GOVERNMENT OF PAKISTAN
APPRAISEMENT COLLECTORATE

CUSTOM HOUSE, KARACHI

* * * * * * * * * *

No. S9/608/2003-IMP                                                                                                            Date: 27-01-2005

 

STANDING ORDER NO. 01/2005/ (A)

 

 

Subject:            EXTENSION OF ACP BY RELAXING CONDITIONS OF STANDING ORDER NO. 07/2004 (A) DATED 20.04.2004. 

 

                        In order to expand the scope of Automated Clearance Procedure (ACP), it has been decided that henceforth the Customs on its initiative will extend the application of this procedure to the eligible importers as per new criteria given below:

 

2.                     Criteria:

 

I.          All the Federal / Provincial Governments, Public sector organization, State owned corporations and defence imports.

 

II.         All the importers, having import value more than Rs. 30 million during last twelve months will be eligible for ACP as per parameters laid down in implementation strategy (para 3).

 

III.       The import of risk prone commodities shall not fall in the preview of ACP.

 

IV.       The clearing agents (upto five) who have been clearing goods of such importers in the past one year would be taken as nominated clearing agents, unless otherwise desired by such importers through application to the Deputy Collector, Import Section or any proceedings have already been initiated against clearing agent under customs law or.

 

V.        The importers who do not meet the ACP criteria may also apply to the Collector for special enrollment.

 

VI.              The facility of ACP shall be withdrawn at any stage if it is found that a case of misdeclaration or fiscal fraud exists or has been detected against the importer, (or a director in case of company / firm).

 

VII.            The facility of ACP will be availed only for goods imported against valid LC (letter of Credit) or registered bank contract.

 

3.                     The ACP will not be available in following cases:

 

a)         Where the Goods Declaration is filed prior to the arrival of the vessel under section 79 (1);

 

b)         Import of scrap of all kinds, second hand machinery, job lot / stock lot goods;

 

c)         Chemicals on the controlled list or useable in the manufacturing of narcotics, psychotropic substance or chemical weapons;

 

d)         Items meant for re-export.

 

e)         Banned / restricted items as per current Import Trade & Procedures Order;

 

f)          Items in section II (Procedural Requirements) of current Import Trade & Procedures Order, except CKD kits of motor cars and other motor vehicles, and trucks and buses, or unless allowed by Collector of Customs,

 

g)         Items ordered to be excluded from ACP due to high risk, by the Appraisement Intelligence Branch, after approval of additional Collector in charge and notice issued by Additional Collector (Imports).

 

4.                     Implementation strategy:

i)                      The importers already enrolled in ACP shall continue to enjoy ACP unless they cease to fulfill criteria given above.

 

ii)                     In the first phase only those importers shall be eligible who dealt with upto five commodities (HS Codes) only and their import value during last one year was more than Rs. 100 million.

 

iii)                                         The limit of Rs. 100 million shall be brought down to Rs. 30 million gradually.

 

iv)                                         The importers will be provided with monthly report of their imports.

 

 

v)                                          Status of importers enjoying ACP shall be reviewed annually. If any importer ceases to fulfill the conditions given in para 2 and 3, his name shall be expunged from the list of ACP.

 

5.                     M/s. PRAL will feed the list of names of importers to whom facility of ACP will be extended in the data base. This list will be duly signed by all the Additional Collectors (Appraisement) and Collector (Appraisement).

 

6.                     The system aims to process the customs declarations made at the time of import by notified eligible importers, on the Goods Declaration (GD) form, using Custom House computer. However, about 10% of such declarations will be checked in detail randomly in order to ensure their authenticity. In case any discrepancies prejudicial to government revenue or import policy are found in random checking or Post Clearance Audit etc, severe penal action would be initiated against the importer as well as the Custom House Agent, in accordance with Customs Act, 1969.

 

7.                     Unless the case is selected for random check, the computer system shall print on the Good Declaration, ‘CLEARED UNDER ACP’. All such Goods Declarations shall not be presented in Assessment Group for manual assessment or processing. The assessment would be made automatically by the computer. The assessment aspect of such Goods Declaration will be scrutinized under Post Clearance Audit / Post Import Audit.

 

* In case of FCL cargo Superintendent (cash) shall “out of charge” such Goods Declaration after duties and taxes have been paid. At the wharves, shed etc. the FCL cargo may not be examined. The container seal shall be checked for being intact and its numbers verified. If the seal is found missing, broken or tampered, or its numbers do not tally, this fact will be endorsed in the computerized examination report and detailed examination will be carried out.

 

* In case of LCL cargo, the marks and numbers and total number of packages shall be tallied at wharves, sheds etc. The Goods Declaration of LCL cargo shall be “out of charge” by Principal Appraiser (Shed). If the number of packages / quantities or marks and number do not tally, this fact will be endorsed in the computerized examination report and detailed examination will be carried out.

 

8.                     The Examining Officer (exit gate) shall re-verify the container number and seal number in case of FCL cargo, marks and numbers in case of LCL cargo; and payment of duty stamp on the Goods Declaration, before goods are allowed out of customs area.

 

9.                     All imports pertaining to deletion programs of availing benefits of conditional / concessionary SROs [ whereby certain security i.e. Indemnity Bond, Bank Guarantee, etc is required to be submitted in group / bank guarantee cell ] shall be allowed to avail the facility of ACP after completing the due procedure in the group / Bank Guarantee Cell. Superintendent Cash will “out of charge” such Goods Declarations after completion of process by the group. 

 

 

10.                   The computer system at CSC (Customer Service Centre) shall randomly select GDs for detailed scrutiny and processing (assessment) and examination of goods. Such GDs shall be marked by computer system ‘RANDOMLY SLECTED FOR DETAILED PROCESSING AND EXAMINATION UNDER ACP’. ALL SUCH Goods Declaration will be presented in Assessment Groups and to shed examination staff for examination as per examination order. In cases, where Goods Declaration selected is for more than 10 containers the examination shall be of 20% of the total number of containers, unless otherwise ordered by the Assistant Collector in charge. The Principal Appraiser (Shed), after satisfying himself will “out of charge” all such Goods Declarations.

 

11.                   The facility of ACP will stand withdrawn on detection of any discrepancy or mis-declaration, which shall be fed in the main computer system by the person / group / section making detection by filling out form ACP-2. This will form a part of the company profile kept on the customs data base, unless otherwise order by the Collector of Customs.

 

12.                   The Additional Collector of Customs, Appraisement in charge of Import Section shall be the competent authority to notify or de-notify the importers, or restrict certain types of import or certain items of import from using the ACP.

 

13.                   The Standing Order 07/2004 (A) dated 20.04.2004 stands superceded. This Standing Order is issued with the approval of CBR.

 

 

 

                                                                                                                                                 (Azhar Majeed Khalid)

                                                                                                                                              Collector

Encl: As above.

 

Copy to:-

1.         The Member (Customs), Central Board of Revenue, Islamabad.

2.         The Chief (Customs Procedures), Central Board of Revenue, Islamabad.

3.         All the Collectors of Customs, Sales Tax and Central Excise.

4.         The FPCCI, Federation House, Main Clifton, Karachi.

5.         Karachi Chamber of Commerce and Industry, Karachi.

6.         Project Manager, M/s. PRAL, Custom House, Karachi.

7.         Incharge CSC, Custom House, Karachi.

8.         Executive Secretary (FPCCI), Federation House, Main Clifton, Karachi.

9.         Karachi Customs Agent Group, Karachi.

10.       All other concerned.

11.       Notice Board.