In a bid to bolster customs security and ensure compliance with customs procedures, Pakistan has introduced a new system of bank guarantees for Afghan transit trade goods.
This significant development, aimed at combating pilferage and rerouting of goods, was announced by the Federal Board of Revenue (FBR) in Pakistan on Tuesday Pkrevenue reports.
It reported that prior to the implementation of these measures, the FBR initiated the process by issuing draft amendments to the Customs Rules of 2001 through SRO 1396, seeking input from various stakeholders. As per the amendments, bonded carriers or customs agents responsible for filing goods declarations (GD) for Afghan transit goods will now be mandated to submit a bank guarantee to customs authorities. This bank guarantee will act as collateral for customs security and cover the leviable duty and taxes specified in the GD.
Under the newly introduced regulations, the GD will be assessed using the Customs Computerized System (CCS) or by a designated assessing officer, mirroring the procedure for GDs filed for local home consumption. This marks a departure from the previous reliance on revolving insurance guarantees for Afghan transit goods, which have now been replaced by bank guarantees.
Furthermore, the FBR has stipulated that authorized customs agents, brokers, or transport operators in Pakistan must provide financial security in the form of a bank guarantee for goods destined for Afghanistan. These bank guarantees, issued by scheduled banks or as specified by the FBR, must be valid for at least one year and must be encashable in Pakistan. They will serve as a guarantee for fulfilling any obligations arising from customs transit operations between Pakistan and Afghanistan.
The specific amount of the bank guarantee for transit operations will be determined by the system based on assessments carried out by the Customs Computerized System or the assessing officer at the departure office. This amount is required to cover all applicable import levies.
The amendments also provide a clear process for handling bank guarantees. The designated customs officer at the departure office will verify that the bank guarantee has been issued by a scheduled bank and is encashable in Pakistan. Additionally, they will ensure that the guarantee accurately covers the duty and taxes related to the goods or vehicles in transit.
In cases where cross-border certificates with an ‘exit stamp’ are not received or the conditions specified in the guarantee are not met by the Afghan importer or exporter, the relevant office at the departure location will take action to enforce or encash the bank guarantee to recover any government revenue involved.
The introduction of bank guarantees for Afghan transit goods represents a significant step in enhancing customs security and ensuring compliance with customs procedures. This move is expected to streamline the transit process and safeguard government revenues while simultaneously facilitating trade between Pakistan and Afghanistan.
