Five-year time limit sought for issuance of notice: duty/charge not levied, short levied

The Federal Board of Revenue seeks enhancement in time limit from three years to five years for issuance of notice in case of any duty not levied or short levied or erroneously refunded due to inadvertence, error or misconstruction. According to analysis of Ernst & Young Ford Rhodes Sidat Hyder on the Finance Bill 2011, under Section 32(3) the prescribed time limit is three years for issuance of notice.
The Finance Bill 2011 seeks to enhance the time limit from three years to five years. Section 32(2) provides time limit of five years for issuance of notice in case of any duty or charge not levied or short levied or erroneously refunded due to the purported wrongful submission of documents and false statements by way of collusion. The proposed amendment intends to harmonise the time limit prescribed in both situations of false statements distinguished in subsections (2) and (3).
In addition, section 15 specifies the goods, which are prohibited to be imported into or exported from Pakistan. Further Section 32 deals with the offence of false statement or error by a person in any matter of custom and the procedure to recover duty or charge not levied, short levied or erroneously refunded in such case.
In this amendment the bill seeks to delete the words "or goods imported or exported in contravention of the provisions of section 32" from clause (c) of Section 15. The proposed amendment seeks to remove the goods imported or exported in contravention of Section 32 from the list of goods, which are prohibited to be imported into and exported from Pakistan. This amendment intends to eliminate the possibility of any undue advantage and/or misuse of powers vested under Section 15 with the Customs Authorities.
The section 21(c) empowers the Board to prescribe Rules or issue special order authorising repayment of duties, wholly or partly, in case of import of goods used for production, manufacture, processing, repair of goods meant for exportation or for supply to industrial units, projects, institutions, agencies and organisations entitled to concessionary rates.
Under the Finance Bill 2011, it has been proposed to add the words "or for supplies against international tenders" in clause (c) of Section 21. This proposed amendment intends to make repayment of duties levied on import of goods used for supplies against international tenders.