The Federal Board of Revenue has relaxed customs licensing rules for persons/firms that intend to operate a warehouse by abolishing the condition of comprehensive insurance policy by applicants. In this regard, the FBR has amended Customs Rules, 2001 through an SRO.202(I)/2014 issued here on Tuesday. Under the customs rules, 'warehouse' means a common bonded warehouse, a manufacturing bond, a private bonded warehouse or a public bonded warehouse licensed by the collector.
According to the amended customs rules, the applicants would not be required to submit comprehensive insurance policy along with documents to the collector of Customs for obtaining license for warehouse under Customs Rules. Any person or firm desirous of operating a warehouse shall apply to the Collector in the form set out in Appendix-I to the relevant chapter along with the specified documents, sources said.
They would not be required to submit comprehensive insurance policy covering all risks such as fire, burglary, riots, strikes, malicious damage and allied perils, issued by an insurance company having paid up capital not less than Rs 40 millions, registered with the Controller of Insurance, Ministry of Commerce, in the sum equal to the maximum face value of proposed license, covering the total amount of the customs duties, central excise duty, sales tax and any other tax leviable on the imported goods or locally procured goods, in respect of a manufacturing bond, to be warehoused.
The applicants would also not be required to submit an undertaking by an insurance company duly approved by the Controller of Insurance, Ministry of Commerce, on the stamp paper undertaking that full premium under the aforesaid insurance policy has been duly received; in case the licensee does not make the required stock declaration in time the company shall immediately inform the Collector and breach of warranty by the licensee or non-compliance or omission of any nature by the licensee shall not prejudice any claim lodged by the Collector.
Following is the text of the notification issued here on Tuesday: In exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), the Federal Board of Revenue is pleased to direct that the following further amendment shall be made in the Customs Rules, 2001, namely: In the aforesaid Rules, in rule 343, in sub-rule (1), clauses (j) and (k) shall be omitted, the FBR added.