FBR allows processing of Uzbek transit goods through ports, terminals

FBR allows processing of Uzbek transit goods through ports, terminals

The Federal Board of Revenue (FBR) has announced that Uzbek transit goods can now be processed through Customs-ports and terminals in Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port under the Uzbekistan-Pakistan Transit Trade Agreement.

The FBR has updated the Uzbekistan-Pakistan Transit Trade Rules 2021 through an SRO 421(I)/2023 issued on a day earlier.

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The amended rules state that “cross stuffing” is the transfer of goods from one container to another or to any other mode of transportation that adheres to TIR specifications, within the approved areas of Customs-ports and terminals or off-dock terminals.

The SRO 421(I) 2023 outlines the process for verifying cross-border events and crediting the amount of leviable duty and taxes to the Revolving Financial Security for Uzbek transit goods that are imported through Customs-ports and terminals.

The new process will be applicable to the Uzbekistan-Pakistan Transit Trade Agreement, and it pertains to the processing of transit trade cargo under the Customs computerized system to and from Uzbekistan.

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It also covers Uzbekistan’s cargo imported through Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port, as well as Uzbekistan’s cargo to other countries via Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port.

Under this procedure, the Directorate of Transit Trade in Peshawar and Quetta will be authorized to issue and regulate permits at their respective land border Customs stations.

The Board may also levy charges through a general order that will apply to all traffic, including fees for weighment, scanning, and sealing by customs officials or fees commensurate with the administrative expenses for the services rendered. Vehicles will be prohibited from carrying goods loaded in Pakistan’s territory for delivery at any other point (cabotage), and they will not be allowed to transport goods to or from another country (third country) other than the operator’s home country, which will be picked up or delivered to the territory of Uzbekistan.

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The FBR has stated that Uzbekistan’s registered vehicles, which hold valid permits and are used for the transport of transit and bilateral trade cargo, can enter Pakistan without submitting any financial security for the duty and taxes leviable on the vehicle.

This is based on reciprocity, as agreed upon by the two contracting parties. The Logistics Facilitation Center will record the details of both the driver and vehicle in the CCS, and these details will be linked with the FIA’s immigration module so that the driver can only exit Pakistan if his vehicle has entered the border Customs station and the gate-in event has been recorded in the CCS, and the vehicle has completed all customs formalities for exiting Pakistan.

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