Freight Forwarders Agents Rules

Government of Pakistan

(Revenue Division)

Federal Board of Revenue

Islamabad, thel 1th July.2025.

NOTIFICATION

S.R.O.1222 (l)12025.- In exercise of the powers confered b.v section 219

of the Customs Act, 1969 (lV of 1969), section 50 of thc Sales Tax Act, 1990,

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

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

direct that the lbllowing further amendments shall be made in the Customs Rules,

2001 . r'vhich. as required b1' sub-section (3A) of the said section 2 I 9. lr'ere

previousll, published vide notification S.R.O. No.8l4(l)/2025 dated the 16'h of

Mav. 2025. namelv:-

In the albresaid Rules, after Chapter-XlVl, lbllowing new Chapter-XlVII

shall be added. namely: -

XLVII

"Chapter

FREIGHT FORWARDERS LICENSING RULES

1. Delinitions In this chapter, unless there is anything repugnant in

the sub-ject or context: -

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(a) "airways bill" means a document which serues as a contract ol

carriage lbr goods shippcd b.v air, and is construed as a contract of

carriage between thc shipper and the airlirrest

(b) "dispute resolution committee (DRC)" means the committee

established under rule 1261 for resolving disputes;

(c)"e-commerce shipment" means goods/cargo handled through e-

ct:rrnnrerce's channcl b1'3PL.4PL. and 5l)l- manner:

(d)"freight forwarder" means a person or a company, as an agent,

concluding a contract r.vith a customer on freight lbmarding

services as logistic service provider relating to carriage.

consolidation. deconsolidation. storagc. handling of thc goods.

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packing or distribution of the goods. as r'vell as. ancillary and

advisory services in connection therewith;

(e) "freight forwarder association" an association collectively

representing the entire freight forwarding sector viz land, air. rail,

.., /o..un. or anl combination ol the aforesaid rneans of carriage.

dulv registered rvith the Directoratc General of l'rade Organizations

(DGI'O), Ministry of Commerce vide Trade organization Act- 2013.

and Trade Organization rules, 2013, such as l'}][:lrA (Pakistan

Internalional Freight Forwarders Association);

(1) "freight forwarding service" means sen'ices involving organizing

and coordinating the transportation of goods lionl onc location to

anothcr. acting as an intermediarl betu'ecn the shipper / consignee

and the carrier, as a logistics sen'ice provider (exercising due

diligence), and the handling tasks like carriage, consolidation,

deconsolidation, storage, handling of goods, as well as, ancillary

and advisory seruices in connection therewith, including but not

limited to. Customs and llscal matters, and preparing and

submission of documents relaling to the goods (Customs manif-est)l

(g) "form" means a Form in this chapter;

(h)"house bill of lading" means a document issucd by thc Freight

Fonrarder or a Non-Vessel Operating Common Carricr (NVOCC)'

1cl the ipper/consignec, rcpresenting a spccilic individual

sh

shipment within the larger cargo, each having its own set of terms

and conditionsl

(i) "licence" means a Licence granted under this chapter to act as a

freight forvvarder;

O "licensee" means a person or a legal entiqv to lvhom a licence is

granted under this chapter to act as a Freight Forwarder;

(k) "licensing authority" means a committee comprising of the

Collector of Customs HQ (Exporls-IOCO), Collector ol Customs

(Enlbrccmcnt). Karachi and Collector of Custon-rs JIAP' Karachi:

(l) "master bill of lading" nleans a document issucd bv the carier

(shipping line or airline) to the shipper or the fieight fbrw'arder'

serving as a contract of carriage of goods, against the entire

shipment, encompassing all individual consignments;

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1. Application'- (l No person shall operate as fieight lonvarder

)

unless licensed under these rules.

(2) Any person who seeks to obtain licence as lieight fbrwarder

shall make an application to the licensing authority on the lbrmat as set out

in l'orm-A along with the following documents with treasury challan

evidencing payment of five thousand rupees in favour of the Collector of

Customs, on account of application processing fee, which shall be non-

refundable. namell-:-

'Iax

(a) National Numbcr (N'l'N):

(b) copy of CNIC (in case of proprietorship), partnership deed

registered with the registrar of firms, along with CNICs of all the

paftners (in case of partnership), certificate of incorporation Form

29, Form A or 3A (in case of a single member company, limited

liabilitl' parlncrship or a private limited, issued bv thc Sccurities and

Exchange Commission of Pakistan), as the case mal bel

(c)valid membership cerlificate issued by the lieight forwarder

association in accordance with Trade Organization Act, 2013 (II of

\y

2013) and the rules made thereunder; and

(d)photograplis (4 x passport size) o1' proprietor in case of

proprietorship. all partners in case of partnership and all directors in

case of company.

1. Eligibility to file an Application - An applicant is eligible to

make an application with the liccnsing authority. subject to the lbllowing

conditions il' hc:-

(a) is a citizen of Pakistan, and/or the legal entity duly registered

under the relevant laws of Pakistan:

(b) is not belorv the age of 18 years at the time of filing of the

application:

(c) is having valid membership certificate issued by fieight forwarder

associalion in accordance with the Trade Organizations Act, 201 3

(ll of20l3) and the rules made thereunder; and

(d) demonstrates the existence ol- an insurance coverage (upon lvritten

instruction by the shipper/carrier).

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1. Approval of License,- (l ) tJpon receipt ofapplication. the liccnsing

authoritl, ihall issue license sub.jcct to f ullllment olthe lbllor'r"ing, narnell':-

(a) the applicant fulfills the conditions fbr grant of licence under these

rules;

(b)deposits a sum of two hundred thousand Rupees as securitl' deposit

foi operating in one customs station and five hundred thousand

Rupecs as security deposit lbr operating in more than one customs

staiion, in the shape of Det'ense Saving Certificates, pledged to the

Colleclor of Customs; and

(c) execute a bond for ensuring good conduct and to fbllorv customs

rules and regulations.

(2) 'l'he Collector of Customs HQ (Exports-IOCO) shall be

responsible to receive applications lbr processing and maintain rccords ofthe

lreight tbrw arders.

1. Licence and its conditions.- (1) The Licensing Authority may' on

fulfilling all conditions under rule 1209 of these rules, grant a non-

transferable licence fbr a period, initially for t'"v o 1'ears which shall be

renewable after every two years sub.iect to the follorving conditions. namell':-

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(a) the licence shall not be translerablc or sub-let and no licensee shall

bring about a change in the composition of the company,

proprietorship or firm. as the case may be;

(b) ihange of status of flrm fiom proprietorship to partnership to

.ornpuni' shall be allo',ved on submission of partnership deed dulr'

attcsicd b1' notary public on successful passing ol it.ttct'v'ieu or tcst

bl

or both b1 the nerv proprietor or partner. to be conducted the

licensing authoriry or any oflicer authorized in this behalt-:

(c) retirement of partner shatl be allowed on submission of an

additional undertaking that the existing partner may take the

responsibitity of all previous and future acts of the company and

shall be responsible for payment of any outstanding govemment

dues accrued on the companl bclbre and afler rctirement of the

panner:

(d) iissolution of partnership shall be allou'ed on submission of

dissolution deed and an under taking that the person continuing the

firm shalt be responsible fbr the payment of all or an.v outstanding

govemment dues accrued in thc name and title ol'the tlrm:

(c) Ihange olstatus of firm 1ionl proprietorship / panncrship to limited

.un,1ion, or changes oldircctorship in case o1'a conlpan)' shall onlv

be allowed if duty approved b.v the Securities and Iixchange

Commission ol Pakistan:

(1) in case of death of an individual licensee, the licence may be rc-

issuecl to his legal heir if he lulfllls the requisite criteria under the

taw. The new licensee shall execute a fresh bond for the purposel

however. the licensing Authority may allow the transl'er of the

security deposit held in the name of the dcceased licensee to the

name o1' new licensee subject to adjustnrent of the liabilities

attached to such deposit;

Provided that sub.iect to such additional conditions as the licensing

authorify- may impose, the licence may be renewed for a period of

five years, ii it has remained valid for the last ten years and no

criminal proceedings have been initiated or pending against the

licensee;

(e) in case the licence is lost or damaged, a duplicate copy thereof ma)'

be issued on a written request by the licensee, duly supported by

the documentary cvidence regarding loss or damage and on

payment of'lee of'five thousand rupees

1. Renewal of Licence - (1) An application as set out in Fornr-

B for the renewal of licence shall be made to the licensing authoriry nvo

months before its expiry. along with the following documents: -

\ (a) proof of undcrtaking transactions in capacity of a frcight

lorwarder; and

t-

(b) proof of payment of the renewal I'ee. which shall be rupees ten

thousand for renewal of licence for a period of five years

(2) Thc licensing authority mav refuse to rene\'' the licence if it

llnds that -

(a) the licensee has failed to apply for the renewal of licence

within the prescribed time;

(b) the licensee has become insolvent or bankrupt or is involved

in cases o1'tax liaud or criminal cascs. established through

conviction under an1' larv for the time being in lbrce;

(c) the licensee is declared to be of unsound mind by a competent

court or medical authoritY;

(d) thc Iicensee had viotated any applicable lar'v including the

provisions of thc Cusloms Act. 1969 and the rulcs made

thcreunder: and

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(e) the licensee has been revoked under these rules;

1. Authorization to sign and submit documents on behalf of

the Licensee.- A licensee may authorize not more than threc permit

holders, per Customs Station to sign customs documents on his behalf'

1. Issuance of Permits - (1). The Licensee shall apply to the

licensing authoritl' as set out in Form-C lilr the grant of Custonrs pernlit

1o such clcrks as he/she cmplol,s lbr transacting busincss at the custonls

Station such as Custom House, Seaport. Airport. I{ail Station or Land

Customs Station.

(2) Such application shall bear a court-fee stamp of rupees fift,v.

accompanied by three passport size phobgraphs of the persons whose

permits are applied for.

(3) The person lbr whom the permit has been sought. musl at

least have passed inter examination and holds a valid CNIC.

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(4) A customs permit shall not be transl-erable and shall be valid

only 1br the person in I'avor of rvhom it rvas issuecl.

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(5)

A custonts permit shall bc issued on pa)'ment ol'rupecs one

thousand and shall be valid lbr two ycars. unlcss suspendcd or earlier

revoked in accordance with these rules.

(6) '[he licensee shall apptl' fbr the renewal of the customs permit

issued in f-avor of his clerk at least one month prior to its expiry. duly

accompanied r.vith a rcnewal fee o['rupees five hundrcd.

(7)

The licensee shall immediately intbrm the licensing authority

in case the senrice of any permit holder is terminated, where after, the

licensee shall surrender the permit with the licensing authorit.v fbr

cancellation.

(8)

A customs permit shall be liable to be revoked or suspcncled

at an)' time by the Licensing Authoriry" tor any irrcgularitl, misbehavior or

1br any other reason lbr which a licence may be revoked or suspended.

(9) The customs permit shall always be carried by the person to

u,hom it has been issued and shall be produced befbre the relcvant ofllcer

of customs. on demand.

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,

(10) The licensee shall be responsible for allthe acts ofany person

holding a Customs permit on his behalf.

1. Responsibilities of Licensee.- (l) A Licensee shall:

(a) act as an intermediary between the cargo owner and the

carrier;

(b) cxercise duc diligence and take reasonable measures ln

the pertbrmance of lieight ibrwarding services;

(c) affange inland transportation of goods, maintaining

efl'ective communication with the exporter/transpoft

companies so as to ensure that the goods are timell'

delivered to the PorVairPort;

(d) rnanage multimodal transportation in a situation where

the gJods are required to be delivered to the destination

through sea. land andlor air route, simultaneously;

(e) of freight rates on behalf o1- the

negotiation

exporter/importer lv ith the carriers:

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(1) cor-rsolidaling shipments when ncoessary to optimize

costs and efficiencY;

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(g) arranging storage and warehousing facility for the goods

as and u'hen required by the exporter/imporler;

(h) prepare and process documents related to all shipment

activities, iniluding issuing their own house bill of

lading/airwaY bill;

(i)

upload cargo manifest as co-loaderl

0) issuance of Delivery Orders and managing FCL' LCL'

Air, Sea Land and Rail ShiPments:

(k) manage/untlertake e-commerce logistics through 3PI-

('l'hirJ Party I-ogistics). 4PL (fburth Party Logistics) and

5PL (Fifth Party t-ogistics) manner/serviccs; and

(l) responsible to carry out his scrvicc according to the

exporter's instructions. as agreed. and as per the correct

iniormation provided bv the consignor or consignee'

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1. Dispute Resolution Mechanism.- ( I ) For the purpose ol'anv

dispute requiring rcsolution. thcre shall be a dispulc resolutiotl committcc

(DRC) ro be constituted b) the Pakistan International Freight Fonr arders

Association (PIITFA).

(2) The DRC under sub-rule (l ) shall comprise such representatives

as the PIFFA may determine.

(3) Upon receiving a rT,ritten complaint rvith supporling

clocumentation, thc DRC shall issue noticcs to the conccmed parties r'vithin

seven days, requiring their replies within ten days.

(4) A hearing shall be scheduled within five days after receipt

of

all replies.

(5 ) Thc DRC shall resolve thc dispute amicably' and issue

decision within fltleen days of the hearing.

(6)

A report regarding settlement of disputes through DRC

shall be submitted to the Collector of Customs HQ @xports-IOCO).

(7)

If the dispute is not resolved by the DRC within thirtv da1"s

from the date of the complaint, the matter shall be brought in appeal befbre

\ the Customs Dispute Resolution Committee (CDRC) consisting ol the

following, namely:

a)

( Collector Export (HQs) - Chairman

( b) Additional Collector of Customs (Enlorcement)

Member:

( c) Chairman/Member PIFFA-South Zone Member; and

d)

( Chairman/Member of PIFFA-Nofih Zonc - Mcmber

(8)

The CDRC shall convenc its meeting at Customs llouse.

Karachi fbr hearing the parties including online hearings where necessary

w ith recorded justilication.

(9)

In respect ofthe notices, hearings, proceedings and decisions.

the CDRC shall fbllou,the same timelines as are applicable to the DRC.

(10) The appeal by the CDRC constituted under sub-rule (8) shall

be decided through a speaking order.

( I 1) Whcre an1'part) is aggricvcd bl decision in appcal undcr sub-

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rule ( l0), it may opt to challenge the decision bclore the competent court

of law in accordance with the applicable laws.

(12) Any freight fbrwarder or licensee. aggrieved by any decision

or order of thc licensing authority denying. revoking or suspending a

licence under this chapter, may prel'er an appeal as set out in lbrm-D along

with a copy of thc impugned order and grounds o1'appeal. r'vith the Chief

Collector of Customs (Exports-IOCO) within sixty days of the passing ol'

such decision or order.

1217, Action in case ofa violation ofthe conditions ofLicence -

(1). l-he licensing authority may revoke or suspend a licence or permit of

any' lieight lbrrvarder lbr the follorving reasons:-

(a) the licensee has made or cause to be made, in any application

lbr any license or permit under this chapter, or report iiled with

the customs. any statement which was, at the time and in light

of the circumstances under which it was made' f'alse or

misleading s'ith respect to an,v material lact or has omitted to

state in any such application or report;

(b) the ticensee has been convicted at any time ibr larceny, the11'

robbery, extortion, forgery, counterf'eiting, fiaud'

embezzlement, fraudulent conversion, or

"on."ul*"n1,

misappropriation of fu nds;

(c) the 1i&nsee has knowingl.v employed or continues to employ

any individual u'ho has been convicted ofany ol'fence referred

to under clause (b);

(d) the licensee has. in the course of its fieight forrvarding

business. with thc intent to defiaud, in an,v manner, will{ull-v

and knor,vingly dcceived, mislead or threatened any client or

prospective clienl;

(c) violotion by the lioensee of any provisions of the rules'

or

regulations. notifications, instructions orders passed

thereunder;

(0 aiding or abetting any individual, firm or company' as the case

ma1,be, fbr violation olany provision of these rules;

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(-e) n"glig"n." and ineffrciency ofthe licensee in the discharge

his,/her obligations;

(h) attempl by the licensee to inlluence the conduct of an1

employee on the customs house. customs station, port or

airport by the use ol fbrce, intimidation. duress, bribery or by

olltring an1' special inducement or gi11; and

(i) the lice'nscc's prcvitlus perlbrmancc has not becn satisl'actory

or has t.tot bce n truc to the customs.

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(2) In case of revocation of licence under Sub-Rule (1)' the

Licensing Authority after issuing show cause nolice to the licensee. tbrl'eit

the rvhole or parl of the securitl' deposited b1' the licensee under rule 1210

fr>r the settlement o1'anl outstanding ducs. Whercas. in case ilthe securitl

deposit is not lbrf-eited, it shall be rctumed to the concerncd person r'r'ithin

six months fiom the date of revocation or surrender of licence.

(3)

The licensing authority may, in case where immediate action

is considered necessary against the licensec. suspend his licence lilrthu'ith

altcr rccording rcasons in u,riting pcnding thc flnal action under thc rulcs.

(4)

The licence shall stand revoked immediatelf if the licensee:

(a) is declared insolvent or convicted by a court of law;

(b) fails to apply for renewal of licence after three years lrom

the last renewal:

(c) liles an application seeking canccllation of liccnce:

(d) lails to renew' membership with PIFFA; and

(e) cancellation/Suspension of PIFFA membership by its

executive committee.

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1. Training and Capacity Iluilding. - Frcight liorrrarding

agents shall be rcquired to underlake mandatory annual training program

from the Customs Academy of Pakistan. Pakistan Customs Academl' shall

carry out the training in coordination rvith the Pakistan Inlemational

Freight Forwarders Training Institute. Failure to attend the mandatory

training without sulficient cause ma)r lead kr suspension o1'license.

12I9. Transitional Provision - Existing freight lbnvarders

operating at the time of commencement of thcse rules shall appll lbr

licensing under these rules within six months of this notification.

1. Penalty for Non-compliance - Any licensee tailing to

comply'with these rules shall be liahle to penaltics as prcscribcd under the

Customs Act, 1969 and may lace suspcnsion or revocation ol liccnce as

well as WeBOC ID.

1. Multimodal Licensing Rules - l'hese rules shall also be

applicable to the multimodal fieight foruarding sector.

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Form-A

rulc 1208]

[see

Application for Grant of Freight Forwarder Licence

To"

The I-icensing Authoritl .

Subject Application for Crant of Freisht Forwarder Licence

Sir / Madam.

I, the undersigned, hereby apply for the grant ofa Freight Forwarder

Licence under the Freight Forwarders (Multimodal) l,icensing Rules'

I submit the fbttowing particulars fbr your kind consideration:

. Name of Applicant (IndividuaUCompany/Firm):