Mohsin Siddiqui (Chief Reporter)

Federal Board of Revenue (FBR) has temporarily waived the requirement for customs agents, brokers, and transport operators to submit financial security, in the form of bank guarantees, for Afghan transit goods. The exemption period is set from October 3 to November 16, 2023, as per the amendment outlined in SRO.1709(I)/2023, modifying the Customs Rules 2001.

Last month, FBR replaced the need for a revolving insurance guarantee for Afghan Transit goods with a comprehensive bank guarantee covering all import levies.

During the specified timeframe, the provisions of this amendment (SRO.1402(I)/2023) will not apply to Afghan Transit Trade containers arriving at Pakistani ports. Customs agents, brokers, and transport operators are temporarily relieved from the obligation to furnish financial security during this period.

Under the revised rules for Afghan transit goods, the designated customs officer at the office of departure will detach the bank guarantee and enter the particulars into the system. It is crucial that the bank guarantee is issued by a scheduled bank and is en-cashable in Pakistan, aligning with the consignment details.

The officer’s responsibility includes verifying that the bank guarantee accurately covers the duty and taxes associated with vehicles or goods. The amount secured must be in accordance with the system’s assessment or the assessing officer’s calculation, ensuring compliance with FBR regulations.

This temporary exemption aims to facilitate smoother transit operations between Pakistan and Afghanistan, providing a brief reprieve for customs agents and operators during the specified period. The FBR emphasizes adherence to scheduled bank requirements and accurate financial coverage during this interim phase.