Special facilitation for clearing CPEC cargo offered by Pakistan customs

CPEC ever since its launch has been under a spotlight. Everyone is closely eyeing on the latest happenings. The project is in the interest of Pakistan and the government wants to make the most out of it.

Pakistan Customs had offered the Federal Board of Revenue (FBR) to facilitate the process of cargo handling by introducing special facilities for CPEC cargo. A week ago a request was made that the clearance of cargo under China-Pakistan Economic Corridor (CPEC) should be made a smooth process. The government has shown its interest to everything possible in its power for the success of this project.

Proposal to FBR            

The customs authority has put forth a proposal of having separate custom stations for economic and export processing zones. The aforementioned proposal was made to make sure that the duty and tax incentives offered exclusively to CPEC consignments are not being misused.

The government previously introduced special incentives on cargo handled under CPEC. Pakistan customs have sent a proposal document to FBR. Another suggestion was also made to have dedicated offices at every 100 km along the CPEC route to make sure effective monitoring of movement of CPEC related cargo.

The document said “A separate directorate general of customs should be created for monitoring the functions of en-route goods movement,”. Taking the security check on the cargo one step further, it is proposed that the movement of cargo should be administered online by the customs offices at port of entry and exit. Also, the containers should be sealed and de-sealed at the respective entry and exit points only by the customs officials. All these steps will ensure fool proof movement and delivery of cargo and give Cargo to Pakistan a better reputation and attract other countries for investment.

The authority said that CPEC cargo should be allowed to move on a designated customs route. This way the vehicles carrying CPEC cargo can be tracked through e-tracking mechanism. Whenever the vehicle will cross a customs office its movement will be tracked automatically.

Establishment of industrial units

The proposal further states the number of industrial units that will be established in the country. The number is 32 for Punjab, 33 for Sindh, 7 in Baluchistan and 17 in Khyber Pakhtunkhwa and 3 for the federal capital.

According to the Act of Special Economic Zones 2012, a tax free/ duty free import of capital equipment is allowed which includes plants and machinery. “The smooth working of these zones will require that custom stations/dry ports be established within these zones,” the document stated. “These customs stations may be operated under the collectorate having respective jurisdiction.”

FBR established a committee in October last year to formulate and draft rules for special economic zones, Gwadar port and free zone areas. It is also important to note that apart from the rules formulation process, FBR should also approach the ministry of Planning Development and Reforms. The ministry will aid the establishment of custom dry ports and stations into the plans of these special economic/industrial zones, involving customs-related activities.