FBR Implements a 10% Processing Fee on Essential Afghan Transit Goods

Federal Board of Revenue (FBR) has introduced a 10 percent processing fee on significant categories of Afghan transit commercial goods. These categories include items such as confectionaries and chocolates, footwear, machinery (both mechanical and electrical), blankets, home textiles, and garments that are imported into Afghanistan while in transit through Pakistan.

This decision comes as part of the FBR exercise of powers authorized by section 18D of the Customs Act, 1969. The government has implemented this processing fee, which amounts to 10% ad valorem, on specific Afghan transit commercial goods that enter Afghanistan through Pakistan. Let’s take a closer look at the goods covered by this new fee:

Confectionaries and Chocolates: This category encompasses various items under specific Pakistan Customs Tariff headings, known as HS Codes. These include codes 1704.1000, 1704.9010, 1704.9090, 1804.0000, 1805.0000, 1806.2010, 1806.2090, 1806.3100, 1806.3200, and 1806.9000.

Footwear: Footwear items are categorized under different HS codes, including 6401.9200, 6401.9900, 6402.1900, 6402.2000, 6402.9900, 6403.1900, 6403.4000, 6403.5900, 6403.9100, 6403.9900, 6404.1100, 6404.1900, 6404.2000, 6405.1000, 6405.2000, 6405.9010, 6405.9090, 6406.1000, 6406.2010, 6406.2090, and 6406.9000.

Machinery (Mechanical and Electrical): This category includes machinery falling under chapters 84 and 85, with the exception of Home Appliances (CBUs).

Blankets and Home Textiles: These items are identified by HS Codes such as 6301, 6302, 6303, 6304, 6305, 6306, 6307, 6308, and 6310.

Garments: Garments covered by this fee are identified by HS codes from 6101 to 6217.

It’s important to note that this fee will not be applicable to Afghan Transit Goods Declarations (AT-GDs) that were filed before the issuance of this notification. This move aims to regulate and streamline the transit of these goods while ensuring that the necessary processing fee is collected.