FBR implements rules for Pakistan, Uzbekistan transit trade

FBR implements rules for Pakistan, Uzbekistan transit trade

FBR implements rules for Pakistan, Uzbekistan transit trade

The Federal Board of Revenue (FBR) on Tuesday implemented rules for the transit trade between Uzbekistan and Pakistan. Image: APP

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KARACHI: The Federal Board of Revenue (FBR) on Tuesday implemented rules for the transit trade between Uzbekistan and Pakistan.

The FBR issued SRO 1466 (I)/2021 to formally launch the clearance of goods in and out of Uzbekistan. The revenue body previously proposed these rules through SRO 1256 (I)/2021 issued on September 20, 2021.

Through the latest SRO, a new chapter “Transit trade Regime in Pakistan – Uzbekistan–Pakistan Transit Trade Rules” by amending Customs Rules, 2001.

These rules would apply on the Uzbekistan’s cargo imported through the Karachi Port, Port Muhammad Bin Qasim, Gwadar Port; and Uzbekistan’s cargo to other countries via Karachi Port, Port Muhammad Bin Qasim and the Gwadar Port.

The revenue body explained the filing of goods declaration for transit cargo at the office of departure at seaports Karachi, Port Muhammad Bin Qasim and Gwadar.

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“The transit cargo shall not be subject to [the] payment of import or export duties and taxes provided the activities are in conformity with these rules.”

“The transit cargo shall be distinctly manifested as such in the IGM/carrier declaration uploaded electronically in the Customs computerised system by the shipping line or its agent.”

“The importer’s country’s name and address shall be of the said foreign country for which [the] goods are intended to be imported.”

The FBR also said the goods declaration would be filed by the trader or his authorised Customs agent or the bonded carrier (having valid clearing agent licence).

In case, a goods declaration is filed by the trader or his Customs agent, he would nominate the bonded carrier, including details of transport unit at the time of filing.

The goods declaration would be assessed by the Customs Computerised System (CCS) on the pattern of goods declaration filed for local home consumption and the amount equal to leviable duty and taxes would be deducted from the face value of revolving insurance guarantee as Customs security.

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The amount, so deducted, will be credited to the Customs security/revolving insurance guarantee on completion of cross-border formalities at the border Customs station and end of transit journey through the Pakistan territory.

The FBR said the installation of a tracker is mandatory on each vehicle upon entry into the territory of Pakistan as per its national legislations.

In case of any exigency, a foreign driver can exit the country with the prior approval of the Customs authorities. In these cases, the relevant transport operator would request the Customs authorities for a replacement driver, so that his details can be linked with the vehicle.

The vehicles of third countries can also transport transit and bilateral trade cargo, if these vehicles have the requisite permits or authorisations.

All the transport operators and Customs clearing agents and brokers handling transit goods would be required to open and maintain a “Revolving Insurance Guarantee PD Account” with the Customs.

The foreign trader, entity or his authorised Customs clearing agents, brokers or transport operators in Pakistan would furnish a Customs security in the form of revolving insurance guarantee, having sufficient financial coverage, from an insurance company of repute, acceptable to Pakistan Customs, in the prescribed form or in any other form prescribed by the Board, which would be valid for at least one year and would be en-cashable in Pakistan, for ensuring the fulfillment of any obligation arising out of the Customs transit operation within the Pakistan territory.

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The revolving insurance guarantee would provide the financial risk cover for the amount of duty and taxes leviable on the transit goods, while these are passing through the territory of Pakistan.

The hard copies of all the revolving insurance guarantees would be kept with the bank/insurance guarantee section of the relevant Directorate of Transit Trade for safe custody during their validity period.

The CCS would allocate a personal deposit account number to all the Customs clearing agents/brokers and transport operators authorised to handle the transit cargo, for maintaining sufficient financial risk coverage through submission of the revolving insurance guarantees.

The FBR said in case of any en-route pilferage, theft, etc, the amount equal to leviable duty and taxes would be paid by the relevant insurance company/bank to the Customs in the form of pay order drawn on the name of the director general, Directorate General of Transit Trade, Karachi within 48 hours of the service of the “Encashment Notice”.

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