ISLAMABAD: The Government of Pakistan has officially notified the customs clearance procedure for barter trade with Russia, Iran, and Afghanistan, marking a significant development in the country’s regional trade framework.
The move aims to facilitate Business-to-Business (B2B) barter transactions and reduce dependency on the U.S. dollar for cross-border settlements.
According to the Ministry of Commerce, all customs authorities will now follow a structured procedure for processing imports and exports under the barter trade system. The new mechanism is designed to enhance trade transparency, ensure regulatory compliance, and streamline documentation through the Pakistan Single Window (PSW) system.
Under the notified procedure:
• Import and export values must remain balanced, with a 20% tolerance margin allowed for fluctuations in assessed values.
• Both importers and exporters are required to submit a single declaration via the PSW, tagging the relevant approval number to waive financial instruments typically required for regular trade.
• All goods traded under the barter arrangement must comply with Import and Export Policy Orders (IPO/EPO), including applicable permits, licenses, and certificates.
• Each transaction will be subject to relevant duties, taxes, and fees, with the assessed value determining the monetary limit of authorization.
• A certificate of origin from the exporting country’s authorized body must accompany all consignments.
Furthermore, traders will be required to settle the net value of goods quarterly—within 120 days of the transaction—failing which the authorization will become invalid. The regulatory Collectorate of Customs will oversee compliance and may take legal action under the Customs Act, 1969, in case of violations.
The Federal Board of Revenue (FBR) will reconcile all barter trade data through its computerized system and submit quarterly reports to the Commerce Division, outlining total applications, authorizations issued, and trade balances.
Analysts view this move as a major step toward strengthening regional economic cooperation and non-dollar trade mechanisms, especially with neighboring and sanctioned economies.
