Customs authorities at ports would allow clearance of Indian shipments which are in the pipeline and for which Bill of Lading (B/L) or Letters or Credit (L/C) was issued prior to August 9, 2019. From August 9, 2019, Ministry of Commerce and Textile had suspended bilateral trade with India after obtaining formal approval of the federal cabinet.
Sources told Business Recorder that the FBR will deal with the Indian consignments in the pipeline as per directions/interpretation and SROs issued by the Commerce Ministry in this regard. Earlier, Ministry of Commerce and Textile had informed Federal Board of Revenue (FBR) that the notification of suspending bilateral trade with India would not affect the shipments in the pipeline for which Bill of Lading (B/L) or Letters or Credit (L/C) were issued prior to August 9, 2019.
In this regard, the director general (trade policy) had written a letter to the FBR chairman on the issue of clarification on SRO 927(I)/2019 and SRO 928(I)/2019.
The director general (trade policy) had informed the FBR chairman that with reference to this Division''s letter of even number dated 9th August, 2019, the SRO 927(I)/2019 and SRO 928(I)/2019 were forwarded for necessary action. The business community of Pakistan has been approaching the Commerce Division for clarification(s) regarding the scope, date or implementation of the subject SROs and the fate of shipments in the pipeline transit.
The following clarifications are offered in this regard:
i) The abovementioned SROs do not affect the shipments in the pipeline for which L/C or B/L have been issued prior to August 09, 2019 since in terms of proviso to paragraph 4 of the Import Policy Order, 2016, "the amendments brought in this Order [Import Policy Order 2016] from time to time shall not be applicable to such imports where Bill of Lading (B/L) or Letters or Credit (L/C) were issued or established prior to the issuance of amending Order".
ii) The subject SROs do not affect trade under the Afghanistan-Pakistan Transit Trade Agreement (APTTA) 2010.
The concerns have been raised that suspension of bilateral trade with India might result into increase in smuggling of Indian goods, import of Indian origin goods by mis-declaration through third countries, and smuggling under the APTTA. Therefore, the Federal Board of Revenue is requested to take necessary enforcement measures to prevent mis-declaration and smuggling, maintained the director general (trade policy). Furthermore, it is requested that an effective anti-smuggling campaign may be launched immediately against smuggled Indian goods that may be available in the markets across the country, the DG added.