Export of warehoused goods without taxes: Government may amend Section 106 of Customs law

The government is expected to amend section 106 of Customs Act 1969 in the federal budget 2015-16 aimed at allowing export of warehoused or stored goods without any duty or taxes, well informed sources told Business Recorder.
According to sources, presently, all types of taxes are required to be waived on export of goods from warehouses, as enabling provisions in other laws are not available. However, the FBR has proposed that any warehoused provisions and stores may be exported within the period of their warehousing under section 98 without the payment of import duty and other levies for use on board any conveyance proceeding to a foreign territory.
The Federal Board of Revenue (FBR) has also proposed amendment in section 123 of Customs Act 1969.
Currently, the LCL goods are being transshipped from off-dock terminals to inland customs stations as the ports of the first entry ie KICT, PICT, QICT, are only dealing with containerized cargo and the LCL cargo attains its status upon de-consolidation of the containerized cargo on arrival at the off dock terminal.
The addition will provide a legal cover to the transshipment of LCL goods to upcountry stations from off-dock terminals. All goods being transshipped under sub-section (1) of section 121 from a customs-station of the first entry into the country, where the Customs Computerized System is operational and the goods are determined to be high risk by the risk management system shall be dealt with under the rules on the subject.
Explanation: For the purpose of transshipment of LCL goods the customs station of the first entry will be the customs station where the goods are de- consolidated.
127: Enabling provision for exemption from the payment of all taxes on transit of goods across Pakistan, as no corresponding provision is available in other laws (ST, WHT, FED etc).
Subject to the provisions of section 15 and the rules any goods imported in a conveyance and mentioned in the import manifest as for transit in the same conveyance to customs - station in Pakistan or any to any destination outside Pakistan may be allowed to be so transited without the payment of duty, levies and taxes collected in the manner customs duty is collected, if any, leviable on such goods at the customs-station of transit.
The sources said, amendment has also been proposed to section 181 of the Customs Act 1969.
The details of this proposal show that the Board has fixed the rates of redemption fine through SRO 499(1)/2009 in case of misdeclaration. The enabling provision (second scenario to section 181), however, does not mention the relevant sections ie 32 and 32 A - the reference to section 32 in section 15 was also omitted in Finance Act, 2011. The proposed amendment would rectify this omission which has also been noticed in a recent judgement of the LHC.
Whenever an order for the confiscation of goods is passed under this Act, the officer passing the order may give the owner of the goods an option to pay in lieu of the confiscation of the goods such fine as the officer thinks fit.
Explanation: Any fine in lieu of confiscation of goods imposed under section 181 shall be in addition to any duty and charges payable in respect of such goods, and of any penalty that might have been imposed in addition to the confiscation of goods; provided that the Board may, by an order, specify the goods or class of goods where such option shall not be given; provided further that the Board, by an order, fix the amount of fine which, in lieu of confiscation, shall be imposed on any goods or class of goods imported in violation of the provisions of section 15, 32, 32 A or of a notification issued under section 16 or any other law for the time being in force.