[1969: Act IV]

( Chapter XX - Miscellaneous)

CHAPTER XX

MISCELLANEOUS

197. Customs control over conveyances and goods. The appropriate officer shall, for the purposes of this Act, have control over all conveyances and goods in a customs-area.

198. Power to open packages and examine, weigh or measure goods. The appropriate officer may open any package or container and examine, weigh or measure any goods brought to the customs-station for importation or exportation and may for that purpose unload any such goods from the conveyance on which they have been imported or are to be exported.

199. Power to take samples of goods. (1) The appropriate officer may, on the entry or clearance of any goods or at any time while such goods are being passed through the customs-area, take samples of such goods in the presence of the owner thereof or his agent, for examination or testing or for ascertaining the value thereof or for any other necessary purpose.

(2) After the purpose for which a sample was taken is carried out, such sample shall, if practicable, be restored to the owner, but if the owner fails to take delivery of the sample within one month of the date on which he is asked in writing to take its delivery, it may be disposed of in such manner as the Collector of Customs may direct.

(3) In the case of goods which consist of drugs or articles intended for consumption as food, and in respect of which the taking of samples for the purposes of this sub-section may have been authorised by a general or special order of the Provincial Government, the appropriate officer may also in like circumstances take samples thereof for submission to, and examination by, such officer of Government or of a local authority as may be specified in such order.

200. Owner to make all arrangements and bear all expenses. Any opening, un-packing, weighing, measuring, repacking, bulking, sorting, lotting, marking, numbering, loading, unloading, carrying or lading of goods or their containers for the purposes of, or incidental to, the examination by an officer of customs, removal or warehousing thereof shall be done, and any facilities or assistance required for any such examination shall be provided, by or at the expense of the owner of goods.

201. Procedure for sale of goods and application of sale proceeds. (1) Where any goods, other than confiscated goods, are to be sold under any provision of this Act, they shall be sold after due notice to the owner by public auction or by tender or by private offer or, with the consent of the owner in writing, in any order manner.

(2) The sale proceeds shall be applied to the following purposes in their respective order, namely:-

(a) first to pay the expenses of the sale;

(b) then to pay the freight or other charges, if any, payable in respect of the goods, if notice of such charges has been given to the person holding the goods in custody;

(c) then to pay the customs-duty, other taxes and dues payable to the ¹[Federal Government] in respect of such goods;

(d) then to pay the charges due to the person holding such goods in custody.

(3) The balance, if any, shall be paid to the owner of the goods, provided he applies for it within six months of the sale of the goods or shows sufficient cause for not doing so.

²[202. Recovery of Government dues. (1) When, under this Act or under any other law for the time being in force, which provides for any tax, duty or other levying being collected in the same manner as customs duties are collected, a penalty is adjudged against, or notice or demand is served upon, any person calling for the payment of any amount unpaid which may be payable by way of penalty or by way of duty, tax or other levy or under any bond ³[guarantee] or other instrument executed under this Act or such other law or the rules made there under, the appropriate officer —

(a) may deduct or require any other officer of Customs, Central Excise and Sales Tax , Income Tax or Wealth Tax to deduct such amount from any money owing to such person which may be under the control of the Customs, Central Excise or Sales Tax, Income Tax or Wealth Tax authorities or.

(b) if it cannot be so recovered, may recover, or may require any other officer of Customs, Central Excise and Sales Tax to recover, such amount by detaining and selling any goods belonging to such person which are under the control of the Customs, Central Excise or Sales Tax authorities.

(2) If the amount cannot be recovered from such person in the manner provided in sub-section (1), the appropriate officer may serve upon the defaulter a notice n the prescribed form requiring him to pay the amount specified in the notice within such time as may be so specified.

(3) If the amount referred to in the notice under sub-section (2) is not paid within the time specified therein or within the further time, if any, allowed by the appropriate officer, the appropriate officer may proceed to recover from the defaulter the said amount by one or more the following modes, namely:-

(a) attachment and sale of any movable or immovable property of the defaulter; and

⁴[(b) may recover, or may require any other officer of Customs, Central Excise or Sales Tax to recover, if it cannot be so re-covered, such amount by detaining and selling an goods belonging to such person which are under the control of the Customs, Central Excise or Sales Tax authorities; or

(c) may recover such amount by attachment and sale of an movable and immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument; or

1. Substituted by the Finance Ordinance, 1972 (XXI of 1972) w.e.f. 17th June, 1972.

2. Substituted by the Finance Act, 1989

3. Inserted by the Finance Act, 1994

4. Substituted by the Finance Act, 1994

(d) arrest of the defaulter and his detention in the prison for a period not exceeding fifteen days:

Provided that his mode shall not be applied unless the period of limitation prescribed for filing appeal has expired, or an appeal is pending.

²[(3A) A warrant of arrest issued against a defaulter in sub-section (3) (d) shall not be executed if the arrears due from him are paid or the defaulter furnishes security to the satisfaction of appropriate officer.

(3B) Any defaulter who under sub-section (3) is being kept under detention shall forthwith be set at liberty or the arrears due from him being paid.]"

(4) For the purposes of recovery of duty, or other levy under ³[sub-sections (1) and (3)], the appropriate officer shall have the same powers which, under the Code of Civil Procedure, 1908 (V of 1908), a civil court has for the purpose of the recovery of an amount due under a decree.

(5) The Central Board of Revenue may make rules regulating the procedure for recovery of duty, tax other levy under this section and any other matter connected with or incidental to the operation of this section.]

203. Wharfage or storage fees. The Collector of Customs may from time to time fix the period after the expiration of which goods left in any custom-house, customs-area, wharf or other authorised landing place or part of the custom-house premises, shall be subject to payment of fees and the amount of such fees.

204. Issue of certificate and duplicate of customs document. A certificate or a duplicate of any certificate, manifest, bill or other customs' document may, on payment of a fee not exceeding ten rupees, be furnished, at the discretion of an officer of customs not below the rank of an Assistant Collector of Customs, to any person applying for the same, if the said officer is satisfied that no fraud has been committed or is intended to be committed by the applicant.

205. Amendment of documents. Except in the case provided by section 29, 45, 53 and 88, an officer of customs not below the rank of an Assistant Collector of Customs may, in his discretion, upon payment of a fee of five rupees, authorise any document, after it has been presented at the custom-house, to be amended.

206. Correction of clerical errors, etc. Clerical or arithmetical errors in any decision or order passed by the ⁴[Federal Government], the Board or any officer of customs under this Act, or errors arising therein from accidental slip or omission may, at any time, be corrected by the ⁴[Federal Government], the Board or such officer or customs or his successor in office, as the case may be.

207. Custom-house agents to be licensed. No person shall act as an agent for the transaction of any business relating to the entrance or departure of any conveyance or the import or export of goods or baggage at any customs-station unless such person holds a licence granted in this behalf in accordance with the rules.

1. Added by the Finance Act, 1999

2. Inserted by the Finance Act, 1999

3. Substituted by the Finance Act, 1994

4. Substituted by the Finance Ordinance, 1972 (XXI of 1972) w.e.f. 17th June, 1972

208. Agent to produce authority if required. (1) When any person applies to any officer of customs for permission to transact any specified business with him on behalf of any other person, such officer may require the applicant to produce a written authority from the person on whose behalf such business is to be transacted, and in default of the production of such authority refuse such permission.

(2) The clerk, servant or agent of any person or mercantile firm may transact business generally at the custom-house on behalf of such person or firm.

Provided that the appropriate officer may refuse to recognize such clerk, servant or agent unless such person or a member of such firm identifies such clerk, servant or agent to the appropriate officer as empowered to transact such business and deposits with the said officer an authority in writing duly signed authorising such clerk, servant or agent to transacts such business on behalf of such person or firm;

¹[Provided further that the Central Board of Revenue may, by an order published in the official Gazette, prohibit transaction with customs of any specified business through a clerk, servant or agent.]

209. Liability of principal and agents. (1) Subject to the provisions of section 207 and 208, anything which the owner of any goods is required or empowered to do under this Act may be done by any person expressly or impliedly authorised by the owner for the purpose.

(2) Where this Act requires anything to be done by the owner, importer or exporter of any goods, any such thing done by an agent, clerk or servant of the owner, importer or exporter of any goods shall, unless the contrary is proved, be deemed to have been done with the knowledge and consent of such owner, importer or exporter so that in any proceedings under this Act, the owner, importer or exporter of the goods shall also be liable as if the thing had been done by himself.

(3) When any person is expressly or impliedly authorised by the owner, importer or exporter of any goods to be his agent in respect of such goods for all or any of the purposes of this Act, such person shall, without prejudice to the liability of the owner, importer or exporter, be deemed to be the owner, importer or exporter of such goods for such purposes;

Provided that where any duty is not levied or is sort-levied or erroneously refunded on account of any reason other than wilful act, negligence or default of the agent, such duty shall not be recovered from the agent.

210. Liability of agent appointed by the person-in-charge of a conveyance. (1) Anything which the person-in-charge of a conveyance, is required or empowered to do under this Act may, with the express or implied consent of the person-in-charge and the approval of the appropriate officer, be done by his agent.

(2) An agent appointed by the person-in-charge of a conveyance, and any person who represents himself to any officer of customs as an agent of any such person-in-charge and is accepted as such by that officer, shall be liable for the fulfilment in respect of the matter in question of all obligations imposed on such person-in-charge by or under this Act or any law for the time being in force, and to penalties (including confiscation) which may be incurred in respect of that matter.

1. Added by the Finance Act, 1987

211. Importers and exporters to maintain accounts. All importers or exporters of goods, except those importing or exporting goods bona fide private or personal purposes, shall, for a period of not less than ¹[five] years maintain accounts in such form as may be notified by the Board in the official Gazette.

212. Regulation of business in gold, etc. The ²[Federal Government] may, by notification in the official Gazette, regulae business in, or connected with, gold or silver or precious stones or ornaments made of gold or silver or precious stones, within fifteen miles of the frontier or coastline of Pakistan.

213. Recovery of money upon certain documents. If any person knowingly makes or brings into Pakistan, or causes or authorises or is otherwise concerned in the making or bringing into Pakistan of any invoice or paper used or intended to be used as an invoice for the purposes of customs, in which any goods are entered or charged at a price or value higher or lower than that actually paid or intended to be paid for them, or in which goods are falsely described, no sum of money shall be recoverable by such person, his representatives or assigns, for the price of such goods or any part thereof, not shall any sum of money be recoverable upon any bill of exchange, note or other security made, given or executed for the whole or part of the price of such goods unless such bill of exchange, note or other security is in the hands of a bona fide holder for consideration without notice.

214. Remission of duty and payment of compensation to the owner in certain cases. Where, on prosecution by the owner of any goods, an officer of customs is convicted of an offence connected with the removal of such goods from the warehouse without payment of duty, the whole of the duty on such goods shall be remitted, and, the Collector of Customs, shall, in accordance with the rules, pay to the owner due compensation for the damage caused to the owner by such offence.

215. Service of order, decision etc. Any order or decision passed or any summons or notice issued under this Act shall be served —

(a) by tendering the order, decision, summons or notice or sending it by registered post ³[*****] to the person for whom it is intended or to his agent; or

(b) if the order, decision, summons or notice cannot be served in any manner provided in clause (a), by affixing it on the notice board of the custom-house.

216. No compensation for loss or injury except on proof of neglect or wilful act. No owner of goods shall be entitled to claim from any officer of customs compensation for the loss of such goods or for damage done to them at any time while they remain or are lawfully detained in any custom-house, customs area, wharf or landing place under the charge of any officer of customs, unless it be proved that such loss or damage was occasioned by gross negligence or wilful act of such officer.

217. Protection of action taken under the Act. (1) No suit, prosecution or other legal proceeding shall lie against the ⁴[Federal Government] or any public servant for anything which is done or intended to be done in good faith in pursuance of this Act or the rules.

1. Substituted by the Finance Act, 1999

2. Substituted by the Finance Ordinance, 1972 (XXI of 1972) w.e.f. 17th June, 1972.

3. Omitted by the Finance Act, 1972 (XXI of 1972) w.e.f. 17th June, 1972

4. Substituted by the Finance Ordinance, 1972 (XXI of 1972) w.e.f. 17th June, 1972

¹[(2) No suit shall be brought in any civil court to set aside or modify any order passed, any [assessment made, any tax levied, any penalty imposed or collection of any tax made under this Act; and]

218. Notice of proceedings. No proceeding in a court other than a suit shall be commenced against any officer of customs or any other person exercising any powers conferred or discharging any duties imposed by or under this Act for anything purporting to be done in pursuance of the provisions of this Act or the rules without giving to such officer or person a month's previous notice in writing of the intended proceeding and of the cause thereof; or after the expiration of one year from the accrual of such cause ²[:]

³[Provided that this section shall not be deemed to apply in the case of the prosecution of an officer of customs or such other person for an offence punishable under this Act].

219. Power to make rules. (1) The Board may, by notification in the official Gazette, make ⁴[rules] for carrying out the purposes of this Act ⁵[including for charging of fees for processing the customs documents and preparation of copies thereof].

(2) Without prejudice to the generality of the foregoing provision, rules may be made on matters enumerated in the ⁵[Third Schedule].

(3) No rules relating to matters enumerated at items 19 and 22 of the ⁶[Third Schedule] shall be made without previous approval of the ⁷[Federal Government] in writing.

(4) All rules made under this section shall, as soon as may be, be laid at the table of the National Assembly.

(5) All such rules for the time being in force shall be collected, arranged, and published at intervals not exceeding two years, and shall be sold to the public at a reasonable price.

220. Repeals and amendments savings. 8{********]

221 Savings. (1) Notwithstanding anything contained in section 6 of the General Clauses Act, 1897 (X of 1897), anything done or any action taken under the repealed enactments in so far as it is not inconsistent with the provisions of this Act shall without prejudice to anything already done or any action already taken be deemed to have been done or takne under this Act;

Provided that nothing in this Act shall be so construed as to have the effect of enhancing the punishment of an offence committed before the commencement of this Act:

Provided further that where the period of limitation for the submission of an application or the filing of an appeal or revision prescribed under any of the repealed enactments had expired or had begun to run before the commencement of this Act the provisions of those enactments shall continue to apply to such limitation.

1. Added by the Finance Act, 1992

2. Substituted by the Prevention of Smuggling Act, 1977 (XII of 1977) w.e.f. 16th May, 1977

3. Substituted and added by the Prevention of Smuggling Act, 1977 (XII of 1977) w.e.f. 16th May, 1977

4. For the Frustrated Cargo Export Rules, 1970 and for the Seized Conveyance (Interim Release) Rules, 1982, see Gazette of

Pakistan, 1970, Extraordinary, Pages 3-4 and Gazette of Pakistan, 1982, Extraordinary, Pages 244-245, respectively.

5. Inserted by the Finance Act, 1994.

6. Substituted by the Finance Act, 1975.

7. Substituted by the Finance Ordinance, 1972.

8. Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981.

(2) The provisions of the General Clauses Act, 1897 (X of 1897) , in particular, section 6, section 8 and section 24 thereof, shall apply to the repeal and re-enactment of the said enactments by this Act, subject to the provisions of sub-section (1).

(3) Nothing in this Act shall affect any law for the time being in force relating to the constitution and powers of the trustees of any port or other port authority.

222. Removal of difficulties. If any difficulty arises in giving effect to the provisions of this Act, particularly in relation to the transition from the enactments repealed by this Act to the provisions of this Act, the ¹[Federal Government] may, by general or special order made during the period of one year from the commencement of this Act, direct such action to be taken as it considers necessary or expedient for the purpose of removing the difficulty.

²[223. Officers of customs to follow Board's orders, etc. All officers of customs and other persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Board:

Provided that no such orders, instructions or directions shall be given so as to interfere with the discretion of the appropriate officers of customs in the exercise of their quasi-judicial functions.

224. Extension of time limit. The Federal Government, the Board or the appropriate officer of customs, may, upon being approached by an aggrieved party if satisfied that the delay was beyond the control of the applicant and that by granting such extension, there is a possibility of some loss or hardship to the applicant being mitigated or prevented, extend the time limit laid down in any section.

1. Substituted by the Finance Ordinance, 1972 (XXI of 1972) w.e.f. 17th June, 1972

2. Inserted by the Finance Act, 1975 (Act No. L of 1975) w.e.f. 7th June, 1975.