Islamabad, June 30, 2025 – The Federal Board of Revenue (FBR) on Monday officially announced the reduction of transit cargo examination to just 5%. This step is aimed at minimizing procedural delays and enhancing Pakistan’s role as a regional transit hub.
The FBR issued SRO 1127(I)/2025 to formally lower the threshold for transit cargo examination from 10% to 5%. This follows an earlier amendment under SRO 1062(I)/2025, dated June 17, 2025, which proposed changes to the Customs Rules, 2001.
Under the revised regulations, the Risk Management System (RMS) of Pakistan Customs will now select only 10% of transit cargo for scanning, down from the previous 25%. More significantly, only 5% of such cargo will be subjected to physical examination, marking a major shift in policy intended to speed up cargo processing and reduce port congestion.
The changes will be implemented by amending Rule 473 of the Customs Rules, which governs transit procedures at key seaports including Karachi, Port Muhammad Bin Qasim, and Gwadar. Once a goods declaration (GD) is filed, most transit consignments will bypass detailed inspection, with only a small percentage flagged for scanning or examination. Cleared cargo will then be routed directly to terminal operators and sealing officers for onward transportation.
To ensure procedural consistency, further adjustments have been made to sub-rule (3) of Rule 475 and sub-rule (1) of Rule 484E. These revisions are expected to harmonize transit cargo examination protocols across all customs checkpoints.
The FBR’s decision reflects a broader transition from enforcement-heavy border management toward a risk-based approach that supports trade facilitation. The earlier increase in examination thresholds through SRO 1401(I)/2023 had aimed to tighten security, but the new policy strikes a better balance between trade efficiency and border control.
Industry stakeholders have widely welcomed the decision, citing it as a major reform that will boost confidence among regional traders and investors. By reducing examination of transit cargo, Pakistan enhances its competitiveness and attractiveness as a transit corridor for Central Asia, China, and beyond.
Public and industry feedback is now being sought before the final implementation of these amendments, signaling FBR’s intent to make customs procedures more transparent and trade-friendly.