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2. Ch. Sakhi Muhammad Sr. Instructor Pakistan Customs Lahore SIGNIFCANCE OF CUSTOMS LAWS IN SUPPLY CHAIN IN SUPPLY CHAIN By

3. Contents 1 Supply Chain Road Map & Requirement 2 3 4 Main Entities Logistics & Customs Customs Laws

4. Supply Chain Road Map 1

5. Supply Chain Security Requirement Traditional Working Of Import Single Point Services by Customs at Export & import location. From Traditional Single Point to End-to-End Traditional Working Of Export 1

6. Supply Chain Security Requirement From Traditional Single Point to End-to-End Expanding to Transit Port Intervention Adding intervention at transit port. 1

7. Supply Chain Security Requirement From Traditional Single Point to End-to-End Securing Full Transport Legs Securing the full maritime portion 1

8. Supply Chain Security Requirement 1 From Traditional Single Point to End-to-End End-to-End Supply Chain Security Solution Securing the entire supply chain from end-to-end

9. Main Entities 2 Shipper/Consignor: An entity (individual/firm) that sends freight. Consignee: An entity that receives the freight. Shipment is transacted between consignor and consignee. Carrier: Transports the shipment. (Freight Forwarder, 3PLS,NVOCC, etc )

10. Logistics & Customs 3 Logistics of moving goods through Customs or more efficiently processing documentation associated with cross- border trade Changing Role Of Customs Role Of Technology Can play major role in SCM, Specially when the customer requires accurate products On right time & place On low cost

11. Customs Laws 4 Evaluation Of Customs: Framework of Standards Security ( terrorism – shifting focus to entire supply chain ) Economic Development (trade, investment) Protection of Society (health & safety) Protection of Economic Interests (domestic industries) Revenue Collection of Import Taxes Customs Function

12. Customs Laws 4 The goal of government-authorities is to institutionalize the procedures to protect the global trade supply chain. Security is Central policy priority for customs. Customs are the primary national authorities that ensure the control of all goods entering and leaving the customs territory Customs Plays an important role in collection the duties and taxes according to their Law.

13. (i) Introduction: Customs laws, rules and regulations are fiscal statutes/ laws which deal with the collection & protection of Customs duties & other allied taxes chargeable on importation/exportation of foreign origin goods to generate the legitimate revenue of the State. Customs laws, rules and regulations are fiscal statutes/ laws which deal with the collection & protection of Customs duties & other allied taxes chargeable on importation/exportation of foreign origin goods to generate the legitimate revenue of the State. Customs Laws 4

14. To levy, charge and imposition of customs duties and other allied taxes. To provide substantive and procedural laws to facilitate the foreign trade. To facilitate the exemptions, temporary Imports, Export oriented manufacturing Bonds and DTRE To extend exemptions under regional agreements under WTO laws e.g. SEPTA, SAFTA, FTA China etc… (ii) Objectives Customs Laws 4

15. (iii)- TERMS USED UNDER CUSTOMS LAWS. AGENT:- CUSTOM HOUSE AGENT Eligibility; Pakistani, age 21 years, graduate, not convicted, test by DOT. Security; Saving certificates i) Rs. 300,000 for one customs station ii) Rs. 700,000 for countrywide Responsibilities. Legal actions against the clearing agent. Customs Laws 4

16. (iv)-CARRIER The person actually transporting goods; or In charge of ; or Responsible for operation of the means of transport; or the owner of Transport. Bonded/ Private Carrier Customs Laws 4

17. V)- COASTAL GOODS Goods transported in a vessel from one port in Pakistan to another. Does not include imported goods on which Customs Duty has not been paid Customs Laws 4

18. (vi)- CONVAYANCE Transport used for carrying goods or passengers, such as a vessel, aircraft, vehicle or animal. goods means all movable goods and includes; Conveyances, stores and materials, baggage, currency and negotiable instruments. Customs Laws 4

19. (vii)-BOAT NOTE- Section 68 A document granted to cover any boat carrying goods from or to ship or to a ship for loading. Absence of boat note- the goods are to be seized as improperly water born or as smuggled goods. Water borne goods to be shipped or discharged from vessel in presence of an officer of Customs. 19 Customs Laws 4

20. 20 Viii)- CUSTOMS PORTS the places which alone shall be the clearance of goods imported or to be exported. Customs Laws 4 Area keeping imported/exported goods before clearance. Proper places in any customs-station for loading & unloading of goods (e.g. wharf). (ix)- CUSTOMS AREA / STATION / WAREHOUSE

21. 21 (x)-DOCUMENTS Goods Declaration (GD), IGM/EGM, B/L, AWB, invoice/PL, data/information recorded, catalogue/Literature, L/C, Bill of Exchange etc.. Customs Laws 4 (xi)-Pakistan customs waters The waters extending into the sea to a distance of 12 nautical miles from the coast of Pakistan. Purposes; police, revenue, public health and fisheries.

22. 22 (xii)- EXPORT MENIFEST(EGM) Section 53 – Manifest specifying all goods to be exported. All goods and stores entered in the import manifest. Delivery of bill of export / GD or other requisite documents. Customs Laws 4

23. 23 (xiii)- IMPORT MENIFEST(IGM) Section; 43- Fixed place on which import manifest is delivered by the Master to the Customs. Where no such place is fixed the Master within 24 hours after arrival shall deliver an import manifest to Customs Customs Laws 4

24. 24 (xiv)- Master, person & person in charge. any person, except a pilot or harbor master, any person having command or charge of such vessel. Person in charge -- master, commander or pilot incharge of the aircraft, conductor, guard of the train, driver/ any person having control of the conveyance. Customs Laws 4

25. 25 Owner of the goods, Person primarily responsible for making a declaration under the Customs Act 1969. The person in-charge of the conveyance, carrier, custodian of cargo, and the terminal operator. Customs Laws 4 (xv)- Principal

26. 26 (xvi)- Goods Declaration (GD) i) Home Consumption (HC) ii) Into Bond (IB) iii) Ex- bond (EB) (xvii)- Clearance for exportation(section 131) - filing a GD, assessed and paid his liability of duty & taxes and other charges, if any. - The claim of duty drawback calculated and reflected in the GD or PaCCS. Customs Laws 4

27. (xviii)-Frustrated Cargo- Section 138 Goods brought into a customs- station by reason of inadvertence, misdirection or untraceability of consignee. (xix)-TRANSHIPMENT Sections120-125. Does not to apply to postal articles. Transshipment of goods without payment of duty. Superintendence of transshipment. Entry, etc., of transshipped goods. Levy of transshipment fees. 27 Customs Laws 4

28. 28 (xx)-TRANSHIPMENT Sections120-125. Does not to apply to postal articles. Transshipment of goods without payment of duty. Superintendence of transshipment. Entry, etc., of transshipped goods. Levy of transshipment fees. Customs Laws 4

29. 29 Chapter not to apply to baggage and postal articles. Transit of goods in the same conveyance. Transport of certain classes of goods subject to prescribed conditions. Transit of goods across Pakistan to a foreign territory. Customs Laws 4 (xxi)-TRANSIT TRADE Sections126-129

30. In Supply Chain Management

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