ISLAMABAD: The Federal Board of Revenue (FBR) will charge an insurance guarantee of Rs15 million from the international transport operators engaged in import, export or transit of goods, through the cross border of Pakistan, under the Transports Internationaux Routiers (TIR) Carnets.
The FBR has issued an SRO 873(I)/2021 to amend the Customs Rules 2001 for submission of the supplementary financial guarantee by the transport operators engaged in the international transport of goods through Pakistan under the TIR rules.
Under the draft rules, one of the prerequisite conditions for TIR admission is that the applicant has to furnish a supplementary financial guarantee (from an "A" rated Insurance Company) of Rs15 million in terms of TIR Rule 689 in favour of the Director, Directorate General of Transit Trade, Pakistan Customs, Karachi.
For the coverage of adjudged fine and penalty in case of any irregularity in respect of TIR Operations in Pakistan, an amount of Rs15,000,000 has been determined as the amount of the supplementary financial guarantee required to be submitted in favour of the Director Transit Trade Karachi for the admission as approved TIR Transport Operator, FBR said. Now, the condition of this guarantee is such that if in case, the goods allowed transit under the TIR Carnets, issued to TIR Transport Operator, are either lost or stolen in Pakistan or before reaching at destination are declared as TIR Operation Termination in Pakistan or cannot otherwise be accounted for by the TIR Carnet holder, and such goods become liable to "fine and penalty" after due process of law and adjudication, the Director, Directorate General of Transit Trade, Pakistan Customs, Custom House, Karachi can enforce this guarantee to recover the adjudged amount of fine and penalty, FBR said.
Additional conditions of this guarantee revealed, this insurance guarantee shall be enforceable notwithstanding any change in the name of the Insurer or merger with any other insurance company. This Insurance Guarantee shall be enforceable for import, export and transit goods under the TIR regime to cross border either by sea, land or air.
This Insurance Guarantee shall cover TIR operations within the territorial limits of Pakistan and shall be encashable in Pakistan for ensuring the fulfilment of any obligation arising out of Customs transit operation within the territorial limits of Pakistan. This Insurance Guarantee shall remain in force till the time all outstanding liabilities of the TIR Transport Operator are completely discharged to the entire satisfaction of the Director Transit, Directorate of Transit Trade, Pakistan Customs, Custom House, Karachi.
It is agreed that the guarantee amount or demanded part thereof may be recovered under Section 202 of the Custom Act, 1969, and rules made there under in the case the Insurance Insurer fails to pay the said amount.
Additional conditions of this guarantee revealed that the insurance guarantee is in accordance with the TIR Carnets (TIR) Rules of Pakistan and shall remain in force for one year from its date of issuance till the date of expiry, FBR added.
Copyright Business Recorder, 2021
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