The Federal Board of Revenue (FBR) – the apex tax agency of Pakistan – on Monday issued a new amendment, SRO 533 (I)/2023, aimed at preventing the misuse of carnet de-passage and temporary importation of vehicles by foreigners and expatriate Pakistanis.
The new rules cover Chapter VI of the Customs Rules 2001 and introduce a range of measures designed to monitor and control the use of carnet facilities.
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One of the key changes to the rules is an update to the definition of “tourist.” This is an important change, as it will help to clarify who is eligible to use the carnet facility and who is not. The previous definition of “tourist” was broad and open to interpretation, which may have contributed to the misuse of carnet facilities in the past. The new definition will provide greater clarity and will help to ensure that only genuine tourists are able to take advantage of the carnet system.
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In addition to the new definition of “tourist,” the amended rules also incorporate provisions that will enable the Pakistan Customs Computerized System to monitor carnet-related information more effectively. This will allow customs officials to track the movement of vehicles more closely, making it easier to detect any misuse of the carnet system.
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Another important change introduced by the new rules is the requirement for the passport of each tourist using the carnet facility to be flagged with the relevant carnet documents. This will help to ensure that there is proper reconciliation of vehicles that have been imported under the carnet system.
To further strengthen the new rules, the Federal Board of Revenue will be working closely with the Federal Investigation Agency (FIA) to monitor carnet usage. This close liaison between the two agencies will provide an additional layer of security, making it even more difficult for carnet facilities to be misused.
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The new rules are a welcome development, as they will help to prevent the misuse of carnet facilities and ensure that the system is used only by those who are entitled to do so. By incorporating new measures to monitor carnet usage and working closely with the FIA, the Federal Board of Revenue is taking an important step to improve the efficiency and effectiveness of the carnet system in Pakistan.
