The Federal Board of Revenue (FBR) has decided to issue new transshipment rules in the coming budget to facilitate movement of bonded carriers from one dry port to another, and streamline licensing, registration, sealing and de-sealing of containers.
Budget makers told Business Recorder on Wednesday that the board is actively working on revising transshipment rules in consultation with the Model Customs Collectorate, (Preventive) Karachi, to expand the scope of these rules. The board would issue new transshipment rules through amendment in Customs Rules 2001 to incorporate best international practices for transshipment of cargo through land routes.
The current rules are not clear on movement of the goods from airport to dry port or dry port to dry port. These rules focus on movement of goods from seaport to upcountry dry ports, but there is a need to further elaborate transshipment process between ports.
The existing rules cover movement of bonded carriers between ports, but they have to explicitly elaborate each process under the new business environment and global trade practices.
The new rules would also take care of another issue of transshipment of goods to airports for export purposes. Similarly, if a container from Faisalabad dry port is destined for Afghanistan through land route, the transshipment procedure should clearly specify the process in this regard.
Sources said that the existing rules mostly encompass Karachi Port with establishment of Customs Container Security Unit (CCSU)" at Custom House Karachi for controlling the container sealing operations throughout Pakistan. If a collector intends to suspend registration of a bonded carrier company, he has to approach the Karachi customs where all guarantees and securities are deposited under the existing rules. There is a need to decentralise these rules so that the collectors could easily deal with the carriers operating within the jurisdiction of their collectorates.
The board would also notify specific routes for the bonded carriers for effective monitoring of vehicles/trucks from Karachi to other cities under the revised transshipment and transit rules to be issued under 'One Customs' clearance system within a fortnight.
Sources said that the revised procedure has been specifically chalked out in view of "One Customs" database and transit system. The board would chalk out a mechanism to ensure proper tracking of containers throughout the country. The new rules would notify tracking system and time period of movement of containers from port to designated collectorate.
One of the important features of the new rules is the specification of journey time for movement of containers. A specific time period would be notified for movement of containers from one point to another. Secondly, trucks carrying containers would be bound to reach the destination without the given time frame under revised rules.
Presently, the board had made it mandatory for the bonded carrier to use only such vehicles/trailer units for transshipment having permanently installed/fixed tracking device to monitor vehicles used for transshipment purposes.
Under existing rules, the transshipment is only allowed if the bonded carrier possesses a fleet of minimum 25 registered vehicles in his name or company or are leased by them. The bonded carrier will be allowed to use only such vehicles/trailer units which have a permanently installed tracking device of a reputable company.
The customs staff shall verify the satisfactory working of the tracker and the identity of the vehicle used by the bonded carrier for transshipment of consignments, as well as the road worthiness of the vehicle/trailer/prime mover and registration number and other particulars of the vehicles.