Pakistan-Azerbaijan Transit Trade Rules

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

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h

Islamabad, the 16t January, 2025.

NOTIFICATION

15

S.R.O. (1)12025.- In exercise of the powers conferred by section 219

of the Customs Act, 1969 (IV of 1969), Section 50 of the Sales Tax Act, 1990,

Section 40 of the Federal Excise Act, 2005 and Section 237 of the Income Tax

Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is pleased to

direct that the following further amendments shall be made in the Customs

Rules, 2001, which, as required under sub-section (3A) of the said section 219,

were previously published vide Notification No. S.R.O. 2016(1)/2024, dated the

5' December, 2024, namely--

In the aforesaid Rules, after Chapter XLV, the following new chapter

shall be added, namely:-

"CHAPTER- XLVI"

TRANSIT REGIME IN PAKISTAN

AZERBAIJAN-PAKISTAN TRANSIT TRADE RULES

Sub-Chapter-I

Preliminary

1. Scope.-The provisions of this chapter shall be for the purpose of

Azerbaijan-Pakistan Transit Trade Agreement, 2024 for processing of transit

trade cargo through the following ports under Customs Computerized System, to

and from Azerbaijan, namely:-

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.

1. Definitions.- (1) In this chapter, unless there is anything repugnant

in the subject or context,-

(i) "bill of lading" means the document issued by shipping line

containing details about the type, quantity, and destination

of the goods;

(ii) "bilateral trade" means exchange of goods and services

between two countries, passing through third country or

directly;

(iii) "border stations" means Chaman, Torkham, Kharlachi,

Ghulam Khan, Taftan, Gabd, Mand, Sost and any other

Customs station notified by the Board for the purposes of

the transit trade;

(iv) "bulk cargo" means cargo usually dropped or poured as

solid or liquid, into a bulk carrier's hold and includes dry

and liquid bulk cargo;

(v) "cabotage" means transport of goods loaded in the territory

of the State of the Contracting Party for unloading at a

location within the territory of the State of the same

Contracting Party;

(vi) "cargo" means goods including vehicles;

(vii) "carriers" means legal or natural person responsible for the

transport of cargo goods including vehicles by rail, road,

either directly or by using a third party, and by whom or in

whose name a contract of carriage for hire or reward has

been concluded;

(viii) "container" means an article of transport equipment,-

fully enclosed to constitute a compartment intended for

containing goods;

of a permanent character and accordingly strong enough

to be suitable for repeated use;

specially designed to facilitate the transport of goods by

one or more modes of transport without intermediate

reloading;

designed for ready handling, particularly when being

transferred from one mode of transport to another;

designed to be easy to fill and to empty; and

demountable bodies are to be treated as containers;

(ix) "contracting parties" means Pakistan and Azerbaijan;

(x) "cross-border authorization" means a document issued

after completion of all customs formalities allowing the

cross-border of vehicles transporting transit cargo at land

customs border stations;

"cross border traffic" means traffic originating from the

territory of the State of one contracting party that ends up in

the territory of the State of other Contracting Party;

"cross stuffing" means transfer of goods from one container

to another container or any other mode of transportation

which is approved for TIR operations, in the approved places

within premises of customs-ports, terminals or off-dock

terminals under customs supervision and shall also include

transfer of bulk or non- containerized reverse transit cargo

into open trucks of approved transport operators at land

border station;

"customs control" means measures applied to ensure

compliance with the laws and regulations relating to the

importation, transit and exportation of goods which the

Customs are responsible for enforcing;

"custom transit" means the customs procedure under which

goods are transported under customs control from one

customs office to another;

"customs security" means encashable financial guarantee

acceptable to Customs, submitted by the traders or their

authorized agents or brokers on transit goods for an amount

equivalent to the import levies of the host country, as per

prescribed rules;

"dangerous goods" means goods posing a significant risk to

health and environment, security and property when being

transported or lying inside storage;

"examination of goods" means the process of physical

ascertainment by Customs of nature, origin, condition,

quantity and value with reference to transit documents;

(xviii)"external user registration office" means the office

designated by the relevant Ministry of Republic of

Azerbaijan for registration of entities and other users based

in Azerbaijan with the Customs Computerized System in

Pakistan;

(xix) "home country" means for transport operators, the country

of establishment, and for vehicles, the country of

registration;

(x x) "host country" means the country where transportation of

goods is performed;

(xxi) "import duties and taxes" means the customs duties and

all other duties, taxes and other charges levied in

accordance with domestic legislation on or in connection

with the importation of goods, but not including the cost of

services rendered;

"inspection of goods" means the superficial process of

confirmation that the marks and numbers of bulk in open

cargo and container number and seal numbers of

containerized cargo, are in accordance with the particulars

provided in the bill of lading;

"international transport" means transport between the

territories of the States of the Contracting Parties (bilateral

traffic) or through the territory of the State of the other

Contracting Party (transit traffic);

"intermodal freight transport" means movement of goods

in one and the same loading unit (container) which

successively uses two or more different modes of transport,

without the goods themselves being handled;

"licensing authority" means the respective Director of

Transit Trade, where an applicant, based on his or her

business address, has applied for issuance of transport

operator's license;

"logistics facilitation center" means a transit office at

Torkham, Chaman, Taftan, Ghulam Khan and Gwadar

regulating issuance of permits to Pakistani registered

transport operator and movement of foreign registered

vehicles;

(xxvii)"means of transport" means road vehicles and railways

rolling stock and other means as agreed between the

Contracting Parties aimed at transporting goods;

(xxviii)"multimodal transport" or "combined transport" means

the movement of goods using more than one mode of

transportation, but under the terms of a single contract;

(xxix)"national treatment" means the treatment, a Contracting

Party shall grant according to its national legislation, to

services and services suppliers of the other contracting

party, not less favorable than that which it accords to its own

like services and service suppliers;

(xxx)"office of departure" means any Customs office at which a

Customs transit operation commences;

(xxxi)"office en-route" means any Customs office through which

goods in transit pass during the course of a Customs transit

operation;

(xxxii)"office of destination,' means any Customs office at which

a Customs transit operation is terminated;

Explanation.-If the office of departure is Karachi, the office

en-route shall be Torkham, Chaman, Ghulam Khan and the

Azerbaijan Customs office at their border, and office of

destination shall be Customs Station inside territory of

Azerbaijan where Goods Declaration is filed;

"oversized and bulky cargo" means any heavy or bulky

object including animals which because of its weight, size or

nature cannot be carried in a closed vehicle or closed

container;

"prohibited goods" means the goods prohibited to be

carried under the transit trade under any law for the time

being in force;

"port of entry or exit" or "border crossing point" means

the territory (part of the territory) of border railway stations

and highways, custom-ports and terminals, river ports,

airports (aerodromes) Border Customs Stations open for

international relations, as well as persons, vehicles, goods,

other property, livestock across the State Border of the

States of the Contracting Parties other specially equipped

place where border customs and other types of control of

goods, seeds, planting material, other products of animals

and plants are carried out;

"phyto-sanitary control" means the inspection intended to

prevent the spread and the introduction across national

boundaries of pests, plants and plant products;

(xxxvii)"prescribed transport route" means the land route

prescribed by the Board for transportation of transit goods

within the frontiers of Pakistan;

(xxxviii)"revolving insurance guarantee" means a revolving

insurance guarantee with one year validity to be submitted

to the concerned Directorate of Transit Trade to cover the

leviable duty and taxes on transit goods while passing

through the territory of Pakistan;

(xl) "road transport permit" means a document issued by a

competent authority of one Contracting Party that allows

vehicles registered in the territory of the State of the other

Contracting Party to enter or exit or transit through its

territory;

(xli) "sealing" means affixing of PCCSS seal on transit goods

under Customs General Order 3/2020 dated 17.04.2020 and

issuance of transport note electronically;

(xlii) "system" means the Pakistan Customs Computerized

System (CCS) that is in operation in the Customs offices as

per Board's instructions;

(xIiii) "Directorate of Transit Trades" means the formations

established in the Directorate General of Transit Trade

specifically to handle the transit trade related affairs;

"shipper" means any natural or legal person by whom or

in whose name a contract of carriage of goods has been

concluded with a carrier, or any person by whom or in

whose name the goods are actually delivered to the carrier

in relation to the contract of carriage of goods;

"transit goods TG-GD" means the goods declaration filed

electronically by the importer or his authorized Customs

agent under these rules for cargo meant for transit to or

from Azerbaijan;

"transit cargo" means goods including vehicles imported or

exported by Azerbaijan for transit across Pakistan under

section 129 of the Act;

(xlvii)"transit goods" means the goods whether commercial or

non-commercial transited through Pakistan, to and from

Azerbaijan;

(xlviii)"transport note" means the duly prescribed document

containing sealing information generated by the Customs

Containerized Sealing Unit (CCSU) or the Customs sealing

staff at port of entry;

(xlix) "transport operator" or "TO" means Pakistan Railways or

such other carrier including a bonded carrier duly licensed by

the licensing authority or customs authorities of the

Contracting Parties, to carry out international transport

operations between the territories of the Contracting Parties,

or between its home country and to or from a third country

through the territory of the other Contracting Party;

"transport unit" means aircrafts, freight containers of

(1)

international specifications transported by road, railway

wagons or road vehicles including trailers and semi-trailers;

(Ii) "tax identification number" means a unique number

issued by relevant Ministry of Republic of Azerbaijan to

identify a specific taxpayer;

(lii) "user ID office" means the designated office in the

Directorate General Transit Trade for registration and

issuance of user IDs to the respective traders or users;

(WO user ID" means a unique user identifier as may be allocated

to a foreign trader intending to transit his goods through

territory of Pakistan as per procedure prescribed by the

Directorate General of Transit Trade to access the Customs

Computerized System;

(liv) "vehicle" means any rigid road vehicle, articulated vehicle,

unaccompanied trailer or semi-trailer; and

(Iv) "veterinary-sanitary inspection" means the inspection

applied to animals and animal products with a view to

protecting the life and health of persons and animals, as well

as that carried out on objects or goods which could serve as a

carrier for animal disease.

(2) The words and expressions used, but not defined herein, shall have

the same meanings assigned thereto in the Act.

Sub-Chapter-II

Procedure for registration of users with CCS and issuance of user ID

1. Registration of foreign business and other users with Customs

Computerized System for issuance of user ID or password.- (I) Directorate

General Reforms and Automation, Karachi shall generate one or more user IDs

for the focal person of the relevant Ministry of 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).

(2) The foreign entities i.e., traders, government organizations,

United Nations (UN) or Diplomatic Missions shall complete the requisite

registration proforma (Annex-I) which shall be submitted in the Customs

Computerized System by the relevant Ministry of Republic of Azerbaijan

electronically.

1. Issuance of user ID or password to the users by Customs

Computerized System (CCS).- (1) On receipt of the requisite information, the

Customs Computerized System (CCS) shall generate a user ID and password

and forward it to the applicant through his registered email address.

(2) The user shall have right to nominate upto three Customs clearing

agents or brokers to handle his transit cargo in Pakistan.

(3) A user can also nominate a transport operator for handling of cargo

i.e., both for filing of goods declaration (GD) and transportation of transit cargo

by the same logistic entity.

Sub-Chapter-III

Procedure for Commercial Vehicles transporting transit and bilateral

trade goods

1. Basis of entry of commercial vehicles.- (1) Vehicles transporting

transit and bilateral goods shall be licensed by the competent authorities of the

Contracting Parties as transport operator authorized to conduct international

transportation.

Every vehicle while exiting or entering Pakistan shall carry valid

permit issued by the competent authority on the prescribed format (Annex-II).

The vehicle details shall be mentioned on the permit.

The permit shall be valid for one vehicle and for single round trip

and only for the transport operator to whom it is issued and it shall be non-

transferable to other carriers or third parties.

The period of validity of permit in the normal circumstances shall

be thirty days from date of entry i.e., equal to number of days allowed for stay

in Pakistan in visa for each trip. However, in exceptional circumstances, the

vehicle can stay upto ninety days from date of entry into Pakistan under

intimation to the Customs. No further approval will be required from Customs

on basis of principle of reciprocity, as agreed by the two Contracting Parties.

Permits submitted within the current calendar year shall be valid

until 3 Pt January of the next year.

Permit shall also be required for empty run (dead-heading).

1. Number of permits to be exchanged between the Contracting

Parties. - (1) Before the start of every calendar year, the competent authorities

of the two Contracting Parties shall exchange agreed number of permits for

goods transport. Said permits must bear a stamp of the competent authority of

the State of the Contracting Party and the signature of an authorized person

issuing the permit.

The transport units, holding original permits shall not pay any

entry charges required from foreign transport units.

In case, the initial permits exchanged at the beginning of calendar

year have been utilized by a Contracting Party, it may request the other

Contracting Party for issuance of additional permits.

1 (4) The transport units holding additional permits shall be liable to

pay the charges as per national regulation of the host country.

(5) The additional permits shall be marked with the words "outside

quota" to distinguish these from those permits exchanged during the beginning

of the year.

1. Exemptions from road transport permit.- (1) The permit

referred to in rule 1140 is not required for transportation of.-

movable properties during resettlement;

materials and objects including art works intended for fairs

and exhibitions;

vehicles, live animals as well as various stocks and

properties intended for sporting events and circus shows;

theatrical decor and requisites, musical instruments,

equipment and accessories for filming, radio or TV

broadcasts;

the bodies or ashes of the dead;

(0 transporting for the purposes of humanitarian and medical

aid, rescue operation in response to natural disasters;

postal sending; and

by a vehicle where its total laden weight, including trailer do

not exceed 3.5 tons.

(2) The permit referred to in rule1140 is also not required for the

passage of a technical assistance's vehicle, intended for repair or towing of

defective vehicles.

1. Issuance of permits to Pakistan registered vehicles transporting

transit and bilateral trade cargo.- (1) The Directorate of Transit Trade,

Peshawar, Quetta and Gwadar shall be authorized to issue and regulate permits

at their respective land border customs stations.

Permits received from competent authorities shall be kept at

"Logistics Facilitation Center" at Torkham, Chaman, Taftan, Ghulam Khan and

Gwadar or any other relevant Customs station.

Permits shall be handed over to the vehicles of the registered

transport operators arriving at border Customs stations on first come first served

basis.

A vehicle carrying transit or export goods, after gate-in at border

Customs station shall be assigned a sequence number by Customs

Computerized System (CCS) for adding to the queue for handing over of the

duly filled permits by Logistics Facilitation Center.

The Logistics Facilitation Center shall keep the record of all the

vehicle permits handed over to the transport operators and shall communicate

weekly data to the Directorate General Transit Trade and Board.

(6) Pakistani vehicles destined to Azerbaijan shall also be required to

possess requisite authorization for transiting territory of Azerbaijan as agreed

between the two countries i.e. Pakistan and Azerbaijan.

(7) The Directorate General Transit Trade shall regulate the permits

and coordinate with Azerbaijan authorities for issuance of additional permits

well within time.

1. Entry of Azerbaijan's registered vehicles transporting

transit and bilateral trade cargo into Pakistan.- (1) 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 Logistics Facilitation Center shall record particulars of both

driver and vehicle in the CCS and these details should be linked with the

Federal Investigation Agency (FIA)'s immigration module so that driver can

only exit Pakistan, if his vehicle, on return journey, has entered the border

Customs station and gate-in event has been recorded in the Customs

Computerized System (CCS) and vehicle has completed all customs formalities

for exiting Pakistan.

Both Customs and FIA officials posted at the Customs border

stations shall carry out weekly reconciliation to ensure the implementation of

the above mechanism and to ascertain any overstayed vehicles.

A tracker shall be installed, on each vehicle upon en