Pakistan Customs proposes special facilities for clearing CPEC cargoes

The customs authority proposed separate customs stations for each zone in order to avoid misuse of duty and tax incentives dedicated to CPEC consignments.

Pakistan Customs, in a set of proposals sent to the FBR, said a number of industrial zones would be established across the country. A total of 32 are proposed in the Punjab, 33 in Sindh, three in Islamabad, seven in Balochistan and 17 in Khyber Pakhtunkhwa.

Special Economic Zones Act 2012 allows duty/tax-free import of capital equipment, such as plant and machinery.

“The smooth working of these zones will require that custom stations/dryports be established within these zones,” the document said. “These customs stations may be operated under the collectorate having respective jurisdiction.”

In October 2016, the FBR had constituted a committee for preparing draft rules for special economic zones and Gwadar port and free zone areas. “It is therefore need of the hour that parallel to formulation of these rules, FBR may approach the ministry of planning development and reform to include the establishment of custom dry ports/stations into the plans of these special economic/industrial zones, involving customs-related activities,” advised the customs.

In order to ensure effective monitoring of the movement of CPEC related cargo, Pakistan Customs also suggested establishment of dedicated offices at every 100-kilometre along the CPEC route.

The authority said the CPEC cargo should be allowed movement through designated customs route. “The vehicles, carrying CPEC cargos, will have e-tracking system and automatically record movement of cargo, once the vehicle crosses customs offices on designated route,” it added.

The document further stated that any smuggling/pilferage of Chinese goods would have direct and serious repercussions on Pakistani industry and duty-paid goods.

“A separate directorate general of customs should be created for monitoring the functions of en-route goods movement,” it added.

In order to further enhance the security of CPEC cargo movement, it is also proposed that the online movement of the cargo should be viewed by both customs offices at port of entry and exit.

The containers carrying cargo should be sealed and de-sealed by customs at respective entry and exit points.