Trade activities at the Sost Dry Port have resumed after the Pakistan Customs Appellate Tribunal issued a ruling on the clearance of more than 200 consignments, which had been stuck due to a trade dispute.
According to reports, the tribunal’s decision also addressed the confiscation of goods worth nearly Rs8 billion, stemming from misdeclaration charges by traders.
Trade between Pakistan and China had been halted for several months following a standoff between Pakistan Customs and traders from Gilgit-Baltistan (GB). The dispute centered on tax collection issues and allegations of misdeclaration in Goods Declarations (GDs).Â
In response, local traders, backed by political and religious parties, blocked the Karakoram Highway near the Khunjerab Pass, stopping cross-border trade and travel for over two months.
The protest came to an end after a federal committee negotiated with GB representatives, leading to the partial resumption of trade on September 29.
GB traders challenged the Customs (Adjudication) orders before the Customs Appellate Tribunal in Islamabad. A special division bench, led by Hafiz Ansarul Haq (judicial) and Abdul Waheed Marwat (technical), heard over 80 appeals and issued a verdict on Tuesday.
The tribunal ruled that traders had intentionally misdeclared the nature and value of goods, including cigarette acetates, in an effort to evade taxes. Each case involved an average of Rs1.5 billion in underreported value, contributing to a total tax evasion attempt close to Rs8 billion.
While the tribunal upheld the findings of misdeclaration, it directed Pakistan Customs to re-assess the goods in the presence of the importers’ representatives. The tribunal also waived fines and penalties for the majority of cases.
