FBR Declares Collector of Customs as Regulatory Authority
Major Amendments in Customs Rules 2001: New Import Restrictions on Iron and Steel Scrap
Islamabad:
The Federal Board of Revenue (FBR) has implemented significant amendments to the Customs Rules 2001, appointing the Collector of Customs as the Regulatory Authority. Additionally, strict import restrictions on iron and steel scrap have been enforced, along with a new sample collection system.
As per the official FBR notification, these changes are aimed at enhancing trade facilitation, improving transparency, and supporting industrial growth.
Key Amendments in Customs Rules 2001
✔ Engineering Development Board (EDB) approvals removed
✔ New restrictions imposed on iron & steel scrap imports
✔ Collector of Customs designated as the Regulatory Authority
Definition of Regulatory Authority
Under the new rules:
- The Collector of Customs in whose jurisdiction the business or production unit is located will act as the Regulatory Authority.
- If an applicant has multiple production units across different jurisdictions, the head office or primary production unit’s collector will be the Regulatory Authority.
Strict Enforcement & Immediate Legal Actions
🚨 Businesses violating the rules will face immediate suspension.
🚨 Applicants with past legal violations, pending recoveries, or criminal cases will have their licenses revoked.
🚨 The Regulatory Collector can initiate license cancellation and take legal action if required.
60-Day Processing Timeline for Applications
⏳ All applications will be forwarded to the Input-Output Co-Efficient Organization (IOCO), which must process them within 60 days.
⏳ If IOCO fails, applicants can import up to 25% of input goods on a temporary basis, provided they submit a bank guarantee.
New Sample Collection System for Quality Control
To ensure product quality, FBR has launched a new sample collection mechanism:
📌 Three samples will be collected at the time of import/export:
1️⃣ One for the importer/exporter
2️⃣ One for the relevant customs collectorate
3️⃣ One for the regulatory collectorate
📌 If any irregularities are found, concerned authorities will be notified immediately.
Export Facilitation Scheme: Vendor Details Requirement
📢 Under the Export Facilitation Scheme, businesses must:
✅ Submit vendor details before sending raw materials for third-party production.
✅ Upload transportation details, vehicle registration numbers, and other logistics information online.
Usage Timeline for Imported Goods
⏳ Imported input goods must be used within 9 months.
⏳ Extensions due to extraordinary circumstances will require approval from an FBR-formed committee.
Tax Rules for B-Grade Products
⚠ If B-grade product output exceeds 5%, it will be treated as import-grade, and applicable duties & taxes must be paid.
Objective of These Amendments
FBR aims to:
✅ Simplify trade regulations
✅ Reduce industry challenges
✅ Boost exports
✅ Ensure a transparent system
These amendments will provide businesses with a more efficient, compliant, and transparent trade environment, ultimately benefiting Pakistan’s economy.