FBR decides to amend certain provisions of APTT rules

SOHAIL SARFRAZ

ISLAMABAD: In a major development, the Federal Board of Revenue (FBR) has decided to amend certain provisions of the Afghanistan Pakistan Transit Trade Rules which are directly clashing with the Afghanistan Pakistan Transit Trade Agreement (APTTA).

Sources told Business Recorder here on Saturday that the 30 days deferment period of the relevant provisions of the APTTA and Afghanistan Pakistan Transit Trade Rules relating to the collection of insurance guarantees from Afghan importers on goods has been expired on October 8, 2011. However, till October 8, 2011, the FBR has yet not issued any written instructions to the Model Customs Collectorates for further suspension of period of deferment of these rules pertaining to insurance guarantee. For further extension in suspension period beyond Oct 8 pertaining to insurance guarantees needs written directive of the Board to the Collectors of Customs.

According to sources, some provisions of the Afghanistan Pakistan Transit Trade Rules are directly in clash with the APTTA. Therefore, the FBR has decided to amend the SRO.601 (I)/2011 which was issued for the operationalization of the APTTA. All amendments in the Afghanistan Pakistan Transit Trade Rules are customs related which would be made on the request of the Afghan customs and traders.

One of the major amendments in the Afghanistan Pakistan Transit Trade Rules is that the FBR would notify the percentage for physical examination of the Afghan containers as mentioned in the APTTA. Under the Afghanistan Pakistan Transit Trade Agreement, Pakistani customs authorities are empowered to conduct physical examination upto 5 percent of the Afghan containers. Contrary to this, 5 percent of the total Afghan consignments would be selected for physical examination under the Afghanistan Pakistan Transit Trade Rules. Legally, there is a major difference between these two provisions which was highlighted by the Afghan customs. The Rules would be made in line with the APTTA through amendments in the SRO.601 (I)/2011.

Pakistani customs authorities would present the amended Afghanistan Pakistan Transit Trade Rules before the Afghan authorities in the next meeting of the Pak-Afghan Joint Commission to be held from October 12-14 2011 at Islamabad. All such customs related changes would be presented before the Afghan side in the upcoming meeting of the Pak-Afghan Joint Commission, sources added.