Karachi’s customs authorities have called on the Federal Board of Revenue (FBR) to overhaul baggage rules to curb the widespread abuse of the current system and to introduce the “Overseas Pakistanis Door to Door Service Rules 2024” aimed at aiding overseas Pakistanis.
This move comes after the Federal Tax Ombudsman (FTO) identified significant misuse of the baggage scheme, where high-value luxury goods were being imported in the guise of personal baggage, often involving collusion with customs officials.
The FTO’s directive seeks to redefine what constitutes a commercial quantity of goods to better distinguish between regular personal effects and items brought in for commercial purposes.
The current regulations under SRO 666(I)/2006, which govern unaccompanied baggage, are deemed inadequate in preventing the import of goods in commercial quantities under the facade of personal and household effects.
An investigation initiated by the FTO revealed instances of goods being cleared with minimal duty and taxes, exploiting the passports of overseas Pakistanis with limited financial means.
These practices not only undermine the integrity of the baggage system but also result in significant economic losses.
The customs authorities’ recommendations include amending the definition of commercial quantity to prevent misdeclaration and misuse of the baggage scheme.
The Directorate General of Intelligence and Investigation, Customs in Karachi, has also echoed similar concerns, highlighting the need for stringent measures to ensure that the import of goods through baggage does not circumvent import restrictions and foreign exchange limitations.
In response, the Collectorate of Customs Enforcement (Ports), Karachi, has taken steps to improve the clearance process, resulting in a noticeable reduction in complaints related to the import of commercial quantity goods as personal baggage.
The FBR is now tasked with reviewing and implementing the proposed changes to the rules and procedures to mitigate misuse and facilitate genuine overseas Pakistanis.
Â
There may not be misuse of baggage but door to door services has very good facilitation to citizen
very nice. Tighten baggage rules for getting misuse. People coming from abroad must bear this inconvenience,especially overseas Pakistan’s who come to visit Pakistan after many years. This rule is not to discourage you from visiting Pakistan. But infact it is to catch cheaters that misuse this facility and deprive exchequer from money and hurt the industry/ country in big way.
Govt must give some other incentives to over seas Pakistani by providing free transportation and some other facility to overseas Pakistani in lieu of this inconvenience.
Yes it is being misused at all custom’s stations, Lahore and Peshawar are notorious. Customs officials like examiners are hand in glove with smugglers.
Door2Door is a service offered by logistic companies but strictly speaking this service is misused by importers and exporters. Customs authorities very well know, what is going on and how everyone is happily to work with D2D service providers.
It’s shame that precious forex is wasted and authorities do nothing to stop.
The Federal Board of Revenue (FBR) is set to enforce stricter baggage rules in response to Customs authorities’ concerns over the misuse of duty-free import schemes. Some Companies making money
element of misuse here n collusion of cannot be ruled out. FBR must amend the rules but the staff involved should also be properly handled.