MONDAY OCTOBER 24: APTTA goods transit: FBR agrees to Afghan importers' major proposals

ISLAMABAD: The Federal Board of Revenue (FBR) has, in principle, agreed to a major proposal of the Afghan importers to allow transit of goods without customs bonded carriers in cases where the insurance guarantees has been duly deposited against the transit trade consignments under the Afghanistan-Pakistan Transit Trade Agreement (APTTA).
Sources told Business Recorder here on Sunday that Pakistan's customs authorities have accepted some major proposals of the Afghan business community for implementation of the APTTA. The issues have been resolved which are causing hardships to the Afghan traders during transportation of transit trade consignments under the APTTA.
Firstly, the Afghan side opined that once the Pakistan customs secures the duty and taxes leviable at Pakistan Customs Tariff (PCT) rates on Afghan transit goods by way of insurance guarantee, the mandatory condition of carrying these goods by customs bonded carriers would amount to double jeopardy. They accordingly proposed that the transit goods for which adequate customs security has been obtained be allowed to be transited by Afghan traders of choice. In this way, the Afghan importers can use transportation of their own choice where insurance guarantee has been secured against the transit trade goods. This would remove restriction on the Afghan importers to use customs bonded carriers for transportation of goods under the APTTA. The FBR has agreed to consider the proposal, when foolproof system of customs security is put in place.
Secondly, it was agreed that Model Customs Collectorate (MCC) (Appraisement), Karachi shall look into the complaints of monopolisation and excessive transportation charges by the bonded carriers from Afghan importers and shall come up with a practicable and enforceable mechanism to address this issue.
Thirdly, the Afghan transit trade goods, already de-stuffed at the ports of Karachi, shall be allowed to be loaded and transported to their destination in Afghanistan. The FBR was of the view that necessary action in this regard shall be taken by the Karachi customs.
Fourthly, it was reiterated that the decision regarding allowing an option for shipment of the transit containers, pending with Pakistan Railways through bonded carriers for onwards journey under customs escort, shall be communicated to the field offices at the earliest for resolution of such problems.
Fifthly, it was also decided that the issue of specification of laden weight of vehicles, having more than four axles in the agreement, shall be referred to APTTA for necessary amendments, so as to include vehicles having more than four axles in the agreement.
Sixthly, it was also agreed that as Electronic Data Interfacing (EDI) may take some months to be implemented, a simpler version may be implemented early. In this case, the Afghan customs will scan Pakistan customs' goods declaration (GD), T1 or T2 and email it to a designated customs officer in Pakistan from designated officers in Afghanistan. This will be reciprocated by Pakistan. Both Afghan and Pakistan customs officials have agreed to finalise modalities and agree on a methodology in this regard in the next customs meeting.