The government has withdrawn the option of accepting a Corporate Guarantee against any imported items, while a bank guarantee or pay order would remain valid as an instrument of guarantee.
The purpose of the guarantee arises in case of a dispute on customs valuation of any imported or exported goods.
The Federal Board of Revenue (FBR) issued a circular regarding the amendments in Customs Act on Tuesday.
According to the amendments in Customs Act, 1968, the “Corporate Guarantee” is the instrument in which the guarantor is the entity or the individual submitting the guarantee, whereas in the case of bank guarantee or pay order, the issuing bank is the guarantor.
In order to secure government revenue, Corporate Guarantee has been omitted from Section 81 of the Customs Act, 1969. However, bank guarantees and pay orders for the purpose will remain.
According to the proposed amendments, the powers of Member (Customs Policy) concerning the hearing of appeals against the decision and order of Director General of valuation have been withdrawn. Now, instead of filing an appeal before the Member Customs (Policy) against an order of DG Valuation, the aggrieved party may file an appeal before the Appellate Tribunal and the High Court.
Under Section 25A of the Customs Act, 1969, both the Collector of Customs and the Director Valuation were authorized to determine the Customs Value of imported or exported goods on his motion or on a reference made to him by any person after following the methods laid down.
However, in order to bring uniformity, the role of Collector of Customs has been omitted and now the powers under Section 25A have been entrusted with the respective Director of Customs Valuation to bring standardization in the process of fixation of values of goods.
The posts of Member Customs (Policy) and the Director-General of Customs Valuation are both administrative in nature. Therefore, on the principle of natural justice, the amendment has been made in Section 25D so that appeal against the decision of DG Valuation should not lie before the Member Customs (Policy) and should be taken up at judicial fora to redress the grievances.
Source: Pro Pakistani