Amendments of the Customs Act 1969
Finance Act 2023 to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws WHEREAS, it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws for the purposes hereinafter appearing. Certain laws were amended through this Finance Act, 2023.
Amendments of the Customs Act 1969 (IV of 1969)
In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely: –
(1) in section 2, in clause (s), after the word “goods”, occurring for the first time, the expression “, anywhere within the territorial jurisdiction of Pakistan”, shall be inserted;
(2) in section 3C, for the expression “ Pakistan Customs Academy (PCA)”, occurring wherever, the expression “Customs Academy of Pakistan (CAP)” shall be substituted;
(3) in section 7, after the expression “(BMP)”, the expression “, Provincial Levies, Khasadar Force” shall be inserted;
(4) in section 19, –
(a) in sub-section (1), after the word “Pakistan,” occurring for the first time, the expression “, or to implement an agreement of the Government of Pakistan with any entity” shall be inserted; and (b) in sub-section (5), in the second proviso, for the figure “2023”, the figure “2024” shall be substituted;
(5) in section 25A, in sub-section (1), in the proviso, for the expression “incorporate values from”, the expression “consult prices of goods available in” shall be substituted; (6) in section 79, in sub-section (1), after the second proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
“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.”;
(7) in section 98, in sub-section (1), for the words “one month” occurring for the first time, the words “three months” shall be substituted;
(8) in section 139, in sub-section (1), after the word “crew”, the expression “or a representative on behalf of a group of passengers” shall be inserted;
(9) in section 156, in sub-section (1), in the Table, –
(a) against S.No.1, –
(i) sub-serial number (ii) shall be omitted; and
(ii) for sub-serial number (iii), the following shall be substituted, namely: –
“(iii) If any person fails to attach Such person shall General”; or electronically upload be liable to a mandatory documents penalty not required under section 79 or exceeding 131 of the Customs Act, Rs.50,000/-. 1969-,
(b) against S. No. 8, in sub-serial number (i), in clause (b), clause (c), clause (d) and clause (e), in column (2) after the word “times”, the words “but not less than” shall be inserted;
(c) against S.No. 9, in column (2), after the word “times”, the words “but not less than” shall be inserted;
(d) against S.No. 89, in sub-serial number (i), in column (2), after the word “times” occurring for second time, the words “but not less than” shall be
inserted;
(e) against S. No. 90, in column (2), after the word “times”, the words “but not less than” shall be inserted;
(10) in section 179, in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that the respondent may opt for adjudication through the customs computerized system for such goods or offences as notified by the
Board.”;
(11) in section 182, in the proviso, after the word, “that”, the expression “subject to rules,” and after the word “vehicles” the expression “, conveyance and any other equipment” shall be inserted;
(12) in section 185D, after sub-section (2), the following new sub-section shall be added, namely: –
“(3) The Board may at any stage of investigation direct transfer of investigation of criminal case from one field formation to other formation.”;
(13) in section 194A, in sub-section (1), in clause (f), for the full stop at the end, a semi-colon and the word “and” shall be substituted and thereafter the following new clause shall be added, namely: –
“(g) 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.”;
(13A) in section 195C, in sub-section (2), for clause (c), the following shall be substituted, namely: –
“(c) a retired judge not below the rank of a judge of 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.”;
(14) in section 208, in sub-section (2), in the proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely: –
“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.”;
(15) in section 212B, in sub-section (2), in clause (ii), after semi-colon, the word “or” shall be added and thereafter clause (iii) shall be omitted;
| “8(a) | 1. Imports or exports made by or for the qualified investment in respect of the project as specified at Serial No.1 of the First Schedule to the Foreign Investment (Promotion and Protection) Act, 2022. | Respective Headings | 0% | The concession shall be available subject to conditions, limitations and restrictions as prescribed in Serial 1 & 2 of Part-F of the Second Schedule to the Foreign Investment (Promotion and Protection) Act, 2022. |
| 2. Household goods of employees of Reko Diq Mining Company (Private) Limited. Explanation: – for the purpose of this Serial, the concession of Customs Duty includes all duties and levies leviable under the Customs Act, 1969. | Respective
Headings |
0% | Only such employees can claim the benefit who are either citizen of a country other than Pakistan or who for the Tax Year immediately prior to the import of goods were non-resident in Pakistan for the purpose of Income Tax Ordinance, 2001.”; |
(16) the amendments set out in the First Schedule to this Act shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969); and
(17) in the Fifth Schedule, –
(A) in Part-I, in column (1), –
(i) after S. No. 8, the following new S. No. 8(a) and the entries relating thereto in column (2), (3) (4) and (5) shall be inserted namely: –
(ii) against S. No. 26, in column (2), for the figure “2023”, the figure “2024”, shall be substituted;
(B) in Part-II, in Table A, in column (1), Sr. No. 312 and the entries relating thereto in columns (2), (3) and (4), shall be omitted;
(C) in Part-III, in the Table, in column (1), –
(i) against Sr. No. 113, in column (5), for the word “hemodialyzers”, the words “fluids and powders for use in hemodialyzers” shall be
substituted;
(ii) against Sr. No. 107, –
(a) in column (2), for the expression, “(i)Paper having specification 60 gm/m2 in 23X36 inches or 20X30 inches sheets (ii) Art paper having specification 20×30 inches, 23×30 inches, 23×33 inches, 23×36 inches and 700×1000 mm”, the expression “(i) Paper having specification 60 to 90 gsm of
20×30, 23×30, 23×36, 23×33 and 30×40 inches in sheets; and (ii) Art card or board (200 to 300 gsm) and art paper having specification 60 to 130 gsm of 20×30 inches, 23×30 inches, 23×36, 30×40 inches and 700×1000 mm in sheets”, shall be substituted”; and
(b) in column (3), for the PCT codes “4802.5510”, the PCT code “4802.6990”, shall be substituted and the PCT code
“4810.1310”, shall be omitted;”
(D) Part-V and the Table relating thereto, shall be omitted;
(E) in Part-V(A), in Table-II, –
(i) against S.No.1, in column (3), in sub-serial (d), for the PCT code “8501.3290”, the PCT code “8501.3200” shall be substituted;
(ii) against S.No.2, in column (3), in sub-serial (c), for the PCT code “8501.3290”, the PCT code “8711.6050” shall be substituted;
(iii) against S.No.3, in column (3), in sub-serial (a), for the PCT code “8501.3290”, the PCT code “8501.3200” shall be substituted; and
(F) For Part-V(B), the following shall be substituted, namely: –
“Part-V(B)
Import of Hybrid Electric Vehicles (CBUs)
Under Auto Industry Development and Export Policy (AIDEP) 2021-26
TABLE-I
| S. No | Description | PCT Code | CD% | Condition |
| (1) | (2) | (3) | (4) | (5) |
| 1. | Hybrid Electric Vehicles
(HEV) (CBU) |
8702.2090
8702.3090 |
1% | The concession shall be admissible to manufacturers on import of same variant to be assembled / manufactured locally from the date of issuance of manufacturing certificate and quota determination by Engineering Development Board (EDB). |
| 2. | Hybrid Electric Vehicles (HEV) (CBU) | 8704.4100
8704.4200 8704.5100 8704.5200 |
1% | The concession shall be admissible to manufacturers on import of same variant to be assembled / manufactured locally from the date of issuance of manufacturing certificate and quota determination by Engineering Development Board (EDB). |
TABLE-II
Import of Parts for Hybrid Vehicles Under Auto Industry Development and Export Policy (AIDEP) 2021-26
| S. No. | Description of Imported
Good |
PCT Code | CD % | Condition |
| (1) | (2) | (3) | (4) | (5) |
| 1. | Following parts for
Hybrid Electric Vehicle: – |
Respective
headings |
4% | The concession
shall be admissible to manufacturers of Hybrid electric vehicles subject to certification and quota determination by the Engineering Development Board (EDB). |
| 1.Battery pack and its parts:
(i) thermistor (ii) resistor (iii) capacitor (iv) bus bar |
||||
| 2.Cooling system for battery packs including blower, tubes, hoses, pump | ||||
| 3.Sensor hybrid vehicle battery voltage | ||||
| 4.Inverter assembly with converter (Power control unit) | ||||
| 5.Electric motor and generator for Transaxle assembly | ||||
| 6.Battery charging system / inlet connectors | ||||
| 7.Hybrid system control unit / hybrid ECU | ||||
| 8.Junction box | ||||
| 2. | Following parts for Plug- in-Hybrid Electric Vehicle: – | Respective headings | 3% | The concession shall be admissible to manufacturers of Plug-in Hybrid electric vehicles subject to certification and
quota determination by the Engineering Development Board (EDB). |
| 1.Battery pack and its parts:
(i) thermistor (ii) resistor (iii) capacitor (iv) bus bar |
||||
| 2.Cooling system for battery packs including blower, tubes, hoses, pump | ||||
| 3.Sensor hybrid vehicle battery voltage | ||||
| 4.Inverter assembly with converter (Power control unit) | ||||
| 5.Electric motor and generator for Transaxle assembly | ||||
| 6.Battery charging system / inlet connectors | ||||
| 7.Hybrid system control unit / hybrid ECU | ||||
| 8.Junction box | ||||
| 9.Charger | ||||
| 10.Charging port” |
Part V(C) Import of Agricultural Tractors
TABLE
| S. No. | Description | PCT Code | Customs Duty% |
| (1) | (2) | (3) | (4) |
| 1. | Agricultural Tractors, having an engine capacity exceeding 26 kW but not exceeding 75kW | 8701.9220
8701.9320 |
15% |
| 2. | Agricultural Tractors (other than mentioned at S. No. 1 above) | 8701.9100,
8701.9400 8701.9500 |
10%”; |
(18) In Notification No. S.R.O.966(I)/2022 dated the 30th day of June, 2022, the following amendments shall be made which shall be deemed to have been so made by the Federal Government in exercise of its powers conferred by sub-section (3) of section 18 of the Customs Act, 1969 (IV of 1969), namely: –
in the Table, –
(i) after S. No.140, and the entries relating thereto in columns (2), (3) and (4) the following new serial number and the entries relating thereto in columns (2), (3) and (4) shall be inserted, namely: –
| “140A | 2849.1000 | Calcium (Carbides) | 5”; |
(ii) after S. No.168, and the entries relating thereto in columns (2), (3) and (4), the following new serial number and the entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:
| “168A | 3824.9980 | Chloroparaffins liquid | 10% till 31st Dec.,2023 and 5% from 1st January 2024 to 30th June,2024”; |
(iii) after S. No.297, and the entries relating thereto in columns (2), (3) and (4), the following new serial number and the entries relating thereto in columns (2), (3) and (4) shall be inserted, namely: –
| “297A | 7002.3200 | Tubes of other glass
having a linear coefficient of expansion not exceeding 5 x 10-6 per Kelvin within a temperature of 00C to 3000C |
10”; |
(iv) for S.No.299, and the entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:-
| “299 | 70.05 | Float glass and surface
ground or polished glass, in sheets, whether or not having an absorbent, reflecting or non- reflecting layer, but not otherwise worked (except PCT code 7005.3000) |
30”;and |
(v) in paragraph 2, in clause (g), for the expression “exceeding diameter 75 mm”, the expression “of diameter 50 mm and exceeding 50 mm” shall be substituted;
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