The Federal Board of Revenue (FBR) will collect bank guarantees of all Afghan transit goods equal to the total duties/taxes involved on the goods destined for Afghanistan through Pakistan.

The FBR issued S.R.O. 1396(I)/2023 on Tuesday. The FBR has also released a draft form of “Bank Guarantee for Imported Goods In-Transit” to be submitted to the Director of Transit Trade, Directorate of Transit Trade, Custom House, Karachi.

The FBR has assessed duties and taxes in respect of the said goods, which are payable by the importer in case he fails to take the goods out of the territorial jurisdiction of Pakistan.

Under the amended rules, the authorized customs agents, brokers, or transport operators in Pakistan shall furnish financial security in the form of a bank guarantee for goods destined for Afghanistan, from a scheduled bank, on the prescribed format (Appendix-IV) or any other form prescribed by the Board which shall be valid for at least one year. The bank guarantee shall be encashable in Pakistan, for guaranteeing the fulfillment of any obligation arising out of customs transit operations between Pakistan and Afghanistan.

The amount of bank guarantee for transit operations shall be determined by the system on the basis of the assessment done by the Customs Computerized System or assessing officer at the office of departure so that it covers all import levies, FBR said.

The designated customs officer at the office of departure shall detach the bank guarantee and enter the particulars in the system. The officer shall ensure that the bank guarantee submitted by the importer or his authorized customs agent has been issued by a scheduled bank and is encashable in Pakistan, and contents thereof are in conformity with the particulars of the consignment against which it is being furnished. The officer shall also ensure that the bank guarantee covers the duty and taxes involved on vehicles or goods and the amount being secured is accurate and as per the calculation assessed by the system or assessing officer.

The Deputy/Assistant Director securities of the office of departure shall be responsible for taking appropriate steps on a fortnightly basis for timely reconciliation, encashment revalidation, or physical release of bank guarantee.

In case of non-receipt of cross border certificate along with T-1 or TAD bearing “exit stamp” or non-fulfillment of any conditions against which the guarantee was furnished by the Afghan importer or exporter, the concerned office at the office of departure shall take action for enforcement or encashment of the bank guarantee for recovery of government revenue involved therein” upon finalization of action, the Deputy/Assistant Director Securities at the port of departure shall forthwith instruct the concerned bank or financial institutions, as the case may be, to encash the guarantees and remit the amount in favor of the concerned Director Transit Trade. After receipt of the payment order from the concerned bank, the office shall deposit the same in the National Bank of Pakistan for transfer into the government treasury, FBR’s revised rules said.

Source: Pro Pakistani