The Federal Board of Revenue (FBR) abolished the 10 percent processing fee on Afghan transit commercial goods in five major categories, which include confectionaries/chocolates, footwear, machinery, blankets/home textiles, and garments.
The waiver is applicable to Afghan Transit Trade cargo arriving at Pakistani ports between October 3 and November 16, 2023.
According to SRO 1112(I) 2023, issued by the FBR on Monday, an amendment has been made to SRO 1380(1)/2023. The notification specifies that the processing fee exemption applies to cargo arriving during the period from October 3, 2023, to November 16, 2023, as determined by the berthing date of the vessel. The regular processing fee will be applicable after this specified timeframe.
In October 2023, the FBR had initially imposed a 10 percent ad valorem processing fee on certain Afghan transit commercial goods. These goods include confectionaries and chocolates (HS Codes 1704.1000, 1704.9010, 1704.9090, 1804.0000, 1805.0000, 1806.2010, 1806.2090, 1806.3100, 1806.3200, and 1806.9000), footwear (HS codes covering various categories), machinery (Mechanical and Electrical) of chapter 84 & 85 (excluding Home Appliances), blankets and home textiles (HS Codes 6301, 6302, 6303, 6304, 6305, 6306, 6307, 6308, and 6310), and garments (HS codes covering various categories).
This recent development provides relief to traders and businesses involved in Afghan transit trade during the specified period, with the aim of facilitating smoother trade operations between Pakistan and Afghanistan.
