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Ch. Sakhi Ch. Sakhi Muhammad Muhammad Ch. Sakhi Ch. Sakhi Muhammad Muhammad

Sr. Instructor Pakistan Sr. Instructor Pakistan Customs LahoreCustoms Lahore

SIGNIFCANCE OF CUSTOMS LAWSSIGNIFCANCE OF CUSTOMS LAWS ININ SUPPLY CHAINSUPPLY CHAIN

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ContentsContents

1 Supply Chain Road Map & Requirement

2

3

4

Main Entities

Logistics & Customs

Customs Laws

Supply Chain Road MapSupply Chain Road Map

1

Supply Chain Security RequirementSupply Chain Security Requirement

Traditional Working

Of Import

Single Point Services by Customs

at Export & import location.

From Traditional “Single Point” to “End-to-End”

Traditional Working

Of Export

1

Supply Chain Security RequirementSupply Chain Security Requirement

From Traditional “Single Point” to “End-to-End”

Expanding to Transit Port Intervention

Adding intervention at transit port.

1

Supply Chain Security RequirementSupply Chain Security Requirement

From Traditional “Single Point” to “End-to-End”

Securing Full Transport Legs

Securing the full maritime portion

1

Supply Chain Security RequirementSupply Chain Security Requirement

1 From Traditional “Single Point” to “End-to-End”

End-to-End Supply Chain Security Solution

Securing the entire supply chain from end-to-end

Main EntitiesMain Entities

2Shipper/Consignor:

An entity (individual/firm)

that sends freight.

Consignee:

An entity that receives the freight.Shipment is transacted

between consignor and consignee.

Carrier:

Transports the shipment. (Freight Forwarder, 3PLS,NVOCC, etc )

Logistics & CustomsLogistics & Customs

3Logistics of moving goods through Customs or more efficiently processing documentation associated with cross-border trade

Changing Role Of Customs

Role Of Technology

Can play major role in SCM,

Specially when the customer

requires accurate products

On right time & place

On low cost

Customs Laws Customs Laws

4 Evaluation Of Customs:

Framework of Standards

Security (terrorism – shifting focus to entire supply chain)

Economic Development (trade, investment)

Protection of Society (health & safety)

Protection of Economic Interests (domestic industries)

Revenue Collection of Import Taxes

Customs Function

Customs Laws

Customs Laws

4The goal of government-authorities is to institutionalize the procedures to protect the global trade supply chain.Security is Central policy priority for customs.Customs are the primary national authorities that ensure the control of all goods entering and leaving the customs territoryCustoms Plays an important role in collection the duties and taxes according to their Law.

(i) Introduction:

Customs laws, rules and regulations Customs laws, rules and regulations are fiscal statutes/ laws which deal are fiscal statutes/ laws which deal with the collection & protection of with the collection & protection of Customs duties & other allied taxes Customs duties & other allied taxes chargeable on chargeable on importation/exportation of foreign importation/exportation of foreign origin goods to generate the origin goods to generate the legitimate revenue of the State.legitimate revenue of the State.

Customs Laws

Customs Laws

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To levy, charge and imposition of customs duties and other allied taxes.

To provide substantive and procedural laws to facilitate the foreign trade.

To facilitate the exemptions , temporary Imports, Export oriented manufacturing Bonds and DTRE

To extend exemptions under regional agreements under WTO laws

e.g. SEPTA, SAFTA, FTA China etc…

(ii) Objectives

Customs Laws

Customs Laws

4

(iii)- TERMS USED UNDER CUSTOMS LAWS.

(iii)- TERMS USED UNDER CUSTOMS LAWS.

AGENT:- CUSTOM HOUSE AGENT

Eligibility; Pakistani, age 21 years, graduate, not convicted, test by DOT.Security; Saving certificates

i) Rs. 300,000 for one customs station

ii) Rs. 700,000 for countrywideResponsibilities.Legal actions against the clearing agent.

Customs Laws

Customs Laws

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(iv)-CARRIER

The person actually transporting goods;

orIn charge of ;

orResponsible for operation of the means of transport;

orthe owner of Transport.

Bonded/ Private Carrier

Customs Laws

Customs Laws

4

V)- COASTAL GOODS

Goods transported in a vessel from one port in Pakistan to another.

Does not include imported goods on which Customs Duty has not been paid

Customs Laws

Customs Laws

4

(vi)- CONVAYANCE

Transport used for carrying goods or passengers, such as a vessel, aircraft, vehicle or animal.

“goods” means all movable goods and includes; Conveyances, stores and materials, baggage, currency and negotiable instruments.

Customs Laws

Customs Laws

4

(vii)-BOAT NOTE- Section 68 (vii)-BOAT NOTE- Section 68

A document granted to cover any boat carrying goods from or to ship or to a ship for loading.

Absence of boat note- the goods are to be seized as improperly water born or as smuggled goods.

Water borne goods to be shipped or discharged from vessel in presence of an officer of Customs.

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Customs Laws

Customs Laws

4

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Viii)- CUSTOMS PORTSViii)- CUSTOMS PORTS

the places which alone shall be the clearance of goods imported or to be exported .

Customs Laws

Customs Laws

4

Area keeping imported/exported goods before clearance.

Proper places in any customs-station for loading & unloading of goods

(e.g. wharf).

(ix)- CUSTOMS AREA / STATION / WAREHOUSE

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(x)-DOCUMENTS(x)-DOCUMENTS Goods Declaration (GD), IGM/EGM, B/L, AWB,

invoice/PL, data/information recorded, catalogue/Literature, L/C, Bill of Exchange etc..

Customs Laws

Customs Laws

4

(xi)-Pakistan customs waters The waters extending into the sea to a

distance of 12 nautical miles from the coast of Pakistan.

Purposes; police, revenue, public health and fisheries.

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(xii)- EXPORT MENIFEST(EGM)(xii)- EXPORT MENIFEST(EGM)

Section 53 – Manifest specifying all goods to be exported.

All goods and stores entered in the import manifest.

Delivery of bill of export / GD or other requisite documents.

Customs Laws

Customs Laws

4

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(xiii)- IMPORT MENIFEST(IGM)

Section; 43- Fixed place on which import manifest is delivered by the Master to the Customs.

Where no such place is fixed the Master within 24 hours after arrival shall deliver an import manifest to Customs

Customs Laws

Customs Laws

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(xiv)- Master, person & person in charge.

(xiv)- Master, person & person in charge.

• any person, except a pilot or harbor master,

• any person having command or charge of such vessel.

• Person in charge -- master, commander or pilot incharge of the aircraft, conductor, guard of the train , driver/ any person having control of the conveyance.

Customs Laws

Customs Laws

4

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• Owner of the goods,

• Person primarily responsible for making a declaration under the Customs Act 1969.

• The person in-charge of the conveyance, carrier, custodian of cargo, and the

terminal operator.Customs Laws

Customs Laws

4(xv)- Principal (xv)- Principal

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(xvi)- Goods Declaration (GD)

i) Home Consumption (HC) ii) Into Bond (IB) iii) Ex- bond (EB)

(xvii)- Clearance for exportation(section 131)

- filing a GD, assessed and paid his liability of duty & taxes and other charges, if any. - The claim of duty drawback calculated and reflected in the GD or PaCCS.

Customs Laws

Customs Laws

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(xviii)-Frustrated Cargo- Section 138 (xviii)-Frustrated Cargo- Section 138• Goods brought into a customs-station

by reason of inadvertence , misdirection or untraceability of consignee.

(xix)-TRANSHIPMENTSections120-125.

• Does not to apply to postal articles. • Transshipment of goods without

payment of duty. • Superintendence of transshipment. • Entry, etc., of transshipped goods.• Levy of transshipment fees.

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Customs Laws

Customs Laws

4

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(xx)-TRANSHIPMENT

Sections120-125.

(xx)-TRANSHIPMENT

Sections120-125.

• Does not to apply to postal articles. • Transshipment of goods without

payment of duty. • Superintendence of transshipment. • Entry, etc., of transshipped goods.• Levy of transshipment fees.

Customs Laws

Customs Laws

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• Chapter not to apply to baggage and postal articles.

• Transit of goods in the same conveyance.

• Transport of certain classes of goods subject to prescribed

conditions.

• Transit of goods across Pakistan to a foreign territory.

Customs Laws

Customs Laws

4(xxi)-TRANSIT TRADE

Sections126-129

(xxi)-TRANSIT TRADE

Sections126-129

In Supply Chain ManagementIn Supply Chain Management

Questions Questions

End