Pakistan imposes bank guarantees to stop smuggling under
Afghan Transit Trade
In an effort to combat smuggling activities between
Afghanistan and Pakistan, the Federal Board of Revenue (FBR) has introduced a
requirement for a bank guarantee on goods leaving the country. This measure
aims to address smuggling occurring under the pretext of Afghan transit trade
and to regulate cross-border commerce.
Under these new regulations, all importers, customs agents,
brokers, and transport operators must provide equivalent guarantees for taxes
and duties related to the goods they are moving.
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Additionally, a computerized system will be employed to scan
at least 25% of the goods, further enhancing oversight and security.
These measures have been implemented to prevent the
smuggling of goods valued at billions of dollars, often disguised as Afghan
transit trade. In the fiscal year 2023, Afghanistan imported goods worth $7.3
billion through Pakistan using the transit trade facility, an increase of $2.3
billion compared to the previous year. A significant portion of these goods
found their way back into the Pakistani market through illicit means.
The FBR has issued two notifications detailing amendments to
Customs Rules 2001. These new conditions are applicable to all importers,
relevant customs agents, brokers, and transport operators involved in importing
goods to Afghanistan.
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As part of these regulations, a financial security
requirement, covering taxes, duties, and other obligations, has been imposed on
goods destined for Afghanistan. This financial security will be in the form of
a bank guarantee valid for one year and can be cashed within Pakistan.
The bank guarantee will encompass taxes and duties
associated with both vehicles and goods being transported to Afghanistan.
Furthermore, goods en route to Afghanistan will be subject
to monitoring through a customs computerized system. A minimum of 25% of the
declared goods will be subjected to scanning. Additionally, the risk management
system will inspect at least 10% of the consignments.
In addition to these measures, Pakistan has introduced a 10%
additional processing fee and imposed trade restrictions on certain commodities
bound for Afghanistan.
Source: Samaa TV News