General.--Section 35 corresponds to Sections 42 and 43 of the Sea Customs Act with the following amendments:--

(i) under the old law, re-export by land was not entitled to drawback. The new provisions provide for payment of drawback in respect of re-exports by land also;

(ii) the drawback of customs duty in respect of silver bullion has been reduced from the whole of customs duty to 7/8th of the import duty paid as there appears no reason why silver bullion should be accorded any special concession;

(iii) under Section 43 of the Sea Customs Act, the normal period of two years within which drawback may be claimed could be extended to three years when goods are re-exported from a port other than the one where they are imported. Under the new section the claim for drawback in respect of exports from other ports has also to be made within the same period of two years; and

(iv) the period of two years will now be counted from the date of importation upto the date when goods are entered for re-export, whereas under the old law the period was counted from the date of sailing of the exporting vessel. The new method of calculating the time-limit will be easier and more favourable to the trade.

Application of Article 62 of the Limitation Act, 1908--Not applicable to Customs drawback and refunds.--Where a person imported goods for final export to Afghanistan and paid, as required by the law, import duty and sales tax on importation of goods in Pakistan, on condition that if the goods were re-exported to Afghanistan the amount was liable to be refunded; it was held, that the amount received by the Customs Authorities in the circumstances was initially for the use of the Government subject only to condition that if the goods were re-exported the importer was entitled to refund of the said amount and as such Article 62 of the Limitation Act was not applicable to the suit filed by the importer against the Government for refund of the amount paid on account of import duty and sales tax. (PLD 1967 Kar. 624 + Law Notes 1968 Kar. 4 (DB).

The Drawback (Same State Goods) Rules.--The Central Board of Revenue has framed two sets of Rules separately one for Customs duties and the other for sales tax vide Notification Nos. SRO 2(I)/72, dated 30th December, 1971 and 521(I)/77, dated 15th June, 1977 respectively. The Rules relating to sales tax have been made under Section 39 read with section 27-D of the Sales Tax Act, 1951 (Now Section 63 of the Sales Tax Act, 1990) whereas Rules relating to customs duties have been framed under Section 219 of the Customs Act, 1969. (For Notification No. S.R.O. 2(1)/72 seepage 65 of the Customs Rules and Notifications 1998-99 and for S.R.O. 521(1)/77 see page 331 of the Manual of Sales Tax (1990 Edition) - An allied Publications).

Drawback, rebate and refund--Definition and objects--Drawback.--The term "drawback" is applied to certain amounts of duties of customs, sometimes the whole; sometimes only a part, remitted or paid back by Government on exportation of the goods on which they were levied. To entitle goods to drawback they must be exported to foreign country. The object of the relief afforded by the drawback being to enable the goods to be disposed of in a foreign market as if they had not been subject to any taxation.

Rebate.--Apart from the term of drawback, two others terms refund and rebate are used. The distinction among them are that the rebate means the delivery of goods without payment of duty either whole or part of the duty chargeable thereon of the prescribed imported goods intended to be used for specified or prescribed purposes. This rebate is payable under Section 21 of the Customs Act.

Refund.--The refund means the sum or amount which is repaid or repayable to a person on account of his making payment for duties or charges which are not due or making excess payment as made under Section 33 of the Act and includes refund payable under Section 134 of the Customs Act and Section 5 of the Provisional Collection of Taxes Act, 1931.

"Record of the Custom-House".--The expression "record of the Custom-House" as used in the second clause of Section 35 is intended to cover only the records maintained in the Custom House and does not cover those which might have been presented to some Custom-House official and then returned to the presenter.

Identification.--The identification of goods to be re-exported under claim for drawback is one of the important conditions for the grant of drawback. Identification is facilitated if the goods are in their original packing condition and correspond in description, weight, sizes, marks and numbers, etc., with similar particular recorded in the Custom-House record regarding importation. However, drawback cannot be refused if the goods are not in their original packing provided their identity is otherwise established to the satisfaction of the officer of Customs not below the rank of Assistant Collector.

Expression "Capable of being easily identified" meanings.--The words 'capable of being easily identified' refer to the nature of goods meaning that the concession of drawback is available only to such class of goods as are capable of being easily identified. (AIR 1968 Delhi 142).

Drawback on goods which have undergone a process of manufacture.--Under Section 35 drawback is allowable on identical goods but not on goods which have changed in character, even when they retain identification marks or characteristics. However, the Government considered that the gramophone wax industry is a suitable one for the grant of drawback concession and have accordingly authorised payment of drawback in the case of waxes imported blank and re-exported after a recording has been taken on them, provided that waxes are identifiable at the time of export as those imported and the drawback conditions are otherwise satisfied.

Grant of provisional rebate/drawback.--For grant of provisional rebate/drawback - refund of customs duty and sales tax. (See Customs General Order No. 11 of 1974 dated 15th April, 1974 printed at page 117 of Customs General Orders 1970-94 Edition).

Appropriate Officers.--The Central Board of Revenue has assigned the functions of the "appropriate officer" to Ministerial Clerk Inspector/ Preventive Officer/Examiner under Section 35 of the Customs Act, 1969. (See Notification No. S.R.O. 56(1)/93, dated 19th January, 1993, reported as PTCL 1993 St. 461 or see page 586 of the Customs Rules and Notifications, 1998-99 Edition - An allied publication).

DEPARTMENTAL INSTRUCTIONS:
Time limits--Date of Importation.--For the purpose of Sections 42 and 43 of the Sea Customs Act (now Section 35, Customs Act, 1969), the time of importation of goods is to be taken as the date the bill of entry is delivered in pursuance of Section 86 of the Sea Customs Act (now Section 79 of the Customs Act, 1969).

Note.--The period of 2 or 3 years should be computed from the date of first presentation of the bill of entry in the Import section, the date of presentation being excluded (Am. O. Gl. Man. No. 1 of 1957).

Date of Re-export.--(a) The date of delivery to the Drawback Examiner of the shipping bill under which the goods are exported should be taken as the date of re-export for purposes of the period allowed by section 42, Sea Customs Act (corresponding to Section 35 of the Customs Act, 1969). If there is any doubt as to the interpretation of Section 42 the benefit of the doubt must be given to the owner of the goods. (Board's Endt. R. Dis. No. 170-Cus. 1/31, dated 15th May, 1931--File R. Dis. 405/31).

(b) It is clear from Sections 51 and 52 of the Sea Customs Act (corresponding to Sections 40 and 41 of the Customs Act, 1969), that the process of re-export is only complete where the vessel which carries the goods sails and consequently the date of sailing should strictly determine re-export for purpose of Section 42 of the Act (corresponding to Section 35 of the Customs Act, 1969). The date of presentation of shipping bill has, however, been fixed as the date of re-export for administrative convenience. This practice should continue provided it does not involve an extension by the Chief Customs Officer of the period between the date of import and the date of actual sailing of the re-exporting vessel, beyond three years. (Board's letter R. Dis. No. 385-Cus. 1/33, dated 13th June, 1933, to the A.G.C.R. - Test A. Memo. No. 79, dated 2nd August, 1933- S.O. 64/33).

Extension of the period of two years.--(a) The implication of the phrase "on sufficient cause being shown" used in the second clause of Section 42 of the Sea Customs Act, 1878 (corresponding to Section 35 of the Customs Act, 1969), seems clearly to be that the party claiming the drawback should urge the reasons for an extension of time sufficient to entitle him to the payment and not that the Custom House should of its own motion take action in such matter. This does not mean the sufficient cause shown by the claimant must necessarily be embodied in a formal application, but the fact that such cause had been shown and accepted and the nature of the cause shown should be placed on the records of the Custom House. (C.B.R. Proceedings R. Dis. No. 1020-Cus. 1/31, dated the 9th December, 1931 on, Paragraph 48 of the Bombay C.H.T.A. Report 1930-31. Am. O. GI. 9/46).

(b) The Central Board of Revenue has held that Section 42 of Sea Customs Act (corresponding to Section 35 of the Customs Act, 1969), prescribes that re-export must take place within one of the two specified terms, which are alternative. It is not necessary that sanction for extension should be obtained before or at the time of re-export. (C.B.R. letter D. Dis. No. 839-Cus. 1/44, dated the 9th October, 1944, Am. O.D., GI. 19/44 - File C. No. 1444/44).

Drawback on goods exported by parcel post.--(a) Drawback of duty may be paid in the case of all articles re-exported by parcel post, in whatever manner imported provided that adequate proof is produced of the payment of import duty, of the identity of the articles and of their re-export being effected within two years from the date of importation or within such extended term not exceeding three years as the *Chief Customs Officer (now Collector of Customs) on sufficient cause being shown, determines in any case. (Ind. Cus.-Cir. VIII of 1902; G.I. No. 1656-S.R., dated 20th March, 1902).

*The Chief Customs Officer has since the passing of the Decentralisation Act, 1941, the power to extend the period to a period not exceeding three years.

(b) There is no objection to Customs Collectors granting drawback at their own discretion, whether the procedure laid down in clause 257 of the Post and Telegraph Guide has been followed or not (e.g., exports of articles from a muffusil station in the presence of the Postmaster), provided the conditions laid down in the orders of 1902 are fulfilled to their satisfaction. (Ind. Fin. D.O. 114, dated 11th January, 1934 -- File R. Dis. 13/24).

(c) The orders contained in the preceding sub-para are in practice applied only to articles of private individuals and of corporate bodies such as messes, regiments, etc. (S.O. No. 33 of 1931).

The authority competent to sanction drawback under Section 42 of the Sea Customs Act (now Section 35, Customs Act, 1969), is also competent to sanction drawback under the orders conveyed in the letter of the Government of India in the Finance and Commerce Department No. 1656-S.R., dated the 20th March, 1902. (C.B.R. D. Dis. No. 361-Cus. 11/34, dated 24th August, 1934 -- File R. Dis. 1164/34).

Note.--Claims under Rs. 5 (Rupees five) (Now Rupees hundred) will be allowed only in respect of articles which are private personal property. (Board's Supplementary Proceedings on Madras T.A. Report, 1927-- S.O. 153/28).

Drawback on goods exported by Air.--The Government have authorised payment of drawback on goods exported by air whether by post or as freight or as passenger's baggage provided that the usual conditions for the grant of drawback are satisfied. (G.I.F.D. (C.R.), D. Dis. No. 832-Cus. 1/38, dated 14th June, 1938 -- File R. Dis. 1293/38 and G.I.F.D. (C. Rs.) letter D. Dis. No. 276-Cus. 1/44, dated the 21st December, 1944. Am. O. GI. 8/45--File C. No. 3/45).

Drawback on goods imported by air and exported by sea or post.--The Government have authorised payment of drawback on goods imported by air and re-exported by sea, air or by post provided the usual conditions governing the grant of drawback are fulfilled. (G.I.F.D. (C. Rs.) letter C. No. 1236-Cus. 1/46, dated the 22nd November, 1946. Am. O. GI. 6/47-- File C. No. 1939/46).

Note.--These orders do not apply in cases where re-exports under claim for drawback are otherwise prohibited under the Sea Customs Act. (G.I.F.D. (C. Rs.) letter No. 1236-Cus. 1/46, dated the 4th August, 1947. Am. O. Gl. I. 1/48, C. No. 1384/47).

Government Stores--Drawback on.--(a) Government stores will be admitted to re-export under claim for drawback without examination provided that the application for shipment is signed by the Head of the department concerned or by an officer duly authorised by him in writing in this behalf and that the other drawback conditions are duly fulfilled. (Board's letter No. C/4, dated 25th October, 1924).

Note.--(1) True copies of triplicate bills of entry may be accepted in the case of goods exported under claim for drawback by the Assistant Controller of Stores, Railways.

(2) Before effecting shipment a shipping bill in triplicate signed by the officer in charge specifying the nature and value of the goods to be shipped will be presented at the Custom House or at the office of the Chief Inspector. The shipping bill will be completed and the goods allowed to be put on board the on-carrying vessel under the supervision of a Customs Officer. Credit will be allowed for the amount of drawback through the Accountant General, Pakistan, on receipt from the authorities concerned in due course of the relative triplicate bills of entry. (S. O. 19 of 1937 -- File C. 656/36).

Passenger's Baggage--Drawback on--Procedure for Grant of.--When drawback is claimed on passenger's baggage and the passenger desires that the payment of drawback should be made to him on board the exporting vessel, the following procedure shall be observed:--

(a) The passenger should be referred to the Assistant Collector, Incharge drawback, or in his absence to the Assistant Collector, Incharge Preventive Section, to whom he should present the duty receipt in respect of which the drawback is to be claimed.

(b) The Assistant Collector will give the passenger a copy of the "Drawback on Board" form and drawback bill Form and ask him to fill them in with respect to the description, value, etc., and to sign them. If the Assistant Collector is satisfied that the forms are properly filled in, he should retain the forms and the duty receipt and allow the passenger to go, after informing him when payment will be made.

(c) The Superintendent, Drawback Section, will sign the "Let Export" order and the order on the reverse of the "Drawback on board" form which will then be dealt with in accordance with the instructions contained in the form.

(d) When the passenger desires payment of drawback to be made to his clearing agents or to his bank after departure, the above mentioned procedure will be followed mutatis mutandis by the Chief Inspector, Preventive Service, or any Officer deputed by him. (S. O. 34 of 1938 -- File C. 301/38).

Drawback in specific cases--Drawback on diamonds and precious stones.--Drawback on diamonds and precious Stones may be granted on the following conditions:-

(1) The ordinary rules for drawback must be satisfied.
(2) The invoice produced to the Appraiser at the time of importation should show the following particulars:

(a) The number of packets in a parcel with lot number assigned to each packet.
(b) The number of pieces in a packet.
(c) The weight of each stone when such stone weighs one carat or more.
(d) The total weight of stones in each packet.
(e) The value per carat.
(f) The total value of each packet.

(3) The stones to be re-exported must be in their original packet and must represent the whole packet and not part contents.

(4) The Appraiser shall check the number of stones in a packet and the total weight on import and again when brought for export.

(5) The identification should be carried out in the presence of the Assistant Collector. (Para. 14 of Madras Custom House T.A. Report, 1927).

Fire extinguishers imported empty and re-exported after being filled with charges.--The Government have ruled that drawback on fire extinguishers imported empty and re-exported after being filled with charges is admissible provided the statutory conditions prescribed for grant of drawback are fulfilled. (G.I.F.D. (C.R.) letter D. Dis. No. 561-Cus. 1/44, dated the 14th July, 1945. Am. O. General 16/44--File C. 942/44).

Offences and penalties.--See clauses (15) and (16) of Section 156(1) of the Act.

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

General.--This section corresponds to Section 43-A (1) of the Sea Customs Act. It is the same provision. The powers of the Board to frame rules regarding the extent to which and the conditions subject to which drawback may be allowed on the imported materials used in the manufacture of goods in Pakistan which are exported are contained in Section 219 read with item 6 of the Third Schedule to the Act.

Drawback (Same State Goods) Rules, 1971.--For the Rules see Notification No. SRO 2(I)/72, dated 1st January, 1972. However these rules exclude three types of goods from the repayment of drawback, if they are used between their importation and exportation, namely:--

(i) Chests imported to be used as containers for tea or rubber.
(ii) Exposed cinematograph films.
(iii) Articles of wearing apparel.

(For Notification see page 65 of Customs Rules and Notifications, 1998-99 Edition - An allied Publication).

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

General.--This section corresponds to Section 49 of the repealed Sea Customs Act with the following changes:--

(i) That sub-section (1) has been worded in negative form.
(ii) In sub-section (2) the words "or territory" have been added. The payment of drawback on certain goods to any foreign territory can also be prohibited by the Government.

Goods deemed not capable of being easily identified.--The following goods have been declared for the purpose of Chapter VI of the Act, to be deemed not capable of being easily identified:--

(a) Gum Arabic;
(b) Gum Benjamin; and
(c) Gum Olibanum or Frankincense. (Vide Notification No. 1117, dated 10th June, 1881).

DEPARTMENTAL INSTRUCTIONS:

Goods not in their original packing.--The absence of original packing or covering at the time of re-export will not preclude the exporter from claiming drawback if he is able otherwise to establish the identity of the goods to the satisfaction of the Customs Collector.

Amount of Drawback on goods not in their original packing.--In the case of goods assessed to duty on an ad valorem basis the cost of packing, not less than the cost of freight and insurance, is a necessary incident to the delivery of the goods in a Pakistan port in proper condition and it should therefore be regarded as a part of the value of the goods contained in that packing when they are landed. It, therefore, follows that when such goods are re-exported under claim for drawback without their original packing, the amount of duty upon which drawback should be calculated to be full duty upon 'the value of the goods, including the cost of packing. (Board's letter R. Dis. No. 639-Cus./27, dated 14th June, 1927 -- S.O. 190 of 1936).

Classes of goods which require special arrangements for identification.--(a) The goods must not belong to a class which are not capable of easy identification, such as--

(1) Gum Arabic.
(2) Gum Benjamin.
(3) Gum Olibanum or Frankincense.
(4) Dry fish.
(5) Fish Maws, Shark fins.
(6) Ghee.
(7) Cowries.
(8) Ivory.
(9) Almonds in shell or seeds.
(10) Coconut Kernel or Copra.
(11) Dates, dry and wet.
(12) Cofee.
(13) Ceylon and Far East Tea and Tea dust.
(14) Black pepper.
(15) Cloves stems (not exhausted).
(16) Nutmegs in shell.
(17) Chillies, dry.
(18) Ginger, dry.
(19) Betal Nuts.
(20) Flour.
(21) Seeds, all sons.
(22) Gallnuts, Iranian.
(23) Turmeric.
(24) Gum Myrro.
(25) Stick, lac.
(26) Canes.
(27) Hardened Fish Oil.
(28) Coconut Oil.
(29) Sugar candy.
(30) Vegetable ghee or products.
(31) Cocum.
(32) Mild punch.
(33) Denatured spirit.
(34) Vinegar in wooden casks.
(35) Portland Cement excluding white portland cement.
(36) Coal landed.
(37) Anhydrous ammonia.
(38) Asafoetida (Hing and Hingra).
(39) Arsenic Yellow (in bags) (Orpiment Hurtal).
(40) Alees Sarsaparilla roots.
(41) Hides and skins loose and in bundles.
(42) Fents not exceeding 4 yds. in length.
(43) Carpets and floor rugs.
(44) Iron or steel bar and rods loose.
(45) Iron or steel hoops.
(46) Iron or steel pipes and tubes.
(47) Brooms.
(48) Rhino havis.
(49) Loose cartridges.
(50) Tin blocks in slabs.
(51) Patch leaves and rose flowers dried.
(52) Cassava and Tapioca or Sago whole.
(53) Pistachio and Pistachio nuts.
(54) Cloves and Cloves exhausted.

Notes.--(1) Except in the case of items (1), (2) and (3) above identity may be accepted, if otherwise in order, subject to the orders of the Assistant Collector being obtained in each case if the packages at the time of importation arid before clearance from Customs control are sealed and in cases where they bear no marks and numbers, are marked with distinctive marks and number, such marks and numbers being reproduced on the duplicate and triplicate copies of the relative bill of entry and attested by the Customs Officer who supervises the sealing.

Note.--(2) The gums referred to in items (1) to (3) above should not be admitted to drawback except in cases where they are directly re-exported after payment of duty but without clearance into town.

(b) There are certain classes of goods which cannot be held to be capable of easy identification once they have been removed out of Customs control. Care should be taken to see that the importers have taken steps to have the identity established before clearance from Customs control at the time of importation when claims for refunds are scrutinized for this class of goods. The following are examples of such goods:--

(1) Goods bearing the identity marks on labels that can easily be detached or removed, such as coils of wire, bundles of shovels, rolls of wire netting, etc.

(2) Goods bearing indistinct marks, e.g., steel joints, angles, tees, flat and round iron bars bearing marks of painted lines, etc.

Note:--Cases where drawback is claimed in respect of goods mentioned in clauses (1) and (2) above should be submitted to the Assistant Collector for Drawback for orders.

Classes of Goods imported under certain conditions.--There are certain other classes of goods which are imported under similar conditions, viz, standard packing and similar marks. The most common examples of such articles are:--

(1) Figs, dried European.
(2) Raisins red, Persian Gulf.
(3) Cassia Lignea and Cinnamon.
(4) Mace.
(5) Cochineal.
(6) Vegetable wax.
(7) Linseed oil, raw and boiled in drums.
(8) Sugar.
(9) China preserves, dried candied.
(10) Salammoniac, Sublimed, Salammoniac and other sorts including compressed.
(11) Columba roots.
(12) Epsom salts.
(13) Cubebs.
(14) Saleps.
(15) Soda caustic, soda ash, soda compound and soda bicarbonate.
(16) Paints, colours and varnishes.
(17) Camphor powder in containers.
(18) Soap.
(19) Cotton grey yarn.
(20) Mats and mattings.
(21) Glassware, glass panorama balls, globes and chimnies and soda water bottles.
(22) Iron or steel wire.
(23) Quick silver.
(24) Slates.
(25) Wines and spirits.
(26) Flit.
(27) Wood preservative in drums.
(28) Tinned and bottled provisions.
(29) Piece-goods and yarns.
(30) Metals, viz. Plates, sheets circles, channels and iron and steel wire (having marks on them clearly shown in figures and letters) and those not on detachable label.
(31) Petroleum jelly in drums.
(32) Hurricane lanterns.
(33) Cow and bullock chains.
(34) Cut tacks, wire and bullock nails, hot nails, rivets and bolts and nuts.
(35) Loose rubber tyres.
(36) Plywood.
(37) White Portland Cement.
(38) Wood resin.
(39) Turpentine substitute in drums.
(40) Glue not otherwise specified.
(41) Newspapers in bales.

Such articles are not easily identified. Their identity should be considered to have been established provided the following conditions are satisfied:--

(1) There is no doubt as to the foreign origin of the goods.
(2) There is no reasonable suspicion of their having been in stock in Pakistan for more than two years.
(3) Their particulars as declared in the shipping bill, the relative invoices and the original bill of entry agree.
(4) There are no grounds for suspecting a fraud.

Notes.--(a) Inclusion of any article in the list does not mean that the Examiner should accept identity without further question. Articles included in the list are still liable to be rejected for identification, if there are reasons for it.

(b) Articles imported loose and not in packed receptacles are liable to a much closer scrutiny than usual. (Am. O. CI. 4/40 amended by Am. O. GI. 2/41 and 4/43).

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

(a) upon goods which are required to be included in the export manifest and are not so included, or
(b) when the claim is for drawback amounting, in respect of any single shipment, to less than hundred rupees, or
(c) unless the claim for drawback has been made and established at the time of export.

General.--This section corresponds to Section 50 and first para of Section 51 of the Sea Customs Act with the following amendments:--

(i) The condition that the goods on which drawback is claimed should be included in the export manifest will now apply only to such goods which are required to be included in the export manifest;

(ii) the amount of claim for which drawback will not be allowed has been enhanced from Rs. 5/- to Rs. 100/-; and

(iii) the provisions "where the goods to be exported are of less value than the amount of drawback claimed" and "on salt, salted fish or opium" have been omitted.

Under Section 38(2) the Federal Government may by Notification prohibit the payment of drawback upon the exportation of goods, or any specified goods or class of goods to any specified foreign port or territory.

DEPARTMENTAL INSTRUCTIONS:
Value for export purposes to be shown in Shipping Bills.--The Appraiser or Examiner identifying the goods under claim for drawback shall see that the exporters declare, in the "Remarks" column of the drawback shipping bill, the value of the goods for export purposes, as determined in accordance with Section 30 (now Section 25, Customs Act, 1969). This value should be declared in addition to any tariff value, etc. for purposes of drawback and should be checked by the Appraiser or Examiner concerned. (S. O. 104 of 1930).

Meaning of "established"--General and Illustrations.--The elements necessary to constitute a claim for drawback are as follows:--

(i) The goods on which the drawback is claimed must have been previously imported;
(ii) Import duty must have been paid on these goods when they were imported;
(iii) The goods must be re-exported within two years from their importation; and
(iv) The goods must actually be re-exported.

It is therefore necessary that the right to drawback should be established at the time of re-export, but this does not necessarily mean that all the elements therein must be proved, or that any of the first three elements specified above should finally be established before re-export. A necessary step in establishing a claim for drawback is the verification of the payment of the original duty.

If, therefore, in cases in which shipments are required to be made urgently or at short notice, the exporter is unable to produce the triplicate bill of entry in time, examination of goods may at the discretion of the Assistant Collector, Drawback, be proceeded with, but the exporter must take the risk of his claim being disallowed, when identity cannot be established from a subsequent scrutiny of the original documents in the Custom House. (Proceedings of the C.B.R. on para. 17 of the T.A. Report of the Madras Custom House 1927-R. Dis No. 1160-Cus. 1/27, dated 3rd May, 1928-- S.O. No. 48/29, R. Dis. 2110/27). (Am. O. Gen. Man. No. 1 of 1957).

Offences and penalties.--See clause (17) of Section 156 (1) of the Act.

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

General.--This section corresponds to Section 50 and first part of Section 51 of the repealed Sea Customs Act.

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

General.--This section corresponds to Section 52 of the Sea Customs Act, 1878.