By The Federal Board of Revenue (FBR) has issued Notification S.R.O. 2051(1)/2024, introducing amendments to the Customs Rules, 2001, under the authority conferred by the Customs Act, 1969, Sales Tax Act, 1990, Federal Excise Act, 2005, and the Income Tax Ordinance, 2001. These changes, previously circulated for public input via S.R.O. 1968(1)/2024 on November 29, aim to streamline customs operations, enhance monitoring capabilities, and reduce human intervention in processes.
Key Amendments
Tracking and Monitoring of Goods
- Enhanced Tracking: The rules now mandate the use of advanced tracking technologies like GSM (dual network), GPRS, and hybrid satellite communication systems for goods in transit.
- Regular System Audits: The Project Director is responsible for ensuring that licensees are using the latest tracking and monitoring technologies and conducting regular system audits.
Licensing and Authorization
- Simplified Licensing Process: The role of the Board in the licensing process has been streamlined, with the Director (HQs), Directorate General of Transit Trade, Karachi, playing a more significant role.
- Timely Evaluation: The time frame for evaluating license applications has been reduced to 90 days.
Other Amendments
- Terminology Updates: Certain terms have been updated, such as replacing “tacking” with “tracking.”
- Omission of Redundant Clauses: Some redundant clauses have been removed from the rules.
Implications for Stakeholders
The amendments signal a shift towards technology-driven customs management, reducing delays and minimizing potential errors. By clarifying roles and responsibilities, the changes aim to improve accountability and efficiency across customs operations.
The emphasis on adopting advanced technologies highlights Pakistan’s commitment to aligning with global standards in customs and trade facilitation. Businesses engaged in transit trade will need to update their practices to meet the revised requirements, particularly those involving tracking and monitoring systems.
These updates underscore FBR’s broader strategy to enhance transparency, reduce administrative bottlenecks, and foster a more streamlined trade environment.
