Proposed amendments to Pakistan’s Customs Rules 2001 focus on integrating PSW and STZA systems for streamlined trade and enhanced compliance.
Introduction of Key Definitions
The Federal Board of Revenue (FBR) of Pakistan, operating under the Government of Pakistan’s Revenue Division, has issued a notification on January 8, 2025, detailing proposed amendments to the Customs Rules, 2001. These amendments, published under S.R.O.24(1)/2025, are designed to align with various legislative frameworks, including the Customs Act, 1969; Sales Tax Act, 1990; Federal Excise Act, 2005; and Income Tax Ordinance, 2001. Stakeholders have been invited to provide objections or suggestions within fifteen days of the notification’s publication in the official Gazette. Below are the key highlights of the proposed amendments:
The amendments introduce two significant terms into Rule 870A:
- One Window Facility: This term aligns with its definition under the Special Technology Zones Authority Act, 2021 (XVII of 2021).
- Pakistan Single Window (PSW): Defined as per the Pakistan Single Window Act, 2021 (III of 2021), PSW facilitates streamlined trade and regulatory processes.
Registration Under the Pakistan Single Window System
The proposed substitution for Rule 870B focuses on registration protocols for operating under the PSW system:
- Subscription Requirement: Licensees of the Special Technology Zones Authority (STZA) must acquire a valid license and subscribe to PSW as per the rules of the Pakistan Single Window Act, 2021.
- Accountability Measures: Licensees can face restricted access or account blocking by Customs authorities upon violations. This is contingent on prior notice and an opportunity for the licensee to be heard.
- Enforcement Protocols: In cases of offences investigated by relevant authorities, Customs officers may restrict access to PSW, followed by electronic or physical notification within three days.
Amendments to Rule 870C
Several changes to Rule 870C aim to streamline processes and integrate the PSW framework:
- Subscription Update: The term “registered under the Customs Computerized System” is replaced with “subscribed to the PSW.”
- Certification Process: Upon importing a consignment, STZA officers must certify the transaction using their one-window facility. The approved list of certified goods will be electronically shared with PSW.
- Goods Eligibility and Exemptions:
- Goods eligible for benefits under PCT heading 9917(4) of the Customs Act, 1969, will be transmitted to PSW via the STZA one-window facility.
- Quantities of imported goods will be auto-debited in the system, ensuring transparency and adherence to exemptions.
- Customs officers will assess goods declarations to verify exemptions under the relevant laws.
Implications and Feedback Mechanism
The proposed amendments emphasize the government’s commitment to modernizing trade processes through digital platforms like PSW. The integration of STZA’s one-window facility with PSW is expected to enhance transparency, efficiency, and compliance in trade operations.
Stakeholders are encouraged to review the draft amendments and provide feedback to the Federal Board of Revenue within the stipulated fifteen-day period. All objections and suggestions will be considered to ensure the amendments meet the operational and regulatory needs of all parties involved.
These proposed changes reflect Pakistan’s broader objective of leveraging technology for improved governance and operational efficiency. The inclusion of advanced platforms like PSW demonstrates the government’s dedication to fostering an environment conducive to seamless trade and investment.
