Category: Taxation

Pakistan’s strategic location makes it a vital transit corridor for regional and international trade. The Customs Act, 1969, through Sections 127 to 129A, provides a comprehensive legal framework governing the transit of goods within Pakistan and across Pakistan to foreign destinations, while ensuring revenue protection and regulatory control.

Transshipment plays a critical role in Pakistan’s import–export and transit trade framework. Under Section 121 of the Customs Act, 1969, transshipment allows goods to move from one customs station to another—or onward to a foreign destination—without immediate payment of customs duty, subject to specific legal conditions.

The Customs Act, 1969 has introduced a Cargo Tracking System (CTS) and e-bilty mechanism under Section 83C, updated for tax year 2026. This digital initiative ensures real-time monitoring, transparency, and accountability in the movement of goods across Pakistan’s seaports, land borders, and inland transport hubs.

Importers bringing goods into Pakistan for direct local use or sale must comply with the customs clearance procedure for home consumption as laid down in Section 83 of the Customs Act, 1969, updated for tax year 2026.

Importers clearing goods through Pakistan Customs should be fully aware of Section 81 of the Customs Act, 1969, which governs the provisional determination of customs duty and taxes. Updated for tax year 2026, this provision allows temporary clearance of consignments when final assessment cannot be completed immediately.