been made and such memorandum shall be disposed of by the Appellate Tribunal as if it were an application presented within the time specified in sub-section (1).

(3) If, on an application made under sub-section (1), the Appellate Tribunal refuses to state the case on the ground that no question of law arises, the Collector of Customs, or, as the case may be, the other party may, within one hundred twenty days from the date on which he is served with notice of such refusal, apply to the High Court and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal to state the case and to refer it, and on receipt of any such requisition, the Appellate Tribunal shall state the case and refer it accordingly.

(4) Where in the exercise of the powers under sub-section (3), the Appellate Tribunal refuses to state a case which it was required by an applicant to state, the applicant may, within thirty days from the date on which he receives notice of such refusal, withdraw his application and, if he does so, the fee, if any, paid by him shall be refunded.

196-A. Statement of case to Supreme Court in certain cases.- If, on an application made under section 196, the Appellate Tribunal is of the opinion that, on account of conflict in the decision of High Court in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Appellate Tribunal may draw up a statement of the case and refer it through the Chairman direct to the Supreme Court.

196-B. Power of High Court or Supreme Court to require statement to be amended.- If the High court or the Supreme Court is not satisfied that the statement in a case referred to it is sufficient to enable it to determine the questions raised thereby, the court may refer the case back to the Appellate Tribunal for the purpose of making such additions thereto or alterations thereto or alterations therein as it may direct in this behalf. 196-C. Case before High Court to be heard by not less than two Judges.- (1) When any case has been referred to the High Court under Section 196, it shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges. (2) Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the other Judges of the High Court designated by the Chief Justice, and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it. 196-D. Decision of High Court or Supreme Court on the case stated.- (1) The High Court or the Supreme Court hearing any such case shall decide the question of law raised therein, and shall deliver its judgment thereon containing the grounds on which such decision is founded and a copy of the judgment shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case in conformity with such judgment.

(2) The costs of any reference to the High Court or the Supreme Court, which shall not include the fee for making the reference, shall be in the discretion of the Court. 196-E. Appeal to Supreme Court.- An appeal shall lie to the Supreme Court from –

(a) any judgment of the High Court delivered on a reference made under section 196 in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, immediately after the passing of the judgment, the High Court certifies to be a a fit one for appeal to the Supreme Court, or

(b) any order passed by the Appellate Tribunal relating, among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment. 196-F. Hearing before Supreme Court.- (1) The provisions of the Code of Civil Procedure, 1908 (V of 1908), relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under section 196 as they apply in the case of appeals from decrees of a High Court:

Provided that nothing in this sub-section shall be deemed to affect the provisions of sub-section (1) of section 196 or section 196G.

(2) The cost of the appeal shall be in the discretion of the Supreme Court.

(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section 196 in the case of a judgment of the High Court. 196-G. Sums due to be paid notwithstanding reference etc.- Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme Court, sums due to the Government as a result of an order passed under sub-section (1) of section 194-B shall be payable in accordance with the order so passed.”. 44. Substituted sub-section(1)of section 196 by the Finance Act, 2006 At the time of substitution the sub-section (1) was as under:-. “(1) Within ninety days of the communication of order of the Appellate Tribunal under sub-section (3) of section 194B, the aggrieved person or the Collector may prefer an application, in the prescribed form along with a statement of the case, to the High Court, stating any question of law arising out of such order.” 44a. Inserted by the Finance Act, 2007. 45. Inserted by the Finance Act, 2006. 46. Added by the Finance Act, 1989 47. Substituted and inserted by the Finance Act,2008(I of 2008) (Page-46). 48. The word “ninety” substituted with the word “one hundred and twenty” by FINANCE

ACT,2009.

49. The words “ninety” substituted with the word ”Sixty” by Finance Act,2009. 50. Inserted by Finance Act,2009. 51. This proviso “Provided further that such extended period shall in no case exceed ninety days.] “ substituted by Finance Act,2009. 52. The proviso “Provided further that any Bench referred to in clause (a) shall not hear the matters involving question of law.” Omitted by Finance Act,2009. 53. The word “ten” substituted with the word “five” by Finance Act,2009. 54. The word “sixty” substituted with word “ninety” by Finance Act,2009.

55. The colon substituted with the words full stop and proviso “

Provided that the period of 38a[sixty] days stipulated for making the recommendations may be extended by the Board for another 38a[sixty] days on specific request of the committee”, omitted by Finance Act,2009. 56. Inserted by Finance Act,2009. 57. Inserted by Finance Act,2009. 58. The words “Excise and Sales Tax”, omitted by Finance Act,2010. 59. Added by Finance Act,2010. 60. Substituted for the words “(1) Any person 3 [other than] an officer of customs aggrieved by any decision or order passed under 4[sections 79, 80 and 179 of this Act by an officer of customs not below the rank of an Assistant Collector] 5[*****] may prefer appeal to the Collector (Appeals) within thirty days of the date of communication to him of such decision or order:

Provided that an appeal preferred after the expiry of thirty days may be admitted by the Collector (Appeals) if he is satisfied that the appellant had sufficient cause for not preferring

61. Inserted by Finance Act, 2012. 62. Inserted by Finance Act, 2013. 63. Substituted for the words “Customs and Excise Group” by Finance Act, 2014. 64. Substituted for the word “five” by Finance Act, 2014. 65. Added vide Finance Act, 2016. 66. Inserted by Finance Act, 2017, At the time of substitution the position was: " an order passed by the Board or the Collector of Customs under section 195" 67. Inserted by Finance Act, 2017.

69. Inserted by Finance Act, 2019. 70. Substituted by Finance Act, 2019. At the time of substitution the words was “one hundred and twenty” 71. Substituted by Finance Act 2019. At the time of substitution the section was:

[194. Appellate Tribunal.
(1) The Federal Government shall constitute an Appellate Tribunal to be called the Customs 58[Omitted] Appellate Tribunal consisting of as many judicial and technical members as it thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act.

⁶¹[(2) A judicial member shall be a person who has been a Judge of the High Court, or is or has been a District Judge and is qualified to be a Judge of High Court, or is or has been an advocate of a High Court and is qualified to be a Judge of a High Court.]⁶¹ time period or procedural and technical condition which is under litigation in any Court of law or an Appellate Authority, except in the cases where first information reports (FIRs) have been lodged or criminal proceedings have been initiated or where interpretation of question of law having larger revenue impact in the opinion of the Board is involved, may apply to the Board for the appointment of a Committee for the resolution of dispute in appeal.

(2) Subject to the provision of sub-section (1), the Board, after examination of the application of an aggrieved person, may appoint a committee, within thirty days of receipt of such application, consisting of an officer of customs [not below the rank of Collector] and two persons from a notified panel of retired District and Sessions judge and retired judges of High Court or Chartered or Cost Accountants, Advocates, Tax consultants or reputable taxpayers for the resolution of the hardship or dispute.]

(3) The committee constituted under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of customs or any other person to conduct an audit and make recommendations 38[, within 38a, 54[ninety] days of its constitution,] in respect of the resolution of dispute as it may deem fit 39, 55[.]

40, 55[Omitted]

56[(3A) If the Committee constituted under sub-section (2) fails to make recommendations within a stipulated period of ninety days, the Board may dissolve the committee and constitute a new committee which shall decide he matter within a further period of ninety days, and after expiry of that period, if the dispute is not resolved, the matter shall be taken up the by the appropriate forum for decision.]

(4) The Board may, on the recommendation of the committee, pass such order, as it may deem appropriate 57[,within 65[ninety] days of the receipt of recommendations of the committee] 65[;

Provided that if such order is not passed within the aforesaid period, recommendations of the committee shall be treated to be an order passed by the Board under this sub-section.] 47[4A Notwithstanding anything contained in sub-section (4), the Chairman and a member nominated by him may, on the application of an aggrieved person, for reasons to be recorded in writing and on being satisfied that there is an error in the order or decision, pass such order as may be deemed just and equitable.]

(5) The aggrieved person may make the payment of customs duty and other taxes as determined

1[CHAPTER XIX-A
SETTLEMENT OF CASES

2[196K. to Omitted.
196L Omitted.

196M Omitted.

196N Omitted.

196O Omitted.

196P Omitted.

196Q Omitted.

196R Omitted.

196S Omitted.

196T Omitted.

196U Omitted.]

LEGAL REFERENCE

1. Inserted by the Finance Act, 1996 (IX of 1996), S.4(5), page 471. 2. Omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(13), page 204. At the time of omission section 196-K to 196-U were as under:

“Chapter XIX-A

SETTLEMENT CASES

196K. Indirect Taxes Settlement Commission.- (1) The Federal Government shall appoint an Indirect Taxes Settlement Commission to exercise the powers and discharge the functions conferred on it under this Chapter.

(2) The Commission shall consist of a Chairman and as many members as may be necessary, and shall function within the Division of the Federal Government dealing with revenue.

(3) The members of the Commission shall be appointed by the Federal Government from amongst persons of integrity and outstanding ability having special knowledge of, and experience in, matters relating to customs, central excise and sales tax laws and procedures, and having not less than twenty-two years of service in the customs, central excise or sales tax departments:

Provided that the Federal Government may also appoint suitable number of associate member, not exceeding one associate member for each bench of the Commission, from amongst persons of integrity and outstanding ability having not less than twenty years experience as chartered accountants, cost accountants, industrial engineers, or advocates of High Court or Supreme Court. –

(4) The terms, conditions and tenure of service of associate members shall be determined by the Federal Government.

(5) The Federal Government shall appoint the senior most member of the Commission to be the Chairman thereof. 196L. Definitions.- In this Chapter, unless the context otherwise requires:-

(i) “associate member” means an associate member appointed under proviso to sub-section (3) of section 196-K;

(ii) “case” means any proceedings initiated under section 193, 194-A or 195-A and pending with any authority, court or tribunal on the date of making the application under sub-section (1) of section 196-N:

Provided that the proceedings relating to smuggling of narcotics or narcotic and psychotropic substances shall not be proceedings within the meaning of this clause:

Provided further that where an appeal or application for revision has been filed after the period of limitation and which has not been admitted, such appeal or application for revision shall not be deemed to be a proceeding pending within the meaning of this clause;

(iii) “Chairman” means the Chairman of the Commission;

(iv) “Commission” means the Indirect Taxes Settlement Commission appointed under section 196-K; and

(v) “member” means a member of the Commission and includes the Chairman thereof.

196M. Powers and functions of the Commission.-(1) The powers and functions of the Commission may be exercised and discharged by benches constituted by the Chairman from amongst the members and associate members.

(2) A bench shall, ordinarily, consist of two members and an associate member and shall be prescribed over by the Chairman:

Provided that where the applicant makes an application under section 196-N, in writing, for decision of his case without the associate member, the bench shall be so consumed:

Provided further that, where the Chairman is not a member of the bench, the Chairman may authorise any member to discharge his functions on the bench.

(2) No act or proceeding of the Commission shall be invalid merely on the ground of existence of any vacancy of an associate member on the bench.

(4) Subject to the provisions of this Act, the Commission shall have the power to regulate its own procedure; and the procedure of benches in all matters arising out of the discharge of its functions, including the places at which the benches shall hold their sittings.

(5) If the members of a bench differ in opinion as to the decision to be given on any issue,-

(a) the issue shall be decided according to the opinion of the majority, if there is a majority;

(b) if the members are equally divided and the Chairman of the Commission is not himself a member of the bench, the case shall be referred to the Chairman and the decision of the Commission shall be expressed in terms of the opinion of the Chairman; and

(c) if the members are equally divided and the Chairman of the Commission is himself a member of the bench, the opinion of the Chairman shall prevail, and the decision of the Commission shall be expressed in terms of opinion of the Chairman.

(6) In addition to the powers conferred on the Commission under this Chapter, it shall have all the powers which are vested in an officer of customs for the proper discharge of its functions under this Chapter.

196N. Application for settlement of cases.- (1) Any person aggrieved by any order or decision may, at any stage of his case, make an application in such form and in such manner as may be prescribed, containing full and true disclosure of his circumstances and the facts which he may not have disclosed earlier, the manner in which he evaded or avoided payment of duty, the additional amount of duty payable in this regard and such other particular as may be prescribed, to the Commission to have the case settled, and any such application shall be disposed of in the manner provided hereinafter:

Provided that no such application shall be made unless the total amount of duty payable exceeds one hundred thousand rupees.

(2) Every application made under sub-section (1) shall be accompanied by such fee as may be prescribed by the Commission.

(3) An applicant, once having made an application under sub-section (1), shall not be entitled to withdraw it.

196O. Disposal of applications by the Commission.-(1) The Commission may, before disposing of any application, call for such particulars as it may require in respect of the application brought before it, or cause further enquiries to be made by the Collector of Customs and the basis of his report and having regard to the nature and circumstances of the case, it may, by order, allow the application to be proceeded with or reject the application:

Provided that an application shall not be rejected under this sub-section unless an opportunity of being heard is provided to the applicant.

(2) Notwithstanding anything contained in sub-section (1), an application shall not be proceeded with under that sub-section if the Collector of Customs objects to such application on the ground that the particulars of evasion on the part of the applicant or perpetration of fraud by him for evading customs duty under this Act and the rules made thereunder has been established or is likely to be established by an Officer of Customs:

Provided that where the Commission does not agree with the objections raised by the Collector, it may, after giving the Collector an opportunity of being heard, accept the application to being proceeded with under sub-section (1).

(3) Where an application is allowed to be proceeded with under sub-section (1), the Commission may call for the relevant records from the Collector of Customs, and after examination of such records, if the Commission is of the opinion that any further inquiry in the matter is necessary, it may direct the Collector to make or cause to be made such further enquiry and furnish a report on the matters within such time as it may fix.

(4) After examination of the records and report of the Collector received under sub-section (1) or sub section (3), and after giving an opportunity to the applicant and to the Collector to be heard, in person or through their authorized representatives, and after examining such further evidence as may be placed before it or obtained, the Commission may, in accordance with the provisions of this Act and the rules made thereunder, pass such order as it thinks fit on the matters stated in the application and reported to it by the Collector under sub-section (1) or sub-section (3).

(5) Every order passed under sub-section (4), shall provide for the terms of settlement, including any demand of duty, regulatory duty, additional duty, surcharge, penalty, fine in lieu of confiscation or prosecution proceedings and the manner in which any sum due under the settlement shall be paid, and all the matters to make the settlement effective and shall also provide that the settlement shall be void if it is subsequently found by the Commission that it has been obtained by fraud or misrepresentation.

(6) Where a settlement becomes void, the proceedings with respect to the matters relating to the settlement shall be revived from the stage at which the application was allowed, except the maters pending in appeal or revision before making an application under sub-section (1) of section 196-N, and the concerned officer of customs may, notwithstanding anything contained in any other provision of this Act and the rules made thereunder, complete such proceedings.

(7) The Commission may, if it is of the opinion that any person who made an application under section 196-N does not cooperate with the Commission in the proceedings before it, send the case back to the Officer with whom such case was pending at the time application under that section was made, who shall thereupon dispose of the case in accordance with the provisions of this Act and the rules made thereunder, as if no application under section 196-N had been made.

196P. Recovery of sums due under an order of settlement.- Any sum specified in an order of settlement passed under sub-section (4) of section 196-O shall, subject to such conditions as may be specified therein, be recovered, and any additional duty or penalty for default in making payment of such sum, may be imposed and recovered in accordance with the provisions of this Act and the rules made thereunder by the officer of customs having jurisdiction in the case.

196Q. Bar on subsequent application for settlement in certain cases.- No fresh application for settlement shall be made where –

(i) an order of the settlement passed under section 196-O provides for the imposition of a penalty on the person on the ground of evasion of customs duty; or

(ii) a person is convicted of any offence under section 156(1); or

(ii) a case is sent back to the officer of customs by the Commission for assessment or re-assessment for any reason; or

(iii) the settlement becomes void under this Chapter.

196R. Order of Settlement to be conclusive.- Every order of the Commission passed under section 196-O shall be conclusive as to the matter stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be re-opened in any proceeding under this Act or under any law for the time being in force.

196S. Power of the Commission to re-open proceedings.- If the Commission is, for reasons to be recorded in writing, of the opinion that for the proper disposal of the case pending before it, it is essential to re-open any proceedings connected with the case but which have been completed under this Act by any officer of customs before the application under section 196-N was made, it may, with the concurrence of the applicant, re-open such proceedings and pass such order thereon as it thinks fit, as if the case in relation to which the application for settlement had been made by the applicant under that section covered such proceedings as well:

Provided that no proceedings shall be re-opened by the Commission under this section if the period between the finalization of such proceedings and the date of application for settlement under section 196-N exceeds one year.

196T. Proceedings before the Commission to be judicial proceeding.- Any proceedings before the Commission shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Pakistan Penal Code (Act XLV of 1860), and for the purpose of section 196 thereof.

196U. Communications of orders.- The Commission shall communicate its order to the applicant, the Collector, the adjudicating officer and the officer incharge of the Agency which detected the evasion or seized the goods.”.

CHAPTER XX
MISCELLANEOUS

197. Customs control over conveyances and goods.
The appropriate officer shall, for the purposes of this Act, have control over all conveyances and goods in a customs-area.

198. Power to open packages and examine, weigh or measure.
goods.- The appropriate officer may open any package or container and examine, weigh or measure any goods brought to the customs-station for importation or exportation and may for that purpose unload any such goods from the conveyance on which they have been imported or are to be exported 1[:]

2[Provided that the Collector may, for reasons to be recorded in writing, defer the examination of goods or class of goods belonging to a particular importer or class of importers, exporters or class of exporters and cause it to be performed at a designated place he deems fit and proper.]

199. Power to take samples of goods.
(1) The appropriate officer may, on the entry or clearance of any goods or at any time while such goods are being passed through the customs-area, take samples of such goods in the presence of the owner thereof or his agent 3[or where the Customs Computerized System is operational in the presence of the custodian of the goods], for examination or testing or for ascertaining value thereof or for any other necessary purpose.

(2) After the purpose for which a sample was taken is carried out, such sample shall, if practicable, be restored to the owner, but if the owner fails to take delivery of the sample within one month of the date on which he is asked in writing to take its delivery, it may be disposed of in such manner as the Collector of Customs may direct.

(3) In the case of goods which consist of drugs or articles intended for consumption as food, and in respect of which the taking of samples for the purposes of this sub-section may have been authorised by a general or special order of the Provincial Government, the appropriate officer may also in like circumstances take samples thereof for submission to, and examination by, such officer of Government or of a local authority as may be specified in such order.

200. Owner to make all arrangements and bear all expenses.
Any opening, un-packing, 3[weighing], measuring, repacking, bulking, sorting, letting, marking, numbering, loading, unloading, carrying, or lading of goods or their containers for the purposes of, or incidental to, the examination by an officer of customs, removal or warehousing thereof shall be done, and any facilities or assistance required for any such examination shall be provided, by or at the expense of the owner of goods 5[:]

6[Provided that at customs-stations with the operational Customs Computerized System all the above functions shall be performed by the custodian of the cargo and the importer 48[or exporter] shall bear all expenses.]

201. Procedure for sale of goods and application of sales proceeds.
(1) Where any goods, other than confiscated goods, are to be sold under any provision of this Act, they shall be sold after due notice to the owner 7[or his agent or custodian of the goods] by public auction 55[omitted].

41[(1A) The goods may be sold under sub-section (1) through electronic means, as prescribed by the Board under the rules.]

(2) The sale proceeds shall be applied to the following purposes in their respective order, namely:-

(a) first to pay the expenses of the sale;

(b) then to pay the freight or other charges, if any, payable in respect of the goods, if notice of such charges has been given to the person holding the goods in custody;

(c) then to pay the customs-duty, other taxes and dues payable to the 8[Federal Government] in respect of such goods;

(d) then to pay the charges due to the person holding such goods in custody.

(3) The balance, if any, shall be paid to the owner of the goods, provided he applies for it within six months of the sale of the goods or shows sufficient cause for not doing so 52[:

Provided that, in case wherein goods declaration has been filed, the share of importer in sale proceeds shall not exceed the declared value of the goods.]

55[(4) No court shall stay the auction proceedings unless the person obtaining stay order furnish pay order or bank guarantee not less than fifty per cent of the reserve price of the goods before the nazir of the court.]

9[202. Recovery of Government dues.
(1) When, under this Act or under any other law for the time being in force, which provides for any tax, duty or other levy being collected in the same manner as customs-duties are collected, a penalty is adjudged against, or notice or demand is served upon, any person calling for the payment of any amount unpaid which may be payable by way of penalty or by way of duty, tax or other levy or under any bond 10[,guarantee] or other instrument executed under this Act or such other law or the rules made there under, the appropriate officer-

(a) may deduct or require any other officer of Customs, 49[or Inland Revenue] to deduct such amount from any money owing to such person which may be under the control of the Customs, 49[or Inland Revenue] authorities; or

(b) if it cannot be so recovered, may recover, or may require any other officer of Customs, 49[or Inland Revenue] to recover, such amount by detaining and selling any goods belonging to such person which are under the control of the Customs, 49[or Inland Revenue] authorities 10a[:]

10a[

Provided that notwithstanding anything contained in any other law for the time being in force, if a defaulter sells or transfers ownership of his assets, the defaulted amount of duty and taxes shall be the first charge on the business so transferred.]

(2) If the amount cannot be recovered from such person in the manner provided in sub-section (1), the appropriate officer may serve upon the defaulter a notice in the prescribed form requiring him to pay the amount specified in the notice within such time as may be so specified.

(3) If the amount referred to in the notice under sub-section (2) is not paid within the time specified therein or within the further time, if any, allowed by the appropriate officer, the appropriate officer may proceed to recover from the defaulter the said amount by one or more the following modes, namely:-

(a) attachment and sale of any movable or immovable property of the defaulter; and

11[(b) may recover, or may require any other officer of Customs, 49[or Inland Revenue] to recover, if it cannot be so re-covered, such amount by detaining and selling an goods belonging to such person which are under the control of the Customs, 49[or Inland Revenue] authorities; or

(a) may recover such amount by attachment and sale of any movable and immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument 12[; or]

13[(d) arrest of the defaulter and his detention in the prison for a period not exceeding fifteen days:

Provided that this mode shall not be applied unless the period of limitation prescribed for filing appeal has expired, or an appeal is pending.]

14[(3A) A warrant of arrest issued against a defaulter in sub-section (3)(d) shall not be executed if the arrears due from him are paid or the defaulter furnished security to the satisfaction of appropriate officer.

(3B) Any defaulter who under sub-section (3) is being kept under detention shall forthwith be set at liberty on the arrears due from him being paid.]

(4) For the purposes of recovery of duty, or other levy under 15[sub-sections(1) and (3)], the appropriate officer shall have the same powers which, under the Code of Civil Procedure, 1908 (Act V of 1908), a civil court has for the purpose of the recovery of an amount due under a decree.

(5) The Board may make rules regulating the procedure for recovery of duty, tax or other levy under this section and any other matter connected with or incidental to the operation of this section 14a[:]

14a[

Provided that if any arrears which may be payable by way of duty, surcharge, fee, service charges, fine or penalty or any other amount which is adjudged or payable under any bond, guarantee or other instrument executed under this Act or the rules made thereunder, cannot be recovered, the Board or any officer not below the rank of Collector authorized by the Board, may for reasons to be recorded, write off the arrears in the manner as may be prescribed by rules.]

16[202A. Levy of surcharge.
Notwithstanding anything contained in this Act and without prejudice to any other action that may be taken thereunder, if any person fails to pay the arrears within the prescribed time, he shall, in addition to the arrears, be liable to pay surcharge at the rate of 40[KIBOR plus three per cent per annum], of the total amount of arrears.

Explanation.- For the purpose of calculating surcharge, the period of default shall be reckoned from the day following the due date on which the arrears were required to be paid to the day preceding the date on which the same are actually paid.]

4253[202B. Reward to Customs Officers and Officials.
Agencies.-(1) In cases involving evasion of customs-duty and other taxes and confiscation of goods, cash reward shall be sanctioned to the Officers of Customs Service of Pakistan, as defined under the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990 and officials including officers and officials of other law enforcement agencies, who assist Customs officers and officials or are actually instrumental in seizure of smuggled goods and vehicles as confirmed by the respective Collector of Customs, for their meritorious conduct in such cases, and to the informer providing credible information leading to such confiscation or detection, as may be prescribed by rules by the Board, only after realization of part or whole of the duty and taxes involved in such cases.]

(2). The Board may, by a notification in the official Gazette, prescribe the procedure in this behalf and specify the apportionment of reward sanctioned under this section for individual performance or to collective welfare of the personnel of 45[Customs Service of Pakistan, as defined under the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990.]

203. Wharfage or storage fees.
The Collector of Customs may from time to time fix the period after the expiration of which goods left in any custom-house, custom area, wharf or other authorised landing place or part of the custom-house premises, shall be subject to payment of fees, and the amount of such fees 50[as provided under the rules prescribed by the Board].

16[203A. Power to authorize expenditure.
The Board may authorize and prescribe the manner in which fee and service charges collected including by ventures of public-private partnership under section 18D are expended. ]

204. Issue of certificate and duplicates of customs’ document.
A certificate or a duplicate of any certificate, manifest, bill or other custom’s document may, on payment of a fee not exceeding 17[one hundred] rupees, be furnished, at the discretion of an officer of customs not below the rank of an Assistant Collector of Customs, to any person applying for the same, if the said officer is satisfied that no fraud has been committed or is intended to be committed by the applicant.

205. Amendment of documents.
Except in the case provided for by sections 29, 45, 53 and 88, an officer of customs not below the rank of an 18/18A[Assistant Collector] of Customs may, in his discretion, upon payment of a fee of 19[one hundred] rupees, authorise any document, after it has been presented at the custom-house to be amended.

206. Correction of clerical errors, etc.
Clerical or arithmetical errors in any decision or order passed by the 8[Federal Government], the Board or any officer of customs under this Act, or errors arising therein from accidental slip or omission may, at any time, be corrected by the 8[Federal Government], the Board or such officer of customs or his successor in office, as the case may be.

207. Custom-house agents to be licensed.
No person shall act 20[on behalf of any principal] for the transaction of any business 21a[21[****] relating to the entrance or departure of any conveyance 21b[or any customs clearance related activity] or the import or export of goods or baggage at any customs-station unless such person holds a license granted in this behalf in accordance with the rules 22[as a customs agent 47[or a shipping agent].

23[208. Person to produce authority if required.- (1) When any person licensed under section 207 applies to any officer of Customs for permission to transact any specified business with him on behalf of any principal, such officer may require the applicant to produce a written authority from the principal on whose behalf such business is to be transacted, and in default of the production of such authority refuse such permission.

(2) Where the principal chooses to transact business directly without using an agent licensed under section 207, he may do so himself or may authorize an employee or representative that may transact business generally at the customs-port, airport or land customs-station or custom-house for such principal:

Provided that the appropriate officer may refuse to recognize such an employee or representative unless such a person produces an authority in writing duly signed by the principal 54[:

Provided further that the Board may make rules regarding eligibility of a person for self-filing of goods declaration as provided under sub-section (2) read with section 155C of this Act.]

24[209. Liability of principal and agent.
s.- (1) Subject to the provisions of section 207 and 208, anything which the principal is required or empowered to do under this Act may be done by any person expressly authorized by the principal for the purpose.

(2) Where this Act requires anything to be done by the principal and if any such thing is done, by an employee or representative expressly authorized by the principal under sub-section (2) of section 208, unless the contrary is proved, shall be deemed to have been done with the knowledge and consent of such principal so that in any proceedings under this Act, the principal shall be liable as if the thing had been done by himself.

(3) When any customs agent is expressly authorized by the principal to be his agent under sub-section (1) of section 208 in respect of such goods for all or any of the purposes of this Act, such agent shall, without prejudice to the liability of the principal, be deemed to be the principal of such goods for such purposes:

Provided that where any duty is not levied or is short-levied or erroneously refunded on account of any reason other than willful act, negligence or default of the agent, such duty shall not be recovered from the agent.]

210. Liability of agent appointed by the person-in-charge of a.
conveyance.-

(1) Anything which the person-in-charge of a conveyance, is required or empowered to do under this Act may, with the express or implied consent of the person-in-charge and the approval of the appropriate officer, be done by his agent.

(2) An agent appointed by the person-in-charge of a conveyance, and any person who represents himself to any officer of customs as an agent of any such person-in-charge and is accepted as such by that officer, shall be liable for the fulfillment in respect of the matter in question of all obligations imposed on such person-in-charge by or under this Act or any law for the time being in force, and to penalties (including confiscation) which may be incurred in respect of that matter.

25[211. Maintenance of record.
43[All importers, exporters and claimants of duty drawback, refunds or any notified concessions, terminal operators, owners of the warehouses, customs agents and the licensed customs bonded carriers, transport operators and tracking companies, carrying out business under this Act or rules made thereunder or under any other law, directly or indirectly, relating to international trade, shall be required to maintain and keep records and correspondence concerning import, export and transit trade transactions.]

(2) The records required under sub-section (1) shall be kept for a period not less than 25a[five] years in such form as the Board may by notification in the official gazette, specify.

(3) The provision of sub-section (1) shall not be applicable to the baggage of the passengers and crew of the conveyance and to the recipients of gifts.]

26[211A. Access to the premises and records by the officers of.
Customs.- The appropriate officer may, at any time after giving a notice in writing, visit any business or manufacturing premises where any raw materials, components, assemblies or sub-assemblies etc., imported at a notified reduced rate of the duties and taxes are manufactured, processed or stored, and inspect the goods, stocks, documents or records, data etc., and also take stock of the goods imported, manufactured, processed or stored, and the quantity thereof.]

212. Regulation of business in gold, etc.
The 8[Federal Government] may, by notification in the official Gazette, regulate business in, or connected with, gold or silver or precious stones or ornaments made of gold or silver or precious stones, within fifteen miles of the frontier or coastline of Pakistan.

47[212A. A uthorized economic operator programme.
(1) The Federal Government may, by notification in the official Gazette, devise authorized economic operator programme to provide facilitations relating to secure supply chains of imported and exported goods through simplified procedures with regard to regulatory controls applicable thereon.

(2) The Board may, 51[Omitted], prescribe rules on matters pertaining to authorized economic operator programme.] 52(3) Notwithstanding anything contained in this Act or any other law for the time being in force, the Board may, subject to such conditions, limitations or restrictions as it thinks fit to impose, grant benefits to the authorized economic operators, in such manner as may be provided under the rules made, including-

(a) laying down any procedure or mode for collection of customs duties, fee, surcharge, penalty or any other levy under this Act or any other law;

(b) deferring collection of customs duties, fee, surcharge, penalty or any other levy either in whole or in part;

(c) condoning or substituting whole or part of the bank guarantee or pay order of a scheduled bank required under this Act with any other financial instrument as deemed appropriate.]

52[212B. Advance Ruling.
(1) An applicant desirous of Advance Ruling may make an application in such form and in such manner as may be prescribed under the rules, stating any of the questions as contained in sub-section (2) hereinafter on which the Advance Ruling is sought.

(2) The question on which advance ruling is sought shall be in respect of,

(i) classification of goods under the first schedule to this Act;

(ii) determination of origin of the goods under the rules of origin notified for bilateral and multilateral agreements; or

(iii) 54[Omitted]

(iv) any other matter as the Board may specify by notification in the official Gazette.

(3) The proceedings for issuance of advance ruling shall be completed within ninety days.

(4) The Ruling issued under sub-section (1) shall be binding on the applicant.

(5) The Ruling issued under sub-section (1) shall be binding on the Customs for a period of 53[three years] unless there is a change in law or facts or circumstances on the basis of which the advance ruling was pronounced.

(6) The appeal against the Ruling issued under sub-section (1) shall lie with the Member Customs (Policy) within thirty days of issuance of Ruling:

Provided that during the appeal period of thirty days, the operation of Ruling shall remain suspended unless the applicant accepts the Ruling.]

213. Recovery of money upon certain documents.
If any person knowingly makes or brings into Pakistan, or causes or authorizes or is otherwise concerned in the making or bringing into Pakistan of any invoice or paper used or intended to be used as an invoice for the purposes of customs, in which any goods are entered or charged at a price or value higher or lower than that actually paid or intended to be paid for them, or in which goods are falsely described, no sum of money shall be recoverable by such person, his representatives or assigns, for the price of such goods or any part thereof, nor shall any sum of money be recoverable upon any bill of exchange, note or other security made, given or executed for the whole or part of the price of such goods unless such bill of exchange, note or other security is in the hands of a bona fide holder for consideration without notice.

214. Remission of duty and payment of compensation to the.
owner in certain cases.- Where, on prosecution by the owner of any goods, an officer of customs is convicted of an offence connected with the removal of such goods from the warehouse without payment of duty, the whole of the duty on such goods shall be remitted, and, the Collector of Customs, shall, in accordance with the rules, pay to the owner due compensation for the damage caused to the owner by such offence.

215. Service of order, decision, etc.
Any order or decision passed or any summons or notice issued under this Act shall be served-

(a) by tendering the order, decision, summons or notice or sending it by registered post 27[or the courier service or by any other mode of transmission subject to acknowledgement receipt] 28[***] to the person for whom it is intended or to his agent; or

(b) if the order, decision, summons or notice cannot be served in any manner provided in clause (a), by affixing it on the notice board of the custom-house 29[;or]

30[(c) in case of electronic orders, decisions, notices or summons, when these have been sent to the recipient from the Customs Computerized System; or]

(d) in the manner prescribed for service of a summons under the Code of Civil Procedure, 1908 (Act V of 1908).

216. No compensation for loss or injury except on proof of.
neglect or willful act.- No owner of goods shall be entitled to claim from any officer of customs compensation for the loss of such goods or for damage done to them at any time while they remain or are lawfully detained in any custom-house, customs area, wharf or landing place under the charge of any officer of custom, unless it be proved that such loss or damage was occasioned by gross negligence or willful act of such officer.

217. Protection of action taken under the Act.
31[(1) No suit, prosecution or other legal proceeding shall lie against the 8[Federal Government] or any public servant for anything which is done or intended to be done in good faith in pursuance of this Act or the rules 32[and notwithstanding anything in any other law for the time being in force no investigation or enquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or directions made or issued thereunder without the prior approval of the 31a[Board] ].

33[(2) No suit shall be brought in any civil court to set aside or modify any order passed, any assessment made, any tax levied, any penalty imposed or collection of any tax made under this Act.]

218. Notice of proceedings.
No proceeding in a court other than a suit shall be commenced against any officer of customs or any other person exercising any powers conferred or discharging any duties imposed by or under this Act for anything purporting to be done in pursuance of the provisions of this Act or the rules without giving to such officer or person a month’s previous notice in writing of the intended proceeding and of the cause thereof; or after the expiration of one year from the accrual of such cause 34[:]

35[Provided that this section shall not be deemed to apply in the case of the prosecution of an officer of customs or such other person for an offence punishable under this Act.]

219. Power to make rules.
(1) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this Act 36[, including for charging of fees for processing the customs documents and preparation of copies thereof].

(2) Without prejudice to the generality of the foregoing provision, rules may be made on matters enumerated in the 37[Third Schedule].

(3) No rules relating to matters enumerated at items 19 and 22 of the 37[Third Schedule] shall be made without previous approval of the 8[Federal Government] in writing.

47[(3A) Rules made under this section shall be subject to the condition of previous publication.]

(4) All rules under this section shall, as soon as may be, be laid at the table of the National Assembly.

(5) All such rules for the time being in force shall be collected, arranged, and published at intervals not exceeding two years and shall be sold to the public at a reasonable price.

46[219A. Power to enter into mutual legal assistance agreements on customs matters.
(1) The Board may, of its own motion or upon request from an international organization, a foreign customs administration or any other foreign competent authority, enter into memorandum of understanding pertaining to mutual legal assistance in customs matters or in pursuance of any bilateral or a multilateral agreement, undertake activities, which, inter alia, include-

(a) coordinated border management;

(b) information and data sharing;

(c) bilateral and multilateral international special operations, including, by the method of controlled delivery;

(d) capacity building and technical assistance initiatives; and

(e) any other matter to which both or all parties agree.

(2) Notwithstanding anything contained in any other law, for the time being in force, the Board may, on behalf of the Federal Government, request an international organization, a foreign customs administration or any other foreign competent authority for legal assistance on any matter or offence under this Act or upon request received therefrom.

(3) The Board may, by notification in the official Gazette, prescribe the rules for any of the matters enumerated in this section.]

38[220. [Omitted].]

221. Savings.
(1) Notwithstanding anything contained in section 6 of the General Clauses Act, 1897 (X of 1897), anything done, or any action taken under the repealed enactments in so far as it is not inconsistent with the provisions of this Act shall, without prejudice to anything already done or any action already taken, be deemed to have been done or taken under this Act:

Provided that nothing in this Act shall be so construed as to have the effect of enhancing the punishment of an offence committed before the commencement of this Act:

Provided further that where the period of limitation for the submission of an application or the filing of an appeal or revision prescribed under any of the repealed enactments had expired or had begun to run before the commencement of this Act the provisions of those enactments shall continue to apply to such limitation.

(2) The provisions of the General Clauses Act, 1897 (X of 1897), in particulars, section 6, section 8 and section 24 thereof, shall apply to the repeal and re-enactment of the said enactments by this Act, subject to the provisions of sub-section (1).

(3) Nothing in this Act shall affect any law for the time being in force relating to the constitution and powers of the trustees of any port or other port authority.

46[221A. Validation.
47[(1)] All notifications and orders issued and notified in exercise of the powers conferred upon the Federal Government, before the commencement of Finance Act, 2017 shall be deemed to have been validly issued and notified in exercise of those powers.]

47[(2) Notwithstanding any order or judgment of any court, a High Court and the Supreme Court, the regulatory duty already levied, collected and realized in exercise of any powers under this Act, before the commencement of the Finance Act, 2018 and after the commencement of the Finance Act, 2017, shall be deemed to have been validly levied, collected and realized under this Act, in exercise of the powers conferred on the commencement of the Finance Act, 2018, and where any such regulatory duty has not been levied, collected or realized, the same shall be recoverable in accordance with the provisions of this Act.]

222. Removal of difficulties.- If any difficulty arises in giving effect to the provisions of this Act, particularly in relation to the transition from the enactments repealed by this Act to the provisions of this Act, the 5[Federal Government] may, by general or special order made during the period of one year from the commencement of this Act, direct such action to be taken as it considers necessary or expedient for the purpose of removing the difficulty.

39[223. Officers of Customs to follow Board’s orders, etc.- All officers of customs and other persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Board:

Provided that no such orders, instructions or directions shall be given so as to interfere with the discretion of the appropriate officer of customs in the exercise of their quasi-judicial functions.

224. Extension of time limit.
The Federal Government, the Board or the appropriate officer of customs, may, upon being approached by an aggrieved party if satisfied that the delay was beyond the control of the applicant and that by granting such extension there is a possibility of some loss or hardship to the applicant being mitigated or prevented, 44[condone the delay and extend the time limit laid down in this Act or the rules made thereunder.]

55[225. Establishment of Customs Command Fund (CCF).
(1) There shall be established a fund to be called the Customs Command Fund.

(2) Allocation for the Customs Command Fund shall be made by the Federal Government from the sale proceeds of auction of smuggled goods, for supporting anti-smuggling activities, as per the share notified by the Board with the concurrence of the Finance Division.

Explanation.- Sale proceeds shall become part of the Federal Consolidated Fund before budgetary allocation of amount to the Customs Command Fund established under this section.

(3) The Board may prescribe the manner for utilization of the funds received in the Customs Command Fund and impose any conditions, limitations or restrictions as it may deem necessary.

226. Digital Enforcement Station.
(1) The Board may, by a notification in the official Gazette, declare places to be Digital Enforcement Stations at such locations as deemed appropriate for the prevention of smuggling and illicit trade. The Board may notify any existing customs check-post as Digital Enforcement Station.

(2) The Board, may by notification in the official Gazette, make rules for staffing, operations and technological enablement of Digital Enforcement Station.

(3) The Board may subject to rules hire retired junior-commissioned officers and soldiers of the armed forces against the available posts of customs on contract for the purpose of this section.]

LEGAL REFERENCE

1. Substituted for the full stop by the Finance Act, 2005. 2. Added by the Finance Act, 2005. 3. Inserted by Finance Act, 2004. 4. In the original text the word is “waiving”. This does not give any sense, hence the change. 5. Substituted for the full stop by the Finance Act, 2003 (I of 2003), S.5(35), page 41 6. Added by the Finance Act, 2003 (I of 2003), S.5(35), page 41. 7. Inserted by the Finance Act, 2006. 8. Substituted for the words “Central Government” by the Finance Ordinance, 1972 (XXI of 1972), S.3, page 56 and Second Schedule, S.1, page 76. 9. Substituted by the Finance Act, 1989 (V of 1989), S.5(7), page 119. At the time of substitution section 202 was as under:-

“202. Recovery of Government dues.- (1) When, under this Act, a penalty is adjudged against any person or notice or demand is served upon any person calling for the payment of any amount unpaid which may be payable by way of duty or under any bond or other instrument executed under this Act or the rules, the appropriate officer-

(a) may deduct or require any other officer of customs to deduct such amount from any money owing to such person which may be under the control of the customs authorities; or

(b) if it cannot be so recovered, may recover or may require any other officer of customs to recover such amount by detaining and selling any goods belonging to such person which are under the control of the customs authorities.

(2) If the amount cannot be recovered from such person in the manner provided in sub-section (1), the appropriate officer may send to the Collector of the District in which such person resides or owns any property or carries on his business a certificate signed by him and specifying the amount recoverable from such person: and such Collector shall on receiving such certificate proceed to recover the amount specified in the certificate as a public demand or an arrear of land revenue.”.

10a. Added by the Finance Act, 2007. 11. Substituted by the Finance Act, 1994 (XII of 1994), S.6(4)(b), page 254. At the time of substitution this was as under:- “(b) appointment of a receiver for the management of the movable or immovable property of the defaulter.”. 12. Substituted for the full stop by the Finance Act, 1999 ((IV of 1999), S.10(12)(I), page 769. 13. Added by the Finance Act, 1999 (IV of 1999), S.10(12)(I), page 769. 14. Inserted by the Finance Act, 1999 (IV of 1999), S.10(12)(ii), page 769. 14a. Added by the Finance Act, 2007. 15. Substituted for the word, brackets and figure “sub-section (3)” by the Finance Act, 1994 (XII of 1994), S.6(4)(c), page 254. 16. Added new section 202A by the Finance Act, 2006. 16a. Inserted by the Finance Act, 2007. 17. Substituted for the word “ten” by the Finance Ordinance, 2002 (XXVII of 2002), S.4(14), page 227. 18. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S. 18A. By the Finance Act, 2006 the words ”or Deputy Collector” were omitted. 19. Substituted for the word “five” by the Finance Ordinance, 2002 (XXVII of 2002), S.4(15), page 227. page 41. 21. Inserted the words” or issuance of bill of lading” by Finance Act, 2005. 21a Omitted the words” or issuance of bill of lading” by Finance Act, 2007. 21b. Inserted by the Finance Act, 2007. 22. Added by the Finance Act, 2003 (I of 2003), S.5(36)(b), page 41.

23. Substituted by the Finance Act, 2003 (I of 2003), S.5(37), paged 41. At the time of substitution section 208 was as under:-

“208. Agent to produce authority if required.- (1) When any person applies to any officers of customs for permission to transact any specified business with him on behalf of any other person, such officer may require the applicant to produce a written authority from the person on whose behalf such business is to be transacted, and in default of the production of such authority refuse such permission.

(2) the clerk, servant or agent of any person or mercantile firm may transact business generally at the custom-house on behalf of such person or firm:

Provided that the appropriate officer may refuse to recognize such clerk, servant or agent unless such person or a member of such firm identifies such clerk, servant or agent to the appropriate officer as empowered to transact such business and deposits with the said officer an authority in writing duly signed, authorizing such clerk, servant or agent to transact such business on behalf of such person or firm:

Provided further that the Central Board of Revenue may, by an order, published in the official Gazette, prohibit transaction with customs of any specified business through a clerk, servant or agent.”.

24. Substituted by the Finance Act, 2003 (I of 2003), S.5(38), page 42. At the time of substitution section 209 was as under:-

“209. Liability of principal and agent.- (1) Subject to the provisions of sections 207 and 208, anything which the owner of any goods is required or empowered to do under this Act may be done by any person expressly or impliedly authorized by the owner for the purpose.

(2) Where this Act requires anything to be done by the owner, importer or exporter of any goods, any such thing done by an agent, clerk or servant of the owner, importer or exporter of any goods shall, unless the contrary is proved, be deemed to have been done with the knowledge and consent of such owner, importer or exporter so that in any proceedings under this Act the owner, importer or exporter of the goods shall also be liable as if the thing had been done by himself.

(3) When any person is expressly or impliedly authorised by the owner, importer or exporter of any goods to be his agent in respect of such goods for all or any of the purposes of this Act, such person shall, without prejudice to the liability of the owner, importer or exporter, be deemed to be the owner, importer or exporter of such goods for such purposes:

Provided that where any duty is not levied or is short-levied or erroneously refunded or account of any reason other than willful act, negligence or default of the agent, such duty shall not be recovered from the agent.”.

25. Substituted by the Finance Act, 2006. At the time of substitution section 211 was as under:-

“211. Principals and agents to maintain records.- All principals and agents transacting business under this Act, except those importing or exporting goods for bonafide private or personal purposes, shall, for a period of not less than [three years] maintain records in such form as the Board may, by notification in the official Gazette, specify.” 25a. For the word “three” the word “five” was substituted by the Finance Act, 2007. 26.. Inserted section 211A by the Finance Act, 2006. 27. Inserted by the Finance Act, 2005. 28. The word “acknowledgement due” omitted by the Finance Ordinance, 1982 29. Substituted for the full stop by the Finance Act, 2003 (I of 2003), S.5(40)(a), 30. Added by the Finance Act, 2003 (I of 2003), S.5(40)(b), page 43.

31. Re-numbered as sub-section (1) by the Finance Act, 1992 (VII of 1992), S.6(6), page 114 and substituted by the Finance Act, 2003 (I of 2003). “(1) No suit, prosecution or other legal proceeding shall lie against the 5[Federal Government] or any public servant for anything which is done or intended to be done in good faith in pursuance of this Act or the Rules.”. 31a. For the word “Central Board of Revenue” the word “Board” was substituted by the Finance Act, 2007. 32. Inserted by the Finance Act, 2003 (I of 2003), S.5(41), page 43. 33. Added by the Finance Act, 1992 (VII of 1992), S.6(6), page 114. 34. Substituted for the “full stop” by the Prevention of Smuggling Act, 1977. 35. Added by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(viii), page 229. 36. Added by the Finance Act, 1994 (XII of 1994), S.6(5), page 254. 37. Substituted for the words “First Schedule” by the Finance Act, 1975 (L of 1975), 38. Omitted by the Federal Laws (R&D) Ordinance, 1981. At the time of omission section 220 was as under:- “220. Repeals and amendments.- The enactment specified in the 38a[Fourth Schedule] are repealed or amended to the extent specified respectively in columns 3 and 4 thereof.”. 38a. Substituted for the words “second Schedule” by the Finance Act, 1975. 39.. Added by the Finance Act, 1975 (L of 1975),S.7(7), page 10. 40. The words “one and a half per cent per month” substituted with the words KIBO plus three per cent per annum” by Finance Act,2009. 41. Inserted by Finance Act, 2012. 42. Inserted by Finance Act, 2012 43. Substituted for the word “(1) All importers, exporters and claimants of duty drawback, refunds or any notified concessions, terminal operators, owners of the warehouses, customs agents and the licensed customs bonded carriers, carrying out business under this Act or any other law, directly or indirectly, relating to international trade, shall be required to maintain and keep records and correspondence concerning import and export transactions” by the Finance Act, 2012. 44. Substituted for the word “extend the time limit laid down in any section” by the Finance Act, 2012. 45. Substituted for the words “Pakistan Customs Service” by Finance Act, 2013. 46. Inserted by Finance Act, 2017 47. Inserted by Finance Act, 2018. 48. Inserted by Finance Act, 2019. 49. Substituted by Finance Act, 2019. At the time of substitution the words was “Central Excise and Sales Tax”. 50. Inserted by Finance Act, 2019. 51. Omitted the Finance Act, 2019. At the time of omission the words was ”with approval of Federal Government” 52. Inserted/substituted by Finance Act, 2020 (June) 53. Inserted by Finance Act, 2021 (June) 54. Inserted/Substituted by Finance Act, 2023(June) 55. Inserted/substituted by Finance Act, 2025 (June)

THE FIRST SCHEDULE

(See section 2(16) (See Finance Act, 2026)

4[THE SECOND SCHEDULE]

(See section 18)

THE THIRD SCHEDULE

(See section 219)

1. Regulation of proceedings for the detention and confiscation of the prohibited goods imported or intended to be exported, including verification of information relating to such goods, notices to be given to the owner or other parties, security for the custody or release of such goods, examination of evidence, reimbursement by the informant of expenses and damages caused by incorrect information supplied by him.

2. Cases in which the goods or material imported with a view to subsequent exportation, or to be used in the production, manufacture, processing, repair or refitting of goods specified in the rules may be delivered without payment of the whole or part of the duty; and repayment of duty on such goods and material.

3. Valuation of the goods imported or intended to be exported, submission by the importer or exporter of information necessary for the proper valuation of the goods; and production of the relevant books and documents by him, furnishing of information by the importer relating to the sources, nature and amount of the funds or assets by which the goods were acquired or the consideration for which and the manner in which it was disposed of.

4. Determining denatured spirit, and testing and denaturing of spirit.

5. Matters pertaining to drawback; drawback in respect of used goods, the amount of duty which shall be repaid as drawback on such goods; prohibition of drawback on any specified goods or class of goods; conditions for the payment of drawback; limiting the period during which such goods must be exported; limiting the time during which drawback may be claimed.

6. The extent to which and the conditions subject to which drawback may be allowed on the imported material used in the manufacture of goods in Pakistan which are exported.

7. Matters relating to port clearance or to departure of conveyances; grant of special pass permitting bulk to be broken; conditions relating to the grant of port clearance to the master of a vessel when the agent furnishes security for the delivery of export manifest and other documents.

8. Sealing of conveyances carrying transit goods and in other cases. licensee; conditions and restrictions applying to the license including furnishing of security; circumstances in which license may be suspended or revoked; appeals against the suspension or revocation of the license.

9. Matters pertaining to any business for the regulation of which a notification may be issued under section 212; the accounts and records to be maintained, and the information to be furnished, by persons engaged in such business.

10. Expenses to be charged when customs officer is specially employed to accompany the owner to the warehouse under section 93; fees to be charged for permitting the owner of any goods to deal with them as provided in section 94.

11. Matters pertaining to the manufacturing and other operators carried on in the warehouse.

12. Transshipment and prohibition and regulation and restriction of transshipment; transshipment of goods without payment of duty; powers of officers of customs in that behalf; and the fees for transshipment.

13. Export of frustrated cargo under section 138.

14. Transport of goods from one part of Pakistan to another foreign territory; conditions as to the due arrival of such goods at the destination.

15. Conditions and restrictions applying to the transit of goods to a foreign territory without payment of duty.

16. 1[Goods declaration]

17. Baggage of passengers and the crew, definition, declaration, custody, examination, assessment and clearance of such baggage, transit and transshipment of such baggage; circumstances and conditions under which such baggage or any specified class of goods included in such baggage would be exempt from duty; extent of such exemption.

18. Matters pertaining to the import or export of goods by post; examination, assessment, clearance, transit or transshipment of the goods so imported or to be exported.

19. Prevention of the taking out of Pakistan of any coastal goods the export of which is dutiable or prohibited under this Act or any other law; prevention of the substitution of imported goods or export goods by coastal goods on board a vessel; prohibiting the conveyance of any specified class of goods generally; or to or between specified ports in a coasting vessel.

20. Powers to be exercised by an officer stationed at a factory or building under section 176.

21. Licensing of agents; the form of the license and fee payable therefore; the authority competent to grant the license; the period of validity of the license; qualifications of the licensee; conditions and restrictions applying to the license including furnishing of security; circumstances in which license may be suspended or revoked; appeals against the suspension or revocation of the license.

22. Matters pertaining to any business for the regulation of which a notification may be issued under section 212; the accounts and records to be maintained, and the information to be furnished, by persons engaged in such business.

2[22A. Registration, and regulating the conduct, of the customs-practitioners appearing before any officer of customs, the Central Board of Revenue or the Federal Government in connection with any proceedings under this Act or the rules made thereunder.]

3[22B. The form in which the memorandum of appeals shall be made under Chapter XIX, the manner in which appeals shall be verified and matters relating to hearing of appeals, revisions and references under the said Chapter which are not provided for or not sufficiently provided for in the Act.]

5[22C. Matters pertaining to Authorized Economic Operator (AEO) programme, including criteria for granting status of AEO to an applicant, suspension and revocation of the AEO status; and the extent of benefits under AEO programme.]

23. Any other matter necessary for giving effect to the provisions of this Act.

6[THE FOURTH SCHEDULE]

(See section 219)

7[THE FIFTH SCHEDULE]

(See section 4 (30)

(See Finance Act, 2026)

LEGAL REFERENCES

1. Substituted the words” Bill of Export” by the Finance Act, 2006. 2. Inserted by Finance Act, 1977 (XXX of 1977), S.9(3), page 301. 3. Added by Finance Act, 1989 (V of 1989), S.5, Part-III, page 174. 4. Omitted by Finance Act, 2012. 5. Inserted by Finance Act, 2018 6. Omitted by the Federal Laws (Revision & Declaration) Ordinance, 1981 (XXVII of 1981), S.3 and Second Schedule w.e.f. 8th July, 1981. 7. Inserted by Finance Act, 2014