Islamabad, August 2, 2023 – In an effort to bolster security and ensure transparency in trade, the Federal Board of Revenue (FBR) of Pakistan has notified the Tracking and Monitoring of Cargo Rules, 2023.
The FBR issued SRO 996(I)/2023 on August 1, 2023, to bring these rules under the law.
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The newly introduced rules aim to apply real-time tracking and monitoring measures to certain types of cargo throughout their journey, from the port of entry to the port of exit, or from one warehouse to another. The cargo categories to be tracked and monitored include:
1. Transit cargo falling under Chapter XXV and sub-chapter VII of Chapter XXI of the Customs Rules, 2001, or any other cargo entered for transit across the territory of Pakistan.
2. Petroleum, oil, and lubricants (POL) products exported to Afghanistan under Chapter XXII of the Customs Rules, 2001.
3. Trans-shipment cargo under Chapter XIV and sub-chapter VIII of Chapter XXI of the Customs Rules, 2001.
4. Cargo imported into or exported from Export Processing Zones, Special Economic Zones, or Free Zones.
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5. Any other cargo specified by the Board for tracking and monitoring under these rules.
To ensure compliance with these rules, companies interested in providing tracking and monitoring services for cargo must obtain a license from the licensing committee. The rules strictly prohibit any company from engaging in cargo tracking and monitoring without the appropriate license.
The licensing committee, with the Director Transit Trade (HQs) in Karachi serving as the convener, will be responsible for evaluating license applications. The committee may conduct hearings and physical inspections to assess the applicant’s eligibility for licensing. Practical demonstrations of the technological solutions offered by the applicant will also be required.
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The licensing committee is expected to submit its recommendations to the Board within 120 days from the date of receiving the application. If an applicant fails to provide complete documents or necessary information within the specified timeframe, the application may be rejected summarily.
Upon meeting the technical and financial criteria set forth in the rules, the licensing committee will recommend qualified companies for licensing to the Board. Once approved, the selected company will be required to deposit a bank guarantee worth ten million rupees as financial security to the licensing committee. The bank guarantee will be valid for the entire duration of the license and will be encashable in case of any violation of the rules or license terms resulting in a loss of government revenue.
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The implementation of the Tracking and Monitoring of Cargo Rules, 2023 is expected to improve the efficiency of cargo handling, enhance security measures, and boost transparency in Pakistan’s trade activities.
