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New Rules: Govt Allows Azerbaijani Vehicles to Bring Trade Cargo into Pakistan

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5 min read
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Legal Editorial Desk
New Rules: Govt Allows Azerbaijani Vehicles to Bring Trade Cargo into Pakistan
The government of Pakistan will allow entry of Azerbaijan’s registered vehicles transporting transit and bilateral trade cargo into Pakistan. The Federal Board of Revenue (FBR) has issued an SRO.2016(I)/2024 to notify draft Azerbaijan-Pakistan Transit Trade Rules 2024 under the Azerbaijan-Pakistan Transit Trade Agreement, 2024 for processing of transit trade cargo through the specified ports under the Customs Computerized System, to and from Azerbaijan. It will cover Azerbaijan’s cargo imported through Karachi Port, Port  Muhammad Bin Qasim, and Gwadar Port and Azerbaijan’s cargo to other countries through Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port. The rules stated that Azerbaijan’s registered vehicles holding valid permits and being utilized for the transport of transit and bilateral trade cargo shall enter Pakistan without the requirement of submission of any financial security for the duty and taxes leviable on the vehicle, on the basis of reciprocity, as agreed by the two Contracting Parties. The rules said that all transport operators and Customs clearing agents handling transit goods shall be required to open and maintain a “Revolving Insurance Guarantee PD Account” with Customs. Under the new rules, Directorate General Reforms and Automation, Karachi shall generate one or more user IDs for the focal person of the relevant Ministry of the Republic of Azerbaijan for registration of different categories of users i.e., traders, government organizations, United Nations (UN), or Diplomatic Missions based in Azerbaijan with Customs Computerized System (CCS). The foreign entities i.e., traders, government organizations, United Nations (UN) or Diplomatic Missions shall complete the requisite registration proforma which shall be submitted in the Customs Computerized System by the relevant Ministry of Azerbaijan electronically. The vehicles transporting transit and bilateral goods shall be licensed by the competent authorities of the Contracting Parties as transport operators authorized to conduct international transportation. Every vehicle while exiting or entering Pakistan shall carry a valid permit issued by the competent authority in the prescribed format. The Directorate of Transit Trade, Peshawar, Quetta, and Gwadar shall be authorized to issue and regulate permits at their respective land border customs stations. In case, the transit goods are transported by foreign registered vehicles, wherein there is no tracker in the prime-mover that can be synced with the tracking device being installed on containers, a GPS tracking device shall be installed by the companies approved by FBR on the door or front cabin of the vehicle for tracking purposes, the new rules added.
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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