Transshipment of imported cargo from gateway port to foreign port

Federal Board of Revenue (the Board) issued SRO 03(I)/2021 on 04 January 2021 for amending Sub Chapter VIII-A in order to facilitate the international transshipments. The draft amendments were previously notified vide SRO 685 (I)/2021 dated 5 August 2020 which now have been finalized after some modifications.

Following is the snapshot of the law:

Snapshot

Reference No.	SRO 03 (I)/2021
Description	Transshipment of imported cargo from gateway port to foreign port
Date of Issuance	04 January 2021
Amendment	Customs Rules, 2001
Objective	To amend rules dealing with the transshipment of imported cargo from gateway port to foreign port
Effective date	With immediate effect

Explanation

Notification introduced the amendments in following four rules:

1.   510A. Transshipment of imported cargo from gateway pot to a foreign port:

The text of this rule has been substituted with the new text. The purpose of the rule is to define the scope and provide the list of documents which are required in Import General Manifest (IGM).

As per the new rule, LCL cargos are not allowed under International Transshipment (IT) cargos for the purpose of transshipment of imported cargo. The reason for this amendment might be to ensure ease in handling of cargos at port. The information and documents which are required in manifest are as follows:

1. Port of loading;
2. via port (name of the transshipment port of Pakistan);
3. Port of destination (final port of discharge at foreign destination);
4. Bill of lading (B/L) No.;
5. Name of foreign exporter;
6. Name of foreign importer;
7. Weight;
8. Seal No.; and
9. Container No.;

2.   510B. Transshipment of containerized cargo:

This rule deals with the handling of containerized cargo at the “via port – transshipment port of Pakistan”. Previously, only the separate storage of the containers was required with record, but as per the amended rule the record of containers after unloading is required to be maintained in the computerized system. The trail of the IT containers is required to be maintained with complete traceability of location.

Terminal Operators (TO) are required to verify shipper seal with manifested seal. If seal is found different or broken, TO will reseal with custom seal in the presence of custodian and new seal number will be enter into the computerized system.

3.   510D. Delay in clearance of transshipment goods:

Previously, rule 510D required a financial guarantee / revolving bank guarantee to be furnished equal to the amount of levied taxes and duties in order to enforce the timely departure of IT goods from the port within 30 days. Condition for financial guarantee has been lifted under the revised rule. Now the extension in storage beyond thirty days may be granted on the approval of Assistant Collector of Customs.

If the IT goods remain on port after sixty days and such delay is not due to port authorities, the goods can be allowed to destroyed or auctioned on the approval of Collector of Customs.

A provision regarding the handling of hazardous material is also added. Any hazardous material is the responsibility of shipping line and it will take back such material to the port of origin.

4.   510E. Execution of bond by shipping line:

In order to enforce the compliance of these rules and regulations, shipping lines are required to execute an indemnity bond. However, the provision for removal of goods on the will of Collector of Customs had been remove.