ISLAMABAD, April 17, 2025 — The Federal Board of Revenue (FBR) has taken a major step to enhance regional trade by issuing draft rules for the Uzbekistan-Pakistan Transit Trade (UPTT) mechanism. These regulations aim to formalize and streamline the movement of goods between Pakistan and Uzbekistan, promoting cross-border trade through efficient logistics and transparent customs procedures.
The draft rules, issued through SRO 1256(I)/2021 dated September 20, 2021, propose amendments to the Customs Rules, 2001, in line with the Uzbekistan-Pakistan Transit Trade Agreement. The FBR has invited feedback and objections within 15 days of issuance, indicating a participatory approach to refining these new policies.
According to the proposed framework, transit trade cargo from Uzbekistan to and through Pakistan—via ports such as Karachi, Port Muhammad Bin Qasim, and Gwadar—will now be processed under Pakistan’s Customs Computerized System (CCS). This system aims to facilitate smooth tracking, clearance, and regulatory oversight of cargo entering and exiting the country.
Commercial vehicles engaged in this transit trade must be licensed transport operators, authorized by the competent authorities of both contracting countries. These vehicles will be required to carry valid permits, applicable per trip and non-transferable, with a standard validity of 20 days, extendable to 90 days in exceptional circumstances. This policy applies equally to bilateral and transit trade between Pakistan and Uzbekistan.
A key feature is the exemption for Uzbekistan-registered transport vehicles from submitting financial securities on entry into Pakistan, reflecting the principle of reciprocity agreed upon by both countries. These vehicles, however, must have valid tracking devices installed and comply with customs checks at entry and exit points. Reconciliation of movement data between Customs and FIA will be conducted weekly to ensure full compliance.
Transport operators and customs brokers dealing with transit goods are required to maintain a “Revolving Insurance Guarantee PD Account” with Pakistan Customs. This account ensures financial coverage for the duty and taxes applicable on transit cargo during its passage through Pakistan. The customs authority will monitor all activities using the CCS, including alerts for overstayed vehicles.
Additionally, the system enables electronic tracking of cargo from port of entry to the final customs station. In the event of delays or violations such as non-arrival, misdeclaration, or pilferage, customs officers have the authority to enforce or encash financial guarantees to recover the state’s revenue.
To facilitate smoother trade between Pakistan and Uzbekistan, customs documentation such as bills of lading, commercial invoices, and packing lists must be uploaded digitally. The GD (Goods Declaration) will be processed similarly to local imports, with taxes provisionally covered through the revolving insurance account until the cargo exits Pakistan.
The implementation of these rules will not only enhance logistical efficiency but also strengthen diplomatic and economic ties between Pakistan and Uzbekistan, opening new avenues for regional cooperation and trade expansion.