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No submission of any financial security: FBR allows Uzbekistan’s vehicles for transit trade cargo transportation

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed Uzbekistan’s registered vehicles for the transport of transit and bilateral trade cargo to enter Pakistan without submission of any financial security.

The FBR on Tuesday issued a procedure to enforce Uzbekistan-Pakistan Transit Trade Agreement for processing of transit trade cargo between Karachi Port, Port Muhammad Bin Qasim, Gwadar Port, and Uzbekistan.

Through the issuance of SRO1466(I)/2021, here on Tuesday, the FBR has issued Uzbekistan-Pakistan Transit Trade Rules, 2021.

Earlier, the draft rules were notified through an SRO1256(I)2021.

The new procedure is applicable on the Uzbekistan-Pakistan Transit Trade Agreement, for processing of transit trade cargo under Customs computerized system, to and from Uzbekistan, Uzbekistan’s cargo imported through Karachi Port, Port Muhammad Bin Qasim, Gwadar Port, and Uzbekistan’s cargo to other countries via Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port.

According to the procedure, Uzbekistan’s registered vehicles holding valid permits and are being utilized for the transport of transit and bilateral trade cargo shall enter Pakistan without the requirement of submission of any financial security for the duty and taxes leviable on the vehicle, on the basis of reciprocity, as agreed by the two contracting parties, the FBR said.

The FBR has issued a separate procedure for the movement of transit cargo from only those international airports of Pakistan where there is a direct flight to an international airport in Uzbekistan.

Under the procedure, the Directorate of Transit Trade, Peshawar and Quetta shall be authorized to issue and regulate permits at their respective land border Customs stations.

The board may through a general order levy charges, generally applicable for all traffic, including fees for weighing, scanning and sealing by Customs officials or those commensurate with the administrative expenses for the costs of services rendered. The vehicles shall be prohibited from carrying goods loaded in the territory of Pakistan for delivery at any other point (cabotage) and goods from or to another country (third country) than the operators home country and to be delivered or picked up to or from the territory of Uzbekistan.

The Logistics Facilitation Centre shall record particulars of both driver and vehicle in the CCS and these details should be linked with the FIA’s immigration module, so that driver can only exit Pakistan if his vehicle, on the return journey, has entered the border Customs station and gate-in event has been recorded in the CCS and vehicle has completed all Customs formalities for exiting Pakistan.

Both Customs and the FIA officials posted at the Customs border stations shall carry out weekly reconciliation to ensure the implementation of the above mechanism and to ascertain any overstayed vehicles.

A tracker shall be installed on each vehicle upon entry into the territory of Pakistan as per its national legislation.

The FBR said that the vehicles intended to be used for the international carriage of goods by road under Article 9 of Protocol One laid down in Annex-2 of the Agreement between Uzbekistan and Pakistan on Transit Trade (AUPTT) shall be constructed, so as to meet the requirements for carriage under Customs transit, as laid down in Section VII “Customs Control and Other Controls” of the agreement.

All Customs clearing agents/brokers, bonded carriers engaged in the clearance and transportation of transit cargo, are required to receive the amount for various expenses in respect of service charges, freight, etc, in Pakistan from foreign trader/entity in their Pak rupee bank accounts in foreign currency.

The concerned Customs clearing agents/brokers, bonded carriers will provide the requisite details regarding the funds received from abroad in their tax statements, to be submitted to the FBR, the FBR stated.

Copyright Business Recorder, 2021