Karachi, November 9, 2024 – The Federal Board of Revenue (FBR) has released draft amendments under SRO 1789 (I)/2024 to streamline the inter-port movement of international transshipment cargo within Pakistan.
These amendments introduce detailed procedures for transferring goods between terminals at Karachi Port and Port Muhammad Bin Qasim, aiming to improve transparency, security, and efficiency in cargo handling.
According to the proposed rules under Rule 510G of the Customs Rules, 2001, inter-port movement of transshipment cargo is restricted to specific authorized bonded carriers. The FBR has stipulated that only licensed carriers, operating under Chapter XIV of the Customs Rules, are eligible to handle these transfers. This restriction is intended to enhance accountability and ensure that only vetted entities are involved in this critical aspect of international trade.
The new guidelines specify that requests for inter-port movement must be submitted by the shipping line or terminal operator responsible for the cargo. Upon receipt of these requests, the concerned Collector of Customs reviews and verifies the details through the Customs Computerized System (CCS). This process ensures that both the sending and receiving terminals have full visibility of the cargo’s movement, minimizing the risk of mismanagement. According to the FBR, this approach will not only strengthen cargo tracking but also streamline the release process.
For additional security, the FBR has mandated that customs staff affix a PCCSS (Pakistan Customs Container Security System) seal on each container before it is transported. The customs sealing team checks details such as container number, vehicle registration, and bonded carrier identity against the data in the CCS. Once verified, a “Transport Note” is generated, which serves as a record of the cargo transfer. This document is signed by both customs personnel and the carrier’s representative, further solidifying accountability.
The FBR has also implemented strict timelines for the movement of cargo between ports to prevent delays. For movements within the same port, the FBR mandates a two-hour delivery window. For transfers between Karachi Port and Port Muhammad Bin Qasim, the time limit is four hours. Should a carrier fail to meet these deadlines, the CCS system will automatically flag the issue, and the FBR may pursue legal action if no valid justification for the delay is provided.
Upon arrival at the receiving terminal, customs officials verify the PCCSS seal, along with the transport note and weighment slip. The FBR has established that any discrepancies in weight or broken seals must be thoroughly examined, with customs staff and representatives of both the bonded carrier and port terminal present during the inspection. If discrepancies are found, the FBR will conduct a full inventory check and may impose fines or other penalties on the responsible parties.
The FBR also requires that any cargo loss, damage, or pilferage be covered by the bonded carriers’ guarantees, which are held against potential liabilities. According to the FBR, these guarantees will be utilized to cover any duties, taxes, or damages incurred during transit.
Furthermore, under the new amendments, the FBR has clarified the role of cross-stuffing, particularly at Gwadar Port. Cross-stuffing—the process of transferring cargo between containers—is permitted under customs supervision, provided that it occurs within designated bonded premises. This is expected to offer more flexibility for international cargo owners, who may opt for cross-stuffing to optimize container use.
Overall, these updates by the FBR underscore the agency’s commitment to tightening regulatory control over international transshipment cargo. By enforcing these structured guidelines and timelines, the FBR aims to enhance the security, efficiency, and accountability of cargo transfers across Pakistan’s major ports. These regulations represent an important step toward a more robust customs framework, which is crucial for Pakistan’s role in regional and global trade networks.
