Karachi, January 8, 2024 – In a bid to streamline trade processes and promote efficient logistics, Pakistan Customs has authorized transshipment without duty payment during the tax year 2024.
This significant development comes as part of the updated Customs Act, 1969, which has been revised for the current tax year.
According to the revised provisions outlined in the Customs Act, the appropriate officer of Pakistan Customs or its officials can grant permission for transshipment without the payment of duty, provided certain conditions are met. This authorization applies to goods that are imported at any customs-station and are explicitly declared for transshipment to another customs-station or a foreign destination at the time of importation.
The provision emphasizes the importance of transparency and adherence to the rules. It allows for the grant of leave to transship goods without the obligation to pay duty, either with or without any security or bond, as long as the owner of the goods ensures the due arrival and entry of the goods at the customs-station of the intended destination.
A notable feature of the updated Customs Act is the incorporation of technology into the process. At customs-stations where the Custom Computerized System is operational, the system has the authority to automatically authorize transshipment to other customs-stations based on risk selectivity criteria. This technological integration is expected to enhance efficiency and reduce the administrative burden on both customs officials and businesses involved in international trade.
Furthermore, the Federal Board of Revenue (FBR) has been empowered to authorize certain carriers to transport goods under the multimodal scheme. Under this scheme, goods are required to be specially and distinctly manifested at the time of importation for transshipment to another customs-station or foreign destination. Notably, these goods will not need separate permission for transshipment from the customs-station of first entry into the country to the customs-station of destination.
The principal carrier issuing the multimodal bill of lading or air waybill will bear the responsibility for the integrity of the cargo during transportation between the customs-station of first entry and the customs-station of destination. Additionally, goods transported under the multimodal scheme will not be subject to the risk management system at the customs-station of first entry, streamlining the process and reducing bureaucratic hurdles.
The Board also holds the authority to grant licenses to carriers for carrying goods under the multimodal scheme, subject to specific conditions deemed appropriate by the Board.
This move by Pakistan Customs is expected to have a positive impact on the country’s trade facilitation efforts, making the transshipment process more efficient and cost-effective for businesses involved in international trade. The emphasis on technology and risk selectivity criteria reflects a commitment to modernizing customs procedures and fostering a business-friendly environment in Pakistan.
