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Finance
Bill
To give effect to the financial
proposals of the Federal Government for the year beginning on the first day July, 1999,
and to amend certain laws
WHEREAS it is expedient to make provision to give effect to the financial proposals of the
Federal Government for the year beginning on the first day of July, 1999, and to amend
certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-
1. Short title, extent and commencement.-
(1) This Act may be called the Finance Act, 1999.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once except clause (1) of section 3 and clauses III and V
of section 10 which shall come into force on such date as the Federal Government may, by
notification in the official Gazette, appoint and different dates may be so appointed for
different clauses.
2. Amendment of Act XX of 1941.- The following further amendments shall
be made in the Professions Tax Limitation Act, 1941 (XX of 1941), namely :-
(1) (a) In the long title, after the word "fifty" the word "thousand"
shall be inserted;
(b) For the preamble the following shall be substituted, namely: -
"WHEREAS Article 163 of the Constitution of the Islamic Republic of Pakistan provides
that a Provincial Assembly may impose taxes, not exceeding such limits as may be fixed by
an Act of Majlis-e-Shoora (Parliament), on persons engaged in professions, trades,
callings or employment, and no such Act of the Assembly shall be regarded as imposing a
tax on income;
AND WHEREAS it is expedient to fix the maximum limit of tax payable by persons engaged in
professions, trades, callings or employments;"
(2) In section 1, in sub-section (3), for the words, figures and commas "on the 1st
day of April, 1942" the words "at once" shall be substituted; and
(3) In section 2, after the word "fifty" the word "thousand"
shall be inserted.
3. Amendment of Act I of 1944.- The following further amendments
shall be made in the Central Excises Act, 1944 (I of 1944), namely:-
(1) in section 3, after sub-section (10), the following new sub-section
shall be added namely:-
"(11) Notwithstanding anything contained in this Act, with the prior approval of the
Federal Government, the Central Board of Revenue may, subject to such conditions,
limitations or restrictions as it may deem fit to impose, by notification in the official
Gazette, specify goods or class of goods, services or class of services for the purposes
of allowing credit of any duty of excise, whole or in part, paid on such inputs, as it may
specify, against the final liability of duty.";
(2) in section 35, in sub-section (2), for the words "one hundred rupees" the
words "one thousand rupees or ten per cent of the duty involved whichever is
less" shall be substituted;
(3) for section 35E, the following shall be substituted, namely:-
"35E. Powers of Board or Collector of Central Excise to pass certain orders.-
(1) The Central Board of Revenue or the Collector of Central Excise 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 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 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 Central Excise shall be called for or examined under sub-section
(1) after the expiry of two years from the date of such decision or order.";
(4) in the First Schedule, in the table under Chapter 98 and
heading 'services', in the first column,--
(i) against heading 9802.4000, in the second column, after the word "newspapers, the
comma and word ", journals" shall be inserted;
(ii) against heading 9808.0000, in the second column, below the words "courier
services" the following Explanation shall be inserted, namely:-
"Explanation.- For the purpose of this entry the expression "courier
service" means express delivery of documents, and non-documents weighing upto twenty
kilograms per package, irrespective of destination.";
(iii) For heading 9817.0000, and the entry relating thereto in second column the following
shall be substituted, namely:-
"9817.0000 Services of distribution and supply of natural gas to all consumers";
and
(iv) After the heading 9817.4000 and the entries relating thereto in the second and third
columns the following new heading number and the entries relating thereto, shall be added,
namely:-
"9818.0000 Services provided or 10 per cent rendered in respect of the amount of
credit cards billed.";
4. Amendment of Act VII of 1947.- The following further amendments
shall be made in the Foreign Exchange Regulation Act, 1947 (VII of 1947), namely :-(i) In
section 2, after sub-section (aa) the following new sub-section shall be added, namely:-
"(ab) "authorized money changer" means a person for the time being
authorized under section 3A to deal in foreign currency notes, bank notes, coins and
travellers cheques".
(ii) In section 3, sub-section (5) shall be omitted.
(iii) After section 3, the following new sections shall be inserted, namely:-
"3A. Authorized money changers in foreign exchange.-
(1) The State Bank may, on application made to it in this behalf, and on payment of a fee
prescribed by it, from time to time, authorize any person to deal in foreign currency
notes, bank notes, coins and travellers cheques.
(2) The power conferred under sub-section (1) shall be exercised on the basis of criteria
prescribed, and recommendations made, by a committee consisting of such official and
non-official representatives as may be nominated by the State Bank.
(3) An authorization made under this section may be for a specific period of time, which
may be renewed thereafter.
(4) An authorized money changer shall, in all his dealings under the authorization, comply
with such general or special directions or instructions as the State Bank may, from time
to time, think fit to give including those for supply of data, the rate and code of
conduct in doing business. Failure to comply with the instructions may lead to suspension
of the licence or other actions as necessary."
"3B. Cancellation of authorization.- Without prejudice to the provisions of
section 23B, if an authorized dealer or money changer commits a contravention of any term
of authorization or uses it for any purpose other than the purpose, or after the expiry of
the period, for which it was given or contravenes or attempts to contravene or abets the
contravention of the provisions of, or the general or special directions or instructions
or permissions issued by the State Bank from time to time under any provisions of, this
Act or any rules made thereunder or engages in transactions not in conformity with the
terms of authorization or fails to comply with any of the provisions of this Act or any
rules, directions, instructions, or permissions made, issued or given thereunder or in the
public interest it is necessary so to do or there otherwise exist reasons appearing
sufficient to the State Bank, after giving a reasonable opportunity of being heard to the
authorized dealer or money changer cancel the authorization:
Provided that, if, in the opinion of the State Bank, any delay would be prejudicial to the
public interest, the State Bank may, at the time of giving an opportunity as aforesaid or
at any time thereafter and pending the hearing as aforesaid, if any, by order suspend, for
a period specified in the order, the authorization either wholly or to such extent as may
be so specified."
5. Amendment of XXXIX Act of 1950.- In the Imports and Exports
(Control) Act, 1950 (XXXIX of 1950), in section 5A.-
(i) for sub-section (2) the following shall be substituted, namely :-
"(2) A Commercial Court shall consist of a person who is, or has been either a
Session Judge or a High Court Judge, who shall be the Chairman, and two members to be
appointed by the Federal Government among-
(a) the officers of the Ministry of Commerce not below the rank of Joint Secretary;
(b) the officers of the Export Promotion Bureau not below the rank of Director General; or
(c) businessmen or executives whose names appear on the panel of such persons to be drawn
by the Federal government in consultation with the Federation of Pakistan Chambers of
Commerce", and
(ii) for sub-sections (8) and (9) the following shall be substituted, namely:-
(8) An appeal may be filed against the decision of the Commercial Court to the High Court
within thirty days.
(9) No act or proceedings of a Commercial Court shall be invalid by reason only of the
absence of one or more members, or the existence of any vacancy amongst its members, or
any defect in its composition:
Provided that the Court shall not hear a case in the absence of the Chairman."
6. Amendment of Act XVII of 1952.- In the House Building Finance
Corporation Act, 1952 (XVII of 1952) in section 30, for the Explanation the following
shall be substituted, namely:-
"Explanation.- Where the extent of the liability of the borrower or the partner and
the surety of either of them to which the application relates exceeds pecuniary
jurisdiction of District Courts, this section shall, in its application, have effect as if
reference therein to "District Judge" were reference to "High
Court"."
7. Amendment of Act XXXII of 1956.- In the State Bank of Pakistan
Act, 1956 (XXXIII of 1956) for section 23 and the Explanation appended thereto, the
following shall be substituted, namely:-
"23. Purchase and Sale of foreign exchange.-The Bank may buy from or sell to any
person, whether in Pakistan or abroad, approved foreign exchange at such rates of exchange
at such places and on such conditions at it may determine from time to time."
8. Amendment of Act XV of 1963.- The following amendments shall be made
in the Wealth-tax Act, 1963 (XV of 1963), namely:-
(1) In the Wealth Tax Act, 1963 (XV of 1963),-
(2) In Section 2,-
(a) in clause (8) after the figure "9" the words and comma "and includes a
Director, Intelligence and Investigation" shall be inserted;
(b) in clause (10),-
(a) for the word "and" a comma shall be substituted;
(b) after the word "officer" at the end, the words and comma "and a Deputy
Director or Assistant Director, Intelligence and Investigation" shall be inserted;
(c) in clause (15), after the figure "9" the words and comma "and includes
an Additional Director, Intelligence and Investigation" shall be inserted; and
(d) in clause (20), after the brackets, word and figures "(XXXI of 1979)" the
words and comma "and includes the Director General, Intelligence and
Investigation" shall be inserted.
(3) In section 14, in sub-section(1), in clause (b), for the word "one" the
words "two" shall be substituted.
(4) In section 14D, for the figures "1599" and "1600", the figures
"1500" shall be substituted.
(5) In section 23, in sub-section (1), for the words "two thousand five hundred"
occurring twice, the words "one thousand" shall be substituted.
(6) In section 24, in sub-section (4), for the words "five thousand" occurring
twice, the words "two thousand five hundred" shall be substituted.
(7) In section 25, in sub-section (1), in the proviso in clause (c), in sub-clause (i) for
the words " two thousand five hundred", occurring twice, the words "one
thousand" shall be substituted.
(8) In the First Schedule, in Part-II, in Paragraph-C, for the figures "1600"
the figures "1500" shall be substituted; and
(9) In the Second Schedule, in Part-I, after clause 31, the following new clause shall be
added, namely:-
"32 The houses built on land area not exceeding six marlas (one hundred fifty square
yards) or apartments with covered area not exceeding twelve hundred square feet for five
years, constructed under Prime Minister's Programme for Economic Revival (Housing
Sector).".
9. Amendment of Ordinance IV of 1966.- The following amendments shall be
made in the Investment Corporation of Pakistan Ordinance, 1966 (IV of 1966), namely :-
(1) in section 2, for clause (jj) the following shall be substituted, namely :-
"(jj) "ICP Mutual Funds" means Mutual Funds from time to time constituted,
issued and managed by the Corporation, whether directly or through a subsidiary company or
agency set up by it or by any other entity or person qualified to manage Mutual Funds to
whom the right to manage the Mutual Funds has been assigned by the Corporation, whether
under its trusteeship or any other entity appointed or approved by it operating under any
law for the time being in force and the rules or regulations made thereunder."
(2) in section 23, in clause (14), after sub-clause (e) the following new sub-clause shall
be added, namely :-
"(f) to assign, transfer to or enter into any contractual arrangements with any
person or entity regarding rights and obligations pertaining to management, trusteeship or
custodianship of ICP Mutual Funds."
10. Amendment of Act IV of 1969.- The following amendments shall be made
in the Customs Act, 1969 (IV of 1969), namely:-
(I) in section 2, -
(a) in clause (v), the fullstop at the end shall be replaced by a semicolon and thereafter
the following new clauses shall be added, namely:-
"(w) "outstanding arrears" means the amount of any duty, surcharge, fine or
penalty 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.";
II section 18B shall be omitted;
III for section 25, the following shall be substituted, namely:-
25.- Determination of Customs value of 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, designwork, 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 licence 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;
(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).
(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 provision of this sub-section, the transaction value of 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.
(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.
(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 commissions 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;
(iii) where appropriate,the costs and charges referred to in clause(a) of sub-section(2);
and
(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 condition 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-section(1),(5)(6),(7) and (8), it shall, subject to the rules, be determined 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 under this Act. The methods of customs valuation are required to 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 mutates 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 that 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 that although not alike in all respects, have
like characteristics and like component materials that 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, artwork,
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.
(14) Notwithstanding anything contained in sub-section (1), (5),(6),(7),(8) and(9), if the
Board or such officer as is authorized by the Board in this behalf is satisfied that it is
necessary or expedient so to do the Board or the officer may, by notification in the
official Gazette, for the purposes of levying customs duties under this Act or any other
law for the time being in force, fix the minimum customs value of goods specified in the
First Schedule and the Second Schedule, having regard to the trend of value of such or
like goods and subject to such conditions or limitations as the Board or such officer may
deem fit. The Board or such authorized officer may fix different customs values for
different classes or different description of the same type of goods. A notification
issued under this sub-section shall be effective from the day specified therein,
notwithstanding that the official Gazette in which such notification appears is published
at any time after that day.
(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 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 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 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
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.
Explanation II.- 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.
