Glossary_C

Glossary of Tax and Trade Terms

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cargo manifest means manifest of goods meant to be transshipped from one airport to another by air; [Pakistan Customs Rules, 2001]

carrier means any person or entity who or which, under the contract carriage (Bill of lading), undertakes transportation of goods or perform carriage by sea through vessel operating common carriers (VOCCs) or non-vessel operating common carriers (NVOCCs), or combination of such modes;

carrier means the Pakistan Railways, National Logistic Cell (NLC), Sambrial Dry Port Trust, Faisalabad Dry Port Trust, Multan Dry Port Trust or such other carrier as the Central Board of Revenue may approve from time to time and are duly licensed under Chapter VIII of Customs Rules,2001; [Pakistan Customs Rules, 2001]

carrier means the person actually transporting goods or incharge of, or responsible for, the operations of the means of transport or the owner thereof; [Pakistan Customs Act, 1969]

Cash in advance : Cash in advance before shipment may seem to be the most desirable method of all, since the shipper is relieved of collection problems and has immediate use of the money if a wire transfer is used. Payment by check, even before shipment, may result in a collection delay of four to six weeks and therefore frustrate the original intention of payment before shipment. On the other hand, advance payment creates cash flow problems and increases risks for the buyer. Thus, cash in advance lacks competitiveness; the buyer may refuse to pay until the merchandise is received.

CFR. Cost and Freight (named destination port): seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ships rail.

charges forward: A banking term used when foreign and domestic bank charges commission, interest (if any), and government taxes in connection with the collection of a draft an account of the drawee.

charges here: A banking term used when foreign and domestic bank commission charges, interest (if any), and government taxes in connection with the collection of a draft an account of the drawee.

charter party: Contract between the owner of a vessel and the shipper for using the vessel or a part thereof.

Chief Commissioner means a person appointed as the chief Commissioner Inland Revenue under section 30; [The Sales Tax Act, 1990]

CIF. Cost, Insurance and Freight (named destination port): exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.

CIP. Carriage and Insurance Paid to (named place of destination): the containerised transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.

claimant means any registered person who files a claim for refund of sales tax under these rules; [Sales Tax Rules, 2006]

clean bill of lading: One which indicates that goods were received in apparent good order and condition, without damages or other irregularities.

coastal goods means the goods transported in a vessel from one port in Pakistan to another, but does not include imported goods on which customs duty has not been paid; [Pakistan Customs Act, 1969]

coasting trade: Trade between ports of the same country in contrast with trade carried out between foreign port. The small vessels operating along these routes are called coasters

Collector (Appeals) means a person appointed to be a Collector of Customs (Appeals) under section 3; [Pakistan Customs Act, 1969]

Collector means Collector of Customs appointed under section 3 and includes any other officers equivalent in rank with any other designation appointed under this Act to perform specified functions in own jurisdiction; [Pakistan Customs Act, 1969]

commercial exporter means a person registered as [an] exporter, who does not have his own manufacturing facility and is exporting the goods, whether in the same state or after getting them processed or manufactured from one or more registered persons, and holds a valid sales tax invoice for such processing, manufacturing or conversion; [Sales Tax Rules, 2006]

commercial level means the level of the transaction at which a sale is concluded and includes the sales before and after importation of the goods for example,

commission, in case of a car dealer, means the amount payable by the consumer to the dealer for the purpose of intermediating sale, booking, delivery or other related services or activities in respect of a vehicle and includes any other amount charged from a consumer or seller over and above the price of the vehicle; [Sales Tax Special Procedures Rules, 2007]

Commissioner means the Commissioner of Inland Revenue appointed under section 30; [The Sales Tax Act, 1990]

committee means a committee constituted under sub-section (2) of section 47A of the Act; [Sales Tax Rules, 2006]

common bonded warehouse means a warehouse licensed by the Collector under rule 344 for warehousing customs duty, sales tax, central excise duty or withholding tax, free import of goods primarily meant for manufacture of finished goods by the Small & Medium Enterprises or indirect exporters; [Pakistan Customs Rules, 2001]

common carrier: An individual, partnership, or corporation which transports for compensation persons or goods.

common taxpayer identification number means the registration number or any other number allocated to a registered person; [The Sales Tax Act, 1990]

companymeans— (a) a company as defined in the Companies Ordinance, 1984 (XL VII of 1984); (b) a body corporate formed by or under any law in force in Pakistan; (c) a modaraba; (d) a body incorporated by or under the law of a country outside Pakistan relating to incorporation of companies; (e) a trust, a co-operative society or a finance society or any other society established or constituted by or under any law for the time being in force; or (f) a foreign association, whether incorporated or not, which the Board has, by general or special order, declared to be a company for the purposes of the Income Tax Ordinance 2001 (XLIX of 2001);

Component:- means a complete machined part of a system, not normally useful by itself and not amenable to further dis-assembly. [Pakistan Customs General Order]

computerized system means any comprehensive information technology system to be used by the Board or any other office as may be notified by the Board, for carrying out the purposes of this Act; [The Sales Tax Act, 1990]

confirmed letter of credit: A letter of credit which has been confirmed by a second bank Such confirmation is desirable, since the seller may not be familiar with the foreign bank which issued the L/C.

Consignment Note means a document issued by the shipper in case of FCL cargo or the person packing the container in case of consolidated cargo [Pakistan Customs Rules, 2001]

consignment: A physical transfer of goods from an exporter (consignor) to an importer (consignee) for the importer to sell. The consignor retains title of the goods until the consignee has sold the goods. The consignee sells the goods for commission and remits the net proceeds to the consignor.

consolidated cargo means cargo containing shipments of two or more shippers or suppliers. [Pakistan Customs Rules, 2001]

consular invoice: Covers a shipment of export-goods certified by a consular official of the country of destination. The invoice shows the value of the shipment in the currency of the country of exports. It is used by customs officials of the country to verify value, quantity and nature of shipment.

consumer, in relation to Chapter III, means a person or his successor-in-interest who purchases or receives electric power for consumption and not for delivery or resale thereof to others and includes a person who owns or occupies a premises where electric power is supplied; [Sales Tax Special Procedures Rules, 2007]

convertibility: The ability to exchange a currency for foreign currency in the open market

conveyance and transport unit means conveyance, vehicles and transport units used by the carrier for the transshipment of goods from port to another customs port or stations; [Pakistan Customs Rules, 2001]

conveyance means any means of transport used for carrying goods or passengers such as a vessel, aircraft, vehicle or animal; [Pakistan Customs Act, 1969]

cottage industry means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed five million rupees or whose annual utility (electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed seven hundred thousand rupees; [The Sales Tax Act, 1990]

CPT. Carriage Paid To (named place of destination) the general/containerised/multimodal equivalent of CFR. The seller pays for carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.

CREST means “Computerized Risk-based Evaluation of Sales Tax[Sales Tax Rules, 2006]

CRO means Central Registration Office established for the purposes of centralized sales tax registration;

CSTRO means Centralized Sales Tax Refund Office to be established in the [Federal Board of Revenue] for disbursement of refund of sales tax; [Sales Tax Rules, 2006]

Customs Act means the Customs Act, 1969 (IV of 1969), and where appropriate all rules and notifications made under that Act; [The Sales Tax Act, 1990]

customs agent means a person granted a customs agent license by the licensing authority to carry out customs business under these rules; [Pakistan Customs Rules, 2001]

customs business means activities involving transactions with the Customs department concerning the entrance or clearance of any conveyance in a Customs Station or Area or Port or any customs related clearance activities or importation or exportation of goods or baggage, including their classification and valuation, the payment of duties, taxes, or other charges assessed or collected by the Customs on goods by reason of its importation, exportation, transit or transshipment or refund, rebate, or drawback thereof and includes the preparation of documents or forms in any format and the electronic transmission of documents, invoices, bills, or parts thereof, intended to be filed with the Customs in furtherance of such activities or any other activity relating to the Customs Act, 1969 (IV of 1969) or rules made thereunder; [Pakistan Customs Rules, 2001]

Customs Computerized System means a comprehensive Customs information technology system specified in Chapter XVI-A; [Pakistan Customs Act, 1969]

Customs Container Security Unit (CCSU) means the unit based in Custom House Karachi controlling the container sealing operations throughout Pakistan; [Pakistan Customs Rules, 2001]

customs-airport means any airport declared under section 9 to be a customs- airport; [Pakistan Customs Act, 1969]

customs-area means the limits of the customs-station specified under section 10 and includes any area in which imported goods or goods for export are ordinarily kept before clearance by the customs authorities; [Pakistan Customs Act, 1969]

customs-port means any place declared under section 9 to be a 18[customs-port]; [Pakistan Customs Act, 1969]

customs-station means any customs-port, customs-airport or any land customs-station; [Pakistan Customs Act, 1969]