Federal Budget, 2003-04 - PakSearch.com

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Finance Bill

2003

A

BILL

to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2003, and to amend certain laws.

WEHREAS 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, 2003, and to amend certain laws for the purposes hereinafter appearing;

It is hereby enacted as follows:-

Short title and extent.- (1) This Act may be called the Finance Act, 2003.

(2) It extends to the whole of Pakistan.

2. 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 2, after clause (2), the following new clause shall be inserted, namely:-

"(2a) "adjustment" means payment of differential amount of duty between the duty paid on raw material, semi-finished or bulk goods and that which is payable on finished goods under the procedure prescribed by the Central Board of Revenue;";

(2) in section 3, in sub-section (1), in the first proviso,—

in clause (a), the words and comma "beverages, cement and" shall be omitted; and

in clause (b),—

for the figure "100", the figure "40" shall be substituted; and

the words and comma "beverages, cement and" shall be omitted;

(3) in section 4,—

(a) in sub-section (2), in the proviso,—

(i) for the words "printed or embossed", the word "indicated" shall be substituted; and

for the full stop, at the end, a colon shall be substituted and thereafter the following further proviso shall be added, namely:-

"Provided further that the Central Board of Revenue, so far as it appears it to be necessary or expedient, may by a notification, fix the minimum price of any goods or class of goods, for the purpose of charging of the duty, which shall include the product cost, incidence duty of excise, sales tax, trade margins and cost of manufacturing or any other component as determined by the costing of products.";

in sub-section (4), in the second proviso, for the words "printed or embossed" the word "indicated" shall be substituted;

(4) in section 9,—

in clause (j), the word "and" shall be omitted;

in clause (k), for the full stop at the end, the semicolon and word "; and" shall be substituted; and

after clause (k), amended as aforesaid, the following new clause shall be added, namely:-

"(l) engaged in production of counterfeiting of any local or foreign brand of cigarette,";

(5) in section 35D, in sub-section (3), for the words "fifty thousand", the words "five hundred thousand" shall be substituted;

(6) in section 37, in sub-section (2),—

in clause (x), after the word "verified" the word "or audited" shall be inserted;

in clause (xxiii), the word "and" shall be omitted;

in clause (xxiv), for the full stop at the end, a semicolon and word "; and" shall be substituted; and

after clause (xxiv), amended as aforesaid, the following new clause shall be inserted, namely:-

"(xxv) provide for appointment of a Chartered Accountant or a firm of Chartered Accountants or a Cost and Management Accountant; a private company or a firm or an industry expert, specialized in their respective fields, to conduct a market survey or supervise clearance of excisable goods or any other specific task assigned by the Central Board of Revenue.".

3. Repeal of Act XV of 1963.- The Wealth Tax Act, 1963 (XV of 1963), is hereby: repealed and the repeal shall not --

affect the liability of any individual, Hindu undivided family, firm, association of persons or body of individuals, whether incorporated or not, and company to pay wealth tax, additional tax, penalty, surcharge, fee, charge and any other sum chargeable, leviable and payable under the said Act, in respect of an assessment year ending on or before the thirtieth day of June, 2001; and

affect any investigation, legal proceedings or remedy in respect of any right, obligation or liability and any such investigation, legal proceedings or remedy may be instituted, continued and enforced and penalty or punishment may be imposed as if the said Act had not been repealed and for removal of doubts it is hereby declared that the provisions of the Act regarding appointment and jurisdiction of Wealth-tax authorities shall, notwithstanding repeal, shall remain in force.

4. Amendment of section 3, Ordinance I of 1967.- In the Natural gas (Development Surcharge) Ordinance, 1967 (I of 1967), in section 3, in sub-section (3), for the word "twenty" the word "fifteen" shall be substituted.

5. Amendment of Act IV of 1969.— The following further amendments shall be made in the Customs Act, 1969 (IV of 1969), namely: –

in section 2,—

after clause (e), the following new clause shall be inserted, namely:—

"(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;";

for clause (ia) the following shall be substituted, namely:—

"(ia) "Customs Computerized System" means a comprehensive Customs information technology system specified in Chapter XVIA;

(ib) "customs documents" includes bill of entry, bill of export or goods declaration, application 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;";

for clause (la) the following shall be substituted, namely:—

"(la) "goods declaration" means a goods declaration filed under section 79, 79A, 131 or 131A and includes goods declaration filed electronically;

(lb) "import manifest" means import manifest delivered under section 43 or 44 as the case may be and includes electronically filed import manifest;"; and

after clause (q), the following new clause shall be inserted, namely:—

"(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;";

(2) in section 25, in sub-section (15), in Explanation II,—

after the word "export" occurring for the first, third and the fourth time, the words "or goods declaration" shall be inserted; and

after the figure "131" the figure and letter "or 131A" shall be inserted;

in section 25A, after the word "entry", wherever occurring, the words "or goods declaration" shall be inserted;

in section 29,—

in the marginal heading, after the word "export" the words "or goods declaration" shall be added; and

after the word "export" the words "or goods declaration" shall be inserted;

in section 30, for the words "bill of entry", wherever occurring, the words "bill of entry or goods declaration" shall be substituted;

(6) after section 30, the following new section shall be inserted, namely.—

"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;—

the date of payment of duty;

in case the goods are not chargeable to duty, the date on which the goods declaration is filed with Customs; and

in case the amount of duty is corrected as a result of intervention by Customs under section 80A or clause (b) of section 131A, the date on which the duty was originally paid under section 79A or clause (a) of section 131A:

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 Federal Government 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.";

(7) in section 31,—

after the word "export" the words "or goods declaration" shall be inserted; and

in the proviso,—

after the word "export" occurring for the second time, the words "or goods declaration," shall be inserted; and

after the word "bill" occurring for the second time, the words "or declaration" shall be inserted;

(8) in section 31A,—

in sub-section (1), after the figure "30" , the comma, figure and letter ",30A" shall be inserted; and

for sub-section (2), following shall be substituted, namely:—

"(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.";

(8) for section 43, the following shall be substituted, namely:—

"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.";

(10) in section 45, in sub-section (2), after the word "manifest" occurring for the second time, the words "or by making an amendment electronically" shall be inserted;

(11) in section 46, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

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

(12) in section 53, in sub-section (2), in clause (b), after the word "export" the words "or goods declarations" shall be inserted;

(13) in section 54, in clause (b), after the word "export" the words "or goods declarations" shall be inserted;

in section 79,—

for the words "bill of entry", wherever occurring, the words "bill of entry or goods declaration" shall be substituted; and

in sub-section (4), the word "or Deputy Collector" shall be omitted;

after section 79, the following new section shall be inserted, namely:—

"79A. Declaration and assessment for homeconsumption or warehousing through the Customs Computerized System.— (1) Subject to the provisions of section 155A, for clearance through the Customs Computerized System, the owner of any imported goods shall make entry of such goods for homeconsumption or warehousing or for any other approved purpose by filing to Customs a goods declaration containing correct and complete particulars of the goods and after having assessed and paid his liability of duty, taxes and other charges thereon in such from 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 by him 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 before filing a declaration:

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

(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 homeconsumption 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 and subject to such conditions and restrictions as may be prescribed by the Board.";

(16) after section 80, the following new section shall be inserted, namely:—

"80A. Checking of goods declaration through the Customs Computerized System.— (1) Subject to the provisions of section 155A, on the receipt of goods declaration under section 79A through the Customs Computerized System, an officer of Customs shall satisfy himself regarding the correctness of the particulars of import, including declaration, assessment, and payment of duty, taxes and other charges thereon.

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 customs documents as and when and in the manner deemed necessary during or after release of the goods by such officer.

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.";

(17) after section 81, the following new section shall be inserted, namely:—

"81A. Provisional determination of duty through the Customs Computerized System.— (1) Subject to the provisions of section 155A, 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 79A, for reason 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 payable on such goods be determined provisionally:

Provided that the importer, save in the case of goods entered for warehousing, or the exporter pays such additional amount as security or furnishes such guarantee of a scheduled bank for the payment thereof as the said officer deems sufficient to meet the likely differential between the final determination of duty over the amount determined provisionally.

(2) Where any goods are allowed to be cleared or delivered on the basis of such provisional determination, the amount of duty correctly payable on those goods shall be determined within one year of the date of provisional determination:

Provided that the Collector of Customs may, under circumstances of exceptional nature and after recording such circumstances extend the period for final determination by not more than ninety days.

(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 or exporter, as the case may be.

(4) If the final determination is not made within 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.";

for section 82, the following shall be substituted, namely.—

"82. Procedure in case of goods not cleared or warehoused or transshipped or exported or removed from the port within one month after unloading.— If any goods are not entered and cleared for homeconsumption or warehoused or transshipped or are not loaded on the conveyance for export or removed from the port area within one month of the date of unloading thereof at a customs-station or within such extended period as the appropriate officer may allow, such goods may, after 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, be sold 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 and perishable and hazardous goods may, with the permission of the appropriate officer, be sold 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;

(c) in cases 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 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 nothing in this section shall authorize removal for homeconsumption of any dutiable goods without payment of customs-duties thereon.";

(19) for section 82A, the following shall be substituted, namely:—

"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 homeconsumption 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 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 and perishable and hazardous goods may, with the permission of the appropriate officer, be sold 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;

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 homeconsumption of any dutiable goods without payment of customs-duties thereon.";

(20) for section 83, the following shall be substituted, namely:—

"83. Clearance for homeconsumption.— (1) When the owner of any goods entered for homeconsumption and assessed under section 79A, 80, 80A 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.

(2) Where the owner fails to pay import duty and other charges within thirty days from the date on which the same have been assessed under sections 80, 80A or 81, 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.";

in section 84,—

for the figure "80" the figures, letters and commas "79A, 80, 80A or 81" shall be substituted; and

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, at customs-stations where the Customs Computerized System is operational the system may allow removal to warehouse through system generated clearance documents.";

(22) in section 109, for the figure "80", the figures, letters and commas "79A, 80, 80A or 81" shall be substituted;

in section 113, in sub-section (2),—

after the word "export" the words "or goods declaration" shall be inserted;

after the word "entry" the words "or goods declaration" shall be inserted; and

for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

" 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.";

(24) for section 121, the following shall be substituted, namely:—

"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.

(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 licence to any carrier to carry goods under the multimodal scheme.";

in section 122,—

for words and commas "shall, in every case," the word "may" shall be substituted; and

for the full stop, at the end, a colon shall be substituted and thereafter following proviso shall be added, namely:—

" Provided that nothing in this section shall apply to the goods transported under the multimodal scheme.";

(26) for section 123, the following shall be substituted, namely:—

"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.";

(26A) in section 131, in clause (a),-

after the word "export" the words "or goods declaration" shall be inserted;

after the word "bill" the words "or declaration" shall be inserted;

(27) after section 131, the following new section shall be inserted, namely:—

"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—

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 before filing of declaration;

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

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.";

in section 134, after the word "export", occurring for the first time the words "or goods declaration" shall be inserted;

(29) after chapter XVI, the following new chapter shall be inserted, namely:—

"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 Federal Government 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 in writing 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.— Where at any time the Collector is satisfied that any person who is a registered user of the Customs Computerized System, has —

failed to comply with a condition of registration imposed by the Collector under sub-section (3) of section 155C of this Act; or

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

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.

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-

statistical purposes by the department and other Government organizations; or

purposes of comparison and evidence as against other imports and exports; or

production as evidence before a legal forum or an organization explicitly so authorized by the Federal Government;

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.

155-I. Unauthorized access to or improper use of the Customs Computerized System.— 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 document.— (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);

(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.

155-O. Authorised officer may take possession of and retain documents and 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.";

in section 156, in sub-section (1), in the Table,—

against serial No.18, in the entry in column 2, after the word "vessel" the words "and master of the pilot" shall be inserted;

against serial No.43,—

in the entry in column 2,—

for the words "twenty-five", the words "one hundred" shall be substituted; and

after the word "shall" occurring for the second time, the words "including the custodian" shall be inserted; and

in the entry in column 3, for the figures "79 & 80" the figures, letters, commas and word "79, 79A, 80 and 80A" shall be substituted;

(iii) against serial No.44,—

in the entry in column 1, after the word "export" the words "or a goods declaration" shall be inserted;

in the entry in column 2, after the words "rupees" the words "or five times the duty and taxes involved whichever is higher" shall be inserted; and

in the entry in column 3, for the figures "79 & 131" the figures, letters, commas and word "79, 79A, 131 and 131A" shall be substituted;

(iv) against serial No.45,—

in the entry in column 1, after the word "export" the words "or a goods declaration" shall be inserted;

in the entry in column 2, after the words "rupees" the words "or five times the duty and taxes involved whichever is higher" shall be inserted; and

in the entry in column 3, for the figures "79 & 131", the figures, letters, commas and word "79, 79A, 131 and 131A" shall be substituted;

(v) against serial No.47,—

in the entry in column2,—

after the word "goods"; occurring for the first time, the words "along with the custodian of the goods" shall be inserted; and

after the word "confiscation" the words "and upon conviction by a Special Judge be further liable to imprisonment for a term not exceeding five years" shall be inserted; and

in the entry in column 3, after figure "79" the word, figure and letter " and 79A " shall be added;

against serial No.63, in the entry in column 2,—

after the word "person" the words "including the custodian and the inland carrier" shall be inserted;

after the word "rupees" the words "or five times the amount of duties and taxes involved whichever is higher and upon conviction by a Special Judge be further liable to imprisonment for a term not exceeding two years" shall be inserted; and

after the word "committed" the words "and the conveyance illegally carrying such goods" shall be inserted;

against serial No.66,—

in the entry in column 1,—

after the word "export" the words "or goods declaration" shall be inserted; and

for the word and figure "section 131" the words, figures and letter "sections 131 and 131A" shall be substituted; and

in the entry in column 2,—

after the word "conveyance" the words "along with the custodian" shall be inserted; and

for the words "one thousand rupees for every package of such goods" the words "one hundred thousand rupees and upon conviction by a Special Judge be further liable to imprisonment for a term not exceeding two years and the conveyance involved shall be liable to confiscation" shall be substituted; and

in the entry in column 3, after the figure "131" the word, figure and letter " and 131A " shall be added;

against serial No.67, in the entry in column 1, after the word "export" the words "or goods declaration" shall be inserted;

against serial No.85,— in the entry in column 1,—

in clause (a) for the words "molests or assaults any person duly engaged" the words and commas "falsely accuses or implicates, threatens, molests or assaults an official of Customs or any person while duly engaged or subsequently" shall be substituted; and

in clause (b), after the word "thing", occurring for the first time, the words and commas "required in an inquiry, investigation, audit of goods " shall be inserted; and

after serial No.99 and the entries relating thereto in columns 1, 2 and 3 the following new serial numbers and the entries relating thereto shall be added, namely:—

"100. If any person discloses, publishes or otherwise disseminates trade information of any person to any other person except as authorized;	such person shall be liable to a penalty not exceeding two hundred thousand rupees and on conviction before a Special Judge to imprisonment for a term not exceeding three years or both.	155H
101. Unauthorized access to or improper use of the Customs Computerized System by any person.	such person shall be liable to a penalty not exceeding two hundred thousand rupees and on conviction before a Special Judge to imprisonment for a term not exceeding three years or both.	155-I
102. If any person interferes with the Customs Computerized System.	such person shall be liable to a penalty not exceeding two hundred thousand rupees and on conviction before a Special Judge to imprisonment for a term not exceeding two years or both.	155J
103. Unauthorized use of unique user identifier by any person.	such person shall be liable to a penalty not exceeding one hundred thousand rupees.	155K
104. If any person,— (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; or	such person shall be liable to a penalty not exceeding one hundred thousand rupees.	155P";
(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.	such person shall be liable to a penalty not exceeding two hundred thousand rupees and on conviction before a Special Judge to imprisonment for a term not exceeding two years or both.

in section 174, after the word "export", the words "or goods declaration" shall be inserted;

in section 194-A in sub-section (1), in clause (a), for word and figure "section 179" the words "this Act" shall be substituted;

in section 194-C, in sub-section (4), for the words "one hundred thousand rupees" the words "five hundred thousands rupees shall be substituted;

in section 195,—

in the marginal heading, the words " of Customs" shall be omitted; and

in sub-section (1), after the word "Customs", the words and brackets "or the Collector of Customs (Adjudication)" shall be inserted;

in section 200, for the full stop at the end, a colon shall be substituted and thereafter following proviso shall be added, namely:—

" 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 shall bear all expenses.";

in section 207,—

for the words "as an agent" the words "on behalf of any principal" shall be substituted; and

after the word "rules" at the end, the words "as a customs agent" shall be added;

(37) for section 208, the following shall be substituted, namely:—

"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.";

(38) for section 209, the following shall be substituted, namely:—

"209. Liability of principal and agent.— (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. ";

(39) for section 211, the following shall be substituted, namely:—

"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 five years maintain records in such form as the Board may, by notification in the official Gazette, specify.";

in section 215,—

in column (b), for the full stop, at the end, the semi-colon and word "; or" shall be substituted; and

after column (b), amended as aforesaid, the following new clause shall be added, namely:—

"(c) in case of electronic orders, decisions, notices or summons, when these have been sent to the recipient from the Customs Computerized System."; and

in section 217, in sub-section (1), after the word "rules", at the end, the words "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 Central Board of Revenue" shall be inserted.

The amendments set out in the Schedule shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969).

6. Amendment of the Ordinance XVII of 1969.- The following further amendments shall be made in the Securities and Exchange Ordinance, 1969 (XVII of 1969), namely:-

(1) in section 2, in sub-section (1),-

(a) after clause (cb), the following new clause shall be inserted, namely:-

"(cc) "Commodity Exchange" means a company that provides or, proposes to provide, the physical facilities necessary for trading in Commodity Futures Contracts;"; and

(b) in clause (l), in sub-clause (i), after the word "contract" the comma and words ", forward or futures contract" shall be inserted;

(2) in section 8, 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 business may be transacted in a delisted security for a period which may extend to six months in such manner as the Commission may direct."; and

(3) after section 32C, the following new section shall be inserted, namely:-

"32D. Regulation of business of Commodity Futures Contract.- The business relating to Commodity Futures Contract shall be regulated in such manner and on payment of such fees and charges as may be prescribed.".

7. Amendment of the Ordinance XLVII of 1984.- In the Companies Ordinance, 1984 (XLVII of 1984), in section 181, in the proviso, for the word "unless" the word "if" shall be substituted.

8. Amendment of section 7, Act V of 1989.– In the Finance Act, 1989, in section 7,–

in sub-section (1), in the Explanation,–

in clause (a), for the words, comma, figures and brackets "Income Tax Ordinance, 1979 (XXXI of 1979)" the words, comma, figures and brackets "Income Tax Ordinance, 2001 (XLIX of 2001)" shall be substituted; and

in clause (b), for the words, comma, figures and brackets "Income Tax Ordinance, 1979 (XXXI of 1979)" the words, figures and brackets "Income Tax Ordinance, 2001 (XLIX of 2001) except a local authority" shall be substituted;

in sub-section (7), for the words, figures and brackets "section 32 of the Wealth Tax Act (XV of 1963)" the words, figures and brackets "Part IV of Chapter X of Income Tax Ordinance, 2001 (XLIX of 2001)" shall be substituted; and

in sub-section (8A), for the words "Wealth Tax" the words "Income Tax" shall be substituted;

9. Amendment in Sales Tax Act, 1990.:- The following further amendments shall be made in the Sales Tax Act, 1990, namely :-

In section 2, —

(a) in clause (27), after the word "manufacturer" the words "or the importer" shall be inserted;

(b) in clause (28),—

(i) the words "not being a manufacturer or producer or an importer", shall be omitted; and

(ii) for the "semicolon", at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:

"Provided that any person, who combines the business of import and retail or manufacture or production with retail, shall notify and advertise wholesale prices and retail prices separately, and declare the address of retail outlets, and his total turnover per annum shall be taken into account for the purposes of registration under section 14.";

(d) in clause (35), after the word "goods", the words "or rendering of services on which sales tax has been levied under the respective ordinance and use of goods acquired for private purposes or for the manufacture of exempt goods without making supply" shall be inserted;

(e) in clause (41), the words "in Pakistan" shall be omitted; and

(f) in clause (44), the words "made in Pakistan" shall be omitted;

in section 3,—

(g) the words "in Pakistan", wherever occurring, shall be omitted; and

(h) in sub-section (1A), in the proviso,—

(i) in clause (2), for the words, comma, figures and brackets "under the Income Tax Ordinance, 1979 (XXXI OF 1979) but has deducted income tax at source under sub-section (4) of section 50", the words and figures "under the Income Tax Ordinance, 2001 (XLIX OF 2001) but has deducted income tax at source under section 153" shall be substituted; and

(ii) in clause (3), in sub-clause (iv) after the word "products" the words "excluding asphalt, bitumen and lubricants all sorts" shall be inserted;

in section 3A,—

(i) in sub-section (1),—

(i) for the word "five" the word "twenty" shall be substituted;

(ii) in the second proviso, for the word "rule", at the end, the word "section" shall be substituted; and

(j) in sub-section (3),—

(i) for the word "five" the word "twenty" shall be substituted; and

(ii) the words "subject to the condition that he shall not thereafter be entitled to be de-registered until the expiry of two years from the date of such registration" shall be omitted;

in section 3AA, in sub-section (4) the comma and words ", subject to the condition that he shall not thereafter be entitled to be de-registered until the expiry of two years from the date of such registration" shall be omitted;

in section 5, in clause (a) the words "in Pakistan" shall be omitted;

in section 6,—

(k) in sub-section (2), the words "in Pakistan", shall be omitted; and

(l) in sub-section (3), the words "made in Pakistan", shall be omitted;

in section 7,—

(m) in sub-section (1),—

(i) after the word, "tax" occurring for the second time, the commas and words ", excluding the amount of further tax," shall be inserted; and

(ii) for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-

"Provided that the taxpayer may adjust input tax paid on the purchases in the immediate three preceding tax periods from the output tax subject to the condition that the taxpayer specifies the reasons for such delayed input tax adjustment in the revised sales tax return for such period or in the return for the immediately succeeding tax period.";

(n) in sub-section (2) ,—

(i) in clause (i),—

(a) the words "in Pakistan" shall be omitted; and

(b) after the words, "invoice", the words "in his name and bearing his registration number," shall be inserted; and

(ii) for clause (ii), the following shall be substituted, namely:-

"(ii) in case of goods imported into Pakistan, he holds bill of entry or goods declaration in his name and showing his sales tax registration number, duly cleared by the customs under section 79 or section 104 of the Customs Act, 1969 (IV of 1969);"

after section 7, the following new section shall be inserted, namely:-

"7A. Levy and collection of tax on specified goods on value addition.— Notwithstanding anything contained in this Act or the rules made thereunder, the Federal Government may specify, by notification in the official gazette, that sales tax chargeable on the supply of goods of such description or class shall, with such limitations or restrictions as may be prescribed, be levied and collected on the difference between the value of supply for which the goods are acquired and the value of supply for which the goods, either in the same state or on further manufacture, are supplied.";

in section 11,—

(o) in sub-section (4), in the proviso, —

(i) for the word "forty-five" the word, "ninety" shall be substituted; and

(ii) for the words "an officer of Sales Tax", the word "the Collector or, as the case may be, Collector (Adjudication)" shall be substituted; and

(p) after sub-section (4), the following new sub-section shall be added, namely:-

"(5) Notwithstanding anything in sub-section (1), where a registered person fails to file a return, an officer of Sales Tax Department, not below the rank of Assistant Collector, shall subject to such conditions as specified by the Central Board of Revenue, determine the minimum tax liability of the registered person.";

in section 13, sub-section (2), in clause (a) the words, "in Pakistan" shall be omitted;

in section 14, sub-section (1), clause (ii), for the word "five" the word "twenty" shall be substituted;

section 16 shall be omitted;

In section 18,—

(q) sub-section (2), shall be omitted; and

(r) in sub-section (3), the proviso shall be omitted;

in section 19, after the words, "registered", "registration" and "register" wherever occurring, the words, "or enrolled", "or enrollment" and "or enroll" shall respectively be inserted;

in section 21,—

(s) in sub-section (2), for the figure and letter "3A" the figure "14" shall be substituted;

(t) in sub-section (3), for the words and figures, "continue to file the return under section 26 till his registration is cancelled by the Collector", the commas, words and figure ", upon completion of the audit, which may have been initiated upon his application for deregistration, discharge any outstanding liability which may have been raised therein by filing a final return under the provision of section 28" shall be substituted ; and

(u) in sub-section (4), for the full stop, at the end, a colon shall be substituted and thereafter the following provisos shall be added, namely:-

"Provided that in cases where the Collector is satisfied that a registered person is found to have issued fake invoices, evaded tax or has committed tax fraud, he may blacklist such person or suspend his registration or as the case may be, enrolment pending further inquiry:

Provided further that order suspending registration, enrolment or blacklisting such registered or enrolled person, shall be in writing and copy thereof shall be communicated to the registered or enrolled person, as the case may be, and show cause notice for recovery of evaded amount of tax and de-registration or de-enrollment may be issued within ninety days of completion of inquiry.";