ISLAMABAD: The Federal Board of Revenue (FBR) will charge an insurance guarantee of Rs15 million to international transport operators engaged in the import, export or transit of goods, across the border of Pakistan, as part of the International Road Transport (TIR) carnets.
The FBR issued an SRO 873 (I) / 2021 to amend the 2001 customs rules for the presentation of additional financial security by transport operators engaged in the international transport of goods through Pakistan under the TIR rules.
Under the draft rules, one of the prerequisites for TIR admission is that the applicant must provide an additional financial guarantee (from an insurance company rated “A”) of Rs 15 million in accordance with the rule. TIR 689 in favor of the Director, General Directorate of Transit Trade, Pakistan Customs, Karachi.
For the coverage of the fine and penalty awarded in the event of irregularity in TIR operations in Pakistan, an amount of Rs 15,000,000 has been determined as the amount of the additional financial guarantee to be submitted in favor of the Director of Commerce. of Karachi transit. for admission as an authorized TIR transport operator, said FBR. Henceforth, the condition of this guarantee is such that if, in the event, the goods authorized to transit under the TIR Carnets, issued to the TIR transport operator, are either lost or stolen in Pakistan or before reaching their destination. are declared as end of TIR operation in Pakistan or otherwise cannot be counted by the holder of the TIR Carnet, and such goods become subject to a “fine and penalty” after due process and court order, the Director, Transit Trade Branch, Pakistan Customs, Custom House, Karachi can enforce this guarantee to recover the fine and penalty amount, FBR said.
Additional conditions of this guarantee revealed, this insurance guarantee will be enforceable notwithstanding any change of name of the Insurer or merger with any other insurance company. This insurance guarantee is applicable for goods imported, exported and in transit under the TIR procedure to cross the border by sea, land or air.
This insurance guarantee will cover TIR operations within the territorial limits of Pakistan and will be cashable in Pakistan to ensure the fulfillment of any obligations arising from customs transit operations within the territorial limits of Pakistan. This insurance guarantee shall remain in effect until such time as all unpaid obligations of the TIR transport operator are fully paid to the full satisfaction of the Director of Transit, Directorate of Transit Trade, Pakistan Customs, Karachi Customs.
It is agreed that the amount of the guarantee or the required part thereof may be recovered under section 202 of the Customs Act 1969 and the rules thereof in the event that the insurer does not pay. not said amount.
Additional terms of this guarantee revealed that the insurance guarantee complies with the Pakistan TIR Carnets (TIR) rules and will remain in force for one year from the date of issue until the date of issue. expiration, FBR added.
Copyright Business Recorder, 2021