Any product imported into Pakistan through postal or air courier services with a declared value up to Rs. 5,000 will be examined, checked, and could be detained by the customs authorities to revise and verify the declared values of imported goods for accurate assessment of duties and taxes.
This new measure has been taken by the Federal Board of Revenue (FBR) for collecting the duties and taxes on the import of goods by the postal or courier services accurately based on the declared value of the imported items.
FBR has issued a draft of the “De-minimis rules for imported goods” through the issuance of S.R.O.886(I)2020 for amendments in the Customs Rules 2001.
As per the present practice, the postal or courier service providing companies are not bound to make any special list of the imported items having declared value up to Rs. 5,000 as per the label of the imported product. There were no such reporting requirements for the postal and courier companies.
FBR has not issued any such rules for courier companies for examination/assessment of goods having declared value up to Rs 5,000.
The customs officials were also not required to specifically examine or check courier goods having declared value of up to Rs 5,000. The FBR has started documentation of the record of all such items or goods brought into Pakistan by the postal or courier services.
After this, the customs officials will have the authority to stop the clearance of such goods and also increase the value of the imported goods from Rs. 5000 to the upward revised value for increasing the duties and taxes where necessary.
FBR will also be able to check evasion of duties and taxes on the import of goods cleared through the postal or air courier services, customs officials added.
The revenue board stated that the new rules shall apply to the goods imported through postal service and air couriers only. The “de minimis value” means the value of goods up to Rs 5,000 in terms of the provisions of section 19C of the Customs Act whereas postal goods” means goods cleared in terms of the provisions of Landing and Clearing of Parcels Rules as mentioned in Chapter XVI of the Customs Rules, 2001.
According to the new rules, the postal or courier authorities shall submit a separate list of the goods along with invoices and other documents if any, wherein the declared value is up to Rs. 5,000. The Customs authorities shall scrutinize the list and shall have the right to examine or detain any goods to verify the declared value or compliance with the requirements of any other law applicable thereon.
However, the postal or courier authorities shall not file goods declaration or demand payment of duty and taxes for goods with a value up to Rs. 5,000.
The postal or courier authorities shall submit a consolidated monthly e-statement of all such clearances along with copies of the invoice of the imported goods cleared under these rules to the concerned Customs authorities for reconciliation of the record in the prescribed manner.
For the purpose of application of the provisions of section 19C of the Customs Act 1969, the value mentioned on the label of the postal good or the courier receipt shall be considered as the declared value.
For conversion of invoice value into Pakistani Rupees, the postal or courier authorities shall take the official exchange rate of the previous day, FBR rules added.
A final notification will be an issue after the approval and will come effective in the next month i.e. October 2020.