Karachi, December 6, 2024 – The Federal Board of Revenue (FBR) has officially notified rules to regulate Azerbaijan-Pakistan transit trade operations as per the recently signed Azerbaijan-Pakistan Transit Trade Agreement (PATTA) 2024.
This development, announced on Friday, aims to streamline cargo movement between the two nations through designated Pakistani ports while enhancing bilateral trade relations.
The FBR issued SRO 2016(I)/2024, detailing amendments to the Customs Rules of 2001. These provisions cover the processing of transit trade cargo to and from Azerbaijan via Pakistan’s key ports, including Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port. This move underscores the strategic importance of these ports in facilitating regional connectivity and trade.
User Registration and Access
The rules outline the procedure for foreign users, including traders, government organizations, United Nations entities, and diplomatic missions based in Azerbaijan, to register with Pakistan’s Customs Computerized System (CCS). The Directorate General Reforms and Automation in Karachi will generate user IDs for focal representatives of Azerbaijan’s Ministry to facilitate electronic submission of the requisite registration forms.
Transport Vehicle Regulations
The rules also address the licensing and operation of commercial vehicles engaged in bilateral and transit trade. Vehicles must be licensed by the contracting parties and carry valid permits issued for a single round trip. These permits are vehicle-specific and non-transferable, with validity tied to the visa duration of the driver. In special cases, vehicles may remain in Pakistan for up to 90 days, provided the Customs authorities are notified.
Exemptions and Permits
Certain goods and activities, such as humanitarian aid, postal services, live animals for sporting events, and art exhibits, are exempt from requiring transport permits. Additionally, lightweight vehicles under 3.5 tons are also excluded from permit requirements, ensuring flexibility for smaller-scale operations.
Levies and Scanning Procedures
The FBR will levy charges for administrative services, including weighment, scanning, and sealing of containers. These fees will be non-discriminatory and uniformly applied. Containers of transit cargo will undergo selective scanning at entry points and en-route based on a Risk Management System (RMS).
Penalties for Violations
Under PATTA, the contracting parties reserve the right to take punitive action against offenders violating customs regulations. This includes the exclusion of individuals or entities from participating in transit trade activities. Violations by drivers or transport operators will be addressed as per national laws, ensuring strict compliance with international and domestic regulations.
This framework signifies a major step toward boosting economic ties and improving regional trade connectivity between Azerbaijan and Pakistan. It emphasizes efficiency, transparency, and cooperation, further solidifying Pakistan’s position as a regional trade hub.