KARACHI: Federal Board of Revenue (FBR) has exempted foreign aid agencies from submitting financial security for cargo to be cleared under Afghan transit trade.
Sources in Customs said there is a mandatory requirement of producing exemption certificate for clearance of such goods. Diplomatic missions, Afghan government, non-government organisations, United Nations agencies and European Commission import non-commercial goods.
The goods are not considered as non-commercial if the cargo belongs to US army, International Security Assistance Force, North Atlantic Treaty Organization or other military forces stationed in Afghanistan.
Customs’ sources said the government for the first time imposed the condition of financial guarantee on February 24, 2014 for transit under customs computerised system.
The sources added that goods destined to Afghanistan were allowed duty and tax exemptions, but the condition was imposed to prevent misuse the facility under transit trade.
Under the prevalent laws, the Afghan importer of goods or authorised customs agents, brokers or transport operators in Pakistan are required to furnish financial security in the form of insurance guarantee for goods destined for Afghanistan to ensure the fulfilment of any obligation arising out of customs transit operation between Pakistan and Afghanistan.
The FBR also increased the routes for transit trade from 9 to 10 to facilitate the trade movement between Karachi to Torkham. Routes include Karachi/Port Qasim, Jamshoro-Hyderabad, Sukkur, DG Khan, DI Khan, Kohat, Azakhel, Peshawar and Jamrud Terminal Torkham.
