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RULES, 2012

CUSTOMS REWARD RULES, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 26th November, 2012]

S.R.O. 1386(I)2012.—In exercise of the powers conferred by Section 202-B of the Customs Act, 1969 (IV of 1969), the Federal Board of Revenue is pleased to make the following rules, namely:—

1.       Short title and commencement.—(1) These rules may be called the Customs Reward Rules, 2012.

(2)  They shall come into force at once.

2.       Definitions.—In these rules, unless there is anything repugnant in the subject or context,—

(i)      "Act" means the Customs Act, 1969 (IV of 1969);

(ii)     "Board" means the Federal Board of Revenue established under the Federal Board of Revenue Act, 2007;

(iii)    "duty" means all types of customs duties levied and collected under the Act;

(iv)    "informer" means any person, or a group of persons, who provide any vital or significant information or evidence leading to successful inquiry, audit, investigation or prosecution in cases involving evasion of duty and other taxes, and confiscation of goods resulting in recovery of such duty and taxes;

(v)     "meritorious services" means—

          (i)      making original contribution in any field relating to the Customs and displaying extraordinary devotion to duty;

          (ii)     exceeding budgetary targets through extraordinary planning and efforts; and

 

          (iii)    displaying exceptional overall results in the detection of evasion of duty and other taxes, anti-smuggling operation or recovery of arrears; and

          (vi)    "other taxes" means the duty and taxes collected at the import stage in the manner as if these were duty of customs payable under the Act.

3.  Eligibility for reward.—(1) Cash reward shall be sanctioned under these rules to the following categories of persons in cases involving evasion of duty and other taxes, and confiscation of goods, namely:-

(a)     officers and officials of Pakistan Customs Service for their contribution in such cases; and

(b)     informer providing credible information leading to such confiscation or detection, as the case may be.

(2)     Cash reward may also be sanctioned to the Officers of Pakistan Customs Service and staff, for rendering meritorious services in normal course of duty, not exceeding three years’ basic salary.

4.  Determination of reward.—(1) The amount of reward, in cases involving evasion of duty and other taxes, and confiscation of goods shall be determined in the following manner, namely:—

Amount of customs duty and other taxes realized

Amount of Reward

Rs.500,000/- or less

 

More than Rs.500,000/- but not more than Rs. 1,000,000/-

 

Over Rs. 1,000,000/-

Twenty per cent of the customs duty and other taxes.

Rs. 100,000/- plus ten per cent of the customs duty and other taxes in excess of Rs.500,000/-,

Rs. 150,000/- plus five per cent of the customs duty and other taxes in excess of Rs. 1,000,000/-

(2)     The amount of reward under sub-rule (1) shall be sanctioned after realization of the whole of the duty and other taxes involved:

Provided that in cases where more than half of the amount of duty and other taxes have been realized, reward may be sanctioned proportionate to the realized amount of duty and other taxes involved.

(3)     In cases where the goods are disposed of through auction, sale or by any other means after completion of appellate and judicial process, fifteen per cent of the sale proceeds deposited in the exchequer as a result of that disposal shall be disbursed as reward to Customs Officers, Staff and informers, if any.

(4)     The amount of redemption fine and penalty shall not be taken into account for reward purposes.

(5)     In cases where confiscated goods cannot be disposed of, such as prohibited and restricted items in terms of the prevalent Import and Export Policy Orders, narcotics, drugs, arms, intellectual property items etc., the amount of reward shall be determined in the following manner, namely:—

Value of confiscated goods

Amount of Reward

Rs.20,000/- or less 

 

More than Rs. 20,000/- but not more than Rs. 500,000/- 

 

Over Rs.500,000/-

Thirty per cent of the value of goods.

Rs.6,000/- plus twenty five per cent of the value of goods in excess of Rs.20.000/-

Rs. 126,000/- plus ten per cent of the value of goods in excess of 

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