Glossary

Glossary of Tax and Trade Terms

A/P: Authority to pay; used mainly in the Far Eastern trade, addressed by a bank to a seller of merchandise, notifying him that it is authorised to purchase, with or without recourse, drafts upto a stipulated amount drawn on a certain foreign buyer in cover of specified shipments of merchandise.

acceptance: Atime draft (or bill of exchange) which the drawee (the payer) hasaccepted for payment at maturity. The draft must bepresented first for acceptance and then for payment. The drawee becomes the acceptor. On the face of the draft must be written the word accepted and the date of place of payment.

accepting bank: Abank which is the drawee of a time and which becomes the acceptor of the draft.

accountant means— (a) a Chartered Accountant within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961) ; or (b) a Cost and Management Accountant within the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966) ; or (c) a member of any association of accountants recognized in this behalf by the Federal Government; [Sales Tax Rules, 2006]

acquisition means import or purchase of foreign origin goods including banned or restricted items within the scope and extent of this sub-chapter or procurement of locally manufactured goods and taxable or excisable services covered under this sub-Chapter provided that acquisition of banned or restricted items shall be subject to prior permission from the Ministry of Commerce; [Pakistan Customs Rules, 2001]

ad valorem (or ad val): According to value A tariff charged on imports in the form of a set percentage of the value of the imports.

adjudicating authority means any authority competent to pass any order or decision under this Act, but does not include the Board, ⁶[the Collector (Appeals)] or the Appellate Tribunal; [Pakistan Customs Act, 1969]

adjudicating authority means any officer appointed to adjudicate and decide cases under section 179 of the Customs Act, 1969 (IV of 1969) , section 45 of the Sales Tax Act, 1990, and section 31 of the Federal Excise Act, 2005; [Sales Tax Rules, 2006]

advance ruling means classification determined by the Board or any officer, or committee authorized by the Board for the assessment of the goods intended to be imported or exported. [Pakistan Customs Act, 1969]

advising bank: A bank which notifies the exporter of the validity of the letter of credit and of the conditions and terms. The advising bank has no responsibilities under the letter of credit.

after date: When a draft bears this phase, the time begins to run from the date drawn. The date of maturity is, therefore, fixed and does not depend upon acceptance.

after sight: Indicates that payment on a draft is due a specified number of daysafter presentation of the draft to the drawee or payee.

agent means a person licensed under section 207 or permitted to transact any business under section 208 [Pakistan Customs Act, 1969]

air waybill: A non-negotiable instrument of air transport which serves as a receipt for theshipper, to indicate that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination, according to the conditions listed on the back of the original documents.

airline means aircraft bringing the goods from foreign destination to airport of arrival; [Pakistan Customs Rules, 2001]

airport of first arrival, means that International Airport in Pakistan where goods arrive directly from an overseas destination; [Pakistan Customs Rules, 2001]

alongside: The side of the ship. Goods to be delivered alongside are to be placed on the dock or lighter within reach of the ships tackle, from which they can be loaded aboard the ship.

amend or amendment in relation to a declaration, includes any addition, deletion or change in original data field declaration after its initial filing; [Pakistan Customs Rules, 2001]

analysis certificate means a certificate issued by the Collector under rule 352[Pakistan Customs Rules, 2001]

anti-dumping duty. – Duty imposed by National Tariff Commission as anti-dumping measures on products imported into Pakistan when it determines, pursuant to an investigation initiated and conducted in accordance with the provisions of this Ordinance, that –

(a) an investigated product is dumped [i.e. if it is introduced into the commerce of Pakistan at a price which is less than its normal value [determined in accordance with Part III of this Ordinance]] within the meaning of this Ordinance;

(b) injury is being caused to domestic industry [injury means unless otherwise specified, material injury to a domestic industry, threat of material injury to a domestic industry or material retardation of the establishment of a domestic industry, when dumped imports are causing such injury;] within the meaning of this Ordinance. [Anti-Dumping Duties Ordinance, 2000]

appellate tribunal means the Appellate Tribunal Inland Revenue established under section 130 of the Income Tax Ordinance 2001 (XLIX of 2001) [The Sales Tax Act, 1990]

appellate tribunal means the Customs, Excise and Sales Tax Appellate Tribunal constituted under section 194; [Pakistan Customs Act, 1969]

appropriate officer means an officer of Inland Revenue authorized by the Board by notification in the official Gazette to perform certain functions under this Act; [The Sales Tax Act, 1990]

appropriate officer, means the officer of customs to whom such functions have been assigned by or under this Act or the rules made there under; [Pakistan Customs Act, 1969]

arrears means the amount of any duty, surcharge, fine or penalty 34[or any other amount] which is adjudged or demanded through an adjudication order passed by the competent authority or the amount referred to in the notice under sub-section (2) of section 202 which is recoverable in full or in part and is not paid within the time prescribed; [Pakistan Customs Act, 1969]

arrears,in relation to a person, means, on any day, the sales tax due and payable by the person under this Act before that day but which has not yet been paid, [The Sales Tax Act, 1990]

assessment includes provisional assessment, reassessment and any order or assessment in which the duty assessed is nil; [Pakistan Customs Act, 1969]

associates (associated persons) means, –

(i) subject to sub-clause (ii), where two persons associate and the relationship between the two is such that one may reasonably be expected to act in accordance with the intentions of the other, or both persons may reasonably be expected to act in accordance with the intentions of a third person;

(ii) two persons shall not be associates solely by reason of the fact that one person is an employee of the other or both persons are employees of a third person;

(iii) without limiting the generality of sub-clause (i) and subject to sub-clause (iv), the following shall be treated as associates, namely: –

(a) an individual and a relative of the individual; members of an association of persons;

(b) a member of an association of persons and the association, where the member, either alone or together with an associate or associates under another application of this section, controls fifty per cent or more of the rights to income or capital of the association;

(c) a trust and any person who benefits or may benefit under the trust;

(d) a shareholder in a company and the company, where the shareholder, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons–

(i) fifty per cent or more of the voting power in the company;

(f) two companies, where a person, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons –

(ii) fifty per cent or more of the rights to dividends in both companies; or

(iii) fifty per cent or more of the rights to capital in both companies.

(iv) two persons shall not be associates under sub-clause (a) or (b) of paragraph (iii) where the Commissioner is satisfied that neither person may reasonably be expected to act in accordance with the intentions of the other.

(v) In this clause, relative in relation to an individual, means–

(a) an ancestor, a descendant of any of the grandparents, or an adopted child, of the individual, or of a spouse of the individual; or

(b) a spouse of the individual or of any person specified in sub-clause (a).

association of personsincludes a firm, a Hindu undivided family, any artificial juridical person and body of persons formed under a foreign law, but does not include a company; [The Sales Tax Act, 1990]

at or about the same time means within ninety days prior to the importation or within ninety days after the importation of goods being valued; [Pakistan Customs Rules, 2001]

at sight: Indicates that payment of a negotiable instrument is due upon presentation or demand.

Attachment Officer means an officer, not below the rank of Principal Appraiser or Superintendent of Customs, authorized by the appropriate officer to perform any of the functions under this chapter; [Pakistan Customs Rules, 2001]

attachment officer means an officer, not below the rank of Principal Appraiser or Superintendent or Senior Auditor, authorised by the Recovery Officer to perform any of the functions under these rules; [Sales Tax Rules, 2006]

audit means examination of books, records, documents, correspondence, stocks and inventory of goods relating to import, export and other business activities of the persons referred to in section 211, in order to ascertain their liability of duties and taxes and compliance with relevant laws and rules; [Pakistan Customs Act, 1969]